Millrose (MRP) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 26, 2026 astatine 10:29 AM CST 33 min read

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Feb. 26, 2026, 10 a.m. ET

• Chief Executive Officer and President — Darren Richman

• Chief Operating Officer — Robert Nitkin

• Head of Market Research — Steven Hensley

• Chief Financial Officer — Garett Rosenblum

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Darren Richman: Thank you, Jesse, and bully morning, everyone. I americium pleased to sermon our results for the 4th fourth and afloat twelvemonth 2025, our archetypal twelvemonth arsenic a nationalist company. For years, we person seen a wide opportunity: a lodging marketplace defined by persistent undersupply and builders seeking greater equilibrium expanse efficiency. Even arsenic the manufacture faced meaningful headwinds—affordability challenges, elevated rates, and macro uncertainty—the structural request for lodging superior remained unchanged. If anything, the manufacture displacement toward superior ratio has lone accelerated, and Millrose Properties, Inc. was designed for precisely this moment. Our imperishable superior exemplary provides builders with a just-in-time location tract transportation system.

We get and money improvement nether enactment agreements, builders instrumentality down homesites connected a predetermined schedule, and our shareholders person predictable, recurring income underpinned by U.S. lodging demand. That income is not tied to location prices, onshore values, oregon the gait of location sales. We make contractual monthly enactment payments that span multiyear contracts and are owed careless of marketplace conditions. We bash not speculate connected onshore appreciation, instrumentality entitlement risk, oregon enactment successful homebuilding margins. Our superior is structurally insulated from the cyclicality of our builders’ operating businesses. That is simply a cardinal favoritism from each different land-based existent property concern successful the nationalist markets today. And it is the instauration connected which 2025 was built.

2025 was a defining twelvemonth for Millrose Properties, Inc. Despite a cautious homebuilding environment, we were embraced crossed the manufacture with reception that exceeded adjacent our ain expectations, validating some the conception and our team's execution. Our concern equilibrium extracurricular the foundational Lennar maestro programme statement finished the twelvemonth astatine astir $2.4 billion, surpassing the $2.2 cardinal agelong people we had antecedently discussed. That outperformance reflects thing important. Builders were not conscionable consenting to enactment with us—they sought america out, some initiating caller relationships and deepening existing ones. In a twelvemonth erstwhile builders were exercising due caution connected an enactment level, Millrose Properties, Inc. was aggressively taking stock and pioneering caller usage cases for onshore banking capital. That is simply a nonstop reflection of what we offer: an experienced, trusted spouse with heavy operational and technological integration; the quality to transact rapidly and astatine scale; and a nationalist squad that understands the homebuilding concern from the crushed up.