Shares of D.R. Horton and PulteGroup rose on Tuesday after each homebuilder's latest quarterly results came in better than expected. https://t.co/Tp5PxDXjyC ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) Commission File Number 1-9804 PULTEGROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Michigan 38-2766606 (I.R.S. Employer Identification No.) 3350 Peachtree Roa ...

Core Insights - PulteGroup Inc. reported better-than-expected second-quarter 2024 results, with adjusted earnings and total revenues exceeding the Zacks Consensus Estimate [1][3]. Financial Performance - Adjusted earnings were $3.03 per share, surpassing the Zacks Consensus Estimate of $2.92 by 3.8%, but down from $3.58 in the same quarter last year [3]. - Total revenues reached $4.4 billion, exceeding the consensus mark of $4.37 billion by 0.8%, but decreased 4.3% from $4.6 billion year-over-year [3]. Segment Analysis - Homebuilding segment revenues fell 4.1% year-over-year to $4.3 billion, with home sale revenues also down 4.1% to $4.27 billion [4]. - The number of homes closed decreased by 5.7% to 7,639 units, while the average selling price (ASP) of homes delivered increased by 1.8% to $559,000 [5]. - Net new home orders declined 7.4% year-over-year to 7,083 units, with the value of new orders down 10.8% to $3.89 billion [5][6]. Backlog and Margins - The backlog of homes yet to be closed was 10,779 units, down from 12,982 units a year ago, with potential housing revenues from the backlog decreasing to $6.84 billion from $8.11 billion [6]. - Home sales gross margin decreased by 290 basis points year-over-year to 27%, while SG&A expenses as a percentage of home sales revenues increased by 100 basis points to 9.1% [6]. Financial Services - Revenues from the Financial Services segment dropped 9.4% year-over-year to $101.2 million, with pretax income declining to $43 million from $63 million a year ago [7]. Cash Position - At the end of the second quarter, cash, cash equivalents, and restricted cash totaled $1.27 billion, down from $1.65 billion at the end of 2024 [8]. - Net cash provided by operating activities was $421.7 million, down from $657.3 million in the prior-year period [9]. Market Outlook - CEO Ryan Marshall highlighted challenges in the spring selling season due to high mortgage rates and economic uncertainty, but noted improved consumer sentiment during periods of rate declines [2].

Shares of PulteGroup, Inc. (NYSE: PHM ) have been a poor performer over the past year, losing about 7% of their value, as the housing market has softened under the weight of elevated mortgage rates. However, investors got much-needed relief Tuesday when theOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an articl ...

PulteGroup (PHM) Q2 2025 Earnings Call July 22, 2025 08:00 AM ET Company ParticipantsJames Zeumer - VP - IRRyan Marshall - President, CEO & DirectorJames Ossowski - EVP & CFOIvy Zelman - EVP & Co-FounderMichael Rehaut - Executive DirectorStephen Kim - Senior MDJay McCanless - MD - Equity ResearchBuck Horne - Managing DirectorConference Call ParticipantsJohn Lovallo - Homebuilders AnalystMatthew Bouley - Senior Equity Research Analyst - U.S. Homebuilding & Building ProductsAnthony Pettinari - Research Analys ...

PulteGroup (PHM) Q2 2025 Earnings Call July 22, 2025 08:00 AM ET Speaker0Good morning, and thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the PulteGroup, Inc. Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Jim ...

Q2 2025 Operating & Financial Results July 22, 2025 Forward-looking statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to ma ...

```markdown [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) PulteGroup reported second-quarter 2025 net income of $608 million, or $3.03 per diluted share, a decrease from $809 million, or $3.83 per share, in the prior year, navigating a competitive market by aligning production with demand, achieving a gross margin of 27.0%, and returning $300 million to shareholders via share repurchases, while maintaining a strong financial position with a debt-to-capital ratio of 11.4% and a cash balance of $1.3 billion despite a 4% decrease in home sale revenues to $4.3 billion and a 6% drop in closings Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $608 million | $809 million | -24.8% | | Diluted EPS | $3.03 | $3.83 | -20.9% | | Home Sale Revenues | $4.3 billion | $4.4 billion | -4% | | Closings (units) | 7,639 | 8,097 | -6% | | Home Sale Gross Margin | 27.0% | 29.9% | -290 bps | | Net New Orders (units) | 7,083 | 7,649 | -7% | - CEO Ryan Marshall noted that despite challenges from high interest rates and economic concerns, the company saw a positive consumer response to interest rate pullbacks and has aligned its production and land investment to serve current demand while positioning for future growth[4](index=4&type=chunk)[5](index=5&type=chunk) - The company continued its capital return program, repurchasing **3.0 million common shares** for **$300 million** in the second quarter, with year-to-date spending of **$600 million** on repurchasing **5.8 million shares**[3](index=3&type=chunk)[10](index=10&type=chunk) - PulteGroup ended the quarter with a strong balance sheet, featuring **$1.3 billion in cash** and a debt-to-capital ratio lowered to **11.4%**[6](index=6&type=chunk)[10](index=10&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's performance, financial position, and cash flows, with total revenues of $8.30 billion and net income of $1.13 billion for the six months ended June 30, 2025, total assets of $17.59 billion supported by $12.57 billion in shareholders' equity, and $421.7 million in cash generated from operating activities, while significant cash was used for share repurchases [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues decreased to $4.40 billion from $4.60 billion year-over-year, primarily due to a 4% decline in home sale revenues, consequently, net income fell to $608.5 million from $809.1 million in Q2 2024, resulting in diluted EPS of $3.03 compared to $3.83, with the prior year's results including a notable pre-tax insurance benefit and a tax benefit Consolidated Statements of Operations Highlights ($000's) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $4,403,755 | $4,599,655 | $8,296,406 | $8,548,815 | | Income before income taxes | $807,156 | $1,048,312 | $1,488,294 | $1,916,955 | | Net income | $608,483 | $809,133 | $1,131,282 | $1,472,109 | | Diluted earnings per share | $3.03 | $3.83 | $5.60 | $6.93 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, PulteGroup's total assets were $17.59 billion, a slight increase from $17.36 billion at the end of 2024, with the company's cash position decreasing to $1.27 billion from $1.65 billion, while house and land inventory grew to $13.22 billion, and shareholders' equity increased to $12.57 billion, reflecting retained earnings Condensed Consolidated Balance Sheet Highlights ($000's) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total cash, cash equivalents, and restricted cash | $1,267,326 | $1,653,680 | | House and land inventory | $13,216,008 | $12,692,820 | | Total Assets | $17,587,811 | $17,363,763 | | Notes payable | $1,623,065 | $1,618,586 | | Total Liabilities | $5,012,869 | $5,241,799 | | Total Shareholders' equity | $12,574,942 | $12,121,964 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities was $421.7 million, a decrease from $657.3 million in the same period of 2024, mainly due to a larger increase in inventory, with the company using $768.9 million in financing activities, dominated by $600 million in share repurchases, resulting in a net decrease in cash of $386.4 million for the period Consolidated Cash Flow Highlights - Six Months Ended June 30 ($000's) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $421,733 | $657,264 | | Net cash used in investing activities | ($39,182) | ($66,201) | | Net cash used in financing activities | ($768,905) | ($994,274) | | **Net decrease in cash** | **($386,354)** | **($403,211)** | - Key uses of cash in financing activities for the first six months of 2025 included **$600 million for share repurchases** and **$90.1 million for dividend payments**[23](index=23&type=chunk) [Segment Data](index=7&type=section&id=Segment%20Data) The company's operations are divided into Homebuilding and Financial Services, with the Homebuilding segment's pre-tax income declining to $764.4 million in Q2 2025, and the Financial Services segment also seeing a decrease in pre-tax income to $42.8 million, impacted by lower closing volumes, while Homebuilding operations experienced a drop in closings and new orders across most regions [Homebuilding Operations](index=7&type=section&id=Homebuilding%20Operations) The Homebuilding segment's income before taxes for Q2 2025 was $764.4 million, down from $984.9 million in Q2 2024, with closings decreasing by 6% to 7,639 units, while net new orders fell 7% to 7,083 units, and the average selling price saw a slight increase to $559,000, with the quarter-end unit backlog standing at 10,779 homes valued at $6.8 billion, compared to 12,982 homes valued at $8.1 billion a year ago Q2 2025 Homebuilding Closings by Region (Units) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Northeast | 451 | 378 | +19.3% | | Southeast | 1,402 | 1,499 | -6.5% | | Florida | 1,882 | 2,150 | -12.5% | | Midwest | 1,272 | 1,196 | +6.4% | | Texas | 1,218 | 1,472 | -17.3% | | West | 1,414 | 1,402 | +0.9% | | **Total** | **7,639** | **8,097** | **-5.7%** | Q2 2025 Net New Orders by Region (Units) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Northeast | 384 | 400 | -4.0% | | Southeast | 1,405 | 1,396 | +0.6% | | Florida | 1,773 | 1,746 | +1.5% | | Midwest | 1,272 | 1,265 | +0.6% | | Texas | 1,042 | 1,275 | -18.3% | | West | 1,207 | 1,567 | -23.0% | | **Total** | **7,083** | **7,649** | **-7.4%** | - The unit backlog at the end of Q2 2025 was **10,779 homes** with a value of **$6.8 billion**, down from 12,982 homes valued at $8.1 billion a year ago[9](index=9&type=chunk)[28](index=28&type=chunk) [Financial Services Operations](index=7&type=section&id=Financial%20Services%20Operations) The Financial Services segment reported pre-tax income of $42.8 million for Q2 2025, a decrease from $63.4 million in the prior-year quarter, primarily due to lower home closing volumes, with the mortgage capture rate remaining strong at 84.8%, slightly down from 86.5% in Q2 2024, and origination principal largely flat year-over-year - Pre-tax income for the Financial Services segment was **$42.8 million** in Q2 2025, compared to $63.4 million in Q2 2024[9](index=9&type=chunk)[25](index=25&type=chunk) Q2 Mortgage Originations | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Origination Volume (loans) | 4,984 | 5,105 | | Origination Principal | $2,164,755,000 | $2,140,103,000 | | Capture Rate | 84.8% | 86.5% | [Supplemental Information and Non-GAAP Reconciliation](index=9&type=section&id=Supplemental%20Information%20and%20Non-GAAP%20Reconciliation) This section provides supplemental data on interest capitalization and a reconciliation of non-GAAP measures, with the company's debt-to-capital ratio improving to 11.4% at the end of Q2 2025, and the net debt-to-capital ratio standing at 2.8%, reflecting the company's low leverage [Supplemental Data (Interest)](index=9&type=section&id=Supplemental%20Data%20(Interest)) In the second quarter of 2025, PulteGroup capitalized $26.1 million of interest and expensed $29.0 million, with the total interest in inventory at the end of the period being $136.6 million, a decrease from $149.4 million at the same time last year Interest Incurred and Expensed ($000's) | Description | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest capitalized | $26,129 | $29,284 | | Interest expensed | ($29,046) | ($28,023) | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) PulteGroup's debt-to-capital ratio improved to 11.4% as of June 30, 2025, down from 11.8% at the end of 2024, with the net debt-to-capital ratio at 2.8%, calculated by subtracting total cash from notes payable, which compares to a net cash position (negative 0.3% ratio) at year-end 2024, indicating a slight increase in net leverage but still a very strong balance sheet Debt-to-Capital Ratios Reconciliation ($000's) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Notes payable | $1,623,065 | $1,618,586 | | Shareholders' equity | $12,574,942 | $12,121,964 | | **Debt-to-capital ratio** | **11.4%** | **11.8%** | | Total net debt | $355,739 | ($35,094) | | **Net debt-to-capital ratio** | **2.8%** | **(0.3)%** | ```

Group 1 - PulteGroup is expected to report fiscal Q2 earnings on July 22, 2025, with anticipated earnings of $3.01 per share and revenue of $4.42 billion, reflecting a 16% drop in adjusted earnings and a 4% decline in revenue compared to the previous year [2] - The company's unit backlog decreased by 16% year-over-year in Q1, with a 12% decline in backlog value, indicating potential challenges for future revenue [3] - PulteGroup has a market capitalization of $23 billion, with revenue of $18 billion over the past twelve months, operating profits of $3.8 billion, and net income of $2.9 billion [3] Group 2 - Historical data shows that PulteGroup's stock has increased following earnings reports 70% of the time, with a median one-day gain of 4.4% and a peak increase of 9% [2][6] - In the last five years, there have been 20 earnings data points, with 14 positive and 6 negative one-day returns, resulting in a 70% occurrence of positive returns [6] - The correlation between short-term and medium-term returns following earnings announcements can provide a lower-risk trading strategy, particularly if the 1D and 5D returns exhibit strong correlation [7]

Core Viewpoint - PulteGroup Inc. is expected to report a decline in earnings and revenues for the second quarter of 2025, primarily due to ongoing affordability challenges in the housing market and high mortgage rates impacting homebuyers [1][2][3]. Revenue Summary - The Zacks Consensus Estimate for Q2 2025 EPS has decreased to $2.93, reflecting an 18.2% decline from the previous year's EPS of $3.58 [2]. - Revenue is projected at $4.39 billion, indicating a 4.5% year-over-year decline [2]. - Home closings are expected to be between 7,400 and 7,800 units, down from 8,097 units a year ago, with a predicted decline of 6.6% year over year to 7,561 units [3][4]. Segment Performance - Homebuilding revenues, which contributed 97.4% to total revenues in Q1 2025, are expected to decrease by 4.3% year over year to $4.3 billion due to lower home closings [4]. - Financial services revenues, contributing 2.6% to total revenues in Q1, are expected to increase by 1.4% year over year to $113.2 million [4]. Pricing and Margins - The average selling price (ASP) for homes is expected to rise between $560,000 and $570,000, compared to $549,000 a year ago, with a predicted increase of 2.4% year over year to $562,200 [5][6]. - Gross margin is anticipated to shrink to 26.7% from 29.9% last year, impacted by higher buyer incentives and cost pressures [6][7]. Orders and Backlogs - Net new orders are expected to increase by 2.1% year over year to 7,811 units, while total backlog is projected to decline by 10.8% to 11,585 units, with the total backlog value decreasing by 7.3% year over year to $7.51 billion [8]. Earnings Prediction - The model indicates that PulteGroup may not achieve an earnings beat this quarter, with an Earnings ESP of -1.27% and a Zacks Rank of 4 (Sell) [9].