Financial Data and Key Metrics Changes - PulteGroup generated third quarter home sale revenues of $4.2 billion, down 2% from $4.3 billion in the same quarter last year [15] - Operating margins were reported at 16.8%, with earnings of $2.96 per share, reflecting a return on equity of 21% for the trailing twelve months [5] - The company reported net income of $568 million, or $2.96 per share, compared to $698 million, or $3.35 per share, in the third quarter of the previous year [21] Business Line Data and Key Metrics Changes - Net new orders totaled 6,638 homes, a 6% decrease year-over-year, with a 10% decrease in absorption pace [12] - Active adult business saw a 7% increase in net new orders, representing 24% of Q3 net new orders, while first-time buyers decreased by 14% and move-up buyers by 3% [14] - The average sales price (ASP) increased by 3% to $564,000, despite a 5% decrease in closing volumes to 7,529 homes [15] Market Data and Key Metrics Changes - The company operates across 47 major markets, with better home buying demand noted in parts of the Midwest, Northeast, and Southeast, particularly in Florida [26] - The cancellation rate for the third quarter was 12%, up from 10% last year, indicating that most home buyers remain committed once under contract [12] - The absorption rate was 2.2 homes per month, down from 2.4 homes per month in the same quarter last year [13] Company Strategy and Development Direction - PulteGroup is focusing on aligning production levels with sales volumes, having started 6,557 homes in Q3, matching the sales pace [10] - The company plans to invest approximately $5 billion in land acquisition and development, down 5% from last year, while maintaining a healthy land pipeline [11] - The Del Webb brand is being leveraged to attract Gen X buyers through new Del Webb Explore communities, aiming to serve a broader demographic [8] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is weak, impacting first-time buyers, while demand remains resilient in the active adult segment [7] - The company expects to close between 7,200 to 7,600 homes in Q4, with a full-year closing estimate of 29,000 to 29,400 homes [17] - Management expressed optimism about the potential for improved housing demand if consumer confidence increases alongside lower interest rates [61] Other Important Information - The gross margin for Q3 was reported at 26.2%, down 80 basis points from Q2, influenced by higher incentives due to competitive market dynamics [18] - The company repurchased 2.4 million common shares for $300 million in Q3, with $1.3 billion remaining under the share repurchase authorization [22] - PulteGroup ended the quarter with $1.5 billion in cash and a debt-to-capital ratio of 11.2% [24] Q&A Session Summary Question: What is the right path forward for PulteGroup in the home building industry? - Management indicated that addressing the structural housing shortage requires a coordinated effort involving federal, state, and local leaders [33] Question: Can you elaborate on the strategy regarding spec production? - Management clarified that while they aim for spec production to be 40-45%, current market conditions have led to a higher percentage of specs due to lower sales of to-be-built homes [36] Question: What are the current market conditions in Florida and the Southeast? - Management confirmed stabilization in demand and pricing in Florida and the Southeast, highlighting strong locations and favorable tax policies [42] Question: How are incentives trending and what is their impact on margins? - Management noted that incentives were consistent throughout the quarter, with financial incentives making up about one-third of the total incentive package [69] Question: What is the impact of lower development costs on future lot costs? - Management indicated that lower land development costs would positively impact lot costs in 2026 and beyond, as current developments will influence future pricing [96]

Financial Data and Key Metrics Changes - PulteGroup reported third quarter home sale revenues of $4.2 billion, a decrease of 2% from $4.3 billion in the same quarter last year [14] - Operating margins for the third quarter were 16.8% [4] - Earnings per share for the third quarter were $2.96, down from $3.35 in the previous year [21][22] - The company generated a return on equity of 21% for the trailing twelve months [5] - The net income for the third quarter was $568 million, compared to $698 million in the same quarter last year [21][22] Business Line Data and Key Metrics Changes - Net new orders totaled 6,638 homes, a 6% decrease year-over-year, with a 10% decrease in absorption pace [12] - The active adult business saw a 7% increase in net new orders compared to the previous year, representing 24% of Q3 net new orders [13][14] - First-time buyer orders decreased by 14%, while move-up orders were down 3% [13] - The cancellation rate for the third quarter was 12%, up from 10% last year [12] Market Data and Key Metrics Changes - Demand conditions varied by market, with stronger demand in the Midwest, Northeast, and Southeast, particularly in Florida, where net new orders increased by 2% [26][28] - The absorption rate for the third quarter was 2.2 homes per month, down from 2.4 homes per month in the same quarter last year [9][12] - The company ended the third quarter with a backlog of 9,888 homes valued at $6.2 billion, down from 12,089 homes valued at $7.7 billion last year [15] Company Strategy and Development Direction - The company is focusing on aligning production levels with sales volumes, having started 6,557 homes in the third quarter, matching the sales pace [10] - PulteGroup is moderating its planned land spend for 2025, expecting to spend approximately $5 billion, down 5% from last year [11] - The company is capitalizing on the Del Webb brand to attract active adult buyers and is introducing the new Del Webb Explore communities targeting Gen X buyers [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is weak, impacting first-time buyers, while demand remains resilient in the active adult segment [5][6] - The company expects to close between 7,200 to 7,600 homes in the fourth quarter, with full-year closings likely in the range of 29,000 to 29,400 homes [17] - Management expressed optimism about the potential for lower interest rates to energize housing demand, despite current economic concerns [26][68] Other Important Information - The company reported a gross margin of 26.2% for the third quarter, down 80 basis points from the previous quarter [18] - SG&A expenses were $400 million, or 9.4% of home sale revenue, consistent with the prior year [20] - The company ended the quarter with $1.5 billion in cash and a debt to capital ratio of 11.2% [25] Q&A Session Summary Question: What is the right path forward for Pulte in the homebuilding industry? - Management acknowledged the complexity of the housing supply issue and emphasized the need for a coordinated effort among various levels of government and the industry [36][37] Question: Can you elaborate on the strategy regarding spec production? - Management indicated that the increase in spec production to around 50% is a response to current market conditions, while still aiming for a long-term target of 40% to 45% [39][40] Question: What are the current market conditions in Florida and the Southeast? - Management confirmed positive trends in Florida and the Southeast, attributing this to desirable locations and pro-growth policies [46][48] Question: How are incentives impacting the business? - Management noted that incentives are primarily in the form of upgraded features rather than financial incentives, with about one-third being financial [77][78] Question: What is the impact of lower development costs on future margins? - Management stated that lower development costs would positively impact margins, but the effects would be seen in 2026 and beyond [105]

Financial Data and Key Metrics Changes - In Q3, PulteGroup generated home sale revenues of $4.2 billion, operating margins of 16.8%, and earnings of $2.96 per share, reflecting a 2% decline in revenues from $4.3 billion in Q3 of the previous year [4][15][23] - The return on equity for the trailing twelve months was 21% [5] - The net income for Q3 was $568 million, down from $698 million in the same quarter last year [23] Business Line Data and Key Metrics Changes - Net new orders totaled 6,638 homes, a 6% decrease year-over-year, with a 10% decrease in absorption pace [13] - The active adult business saw a 7% increase in net new orders, representing 24% of Q3 net new orders [15] - The cancellation rate for Q3 was 12%, up from 10% last year, indicating that most homebuyers remain committed once under contract [14] Market Data and Key Metrics Changes - Demand conditions varied by market, with stronger demand in the active adult segment and weaker demand among first-time buyers [6][10] - The absorption rate was 2.2 homes per month, down from 2.4 homes per month in Q3 of the previous year [10][14] - Florida operations showed a 2% increase in net new orders, indicating relative strength in that market [31] Company Strategy and Development Direction - The company is focused on aligning production levels with sales volumes, having started 6,557 homes in Q3, matching the sales pace [10][11] - PulteGroup plans to invest approximately $5 billion in land acquisition and development, down 5% from the previous year, while maintaining a healthy land pipeline [11][25] - The company is capitalizing on the Del Webb brand to attract Gen X buyers through new Del Webb Explore communities [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is weak, affecting first-time buyers, while demand remains resilient in the active adult segment [6][10] - The company expects to close between 7,200 to 7,600 homes in Q4, with full-year closings likely in the range of 29,000 to 29,400 homes [18] - Management expressed optimism about the potential for lower interest rates to energize housing demand in 2026 [70] Other Important Information - The gross margin for Q3 was 26.2%, down 80 basis points from Q2, influenced by higher incentives due to competitive market dynamics [19] - The effective tax rate for Q3 was 23.7%, benefiting from renewable energy tax credits [23] - The company ended Q3 with approximately 240,000 lots under control, down 9,000 lots from the previous quarter [26] Q&A Session Summary Question: What is the right path forward for Pulte in the homebuilding industry? - Management acknowledged the complexity of the housing shortage issue and emphasized the need for a coordinated effort to address it [38] Question: Is the increase in spec production a market-driven approach? - Management clarified that while they aim for spec inventory to be 40% to 45%, current market conditions have led to a higher percentage of specs [42] Question: What are the current consumer sentiments regarding home buying? - Management indicated that consumer confidence is low, impacting the home buying process, but there is a desire for homeownership [68] Question: How are incentives trending and what is their impact on margins? - Management reported that incentives were consistent throughout the quarter, with financial incentives making up about one-third of the total incentive package [78][94] Question: What is the expected impact of lower development costs on future lot costs? - Management noted that lower development costs would positively impact lot costs, with effects expected to be seen in 2026 and beyond [108]

Financial Data and Key Metrics Changes - PulteGroup generated third quarter home sale revenues of $4.2 billion, down 2% from $4.3 billion in the same quarter last year [13] - Operating margins for the third quarter were 16.8%, with a return on equity of 21% for the trailing twelve months [4] - Net income for the third quarter was $568 million, or $2.96 per share, compared to $698 million, or $3.35 per share, in the prior year [20] - The company reported a third quarter gross margin of 26.2%, down 80 basis points from Q2 [17] Business Line Data and Key Metrics Changes - Net new orders totaled 6,638 homes, a 6% decrease year-over-year, with a 10% decrease in absorption pace [11] - Active adult business saw a 7% increase in net new orders, representing 24% of Q3 net new orders [12] - First-time buyer orders decreased by 14%, while move-up business orders were down 3% [12] Market Data and Key Metrics Changes - The company operates across 47 major markets, with demand conditions varying by market and buyer segment [5] - Florida operations showed a 2% increase in net new orders compared to the prior year, indicating stabilization in demand [26] - Consumer demand in Texas and Western markets remained soft during the third quarter [27] Company Strategy and Development Direction - The company is focused on aligning production levels with sales volumes, starting 6,557 homes in Q3 to match sales pace [9] - PulteGroup plans to invest approximately $5 billion in land acquisition and development, down 5% from last year [10] - The company is capitalizing on the Del Webb brand through new Del Webb Explore communities aimed at Gen X buyers [6] Management's Comments on Operating Environment and Future Outlook - Management noted that buyer response to decreasing interest rates has been muted due to economic concerns [8] - The company remains optimistic about future demand, contingent on improved consumer confidence and economic conditions [25] - Management acknowledged the structural housing shortage in the U.S. and the need for coordinated efforts to address it [28] Other Important Information - The company repurchased 2.4 million common shares for $300 million in Q3, with $1.3 billion remaining under the share repurchase authorization [20][21] - SG&A expenses for Q3 were $401 million, consistent with the prior year [19] - The company ended the quarter with $1.5 billion in cash and a debt-to-capital ratio of 11.2% [24] Q&A Session Summary Question: Dialogue with FHFA and administration regarding housing - Management emphasized the complexity of the housing issue and the need for a coordinated effort to address the structural housing shortage [32][33] Question: Strategy on spec production - Management clarified that the increase in spec production is a response to current market conditions, aiming to align starts with sales [34][35] Question: Demand stabilization in Florida and Southeast - Management confirmed stabilization in demand in Florida and the Southeast, attributing it to desirable locations and favorable tax policies [39][40] Question: Incentives and their impact - Management explained that incentives are primarily reflected in the average sales price and that financial incentives make up about one-third of the total incentive package [63][64] Question: Impact of lower development costs on P&L - Management indicated that lower development costs would impact the P&L in 9 to 12 months, potentially benefiting lot cost inflation in 2026 [85][86]

PulteGroup (PHM) came out with quarterly earnings of $2.96 per share, beating the Zacks Consensus Estimate of $2.86 per share. This compares to earnings of $3.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.50%. A quarter ago, it was expected that this homebuilder would post earnings of $2.92 per share when it actually produced earnings of $3.03, delivering a surprise of +3.77%.Over the last four quarters, the company ha ...

Core Insights - PulteGroup reported a decline in third-quarter profit due to ongoing affordability concerns that are deterring home buyers [1] Company Summary - PulteGroup's third-quarter profit decreased as affordability issues continue to impact the housing market [1]

Q3 2025 Operating & Financial Results October 21, 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 ...

[Third Quarter 2025 Financial Results Overview](index=1&type=section&id=1.%20Third%20Quarter%202025%20Financial%20Results%20Overview) [Key Financial Highlights](index=1&type=section&id=1.1.%20Key%20Financial%20Highlights) PulteGroup's Q3 2025 net income decreased to $586 million, with home sale revenues down 2% to $4.2 billion Third Quarter 2025 Key Financial Highlights | Metric | Q3 2025 | Q3 2024 | | :------------------------- | :---------- | :---------- | | Net Income | $586 million | $698 million | | Diluted EPS | $2.96 | $3.35 | | Home Sale Revenues | $4.2 billion | $4.3 billion | | Home Sale Gross Margin | 26.2% | 28.8% | | SG&A Expense (% of revenue) | 9.4% | 9.4% | | Closings | 7,529 homes | (5% decrease) | | Average Sales Price | $564,000 | (3% increase) | | Net New Orders | 6,638 homes | (6% decrease) | | Value of Net New Orders | $3.6 billion | $3.9 billion | | Unit Backlog | 9,888 homes | | | Value of Backlog | $6.2 billion | | | Common Shares Repurchased | $300 million | | [CEO Commentary](index=1&type=section&id=1.2.%20CEO%20Commentary) CEO Ryan Marshall emphasized disciplined capital allocation and strong cash flow, positioning for future growth - PulteGroup remains disciplined in its long-term operating and financial strategies, managing production volumes and capital allocation to drive **high returns** over the housing cycle[3](index=3&type=chunk) - The company generated **strong cash flow from operations** and returned **$344 million** to shareholders through dividends and share repurchases in Q3[3](index=3&type=chunk) - PulteGroup's diversified business platform is enabling **strong financial results** and positioning the business for growth when buyer demand improves, despite impacts from weaker consumer confidence and affordability challenges[4](index=4&type=chunk) [Operational Performance](index=1&type=section&id=1.3.%20Operational%20Performance) Q3 2025 home closings decreased 5%, net new orders declined 6%, with financial services income also falling Q3 2025 Operational Performance | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Closings (units) | 7,529 | 7,924 | -5% | | Average Sales Price | $564,000 | $548,000 | +3% | | Net New Orders (units) | 6,638 | 7,031 | -6% | | Value of Net New Orders | $3.6 billion | $3.9 billion | -7.7% | | Average Community Count | 1,002 | 954 | +5% | | Backlog (units) | 9,888 | 12,089 | -18.2% | | Value of Backlog | $6.2 billion | $7.69 billion | -19.4% | | Financial Services Pre-tax Income | $44 million | $55 million | -20% | | Mortgage Capture Rate | 84% | 87% | -3 percentage points | - The higher average sales price in Q3 2025 was driven by a shift in the **geographic mix** of homes closed compared to the prior year[4](index=4&type=chunk) - PulteGroup repurchased **2.4 million common shares** for **$300 million** in Q3 2025, and **8.2 million shares** for **$900 million** through the first nine months of 2025[9](index=9&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=2.%20Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=4&type=section&id=2.1.%20Consolidated%20Statements%20of%20Operations) PulteGroup's consolidated statements of operations show a decrease in total revenues and net income for both the three and nine months ended September 30, 2025, compared to the prior year Consolidated Statements of Operations (Q3 2025 vs Q3 2024) | Metric | Q3 2025 ($000s) | Q3 2024 ($000s) | Change (YoY) | | :--------------------------------- | :-------------- | :-------------- | :----------- | | Home sale revenues | $4,248,375 | $4,343,227 | -2.2% | | Land sale and other revenues | $53,169 | $19,284 | +175.7% | | Financial Services revenues | $103,255 | $113,831 | -9.3% | | Total revenues | $4,404,799 | $4,476,342 | -1.6% | | Home sale cost of revenues | $(3,133,548) | $(3,091,267) | +1.4% | | SG&A expenses | $(400,681) | $(406,897) | -1.5% | | Income before income taxes | $767,788 | $906,196 | -15.2% | | Net income | $585,834 | $697,914 | -16.1% | | Diluted earnings per share | $2.96 | $3.35 | -11.6% | | Cash dividends declared per share | $0.22 | $0.20 | +10.0% | Consolidated Statements of Operations (9 Months Ended Sep 30, 2025 vs 2024) | Metric | 9M 2025 ($000s) | 9M 2024 ($000s) | Change (YoY) | | :--------------------------------- | :-------------- | :-------------- | :----------- | | Home sale revenues | $12,265,619 | $12,610,981 | -2.7% | | Land sale and other revenues | $140,345 | $96,327 | +45.7% | | Financial Services revenues | $295,241 | $317,848 | -7.1% | | Total revenues | $12,701,205 | $13,025,156 | -2.5% | | Home sale cost of revenues | $(8,968,112) | $(8,897,835) | +0.8% | | SG&A expenses | $(1,184,472) | $(1,125,637) | +5.2% | | Income before income taxes | $2,256,082 | $2,823,151 | -20.1% | | Net income | $1,717,115 | $2,170,023 | -20.9% | | Diluted earnings per share | $8.55 | $10.28 | -16.8% | | Cash dividends declared per share | $0.66 | $0.60 | +10.0% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=2.2.%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, PulteGroup's total assets increased slightly to $17.85 billion from $17.36 billion at year-end 2024 Condensed Consolidated Balance Sheets (as of Sep 30, 2025 vs Dec 31, 2024) | Asset/Liability/Equity | Sep 30, 2025 ($000s) | Dec 31, 2024 ($000s) | Change | | :---------------------------------- | :------------------- | :------------------- | :----- | | Cash and equivalents | $1,451,532 | $1,613,327 | -10.0% | | Total cash, cash equivalents, and restricted cash | $1,479,557 | $1,653,680 | -10.5% | | House and land inventory | $13,351,977 | $12,692,820 | +5.2% | | Total Assets | $17,850,979 | $17,363,763 | +2.8% | | Accounts payable | $731,104 | $727,995 | +0.4% | | Customer deposits | $470,745 | $512,580 | -8.2% | | Financial Services debt | $404,223 | $526,906 | -23.3% | | Notes payable | $1,623,338 | $1,618,586 | +0.3% | | Total Liabilities | $5,024,942 | $5,241,799 | -4.2% | | Shareholders' equity | $12,826,037 | $12,121,964 | +5.8% | [Consolidated Statements of Cash Flows](index=6&type=section&id=2.3.%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2025, net cash provided by operating activities remained strong at $1.1 billion, slightly down from the prior year Consolidated Statements of Cash Flows (9 Months Ended Sep 30, 2025 vs 2024) | Cash Flow Activity | 9M 2025 ($000s) | 9M 2024 ($000s) | Change | | :---------------------------------- | :-------------- | :-------------- | :----- | | Net income | $1,717,115 | $2,170,023 | -20.9% | | Net cash provided by operating activities | $1,100,122 | $1,113,184 | -1.2% | | Net cash used in investing activities | $(64,104) | $(108,350) | -40.9% | | Net cash used in financing activities | $(1,210,141) | $(1,398,875) | -13.5% | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(174,123) | $(394,041) | -55.8% | | Share repurchases | $(900,000) | $(879,999) | +2.3% | | Dividends paid | $(133,658) | $(126,560) | +5.6% | [Segment Performance Data](index=7&type=section&id=3.%20Segment%20Performance%20Data) [Homebuilding Segment](index=7&type=section&id=3.1.%20Homebuilding%20Segment) The Homebuilding segment experienced a decrease in home sale revenues and income before income taxes for both the three and nine months ended September 30, 2025 [Home Sale Revenues and Closings](index=7&type=section&id=3.1.1.%20Home%20Sale%20Revenues%20and%20Closings) Home sale revenues for the Homebuilding segment decreased by 2.2% in Q3 2025 and 2.7% for the nine months ended September 30, 2025 Homebuilding Revenues and Closings (Q3 2025 vs Q3 2024) | Metric | Q3 2025 ($000s/units) | Q3 2024 ($000s/units) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :----------- | | Home sale revenues | $4,248,375 | $4,343,227 | -2.2% | | Total Homebuilding revenues | $4,301,544 | $4,362,511 | -1.4% | | Income before income taxes | $723,430 | $851,270 | -15.0% | | Closings - units (Total) | 7,529 | 7,924 | -5.0% | | Closings - units (Northeast) | 408 | 391 | +4.3% | | Closings - units (Southeast) | 1,444 | 1,340 | +7.8% | | Closings - units (Florida) | 1,932 | 1,984 | -2.6% | | Closings - units (Midwest) | 1,313 | 1,194 | +10.0% | | Closings - units (Texas) | 1,073 | 1,485 | -27.7% | | Closings - units (West) | 1,359 | 1,530 | -11.2% | | Average selling price | $564 | $548 | +2.9% | [Net New Orders and Backlog](index=8&type=section&id=3.1.2.%20Net%20New%20Orders%20and%20Backlog) Net new orders for the Homebuilding segment decreased by 6% in units and 7.7% in dollar value in Q3 2025 Homebuilding Net New Orders and Backlog (Q3 2025 vs Q3 2024) | Metric | Q3 2025 (units/$000s) | Q3 2024 (units/$000s) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :----------- | | Net new orders - units (Total) | 6,638 | 7,031 | -5.6% | | Net new orders - units (Northeast) | 371 | 385 | -3.6% | | Net new orders - units (Southeast) | 1,354 | 1,340 | +1.0% | | Net new orders - units (Florida) | 1,721 | 1,681 | +2.4% | | Net new orders - units (Midwest) | 1,144 | 1,233 | -7.2% | | Net new orders - units (Texas) | 938 | 1,134 | -17.3% | | Net new orders - units (West) | 1,110 | 1,258 | -11.8% | | Net new orders - dollars | $3,639,690 | $3,928,860 | -7.4% | | Unit backlog (Total) | 9,888 | 12,089 | -18.2% | | Dollars in backlog | $6,234,554 | $7,694,761 | -19.0% | [Financial Services Segment](index=7&type=section&id=3.2.%20Financial%20Services%20Segment) The Financial Services segment reported a decrease in income before income taxes for both the three and nine months ended September 30, 2025 Financial Services Income Before Income Taxes | Period | 2025 ($000s) | 2024 ($000s) | Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | | Three Months Ended Sep 30 | $44,358 | $54,926 | -19.3% | | Nine Months Ended Sep 30 | $123,013 | $159,283 | -22.7% | - Lower pre-tax income in Financial Services was primarily driven by **lower closing volumes** in homebuilding operations and a decrease in mortgage capture rate to **84%** from **87%** in the prior year[8](index=8&type=chunk) [Supplemental Financial Information](index=9&type=section&id=4.%20Supplemental%20Financial%20Information) [Mortgage Originations](index=9&type=section&id=4.1.%20Mortgage%20Originations) Mortgage origination volume and principal decreased in Q3 2025 compared to the prior year, reflecting the broader slowdown in homebuilding closings Mortgage Originations (Q3 2025 vs Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :------------------ | :------ | :------ | :----------- | | Origination volume | 4,782 | 5,005 | -4.4% | | Origination principal | $2,054,441 | $2,103,197 | -2.3% | | Capture rate | 84.4% | 86.7% | -2.3 percentage points | Mortgage Originations (9 Months Ended Sep 30, 2025 vs 2024) | Metric | 9M 2025 | 9M 2024 | Change (YoY) | | :------------------ | :------ | :------ | :----------- | | Origination volume | 14,037 | 14,442 | -2.7% | | Origination principal | $6,085,214 | $5,998,347 | +1.4% | | Capture rate | 85.1% | 85.9% | -0.8 percentage points | [Interest in Inventory](index=9&type=section&id=4.2.%20Interest%20in%20Inventory) The interest capitalized into inventory decreased for both the three and nine months ended September 30, 2025, while interest expensed increased Interest in Inventory (Q3 2025 vs Q3 2024) | Metric | Q3 2025 ($000s) | Q3 2024 ($000s) | Change (YoY) | | :-------------------------- | :-------------- | :-------------- | :----------- | | Interest capitalized | $26,139 | $26,443 | -1.1% | | Interest expensed | $(31,199) | $(29,708) | +5.0% | | Interest in inventory, end of period | $131,564 | $146,097 | -9.9% | Interest in Inventory (9 Months Ended Sep 30, 2025 vs 2024) | Metric | 9M 2025 ($000s) | 9M 2024 ($000s) | Change (YoY) | | :-------------------------- | :-------------- | :-------------- | :----------- | | Interest capitalized | $78,360 | $86,346 | -9.2% | | Interest expensed | $(86,756) | $(79,327) | +9.4% | | Interest in inventory, end of period | $131,564 | $146,097 | -9.9% | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=4.3.%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) PulteGroup provides debt-to-capital and net debt-to-capital ratios as non-GAAP financial measures to indicate overall leverage - PulteGroup calculates total net debt by subtracting total cash, cash equivalents, and restricted cash from notes payable[33](index=33&type=chunk) - These non-GAAP measures are used as indicators of **overall leverage** and are considered useful for evaluating comparability and profitability within the homebuilding industry[33](index=33&type=chunk) Debt-to-Capital Ratios | Metric | Sep 30, 2025 ($000s) | Dec 31, 2024 ($000s) | Change | | :-------------------------- | :------------------- | :------------------- | :----- | | Notes payable | $1,623,338 | $1,618,586 | +0.3% | | Shareholders' equity | $12,826,037 | $12,121,964 | +5.8% | | Total capital | $14,449,375 | $13,740,550 | +5.2% | | Debt-to-capital ratio | 11.2% | 11.8% | -0.6 percentage points | | Total net debt | $143,781 | $(35,094) | N/A | | Total net capital | $12,969,818 | $12,086,870 | +7.3% | | Net debt-to-capital ratio | 1.1% | (0.3)% | +1.4 percentage points | [Corporate Information](index=2&type=section&id=5.%20Corporate%20Information) [Conference Call Details](index=2&type=section&id=5.1.%20Conference%20Call%20Details) PulteGroup scheduled a conference call to discuss its third quarter 2025 results for Tuesday, October 21, 2025, at 8:30 a.m. Eastern Time, accessible via its corporate website - A conference call discussing Q3 2025 results was scheduled for **Tuesday, October 21, 2025, at 8:30 a.m. Eastern Time**[10](index=10&type=chunk) - Interested investors can access the live webcast via PulteGroup's corporate website at **www.pultegroupinc.com**[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=5.2.%20Forward-Looking%20Statements) The release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially - The release includes forward-looking statements identifiable by terms like 'believe,' 'expect,' 'intend,' 'estimate,' and 'anticipate,' which discuss future events or expectations[11](index=11&type=chunk) - These statements are subject to risks and uncertainties, including **interest rate changes**, **availability of mortgage financing**, **economic conditions** (inflation, consumer confidence), **supply shortages**, **cost of labor and materials**, **land availability and cost**, and **governmental regulation**[12](index=12&type=chunk) - Other risks include **declines in inventory value**, **competition**, **technological developments** (e.g., AI in homebuilding), **insurance costs**, **adverse capital market conditions**, and **cybersecurity incidents**[12](index=12&type=chunk)[13](index=13&type=chunk) [About PulteGroup](index=3&type=section&id=5.3.%20About%20PulteGroup) PulteGroup, Inc. is one of America's largest homebuilding companies, operating in over 45 markets - PulteGroup, Inc. (NYSE: PHM) is one of America's **largest homebuilding companies**, based in Atlanta, Georgia, with operations in **over 45 markets**[14](index=14&type=chunk) - The company's brand portfolio includes **Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods**, allowing it to serve diverse buyer groups[14](index=14&type=chunk) - PulteGroup's stated purpose is "**building incredible places where people can live their dreams**"[14](index=14&type=chunk)

Core Insights - PulteGroup, Inc. reported a net income of $586 million for Q3 2025, translating to $2.96 per share, a decrease from the previous year's net income of $698 million or $3.35 per share [1] Financial Performance - The company experienced a decline in net income year-over-year, with a reduction of $112 million [1] - The earnings per share also decreased by $0.39 compared to the same quarter in the prior year [1] Business Strategy - PulteGroup emphasized its commitment to maintaining discipline in business operations, aligning with long-term operating and financial strategies [1] - The company is focused on managing production volumes and capital allocation effectively [1]

Core Insights - Investors are advised to focus on PulteGroup's new orders and home sale gross margin as key indicators of the company's performance [1] Group 1 - The upcoming earnings report from PulteGroup is highly anticipated by investors [1] - New orders are a critical metric for assessing the company's future revenue potential [1] - Home sale gross margin will provide insights into the company's profitability and operational efficiency [1]