Core Insights - PulteGroup, Inc. (PHM) is expanding its homebuilding operations into the Cincinnati market, reinforcing its market leadership in the Midwest [1][8] - The company aims to develop communities for first-time, move-up, and active-adult homebuyers, capitalizing on robust housing demand in the region [2][8] Market Performance - PulteGroup's stock experienced a decline of 3.8% during regular trading and an additional 0.6% in after-hours trading [3] - Despite the stock's recent performance, PHM shares have gained 3.7% year-to-date, outperforming the Zacks Building Products - Home Builders industry's 11% decline [7][8] Strategic Developments - The company has invested $3.8 billion in land acquisition and development year-to-date, with $1.3 billion allocated in the third quarter alone, aiming for a full-year target of approximately $5 billion [5] - PulteGroup's diversified operating platform spans over 47 major markets, providing resilience amid challenging home-buying demand [4][6] Outlook - The company maintains a positive outlook supported by moderating interest rates and a balanced, multi-market operating strategy [6] - PulteGroup's extensive geographic reach and diversified buyer base allow for solid cash flows and attractive returns despite broader housing market pressures [6]

Core Insights - PulteGroup Inc (NYSE:PHM) is experiencing a pullback, currently down 0.9% to $119.58, but has a 16.2% gain over the past six months, with the $115 level acting as support since October [1] - A long-term bullish trendline suggests potential upward movement towards this year's peak around $142 [1] - The stock has pulled back to its 320-day moving average, with a historical pattern indicating a 50% chance of a price increase averaging 3.5% a month later [2] Options Activity - Options traders are currently more bearish than usual, with a 50-day put/call volume ratio of 1.67, ranking higher than 93% of readings from the past year, indicating potential for a reversal if pessimism unwinds [4] - Options are currently affordably priced, as indicated by a Schaeffer's Volatility Index (SVI) of 37%, which is in the 20th percentile of annual readings, suggesting a favorable environment for trading [5]

Core Insights - PulteGroup, Inc. is a prominent U.S. homebuilder with a market cap of $23.6 billion, offering a variety of residential properties and financial services [1] - The company's stock has underperformed compared to the broader market, with a 9.2% decline over the past 52 weeks, while the S&P 500 Index increased by 14.1% [2] - Despite reporting better-than-expected Q3 2025 EPS of $2.96 and revenue of $4.4 billion, the stock remained unchanged due to concerns over a 16% year-over-year profit drop and a 6% decline in net new orders [4] Financial Performance - PulteGroup's Q3 2025 results showed a profit drop of 16% year-over-year and a decline in net new orders to 6,638 homes [4] - Analysts project a 14.5% decline in EPS for the current fiscal year, expecting it to reach $11.35 [5] - The company has a history of earnings surprises, having beaten consensus estimates in the last four quarters [5] Analyst Ratings - Among 16 analysts covering PulteGroup, the consensus rating is a "Moderate Buy," with eight "Strong Buy" ratings, one "Moderate Buy," and seven "Holds" [5] - Oppenheimer analyst Tyler Batory reiterated a "Buy" rating with a price target of $140, while the mean price target of $137 suggests a 13% premium to current levels [6] - The highest price target of $160 indicates a potential upside of nearly 32% [6]

Core Viewpoint - Federal Housing Finance Agency (FHFA) Director Bill Pulte emphasizes the need for home builders to increase construction to lower new home prices, highlighting the role of Fannie Mae and Freddie Mac in providing liquidity to builders [3][5][6]. Summary by Relevant Sections Home Builders and Construction - Pulte urges builders to ramp up construction to address high home prices, stating that those not building will be scrutinized for artificially constricting supply [6][7]. - He mentions that Fannie Mae provides over $8 billion in liquidity to Lennar and over $5 billion to D.R. Horton, indicating significant financial support for large builders [5][6]. Fannie Mae and Freddie Mac - Pulte indicates that Fannie Mae and Freddie Mac are likely to remain under conservatorship, with a decision on a potential IPO expected soon [5][9]. - He notes that the companies may consider taking equity stakes in technology firms, which could diversify their investment portfolio [11]. Market Context and Future Outlook - The housing market is facing a supply deficit of approximately 3 to 4 million homes, impacting affordability [7]. - Pulte expresses confidence that the conservatorship will not disrupt operations and may even enhance stability in the mortgage market [9].

Core Insights - The Third Avenue Real Estate Value Fund achieved a return of +13.54% for the first nine months of 2025, outperforming its benchmark, the FTSE EPRA/NAREIT Developed Index, which returned +11.26% [3] - The Fund's long-term performance since inception in 1998 shows an annualized return of +9.12%, indicating significant growth for initial investments [5] Performance Contributors - Key contributors to the Fund's performance included investments in U.S. homebuilders such as D.R. Horton, PulteGroup, and Lennar, as well as preferred equity in Fannie Mae and Freddie Mac [4] - Detractors included investments in U.K. property companies and holdings related to the U.S. existing-home market [4] Market Trends - The Fund's management noted increasing bifurcation in the real estate sector, with significant differences in performance across property types and markets [10] - The "tale of two markets" theme was prevalent at the Zelman Housing Summit, highlighting disparities between new-home and existing-home sales [11] Investment Strategy - The Fund increased its position in Champion Homes, a leading producer of affordable housing, despite mixed industry orders and low stock prices [12][13] - The Fund also added to its investment in Unite Group, a U.K. REIT focused on student housing, capitalizing on price-to-value discrepancies in the market [15][16] Geographic Allocation - Approximately 41.9% of the Fund's capital is invested in U.S. residential real estate, with a focus on homebuilding and mortgage services [22] - 27.5% is allocated to North American commercial real estate, emphasizing real estate services and logistics [23] - 25.6% is invested in international real estate companies, targeting similar activities in developed markets [24] Cash and Hedging - The remaining 5.0% of the Fund's capital is held in cash, debt, and options, including hedges against currency exposure [25] Macro Economic Factors - The Fund's management is tracking macroeconomic indicators, including inflation rates and interest rates, which could impact the real estate sector [31][36] - A potential decline in mortgage rates could stimulate activity in the residential market, which is significant for the broader economy [36]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for PulteGroup, Inc [Item 1 Financial Statements](index=3&type=section&id=Item%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for PulteGroup, Inc., including the Balance Sheets, Statements of Operations, Shareholders' Equity, and Cash Flows, along with detailed notes explaining the basis of presentation, accounting policies, segment information, debt, equity, income taxes, fair value disclosures, and commitments and contingencies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet provides a snapshot of the company's financial position at September 30, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and shareholders' equity | Metric | Sep 30, 2025 ($000s) | Dec 31, 2024 ($000s) | | :-------------------------------- | :-------------------- | :-------------------- | | Total Assets | 17,850,979 | 17,363,763 | | Total Liabilities | 5,024,942 | 5,241,799 | | Shareholders' Equity | 12,826,037 | 12,121,964 | - Total assets increased by **$487.2 million**, primarily driven by an increase in house and land inventory[10](index=10&type=chunk) - Total liabilities decreased by **$216.8 million**, mainly due to a reduction in Financial Services debt and accrued and other liabilities[10](index=10&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The statements of operations detail the company's revenues, costs, and net income for the three and nine months ended September 30, 2025, compared to the same periods in 2024, highlighting a decline in net income and diluted EPS | Metric | 3 Months Ended Sep 30, 2025 ($000s) | 3 Months Ended Sep 30, 2024 ($000s) | 9 Months Ended Sep 30, 2025 ($000s) | 9 Months Ended Sep 30, 2024 ($000s) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | | Total Revenues | 4,404,799 | 4,476,342 | 12,701,205 | 13,025,156 | | Net Income | 585,834 | 697,914 | 1,717,115 | 2,170,023 | | Diluted Earnings Per Share | 2.96 | 3.35 | 8.55 | 10.28 | | Cash Dividends Declared | 0.22 | 0.20 | 0.66 | 0.60 | - Net income decreased by **16.1%** for the three months and **20.9%** for the nine months ended September 30, 2025, compared to the prior year periods[12](index=12&type=chunk) - Diluted EPS decreased by **11.6%** for the three months and **16.8%** for the nine months ended September 30, 2025[12](index=12&type=chunk) [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) The statements of shareholders' equity show the changes in common stock, additional paid-in capital, retained earnings, and total equity for the three and nine months ended September 30, 2025 and 2024, reflecting share repurchases, dividends, and net income | Metric | 3 Months Ended Sep 30, 2025 ($000s) | 9 Months Ended Sep 30, 2025 ($000s) | | :-------------------------- | :---------------------------------- | :---------------------------------- | | Share Repurchases | (300,000) | (900,000) | | Dividends Declared | (43,451) | (132,199) | | Net Income | 585,834 | 1,717,115 | | Shareholders' Equity, End of Period | 12,826,037 | 12,826,037 | - Shareholders' equity increased from **$12,121.964 million** at December 31, 2024, to **$12,826.037 million** at September 30, 2025[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements summarize cash generated from or used in operating, investing, and financing activities for the nine months ended September 30, 2025 and 2024, indicating a net decrease in cash and equivalents in 2025 | Cash Flow Activity | 9 Months Ended Sep 30, 2025 ($000s) | 9 Months Ended Sep 30, 2024 ($000s) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Net Cash Provided by Operating Activities | 1,100,122 | 1,113,184 | | Net Cash Used in Investing Activities | (64,104) | (108,350) | | Net Cash Used in Financing Activities | (1,210,141) | (1,398,875) | | Net Increase (Decrease) in Cash | (174,123) | (394,041) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 1,479,557 | 1,455,136 | - Net cash provided by operating activities remained stable year-over-year, at approximately **$1.1 billion**[18](index=18&type=chunk) - Net cash used in financing activities decreased from **$1.4 billion** in 2024 to **$1.2 billion** in 2025, primarily due to lower repayments of notes payable and Financial Services borrowings[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information on the company's accounting policies, revenue recognition, inventory, segment performance, debt structure, shareholder equity activities, income taxes, fair value measurements, and various commitments and contingencies, offering crucial context to the financial statements [1. Basis of presentation](index=9&type=section&id=1.%20Basis%20of%20presentation) PulteGroup, Inc. is a major U.S. homebuilder with mortgage banking, title, and insurance agency operations. The unaudited financial statements adhere to U.S. GAAP for interim reporting, with all necessary adjustments included. Management uses estimates, and subsequent events are evaluated up to the filing date - PulteGroup is one of the largest homebuilders in the U.S., with common shares trading on the NYSE under '**PHM**'[20](index=20&type=chunk) - The company's operations include homebuilding, mortgage banking (Pulte Mortgage LLC), and title and insurance agency services[20](index=20&type=chunk) | Other Income, Net ($000s) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Write-offs of deposits and pre-acquisition costs | (10,836) | (4,732) | (26,515) | (12,406) | | Amortization of intangible assets | (2,301) | (2,498) | (6,968) | (7,536) | | Interest income | 11,804 | 13,748 | 31,646 | 48,268 | | Interest expense | (170) | (120) | (438) | (352) | | Miscellaneous, net | 3,258 | 3,304 | 9,385 | 11,735 | | **Total Other Income, Net** | **1,755** | **9,702** | **7,110** | **39,709** | [Revenue recognition](index=10&type=section&id=Revenue%20recognition) Revenue recognition policies are detailed for home sales (at title transfer), land sales (at closing), and Financial Services (loan origination, fair value changes of IRLCs, interest income, servicing fees, title services, and insurance commissions) - Home sale revenues are generally recognized when title and possession transfer to the buyer, typically at closing[26](index=26&type=chunk) - Financial Services revenues include loan origination fees, commitment fees, discount points, and fair value changes of interest rate lock commitments (IRLCs) and residential mortgage loans available-for-sale[28](index=28&type=chunk) | Derivative Instrument Fair Values ($000s) | Sep 30, 2025 (Other Assets) | Sep 30, 2025 (Accrued and Other Liabilities) | Dec 31, 2024 (Other Assets) | Dec 31, 2024 (Accrued and Other Liabilities) | | :-------------------------------- | :-------------------------- | :----------------------------------------- | :-------------------------- | :----------------------------------------- | | Interest rate lock commitments | 2,377 | 15,416 | 1,452 | 14,946 | | Forward contracts | 2,562 | 17,474 | 13,233 | 1,943 | | Whole loan commitments | 113 | 66 | 50 | 80 | | **Total** | **5,052** | **32,956** | **14,735** | **16,969** | [2. House and land inventory](index=12&type=section&id=2.%20House%20and%20land%20inventory) This note details the composition of house and land inventory, including homes under construction, land under development, and raw land. It also covers capitalized interest, land option agreements, and land-related charges such as impairments and write-offs | Inventory Component ($000s) | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Homes under construction | 5,857,201 | 5,770,355 | | Land under development | 6,772,262 | 6,243,745 | | Raw land | 584,641 | 548,848 | | Consolidated inventory not owned | 120,186 | 102,865 | | Land held for sale | 17,687 | 27,007 | | **Total House and Land Inventory** | **13,351,977** | **12,692,820** | | Land Option Agreements ($000s) | Sep 30, 2025 (Deposits & Pre-acquisition Costs) | Sep 30, 2025 (Remaining Purchase Price) | Dec 31, 2024 (Deposits & Pre-acquisition Costs) | Dec 31, 2024 (Remaining Purchase Price) | | :-------------------------------- | :------------------------------------------ | :------------------------------------- | :------------------------------------------ | :------------------------------------- | | Land options with VIEs | 399,980 | 3,477,827 | 358,066 | 3,104,196 | | Other land options | 765,801 | 6,394,924 | 700,397 | 6,127,486 | | **Total** | **1,165,781** | **9,872,751** | **1,058,463** | **9,231,682** | | Land-Related Charges ($000s) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Land impairments | 16,752 | 3,081 | 42,181 | 3,204 | | NRV adjustments - land held for sale | 39 | 4,318 | 1,115 | 4,319 | | Write-offs of deposits and pre-acquisition costs | 10,836 | 4,732 | 26,515 | 12,406 | | **Total Land-Related Charges** | **27,627** | **12,131** | **69,811** | **19,929** | [3. Segment information](index=13&type=section&id=3.%20Segment%20information) PulteGroup's operations are divided into six Homebuilding segments (Northeast, Southeast, Florida, Midwest, Texas, West) and a Financial Services segment. This note provides detailed operating data, including revenues, costs, SG&A, income before taxes, land-related charges, depreciation, inventory, and assets, for each segment - Homebuilding operations are aggregated into **six reportable segments** across 26 states[48](index=48&type=chunk)[123](index=123&type=chunk) - Financial Services segment includes mortgage banking, title, and insurance agency operations, generally in the same markets as Homebuilding[48](index=48&type=chunk) | Segment Revenues ($000s) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Northeast | 303,181 | 265,395 | 900,352 | 722,952 | | Southeast | 770,295 | 666,019 | 2,156,041 | 2,153,828 | | Florida | 1,098,712 | 1,167,456 | 3,116,603 | 3,606,409 | | Midwest | 719,327 | 660,096 | 1,993,116 | 1,843,384 | | Texas | 409,160 | 567,871 | 1,287,491 | 1,675,586 | | West | 946,662 | 1,016,977 | 2,815,217 | 2,611,911 | | Other homebuilding | 54,207 | 18,697 | 137,144 | 93,238 | | Financial Services | 103,255 | 113,831 | 295,241 | 317,848 | | **Consolidated Revenues** | **4,404,799** | **4,476,342** | **12,701,205** | **13,025,156** | [4. Debt](index=17&type=section&id=4.%20Debt) This note outlines the company's debt structure, including unsecured senior notes, other notes payable, the revolving credit facility, joint venture debt, and Financial Services debt. It details outstanding amounts, interest rates, maturities, and compliance with covenants | Debt Type ($000s) | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Total Senior Notes | 1,583,640 | 1,582,820 | | Other Notes Payable | 39,698 | 35,766 | | **Total Notes Payable** | **1,623,338** | **1,618,586** | | Estimated Fair Value (Notes Payable) | 1,744,352 | 1,701,270 | | Financial Services Debt | 404,223 | 526,906 | - The company had no borrowings outstanding under its **$1.3 billion Revolving Credit Facility** at September 30, 2025, with **$902.0 million** remaining capacity[67](index=67&type=chunk) - Pulte Mortgage had **$404.2 million** outstanding under its Repurchase Agreement at a weighted-average interest rate of **5.93%**, with **$220.8 million** remaining capacity[69](index=69&type=chunk) [5. Shareholders' equity](index=18&type=section&id=5.%20Shareholders%27%20equity) This note details shareholder equity activities, including cash dividends declared and share repurchases. The Board of Directors increased the share repurchase authorization by $1.5 billion in January 2025 | Shareholder Activity | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | | Cash Dividends Declared | $132.2 million | $126.2 million | | Shares Repurchased | 8.2 million shares | 7.6 million shares | | Value of Share Repurchases | $900.0 million | $880.0 million | - As of September 30, 2025, the company had **$1.3 billion** remaining authorization for common share repurchases[70](index=70&type=chunk) [6. Income taxes](index=19&type=section&id=6.%20Income%20taxes) This note provides information on the company's effective tax rates, deferred tax liabilities, and unrecognized tax benefits. It also mentions the enactment of the One Big Beautiful Bill Act and its expected immaterial impact | Tax Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Effective Tax Rate | 23.7% | 23.0% | 23.9% | 23.1% | | Net Deferred Tax Liabilities | $440.5 million (Sep 30, 2025) | $388.5 million (Dec 31, 2024) | | | | Gross Unrecognized Tax Benefits | $32.9 million (Sep 30, 2025) | $38.7 million (Dec 31, 2024) | | | - The effective tax rate for 2025 periods was higher than 2024, primarily due to state income tax expense and federal tax credits[73](index=73&type=chunk) - The One Big Beautiful Bill Act, enacted July 4, 2025, is not expected to materially impact the consolidated financial statements[76](index=76&type=chunk) [7. Fair value disclosures](index=20&type=section&id=7.%20Fair%20value%20disclosures) This note outlines the fair value hierarchy (Level 1, 2, 3) and provides fair value measurements for financial instruments, including residential mortgage loans, interest rate lock commitments, forward contracts, whole loan commitments, and debt - Fair value hierarchy categorizes inputs into **Level 1** (quoted prices in active markets), **Level 2** (significant observable inputs), and **Level 3** (significant unobservable inputs)[81](index=81&type=chunk) | Financial Instrument Measured at Fair Value ($000s) | Fair Value Hierarchy | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------------------ | :------------------- | :----------- | :----------- | | Residential mortgage loans available-for-sale | Level 2 | 486,066 | 629,582 | | IRLCs | Level 2 | (13,039) | (13,494) | | Forward contracts | Level 2 | (14,912) | 11,290 | | Whole loan commitments | Level 2 | 47 | (30) | | House and land inventory (non-recurring) | Level 3 | 30,699 | 20,016 | - The carrying amounts of cash and equivalents, Financial Services debt, and other notes payable approximate their fair values due to their short-term nature or floating interest rates[80](index=80&type=chunk) [8. Commitments and contingencies](index=21&type=section&id=8.%20Commitments%20and%20contingencies) This note details the company's commitments and contingencies, including letters of credit, surety bonds, litigation, regulatory matters, warranty liabilities, self-insured risks, and lease obligations. It provides financial figures for these items and discusses the estimation processes involved | Commitment/Contingency ($000s) | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Outstanding Letters of Credit | 348,000 | 321,100 | | Outstanding Surety Bonds | 3,100,000 | 2,900,000 | | Warranty Liabilities | 132,329 | 130,538 | | Self-insured Risks Reserves | 282,000 | 267,500 | | ROU Assets (Leases) | 113,200 | 93,900 | | Lease Liabilities | 129,600 | 109,000 | - The company is involved in various litigation and regulatory matters, for which liabilities are established when probable and estimable, but ultimate resolution may exceed current accruals[84](index=84&type=chunk)[85](index=85&type=chunk) - Warranty liabilities are estimated based on homes sold, historical claims, and projected costs, with periodic adjustments[86](index=86&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial performance, condition, and operational results for the three and nine months ended September 30, 2025. It highlights the impact of consumer demand weakness, affordability challenges, and elevated mortgage rates on Homebuilding and Financial Services operations, along with the company's strategic responses and liquidity management - Consumer demand weakness continued in **Q3 2025**, influenced by affordability challenges from elevated mortgage rates and higher housing costs, leading to a **6% decrease** in net new orders (units) for the three months and **7%** for the nine months[104](index=104&type=chunk) - The company responded by adjusting production, increasing sales incentives (especially mortgage interest rate buydowns), and taking pricing actions, resulting in **$42.2 million** in land inventory impairments and **$26.5 million** in write-offs of land option deposits for the nine months ended September 30, 2025[104](index=104&type=chunk)[106](index=106&type=chunk) - Despite market volatility, the company maintains a long-term favorable view on housing demand demographics and focuses on protecting liquidity, managing cash flows, and emphasizing shareholder returns through buybacks and dividends[107](index=107&type=chunk) [Homebuilding Operations](index=26&type=section&id=Homebuilding%20Operations) Homebuilding operations experienced decreased revenues and gross margins due to lower closings, increased sales incentives, and higher land costs. Net new orders and backlog declined, while the company adjusted production and land acquisition strategies | Homebuilding Metric | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Home Sale Revenues ($000s) | 4,248,375 (↓2%) | 4,343,227 | 12,265,619 (↓3%) | 12,610,981 | | Home Sale Gross Margin | 26.2% (↓260 bps) | 28.8% | 26.9% (↓250 bps) | 29.4% | | Closings (units) | 7,529 (↓5%) | 7,924 | 21,751 (↓6%) | 23,116 | | Average Selling Price ($000s) | 564 (↑3%) | 548 | 564 (↑3%) | 546 | | Net New Orders (units) | 6,638 (↓6%) | 7,031 | 21,486 (↓7%) | 23,059 | | Cancellation Rate | 16% | 15% | 15% | 14% | | Backlog at Sep 30 (units) | N/A | N/A | 9,888 (↓18%) | 12,089 | | Backlog at Sep 30 (dollars, $000s) | N/A | N/A | 6,234,554 (↓19%) | 7,694,761 | - The decrease in home sale gross margins was primarily due to pricing actions, elevated sales incentives, and increased land acquisition and development costs[113](index=113&type=chunk) | Homes in Production | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | | Sold | 7,727 | 9,684 | | Unsold Under Construction | 5,342 | 6,055 | | Unsold Completed | 2,027 | 1,357 | | Models | 1,710 | 1,537 | | **Total** | **16,806 (↓10%)** | **18,633** | [Financial Services Operations](index=34&type=section&id=Financial%20Services%20Operations) Financial Services operations, including mortgage banking, title, and insurance agency, saw decreased revenues and income before taxes, primarily due to lower homebuilding volume and reduced insurance agency commissions | Financial Services Metric ($000s) | 3 Months Ended Sep 30, 2025 | 3 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenues | 103,255 (↓9%) | 113,831 | 295,241 (↓7%) | 317,848 | | Income before income taxes | 44,358 (↓19%) | 54,926 | 123,013 (↓23%) | 159,283 | | Total Originations (Principal) | 2,054,441 (↓2%) | 2,103,197 | 6,085,214 (↑1%) | 5,998,347 | | Capture Rate (9 Months) | 85.1% | 85.9% | N/A | N/A | - Insurance agency commissions declined due to lower policy retention and commission rates, reflecting adjustments in the home insurance market[144](index=144&type=chunk) - The business levels of Financial Services are highly correlated to Homebuilding operations, with Homebuilding customers accounting for substantially all business[142](index=142&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.5 billion in unrestricted cash and $902.0 million available under its Revolving Credit Facility. It plans to fund land acquisition, construction, debt repayment, dividends, and share repurchases using internal funds and credit arrangements | Liquidity Metric | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Unrestricted Cash and Equivalents | $1.5 billion | $1.6 billion | | Restricted Cash | $28.0 million | $40.3 million | | Revolving Credit Facility Available Capacity | $902.0 million | $928.9 million | | Debt-to-Total Capitalization (excl. FS debt) | 11.2% | 11.8% | - Principal demands for funds over the next 12 months include land acquisition and development, house construction, repayment of **$251.9 million** unsecured senior notes due March 2026, and operating expenses[149](index=149&type=chunk)[151](index=151&type=chunk) - The company believes its current cash position and financing resources provide sufficient liquidity for business needs[150](index=150&type=chunk) [Cash flows](index=38&type=section&id=Cash%20flows) Cash flows from operating activities remained stable at $1.1 billion for the nine months ended September 30, 2025, primarily driven by net income offset by inventory increases. Investing activities used less cash, while financing activities used $1.2 billion, mainly for share repurchases and dividends - Net cash provided by operating activities was **$1.1 billion** for the nine months ended September 30, 2025, similar to the prior year, primarily from net income offset by increased inventories[163](index=163&type=chunk)[164](index=164&type=chunk) - Net cash used in investing activities decreased to **$64.1 million** in 2025 from **$108.4 million** in 2024, mainly due to capital expenditures partially offset by distributions from unconsolidated entities[165](index=165&type=chunk)[166](index=166&type=chunk) - Net cash used in financing activities was **$1.2 billion** in 2025, primarily for **$900.0 million** in share repurchases and **$133.7 million** in cash dividends[167](index=167&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risk, primarily from interest rate fluctuations on its debt instruments. It provides a quantitative breakdown of fixed-rate and variable-rate debt obligations and states that there have been no material qualitative changes in market risk disclosures - The company is subject to market risk primarily due to interest rate fluctuations affecting its fixed-rate and variable-rate debt[178](index=178&type=chunk) | Debt Type ($000s) | 2025 (Remaining 3 Months) | 2026 | 2027 | 2028 | 2029 | Thereafter | Total Principal Cash Flows | Fair Value | | :---------------- | :------------------------ | :--- | :--- | :--- | :--- | :--------- | :------------------------- | :--------- | | Fixed Rate Debt | 10,900 | 270,935 | 338,277 | 4,390 | 4,340 | 1,000,000 | 1,628,842 | 1,744,352 | | Average Interest Rate | 3.72% | 5.27% | 4.99% | 4.94% | 5.00% | 6.71% | 6.09% | N/A | | Variable Rate Debt | 404,223 | — | — | — | — | — | 404,223 | 404,223 | | Average Interest Rate | 5.93% | — | — | — | — | — | 5.93% | N/A | - There have been no material changes to the qualitative disclosures about market risk since the Annual Report on Form 10-K for December 31, 2024[183](index=183&type=chunk) [Item 4 Controls and Procedures](index=41&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of September 30, 2025. No material changes occurred in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of **September 30, 2025**[187](index=187&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended **September 30, 2025**[188](index=188&type=chunk) [PART II OTHER INFORMATION](index=41&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits, along with required signatures [Item 1 Legal Proceedings](index=42&type=section&id=Item%201%20Legal%20Proceedings) There have been no material developments regarding legal proceedings since the last Annual Report on Form 10-K - No material developments in legal proceedings have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[190](index=190&type=chunk) [Item 1A Risk Factors](index=42&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K - No material changes in risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[191](index=191&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common share repurchases during the third quarter of 2025 under its publicly announced plans, with a remaining authorization of approximately $1.3 billion | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Publicly Announced Plans | Approximate Dollar Value of Shares Remaining Under Authorization ($000s) | | :-------------------------------- | :--------------------- | :--------------------------- | :------------------------------------------------- | :----------------------------------------------------------------------- | | July 1, 2025 to July 31, 2025 | 888,540 | $112.61 | 888,540 | 1,482,837 | | August 1, 2025 to August 31, 2025 | 800,141 | $124.93 | 800,141 | 1,382,871 | | September 1, 2025 to September 30, 2025 | 746,148 | $133.99 | 746,148 | 1,282,898 | | **Total** | **2,434,829** | **$123.21** | **2,434,829** | N/A | - The Board of Directors approved a **$1.5 billion** increase in share repurchase authorization on **January 29, 2025**, with no expiration date[194](index=194&type=chunk) - As of **September 30, 2025**, approximately **$1.3 billion** remained available for repurchases under the program[194](index=194&type=chunk) [Item 5 Other Information](index=43&type=section&id=Item%205%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the reporting period - No director or officer adopted or terminated a '**Rule 10b5-1 trading arrangement**' or '**non-Rule 10b5-1 trading arrangement**' during the period covered by this report[193](index=193&type=chunk) [Item 6 Exhibits](index=44&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including corporate organizational documents, debt instruments, guarantor subsidiaries list, and certifications - Exhibits include Restated Articles of Incorporation, Amended and Restated By-Laws, debt instruments, a list of Guarantor Subsidiaries, and Rule 13a-14(a) and 18 U.S.C. § 1350 certifications[195](index=195&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report is duly signed on behalf of PulteGroup, Inc. by James L. Ossowski, Executive Vice President and Chief Financial Officer, on October 21, 2025 - The report was signed by **James L. Ossowski**, Executive Vice President and Chief Financial Officer, on **October 21, 2025**[198](index=198&type=chunk)

Core Insights - PulteGroup, Inc. is a significant player in the homebuilding industry, offering a diverse range of residential properties across the United States and competing with major homebuilders like D.R. Horton and Lennar Corporation [1] Financial Performance - For the third quarter, PulteGroup reported earnings per share (EPS) of $2.96, exceeding the Zacks Consensus Estimate of $2.86, but down from $3.35 in the same quarter last year [2][6] - The company's net income for the quarter was $586 million, a decrease from $698 million in the previous year, indicating challenges in maintaining profitability [2] - Revenue for the quarter reached approximately $4.40 billion, surpassing the estimated $4.31 billion, reflecting the company's ability to generate sales despite a challenging environment [3][6] Financial Ratios - PulteGroup's price-to-earnings (P/E) ratio is around 27.07, suggesting that investors are willing to pay a premium for its earnings [4] - The price-to-sales and enterprise value to sales ratios are both approximately 4.90, indicating a consistent valuation approach [4] - The enterprise value to operating cash flow ratio of 16.75 highlights the company's cash flow generation capabilities relative to its valuation [4] Investment Metrics - The earnings yield stands at about 3.69%, providing investors with a perspective on the return from earnings [5] - The current ratio of approximately 0.87 suggests potential challenges in covering short-term liabilities with short-term assets [5] - Despite these challenges, the company remains focused on long-term strategies, emphasizing production volume management and capital allocation [5]

Core Insights - PulteGroup Inc. reported better-than-expected third-quarter 2025 results, with adjusted earnings of $2.96 per share and total revenues of $4.4 billion, surpassing estimates but showing a year-over-year decline [1][4][8] - The company's performance was negatively impacted by a soft housing market, characterized by weaker consumer confidence and affordability challenges [2][3] - Despite optimism regarding lowered interest rates, buyer demand remains below normal levels, prompting the company to leverage its diversified business platform to navigate macro challenges [3] Financial Performance - Adjusted earnings of $2.96 per share exceeded the Zacks Consensus Estimate of $2.86 by 3.5%, but decreased from $3.35 in the prior year [4][8] - Total revenues of $4.4 billion surpassed expectations by 2.3% but declined 1.6% from $4.48 billion year-over-year [4][8] - Homebuilding revenues fell 1.4% year-over-year to $4.3 billion, while home sale revenues decreased 2.2% to $4.25 billion [5][8] Segment Analysis - Homebuilding segment revenues decreased 1.4% year-over-year, while land sale and other revenues increased significantly by 175.7% to $53.2 million [5] - The number of homes closed dropped 5% to 7,529 units, with an average selling price (ASP) of $564,000, up 2.9% year-over-year [6] - Financial Services segment revenues fell 9.3% year-over-year to $103.3 million, with pretax income declining from $55 million to $44 million [8] Backlog and Orders - At the end of Q3, PulteGroup's backlog was 9,888 units, down 18.2% year-over-year, with potential housing revenues from the backlog decreasing 19% to $6.23 billion [7] - Net new home orders declined 5.6% year-over-year to 6,638 units, with the value of these orders falling 7.4% to $3.64 billion [6][8] Cash and Share Repurchase - As of the end of Q3, the company had cash and cash equivalents of $1.48 billion, down from $1.65 billion at the end of 2024 [10] - In the first nine months of 2025, PulteGroup repurchased 8.2 million common shares for $900 million at an average price of $109.81 per share [11]

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