PulteGroup(PHM) - 2025 Q1 - Quarterly Report

Financial Performance - Home sale revenues for Q1 2025 decreased by 2% to $3,749,269 compared to$3,819,586 in Q1 2024, primarily due to a 7% decrease in closings[98]. - Net new orders in units decreased by 7% to 7,765 in Q1 2025, while net new order dollars decreased by 5% to $4,477,827 compared to the prior year period[105]. - Gross margin from home sales decreased to 27.5$393,337 in Q1 2025, representing 10.5% of home sale revenues compared to 9.4% in Q1 2024[103]. - The backlog at March 31, 2025, decreased by 12% to $7,223,276 compared to$8,198,788 at March 31, 2024, with units in backlog down 16%[105]. - Revenues for the three months ended March 31, 2025, were $3,721,729, a decrease of 2.0$3,797,943 in the same period of 2024[159]. - Cost of revenues increased to $2,704,104, up 1.2$2,672,700 in the prior year[159]. - Selling, general, and administrative expenses rose to $374,703, reflecting a 6.0$353,472 in 2024[159]. - Income before income taxes decreased to $632,233, down 22.3$814,115 in the previous year[159]. Market Segments Performance - Homebuilding revenues for the Northeast segment increased by 25% to $249,733, driven by a 19$638,729, with a 17% decrease in closings partially offset by an 8% increase in average selling price[117]. - Florida segment revenues decreased by 14% to $980,539, primarily due to a 14$582,442, supported by a 10% increase in closings[119]. - Texas segment revenues decreased by 21% to $412,413, with a 22$888,797, due to a 13% increase in closings and a 12% increase in average selling price[122]. Cash and Debt Management - As of March 31, 2025, the company had unrestricted cash and equivalents of $1.2 billion and a debt-to-total capitalization ratio of 11.7$1.6 billion of unsecured senior notes outstanding, with $251.9 million scheduled to mature in March 2026[132]. - The company maintains a revolving credit facility with a maximum borrowing capacity of$1.3 billion, which can be increased to $1.8 billion under certain conditions[134]. - At March 31, 2025, the company had$942.3 million of remaining capacity under the revolving credit facility and no borrowings outstanding[135]. - The company had net cash used in financing activities of $472.3 million for the three months ended March 31, 2025, primarily due to share repurchases and cash dividends[147]. Shareholder Returns - The company plans to increase its quarterly dividend by 10$0.20 to $0.22 per share, effective January 2025, and has authorized an additional$1.5 billion for share repurchases[96]. - The company declared cash dividends totaling $44.7 million and repurchased 2.8 million shares for$300.0 million in the three months ended March 31, 2025[138]. Risks and Future Outlook - The company continues to face pressure from rising land acquisition and development costs, which may impact future gross margins[94]. - The company faces risks including interest rate changes, supply shortages, and competition in the homebuilding industry[166][168]. - Forward-looking statements indicate potential impacts from economic changes and regulatory conditions affecting the housing market[165].