FOURTH QUARTER 2025 EARNINGS CALL January 29, 2026 1 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 m ...

Core Viewpoint - PulteGroup reported a decline in fourth-quarter profit due to ongoing weak consumer sentiment negatively impacting home sales [1] Company Summary - PulteGroup's fourth-quarter profit decreased as a result of challenging market conditions [1] - The company is facing difficulties in home sales attributed to low consumer confidence [1] Industry Summary - The housing market is experiencing a downturn, influenced by weak consumer sentiment [1] - Overall home sales are being adversely affected, indicating broader challenges within the real estate sector [1]

FOR IMMEDIATE RELEASE Company Contact Investors: Jim Zeumer (404) 978-6434 jim.zeumer@pultegroup.com PULTEGROUP REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS "PulteGroup's fourth quarter and full year financial results reflect our balanced and disciplined approach to the business as we continue to successfully navigate today's continuously shifting market dynamics," said PulteGroup President and CEO, Ryan Marshall. "Inclusive of our strong fourth quarter results, in 2025 PulteGroup delivered 29,572 homes, $ ...

Core Viewpoint - PulteGroup, Inc. reported a decline in net income for the fourth quarter of 2025, reflecting challenges in the housing market despite a disciplined business approach and significant investments in land acquisition and development [2][3]. Financial Performance - The company reported net income of $502 million, or $2.56 per share, for Q4 2025, down from $913 million, or $4.43 per share, in the same period last year [1][2]. - Home sale revenues for Q4 2025 were $4.5 billion, a decrease of 5% compared to the prior year, driven by a 3% decline in closings to 7,821 homes and a 1% decrease in average sales price to $573,000 [3][4]. - For the full year 2025, PulteGroup delivered 29,572 homes and generated $16.7 billion in home sale revenues, with a net income of $2.2 billion [2]. Cost and Expenses - The reported gross margin for home sales in Q4 2025 was 24.7%, down from 27.5% in the prior year, which included land impairment charges of $35 million [4]. - Selling, general, and administrative (SG&A) expenses for Q4 2025 were $389 million, or 8.7% of home sale revenues, compared to $196 million, or 4.2% of revenues in Q4 2024 [5]. Orders and Backlog - Net new orders for Q4 2025 increased by 4% to 6,428 homes, with a total value of $3.5 billion, remaining comparable to the previous year [6]. - The company's backlog at the end of Q4 2025 totaled 8,495 homes, valued at $5.3 billion [6]. Financial Services - The financial services segment generated pre-tax income of $35 million in Q4 2025, down from $51 million in the same period last year, impacted by lower closing volumes and a decrease in mortgage capture rate to 84% [7]. Shareholder Actions - In Q4 2025, PulteGroup repurchased 2.4 million common shares for $300 million, totaling 10.6 million shares repurchased for the year at a cost of $1.2 billion [8]. Cash Position - The company ended Q4 2025 with $2.0 billion in cash and a debt-to-capital ratio of 11.2% [8].

Performance Overview - The Third Avenue Real Estate Value Fund generated a return of +11.61% for the year ended December 31, 2025, outperforming its benchmark, the MSCI ACWI IMI Core Real Estate Index, which returned +9.86% [2][3] - Since its inception in 1998, the Fund has achieved an annualized return of +8.96%, indicating that an initial investment of $100,000 would exceed $1,000,000 by year-end with reinvested distributions [4] Key Contributors and Detractors - Major contributors to the Fund's performance included investments in National Storage REIT and several industrial and logistics REITs such as Prologis, First Industrial, and Segro plc [3] - Detractors included investments in U.S. homebuilders like Lennar Corp., PulteGroup, and D.R. Horton, as well as certain U.K. property companies [3] Fund Management Strategy - The Fund Management emphasizes long-term results and has refined its investment strategy to focus on well-capitalized enterprises with discounted securities [8][9] - The Firm's approach to value investing has remained consistent, targeting opportunities for resource conversion, including privatizations and mergers [10][11] Recent Additions and Changes - The Fund initiated a position in FirstService Corporation, a Canadian real estate services company, which meets the Fund's investment criteria due to its conservative capitalization and strong management [12][13] - Other changes included adding to positions where the price-to-value gap widened, such as Unite Group and Fidelity National Financial, while trimming back on CBRE Group and JLL Inc. [16] Sector Allocations - 40.3% of the Fund's capital is invested in U.S. residential real estate companies, supported by strong demand and low inventory levels [18] - 27.5% is allocated to North American commercial real estate companies, which are expected to benefit from structural demand drivers [19] - 27.6% is invested in international real estate companies, focusing on similar activities as domestic holdings [20] - The remaining 4.6% is in cash, debt, and options, including U.S. Dollar cash and short-term U.S. Treasuries [21] Market Insights - The Fund Management believes that the next five years could mirror the early 2000s, with compelling valuations for listed real estate leading to net inflows and differentiated returns [29][30] - The report highlights the significant size of the publicly traded real estate market, with over $6 trillion accessible to investors globally [28]

More consequential for PulteGroup's stock will be any guidance from the builder for the typically busy spring season, which kicks off in late February. ...

Core Viewpoint - PulteGroup Inc. is expected to report its fourth-quarter 2025 results on January 29, with anticipated declines in both earnings per share (EPS) and total revenues compared to the previous year [1][2] Revenue Performance - The Zacks Consensus Estimate for PulteGroup's fourth-quarter EPS has decreased to $2.78, reflecting a 20.6% decline from the year-ago EPS of $3.50 [2] - Total revenues are projected at $4.31 billion, indicating a 12.4% year-over-year decline, primarily due to ongoing affordability challenges in the housing market and high mortgage rates [2][3] Home Closings and Segment Performance - Home closings are expected to be between 7,200 and 7,600 units, down from 8,103 units a year ago, with a predicted decline of 8.3% year over year to 7,429 units [4] - Homebuilding revenues are forecasted to decrease 12.2% year over year to $4.22 billion, while Financial Services revenues are expected to drop 4.4% to $110 million [5] Pricing and Margins - The average selling price (ASP) for the quarter is anticipated to be between $560,000 and $570,000, down from $581,000 a year ago, with a predicted decrease of 3.3% year over year to $561,700 [6] - Home sales gross margin is expected to be between 25.5% and 26%, down from 27.5% in the previous year, with SG&A expenses projected to rise to between 9.5% and 9.7% [9] Orders and Backlogs - Net new orders are expected to decline by 0.9% year over year to 6,114 units, while total backlog is projected to decrease by 15.6% to 8,572 units, with a total backlog value of $5.49 billion, down 15.5% year over year [10] Earnings Prediction - The model does not predict an earnings beat for PulteGroup this quarter, with an Earnings ESP of +2.10% and a Zacks Rank of 4 (Sell) [11]

Core Viewpoint - Analysts forecast that PulteGroup (PHM) will report quarterly earnings of $2.78 per share, reflecting a year-over-year decline of 20.6%, with anticipated revenues of $4.31 billion, a decrease of 12.4% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have collectively reevaluated their initial estimates during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Forecasts - Analysts estimate 'Homebuilding- Home sale revenues' at $4.16 billion, indicating a year-over-year change of -11.7% [5]. - 'Revenues- Financial Services' are projected to reach $107.17 million, suggesting a decline of 6.9% year over year [5]. - 'Revenues- Homebuilding' is expected to be $4.20 billion, reflecting a year-over-year change of -12.6% [5]. Additional Key Metrics - 'Homebuilding- Land sale revenues' are estimated at $58.60 million, a significant decline of 40.9% from the previous year [6]. - The 'Average Selling Price - Total' is projected to be $564.19, down from $581.00 a year ago [6]. - 'Net New Orders in Units - Total' is expected to reach 5,967, compared to 6,167 in the same quarter last year [6]. Backlog and Closings - The consensus for 'Unit Backlog - Total' is 8,439, down from 10,153 a year ago [7]. - Analysts predict 'Closings (units) - Total' at 7,416, compared to 8,103 in the previous year [7]. - The estimated 'Active Communities' is 1,002, up from 960 in the same quarter last year [7]. Order Value and Backlog - The estimate for 'Net New Orders (Value) - Total' stands at $3.27 billion, down from $3.51 billion in the same quarter last year [8]. - 'Backlog Value - Total' is expected to be $5.32 billion, compared to $6.49 billion a year ago [8]. Financial Services Performance - Analysts project 'Income / (loss) before income taxes- Financial Services' to reach $46.52 million, down from $50.67 million in the same quarter last year [9]. - PulteGroup shares have returned +5% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [9].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for PulteGroup due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - PulteGroup is expected to report quarterly earnings of $2.78 per share, reflecting a year-over-year decrease of 20.6% [3]. - Revenues are projected to be $4.31 billion, down 12.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - A positive Earnings ESP of +2.10% suggests recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Earnings Surprise History - PulteGroup has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +3.50% in the most recent quarter [13][14]. Industry Context - M/I Homes, a competitor in the homebuilding sector, is expected to report earnings of $3.88 per share, down 17.6% year-over-year, with revenues of $1.16 billion, a decrease of 3.4% [18][19]. - M/I Homes has an Earnings ESP of -11.42% and has not beaten consensus EPS estimates in the last four quarters, indicating challenges in the industry [20].

Core Viewpoint - PulteGroup is facing a projected decline in earnings and revenue for the upcoming quarter, with significant decreases anticipated compared to the previous year [2][3]. Company Performance - PulteGroup's stock closed at $126.81, down 2.63% from the previous trading session, underperforming the S&P 500, which fell by 2.06% [1]. - Over the past month, PulteGroup's shares have increased by 9.34%, outperforming the Construction sector's gain of 7.13% and the S&P 500's gain of 1.63% [1]. Earnings Estimates - The upcoming earnings release is scheduled for January 29, 2026, with an expected earnings per share (EPS) of $2.78, reflecting a 20.57% decrease from the same quarter last year [2]. - The revenue forecast for the same quarter is $4.31 billion, indicating a 12.42% decline compared to the prior year [2]. Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $11.34 per share and revenue of $17.01 billion, showing changes of -22.8% and 0% respectively from the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for PulteGroup are crucial as they reflect evolving short-term business trends, with positive revisions indicating analyst optimism [3][4]. Valuation Metrics - PulteGroup is currently trading at a Forward P/E ratio of 11.7, which is below the industry average of 12.2 [6]. - The company has a PEG ratio of 1.06, compared to the industry average PEG ratio of 1.79, indicating a more favorable valuation relative to expected earnings growth [7]. Industry Context - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 242, placing it in the bottom 2% of over 250 industries [8]. - The Zacks Industry Rank assesses industry strength based on the average Zacks Rank of individual stocks, with higher-ranked industries outperforming lower-ranked ones [8].