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].

Wall Street analysts expect PulteGroup (PHM) to post quarterly earnings of $2.93 per share in its upcoming report, which indicates a year-over-year decline of 18.2%. Revenues are expected to be $4.39 billion, down 4.5% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings announcement, it is crucial to con ...

Group 1: Company Performance - PulteGroup's stock increased by 1.19% to $109.29, outperforming the S&P 500 which gained 0.32% [1] - Over the past month, PulteGroup shares have risen by 9.4%, while the Construction sector and S&P 500 gained 4.6% and 4.51% respectively [1] Group 2: Upcoming Earnings Disclosure - PulteGroup is set to release its earnings report on July 22, 2025, with an expected EPS of $2.94, reflecting a 17.88% decline from the previous year [2] - The consensus estimate for revenue is $4.39 billion, indicating a 4.52% decrease compared to the same quarter last year [2] Group 3: Full Year Projections - For the full year, earnings are projected at $11.48 per share and revenue at $17.24 billion, showing declines of 21.85% and 3.96% respectively from the previous year [3] Group 4: Analyst Estimates and Rankings - Recent modifications to analyst estimates for PulteGroup reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which includes estimate changes, currently ranks PulteGroup at 4 (Sell), with a 0.01% downward shift in the consensus EPS estimate over the past month [6] Group 5: Valuation Metrics - PulteGroup has a Forward P/E ratio of 9.41, which aligns with the industry average [7] - The company has a PEG ratio of 0.31, significantly lower than the industry average PEG ratio of 2.23 [7] Group 6: Industry Context - The Building Products - Home Builders industry is ranked 177 in the Zacks Industry Rank, placing it in the bottom 29% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - PulteGroup's stock closed at $98.54, reflecting a +0.85% increase, outperforming the S&P 500's gain of 0.4% [1] - Over the past month, PulteGroup's shares have decreased by 4.75%, underperforming the Construction sector's increase of 7.66% and the S&P 500's increase of 6.69% [1] Group 2 - The upcoming earnings report for PulteGroup is scheduled for July 22, 2025, with an expected EPS of $2.94, indicating a 17.88% decline year-over-year [2] - Revenue is projected to be $4.39 billion, reflecting a 4.52% decrease compared to the same quarter last year [2] Group 3 - For the entire fiscal year, earnings are estimated at $11.48 per share and revenue at $17.24 billion, showing declines of -21.85% and -3.95% respectively from the previous year [3] Group 4 - Recent changes in analyst estimates for PulteGroup indicate the dynamic nature of near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] Group 5 - The Zacks Rank system, which incorporates estimate changes, currently ranks PulteGroup at 4 (Sell), with the consensus EPS estimate having decreased by 0.72% over the past month [6] Group 6 - PulteGroup has a Forward P/E ratio of 8.51, which is lower than the industry's average Forward P/E of 9.27, and a PEG ratio of 0.28 compared to the industry average of 1.71 [7] Group 7 - The Building Products - Home Builders industry, which includes PulteGroup, ranks in the bottom 9% of all industries according to the Zacks Industry Rank, indicating weaker performance compared to higher-ranked industries [8]

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% in Q1 2025 from 29.6% in Q1 2024, attributed to higher land acquisition costs and increased sales incentives[101]. - Selling, general, and administrative expenses (SG&A) increased by 10% to $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% compared to $3,797,943 in the same period of 2024[159]. - Cost of revenues increased to $2,704,104, up 1.2% from $2,672,700 in the prior year[159]. - Selling, general, and administrative expenses rose to $374,703, reflecting a 6.0% increase from $353,472 in 2024[159]. - Income before income taxes decreased to $632,233, down 22.3% from $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% increase in closings and a 5% increase in average selling price[116]. - The Southeast segment experienced an 11% decrease in revenues to $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% decrease in closings[118]. - Midwest segment revenues increased by 10% to $582,442, supported by a 10% increase in closings[119]. - Texas segment revenues decreased by 21% to $412,413, with a 22% decrease in closings[120]. - West segment revenues increased by 26% to $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%[129]. - The company expects principal demand for funds over the next 12 months to be for land acquisition and development, house construction, repayment of unsecured senior notes due in March 2026, and operating expenses[130]. - As of March 31, 2025, the company had $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% from $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].

PulteGroup (PHM) Q1 2025 Earnings Call April 22, 2025 08:30 AM ET Company Participants James Zeumer - Vice President of Investor Relations & Corporate CommunicationsRyan Marshall - President and CEOJames Ossowski - EVP & CFOStephen Kim - Senior Managing DirectorMichael Rehaut - Executive DirectorMike Dahl - Managing Director - Equity ResearchCarl Reichardt - Managing Director - Equity ResearchAlan Ratner - Managing Director Conference Call Participants John Lovallo - AnalystSam Reid - AnalystMatthew Bouley ...

PulteGroup (PHM) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.47 per share. This compares to earnings of $2.87 per share a year ago. These figures are adjusted for non- recurring items. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of ...

Financial Performance - PulteGroup reported net income of $523 million, or $2.57 per share, for Q1 2025, down from $663 million, or $3.10 per share, in the prior year[2][19]. - Net income for the three months ended March 31, 2025, was $522,799, a decrease of 21.1% compared to $662,976 in the same period of 2024[24]. - Total Homebuilding revenues decreased to $3,801,823, down 1.4% from $3,856,803 year-over-year[26]. - Home sale revenues were $3,749,269, a decline of 1.8% from $3,819,586 in the prior year[28]. - The financial services segment reported pre-tax income of $36 million, down from $41 million in the prior year[10]. Sales and Orders - Home sale revenues totaled $3.7 billion, a decrease of 2% year-over-year, driven by a 6% increase in average sales price to $570,000, offset by a 7% decrease in closing volume to 6,583 homes[5][6]. - Net new orders for the quarter totaled 7,765 homes valued at $4.5 billion, compared to 8,379 homes valued at $4.7 billion in the prior year[9]. - Net new orders in units decreased to 7,765, down 7.3% from 8,379 units year-over-year[28]. Backlog and Inventory - The unit backlog at the end of the quarter was 11,335 homes with a value of $7.2 billion[10]. - The unit backlog decreased to 11,335 units, down 15.6% from 13,430 units in the same period of 2024[28]. Margins and Expenses - The home sale gross margin for the quarter was 27.5%, down 210 basis points from the prior year but unchanged from Q4 2024[7]. - SG&A expenses for the quarter were $393 million, or 10.5% of home sale revenues, compared to $358 million, or 9.4% of revenues in the prior year[8]. Cash and Debt Position - The company ended the quarter with a cash position of $1.3 billion and a debt-to-capital ratio of 11.7%[11]. - The debt-to-capital ratio as of March 31, 2025, was 11.7%, slightly down from 11.8% at the end of 2024[35]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,275,885, down from $1,766,089 at the end of the same period last year[24]. - Net cash provided by operating activities was $134,228, a decrease of 44% compared to $239,787 in the same quarter of 2024[24]. Share Repurchase - PulteGroup repurchased $300 million of common shares, averaging $108.03 per share, with $1.9 billion remaining under its share repurchase authorization[11]. Market Outlook - PulteGroup remains optimistic about long-term housing demand despite short-term consumer demand challenges due to economic uncertainty[4]. Mortgage Performance - The capture rate for mortgage originations improved to 86.4%, compared to 84.2% in the prior year[30].

Homebuilding Operations - Homebuilding operations generated 98% of consolidated revenues, totaling $17.9 billion in 2024, $16.1 billion in 2023, and $16.0 billion in 2022[11] - Home closings increased to 31,219 in 2024 from 28,603 in 2023, reflecting a growth of approximately 5.7%[11] - The average selling price of homes rose to $555,000 in 2024, up from $545,000 in 2023, indicating a year-over-year increase of 1.8%[12] - A total of 31,219 homes were delivered in 2024, an increase from 28,603 homes in 2023 and 29,111 homes in 2022[11] - Backlog at December 31, 2024, was $6.5 billion (10,153 units), down from $7.3 billion (12,146 units) at December 31, 2023[23] - 40% of home closings in 2024 were to first-time buyers, reflecting a slight increase from 2023[18] Market Position and Competition - The company holds approximately 4% market share of U.S. new home sales in 2024, competing with numerous national, regional, and local homebuilders[28] - The U.S. housing market is highly competitive, with the company holding approximately 4% market share of new home sales in 2024[28] Financial Performance - The company aims to enhance shareholder value through operational gains, asset efficiency, and maintaining a modest leverage profile[14] - The company aims to enhance shareholder value by driving operational gains, increasing market share, and managing capital effectively[13][14] - The company originated mortgage loans for 63% of the homes closed in 2024, compared to 61% in 2023 and 62% in 2022[33] - Cash buyers represented 21% of home closings in 2024, up from 22% in 2023 and 18% in 2022[33] Operations and Management - The company controlled 234,589 lots as of December 31, 2024, with 102,176 owned and 132,413 under land option agreements[16] - The construction process is primarily conducted by independent subcontractors, ensuring quality through selective partnerships[24] - The company utilizes land option agreements to manage risks and enhance expected returns on land investments[15] - The company employs 6,793 people as of December 31, 2024, with 1,094 in Financial Services operations[40] - The average tenure of the executive team is 16 years, indicating strong leadership continuity[45] Regulatory Environment - The company is subject to extensive regulations impacting site selection, development, and construction activities[30] - The company is subject to government regulations affecting its mortgage banking business, impacting both mortgage and homebuilding operations[36] Risk Management - The company has not experienced significant claims related to its title operations historically[38] - The company has not experienced significant claims related to its title insurance operations historically[38] - The company faces challenges in sourcing qualified labor and materials, impacting construction costs and timelines[27] Customer Focus and Innovation - Energy efficiency is a key focus in home designs, incorporating features like high-efficiency HVAC systems and solar power in certain areas[19] - The company utilizes in-house mortgage and title operations to provide a competitive advantage and align financing with home construction needs[32] - The company utilizes a centralized fulfillment center for mortgage operations, improving speed, efficiency, and profitability[35] Corporate Culture and Leadership - The company emphasizes diversity and ethical behavior in its workplace culture, which is critical to its success[44] - The company offers competitive compensation and benefits, including a 401(k) retirement plan and performance-based incentives[42] - The company plans to promote Mr. Ossowski to Chief Financial Officer effective February 7, 2025, following Mr. O'Shaughnessy's retirement[50]

Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, ...