Financial Performance - PulteGroup reported net income of $913 million, or $4.43 per share, for Q4 2024, compared to $711 million, or $3.28 per share, in the prior year[2][3]. - Full year revenues reached nearly $18 billion, with net income of $3.1 billion and a return on equity of 27.5%[3]. - Net income for the year ended December 31, 2024, increased to $3,083,262, up 18.4% from $2,602,372 in 2023[25]. Home Sales and Orders - Home sale revenues in Q4 increased 13% to $4.7 billion, driven by a 6% increase in closings to 8,103 homes[5]. - The average selling price of homes closed in Q4 was $581,000, up 6% from $547,000 in the prior year[5]. - The company's net new orders for Q4 were 6,167 homes, valued at $3.5 billion, a 4% increase over last year[8]. - Home sale revenues for the year ended December 31, 2024, reached $17,318,521, a 10.9% increase from $15,598,707 in 2023[27]. - Total Homebuilding revenues for the year ended December 31, 2024, were $17,513,956, compared to $15,740,823 in 2023, reflecting a growth of 11.2%[27]. - The average selling price of homes increased to $555, up from $545 in 2023, indicating a 1.8% rise[29]. - Net new orders in dollars for the year ended December 31, 2024, totaled $16,493,524, a 8.2% increase from $15,244,353 in 2023[29]. Backlog and Inventory - The unit backlog stood at 10,153 homes, with a total value of $6.5 billion[6]. - The unit backlog decreased to 10,153 units as of December 31, 2024, down from 12,146 units in 2023[29]. Share Repurchase and Financial Management - PulteGroup repurchased $320 million of common shares in Q4, with a total of $1.2 billion repurchased in 2024, representing 4.7% of shares outstanding[11]. - The company announced a $1.5 billion increase to its share repurchase authorization, bringing the total remaining authorization to $2.1 billion[12]. Financial Services - Financial services operations generated pre-tax income of $51 million, a 16% increase from the prior year[9]. - Mortgage origination volume for the year ended December 31, 2024, was $19,770, an increase from $17,427 in 2023[31]. - The capture rate for mortgage originations improved to 85.9% in Q4 2024, compared to 81.6% in Q4 2023[31]. Cash and Debt Management - The company's cash and equivalents at the end of Q4 were $1.6 billion, with a debt-to-capital ratio of 11.8%[11]. - The debt-to-capital ratio improved to 11.8% in 2024, down from 15.9% in 2023, indicating reduced leverage[37]. - Cash provided by operating activities for the year ended December 31, 2024, was $1,680,794, down from $2,196,762 in 2023[25].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-9804 PULTEGROUP, INC. (Exact name of registrant as specified in its charter) Michigan 38-2766606 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

Q3 2024 Operating & Financial Results October 22, 2024 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 ...

PulteGroup Inc. (NYSE:PHM) Q3 2024 Earnings Conference Call October 22, 2024 8:30 AM ET Company Participants James Zeumer - Vice President, Investor Relations Ryan Marshall - President and Chief Executive Officer Robert O'Shaughnessy - Executive Vice President and Chief Financial Officer Conference Call Participants John Lovallo - UBS Alan Ratner - Zelman & Associates Stephen Kim - Evercore ISI Anthony Pettinari - Citi Michael Rehaut - JPMorgan Michael Dahl - RBC Capital Markets Carl Reichardt - BTIG Trevor ...

Financial Performance - Earnings increased 16% to $3.35 per share compared to $2.90 per share in the prior year period[1] - Net income for the nine months ended September 30, 2024, was $2,170,023, an increase of 14.8% compared to $1,891,379 for the same period in 2023[15] - Home sale revenues for the three months ended September 30, 2024, reached $4,343,227, up 11.7% from $3,886,908 in the same period of 2023[17] - Total Homebuilding revenues for the nine months ended September 30, 2024, were $12,707,308, representing a 10.1% increase from $11,541,051 in the prior year[17] - Financial services operations generated pre-tax income of $55 million, a 90% increase from $29 million in the prior year[4] Home Sales and Orders - Home sale revenues rose 12% to $4.3 billion, driven by a 12% increase in closings to 7,924 homes[3] - Net new orders totaled 7,031 homes valued at $3.9 billion, reflecting a 3% increase over the previous year[3] - The average selling price of homes closed was $548,000, effectively unchanged from the prior year[3] - The average selling price for homes sold in the three months ended September 30, 2024, was $548,000, slightly down from $549,000 in the same period of 2023[19] Backlog and Inventory - The unit backlog at the end of the quarter was 12,089 homes with a total value of $7.7 billion[4] - The unit backlog at the end of September 2024 was 12,089 units, down from 13,547 units at the end of September 2023[19] Cash and Debt Management - The company ended the quarter with $1.5 billion in cash and a debt-to-capital ratio of 12.3%[5] - Cash provided by operating activities for the nine months ended September 30, 2024, was $1,113,184, a decrease from $1,908,344 in the same period of 2023[15] - Cash, cash equivalents, and restricted cash at the end of the period were $1,455,136, down from $1,899,561 at the end of September 30, 2023[15] - The company reported a net cash used in financing activities of $1,398,875 for the nine months ended September 30, 2024, compared to $1,008,305 in the same period of 2023[15] - As of September 30, 2024, the debt-to-capital ratio is 12.3%, down from 15.9% on December 31, 2023[25] - Total net debt as of September 30, 2024, is $168,550, compared to $113,041 on December 31, 2023[25] - Total capital increased to $13,187,899 as of September 30, 2024, from $12,345,475 on December 31, 2023[25] - Shareholders' equity rose to $11,564,213 as of September 30, 2024, up from $10,383,257 on December 31, 2023[25] - Total cash, cash equivalents, and restricted cash decreased to $1,455,136 as of September 30, 2024, from $1,849,177 on December 31, 2023[25] Mortgage Operations - Mortgage origination volume for the three months ended September 30, 2024, was 5,005 units, compared to 4,362 units in the same period of 2023, reflecting a 14.7% increase[21] - The capture rate for mortgage originations improved to 86.7% in the three months ended September 30, 2024, up from 83.5% in the same period of 2023[21] Non-GAAP Financial Measures - The company believes that its non-GAAP financial measures provide relevant information for evaluating profitability and liquidity[24] - The company uses debt-to-capital and net debt-to-capital ratios as indicators of overall leverage[24] - The report includes a reconciliation of non-GAAP financial measures related to debt-to-capital ratios[24] - The company emphasizes the importance of understanding the methods used by other companies in the homebuilding industry for calculating debt-to-capital ratios[24]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents PulteGroup's unaudited financial statements for Q2 and H1 2024, including balance sheets, operations, equity, cash flows, MD&A, market risk, and internal controls disclosures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements detail PulteGroup's financial position and performance, showing $16.5 billion in total assets, $4.6 billion in Q2 revenues, and $1.47 billion in H1 net income, alongside equity changes and cash flows | Financial Metric | June 30, 2024 (Unaudited) (in thousands of USD) | December 31, 2023 (in thousands of USD) | | :--- | :--- | :--- | | Total cash, cash equivalents, and restricted cash | $1,445,966 | $1,849,177 | | House and land inventory | $12,302,301 | $11,795,370 | | Total Assets | $16,544,069 | $16,087,050 | | Notes payable | $1,650,178 | $1,962,218 | | Total Shareholders' equity | $11,222,823 | $10,383,257 | | Metric (Q2) | 2024 (in thousands of USD) | 2023 (in thousands of USD) | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $4,599,655 | $4,188,753 | +9.8% | | Net income | $809,133 | $720,345 | +12.3% | | Diluted EPS | $3.83 | $3.21 | +19.3% | | Metric (Six Months) | 2024 (in thousands of USD) | 2023 (in thousands of USD) | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $8,548,815 | $7,764,394 | +10.1% | | Net income | $1,472,109 | $1,252,604 | +17.5% | | Diluted EPS | $6.93 | $5.55 | +24.9% | | Activity (Six Months Ended June 30) | 2024 (in thousands of USD) | 2023 (in thousands of USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $657,264 | $1,450,583 | | Net cash used in investing activities | ($66,201) | ($53,996) | | Net cash used in financing activities | ($994,274) | ($713,360) | | Net (decrease) increase in cash | ($403,211) | $683,227 | - For the six months ended June 30, 2024, the company repurchased **5.1 million shares** for **$560.0 million** and declared dividends of **$84.7 million**, compared to repurchasing **6.4 million shares** for **$400.0 million** and declaring dividends of **$71.8 million** in the same period of 2023[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses weakening demand in Q2 2024 due to higher interest rates, improved production efficiency, and strong liquidity, detailing performance across Homebuilding and Financial Services segments - Demand for new homes began to weaken during the second quarter of 2024, with net new orders decreasing **4% YoY** for the quarter, attributed to challenged affordability from higher interest rates, price increases, and inflation[107](index=107&type=chunk) - The company improved production efficiency, with home construction time approximately **nine weeks shorter** at the end of Q2 2024 compared to the prior year, contributing to an **8% increase in Q2 closings**[109](index=109&type=chunk) | Metric | Q2 2024 (in millions of USD) | Q2 2023 (in millions of USD) | % Change | | :--- | :--- | :--- | :--- | | Home sale revenues | $4,448.2 | $4,058.9 | +10% | | Gross margin from home sales | 29.9% | 29.6% | +30 bps | | Closings (units) | 8,097 | 7,518 | +8% | | Net new orders (units) | 7,649 | 7,947 | -4% | | Backlog (units) | 12,982 | 13,558 | -4% | - The company maintains a strong liquidity position with **$1.4 billion in cash and equivalents** and **$952.6 million available** under its Revolving Credit Facility as of June 30, 2024, with the debt-to-total capitalization ratio improving to **12.8%** from **15.9%** at year-end 2023[154](index=154&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) PulteGroup's primary market risk is interest rate fluctuations affecting its $1.66 billion fixed-rate and $524 million variable-rate debt, with no material changes from the prior year-end report | Debt Type | Total Principal (in thousands of USD) | Fair Value (in thousands of USD) | Weighted-Avg Interest Rate | | :--- | :--- | :--- | :--- | | Fixed rate debt | $1,657,048 | $1,734,524 | 6.04% | | Variable rate debt | $524,042 | $524,042 | 7.14% | - The company is subject to market risk from interest rate fluctuations, primarily impacting the fair value of fixed-rate debt and the earnings and cash flows related to variable-rate debt[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - The President and CEO, along with the Executive VP and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[189](index=189&type=chunk) - No changes occurred during the quarter ended June 30, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[189](index=189&type=chunk) [PART II OTHER INFORMATION](index=38&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides supplementary information, confirming no material developments in legal proceedings or risk factors, detailing Q2 2024 share repurchase activity, and listing exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material developments regarding legal proceedings since its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material developments in legal proceedings since the 2023 year-end 10-K filing[190](index=190&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes have occurred in the company's risk factors since the 2023 year-end 10-K filing[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities, with 2.76 million shares bought back in Q2 2024, and $1.3 billion remaining for future repurchases | Period | Total Shares Purchased | Average Price Paid (USD) | | :--- | :--- | :--- | | April 2024 | 758,165 | $111.83 | | May 2024 | 1,025,947 | $116.20 | | June 2024 | 976,727 | $112.79 | | **Q2 Total** | **2,760,839** | **$113.79** | - As of June 30, 2024, **$1.3 billion** remained under the company's share repurchase authorization, which was increased by **$1.5 billion** on January 30, 2024, and has no expiration date[194](index=194&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reports that no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2024 - No director or officer of the company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[192](index=192&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, debt instruments, certifications, and XBRL data files

Financial Data and Key Metrics Changes - PulteGroup reported second quarter home sale revenues of $4.4 billion, a 10% increase from the same period in 2023, driven by an 8% increase in closings to 8,097 homes and a 2% increase in average sales price to $549,000 [14][23] - Earnings per share reached a record $3.83, reflecting a 19% increase year-over-year [7][23] - Return on equity for the trailing 12-month period was 27.1% [7] Business Line Data and Key Metrics Changes - The average sales price for homes was $549,000, with product options and lot premiums averaging $104,000 per home, representing approximately 19% of the average sales price [8][14] - Closings in the second quarter consisted of 40% first-time buyers, 37% move-up buyers, and 23% active adult buyers, compared to 41%, 34%, and 25% respectively in the same quarter last year [15] - Net new orders decreased by 4% year-over-year, with a notable 17% decrease among active adult buyers [15][17] Market Data and Key Metrics Changes - The company noted a supply imbalance in the housing market, with existing homeowners reluctant to sell due to low-rate mortgages, contributing to a housing deficit of several million homes [9][10] - Inventory levels in Southwest Florida approached nine months, indicating a slight oversupply, while markets in Texas also showed increased inventory levels [40][60] - The company observed a cautious buyer sentiment due to high prices and interest rates, impacting demand [11][60] Company Strategy and Development Direction - PulteGroup aims to balance price, pace, and investment to generate superior returns, focusing on turning assets efficiently [6][12] - The company is increasing its use of land bankers to build a more efficient land pipeline, with lots controlled via option increasing to 53% of total lots [12][25] - The company expects to close approximately 31,000 homes for the full year and aims for a growth rate of 5% to 10% in 2025 [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term housing demand trends despite short-term fluctuations in buyer demand [10][11] - The company anticipates a challenging environment in the second half of the year, with expected gross margins of approximately 29% in Q3 and 28.5% to 29% in Q4 [21][62] - Management highlighted the importance of adjusting pricing and incentives to meet buyer needs in a competitive market [11][66] Other Important Information - The company repurchased 2.8 million shares at a cost of $314 million in Q2, with a total of 5.1 million shares repurchased year-to-date [25][26] - PulteGroup's debt-to-capital ratio is now 12.8%, the lowest level since before acquiring Del Webb in 2001 [26] - Fitch upgraded the company's debt rating to BBB+, and Moody's upgraded its outlook to positive [26] Q&A Session Summary Question: Gross margin outlook and land banking impact - Management indicated that the West region's lower margins are factored into the margin guidance for Q3 and Q4, with a potential 200 to 300 basis point trade-off between margin and return as land banking increases [33][34] Question: Cycle times and ICG update - Cycle times for closings were reported at 123 days, with some divisions achieving below the 100-day target [35][36] - ICG is performing well, with plans for a third plant being finalized [37] Question: Inventory levels in Florida and Texas - Management noted elevated inventory levels in Southwest Florida and parts of Texas but does not consider it concerning, expecting a market adjustment [40][41] Question: Cash flow and share repurchase plans - The cash flow guidance remains at $1.8 billion, with management indicating continued share repurchases [42][43] Question: Impact of potential rate cuts on gross margin - Management stated that the impact of lower rates would depend on the economic context, with potential for margins to benefit if rates decrease in a healthy economy [45][46] Question: Stick and brick costs and inflation outlook - Stick and brick costs were reported at $80 per square foot, with expectations of manageable inflation in the low single digits for the remainder of the year [47][48] Question: Balance sheet and leverage considerations - Management emphasized the importance of capital allocation needs over leverage, indicating a preference for lower debt levels while still pursuing strategic investments [55][57]

FOR IMMEDIATE RELEASE Company Contact Investors: Jim Zeumer (404) 978-6434 Email: jim.zeumer@pultegroup.com PULTEGROUP REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS • Earnings Increased 19% to $3.83 Per Share • Home Sale Revenues Increased 10% to $4.4 Billion • Closings Increased 8% to 8,097 Homes; Average Sales Price Increased 2% to $549,000 • Home Sale Gross Margin Increased 30 Basis Points to 29.9% • Net New Orders Totaled 7,649 Homes with a Value of $4.4 Billion • Unit Backlog of 12,982 Homes with a Val ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-9804 PULTEGROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Michigan 38-2766606 (I.R.S. Employe ...

Financial Data and Key Metrics - Q1 2024 revenue reached $3.8 billion, with gross margins of 29.6% and earnings per share of $3.10 [7] - Home sale revenues increased by 10% YoY to $3.8 billion, driven by an 11% increase in closings to 7,095 homes, partially offset by a 1% decrease in average sales price to $538,000 [16] - Net new orders increased 14% YoY to 8,379 homes, with cancellation rates dropping to 10.1% from 12.7% in Q1 2023 [18] - Gross margin improved by 50 basis points YoY to 29.6%, exceeding guidance [21] - Pre-tax income reached a record $869 million, up 24% YoY, with net income of $663 million or $3.10 per share [27] Business Line Performance - Closings mix: 41% first-time buyers, 36% move-up, and 23% active adult, compared to 38%, 36%, and 26% respectively in Q1 2023 [17] - Net new orders increased across all buyer groups: first-time buyers +8%, move-up +22%, and active adult +12% [19] - Financial services pre-tax income surged nearly 200% YoY to $41 million, driven by improved market conditions and higher capture rates [26] Market Performance - Strong demand continued in the Southeast, Florida, and Texas, while previously struggling markets like Arizona, California, and Nevada showed significant improvement [10] - Net pricing increased by 1% to 5% across more than half of the communities due to stable or improving pricing dynamics [11] - Average community count increased by 6% YoY to 931, with an absorption pace of approximately three homes per month [18] Strategy and Industry Competition - The company maintained pricing discipline in Q4 2023, which allowed for higher margins and inventory availability for the 2024 spring selling season [9] - The housing market remains supply-constrained, with a structural shortage of approximately 4 million housing units in the US [12] - Mortgage rate buy-downs were used by 25% of home buyers in Q1, providing a competitive advantage in a high-interest-rate environment [13] Management Commentary on Operating Environment and Outlook - Management highlighted the resilience of the economy and strong job market, expressing optimism for 2024 despite higher interest rates [14] - The company raised its full-year guidance for closings to approximately 31,000 homes, representing an 8% increase over 2023 [20] - Gross margin guidance for Q2 2024 was raised to 29.2%, with expectations of 29% for Q3 and Q4 [23] Other Important Information - The company invested $1.1 billion in land acquisition and development in Q1, with plans to invest approximately $5 billion for the full year [28] - Share repurchases totaled 2.3 million shares at an average price of $106.73 per share, costing $246 million [30] - The company ended Q1 with $1.8 billion in cash and a net debt-to-capital ratio of 1.7% [31] Q&A Session Summary Question: Long-term land strategy and cash flow expectations [37][39] - The company aims to control seven years of land supply, with 70% under option, a multi-year journey to achieve ideal economics [38] - Cash flow from operations is expected to increase, with capital allocated to business growth, dividends, and stock repurchases [41][42] Question: Incentive strategy and margin trade-offs [45][48] - The company will not prioritize margin over growth, using mortgage rate buy-downs to support affordability, with incentives expected to remain flat at 6.5% [46][47] - Land costs are expected to increase mid to high single digits, with no significant deceleration in the land market [49][50] Question: Construction cycle times and existing home inventory [52][55] - Construction cycle times improved to 128 days, with a target of 100 days by year-end [53] - Existing home inventory is largely neutral on supply, as most sellers are likely to buy another home [56] Question: Impact of NAR settlement and regional market trends [58][60] - The NAR settlement may increase transparency in real estate fees, with over 60% of sales involving buyer-side realtors [59] - Western markets like Arizona, California, and Nevada improved due to price adjustments and better buyer sentiment [61] Question: Demand trends and material costs [63][66] - Demand remained strong in Q1, with some moderation in April due to rising interest rates [64] - Material costs were stable at $80 per square foot, with low single-digit inflation expected for 2024 [67] Question: Gross margin outlook and mix impact [68][71] - Gross margins are expected to remain flat YoY, driven by pricing increases and favorable mix shifts [69] - The step-down in Q2 gross margin guidance reflects a reversal of the Q1 mix benefit and expected changes in geographic mix [72] Question: Spec vs. build-to-order strategy and incentive sensitivity [94][97] - The company maintains a 50/50 split between spec and build-to-order, with flexibility to adjust based on market conditions [95] - Incentives are expected to remain flat, but the company will monitor demand and adjust pricing or incentives as needed [97][100] Question: Florida market performance [102][104] - Florida remains a strong market, with a focus on move-up and age-targeted buyers, though affordability challenges persist due to price appreciation and rising property taxes and insurance costs [103][104]