Over the last four quarters, the company has surpassed consensus EPS estimates four times. PulteGroup (PHM) came out with quarterly earnings of $3.03 per share, beating the Zacks Consensus Estimate of $2.92 per share. This compares to earnings of $3.58 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +3.77%. A quarter ago, it was expected that this homebuilder would post earnings of $2.47 per share when it actually produced e ...

Q2 2025 Operating & Financial Results July 22, 2025 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 ma ...

```markdown [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) PulteGroup reported second-quarter 2025 net income of $608 million, or $3.03 per diluted share, a decrease from $809 million, or $3.83 per share, in the prior year, navigating a competitive market by aligning production with demand, achieving a gross margin of 27.0%, and returning $300 million to shareholders via share repurchases, while maintaining a strong financial position with a debt-to-capital ratio of 11.4% and a cash balance of $1.3 billion despite a 4% decrease in home sale revenues to $4.3 billion and a 6% drop in closings Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $608 million | $809 million | -24.8% | | Diluted EPS | $3.03 | $3.83 | -20.9% | | Home Sale Revenues | $4.3 billion | $4.4 billion | -4% | | Closings (units) | 7,639 | 8,097 | -6% | | Home Sale Gross Margin | 27.0% | 29.9% | -290 bps | | Net New Orders (units) | 7,083 | 7,649 | -7% | - CEO Ryan Marshall noted that despite challenges from high interest rates and economic concerns, the company saw a positive consumer response to interest rate pullbacks and has aligned its production and land investment to serve current demand while positioning for future growth[4](index=4&type=chunk)[5](index=5&type=chunk) - The company continued its capital return program, repurchasing **3.0 million common shares** for **$300 million** in the second quarter, with year-to-date spending of **$600 million** on repurchasing **5.8 million shares**[3](index=3&type=chunk)[10](index=10&type=chunk) - PulteGroup ended the quarter with a strong balance sheet, featuring **$1.3 billion in cash** and a debt-to-capital ratio lowered to **11.4%**[6](index=6&type=chunk)[10](index=10&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's performance, financial position, and cash flows, with total revenues of $8.30 billion and net income of $1.13 billion for the six months ended June 30, 2025, total assets of $17.59 billion supported by $12.57 billion in shareholders' equity, and $421.7 million in cash generated from operating activities, while significant cash was used for share repurchases [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues decreased to $4.40 billion from $4.60 billion year-over-year, primarily due to a 4% decline in home sale revenues, consequently, net income fell to $608.5 million from $809.1 million in Q2 2024, resulting in diluted EPS of $3.03 compared to $3.83, with the prior year's results including a notable pre-tax insurance benefit and a tax benefit Consolidated Statements of Operations Highlights ($000's) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $4,403,755 | $4,599,655 | $8,296,406 | $8,548,815 | | Income before income taxes | $807,156 | $1,048,312 | $1,488,294 | $1,916,955 | | Net income | $608,483 | $809,133 | $1,131,282 | $1,472,109 | | Diluted earnings per share | $3.03 | $3.83 | $5.60 | $6.93 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, PulteGroup's total assets were $17.59 billion, a slight increase from $17.36 billion at the end of 2024, with the company's cash position decreasing to $1.27 billion from $1.65 billion, while house and land inventory grew to $13.22 billion, and shareholders' equity increased to $12.57 billion, reflecting retained earnings Condensed Consolidated Balance Sheet Highlights ($000's) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total cash, cash equivalents, and restricted cash | $1,267,326 | $1,653,680 | | House and land inventory | $13,216,008 | $12,692,820 | | Total Assets | $17,587,811 | $17,363,763 | | Notes payable | $1,623,065 | $1,618,586 | | Total Liabilities | $5,012,869 | $5,241,799 | | Total Shareholders' equity | $12,574,942 | $12,121,964 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities was $421.7 million, a decrease from $657.3 million in the same period of 2024, mainly due to a larger increase in inventory, with the company using $768.9 million in financing activities, dominated by $600 million in share repurchases, resulting in a net decrease in cash of $386.4 million for the period Consolidated Cash Flow Highlights - Six Months Ended June 30 ($000's) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $421,733 | $657,264 | | Net cash used in investing activities | ($39,182) | ($66,201) | | Net cash used in financing activities | ($768,905) | ($994,274) | | **Net decrease in cash** | **($386,354)** | **($403,211)** | - Key uses of cash in financing activities for the first six months of 2025 included **$600 million for share repurchases** and **$90.1 million for dividend payments**[23](index=23&type=chunk) [Segment Data](index=7&type=section&id=Segment%20Data) The company's operations are divided into Homebuilding and Financial Services, with the Homebuilding segment's pre-tax income declining to $764.4 million in Q2 2025, and the Financial Services segment also seeing a decrease in pre-tax income to $42.8 million, impacted by lower closing volumes, while Homebuilding operations experienced a drop in closings and new orders across most regions [Homebuilding Operations](index=7&type=section&id=Homebuilding%20Operations) The Homebuilding segment's income before taxes for Q2 2025 was $764.4 million, down from $984.9 million in Q2 2024, with closings decreasing by 6% to 7,639 units, while net new orders fell 7% to 7,083 units, and the average selling price saw a slight increase to $559,000, with the quarter-end unit backlog standing at 10,779 homes valued at $6.8 billion, compared to 12,982 homes valued at $8.1 billion a year ago Q2 2025 Homebuilding Closings by Region (Units) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Northeast | 451 | 378 | +19.3% | | Southeast | 1,402 | 1,499 | -6.5% | | Florida | 1,882 | 2,150 | -12.5% | | Midwest | 1,272 | 1,196 | +6.4% | | Texas | 1,218 | 1,472 | -17.3% | | West | 1,414 | 1,402 | +0.9% | | **Total** | **7,639** | **8,097** | **-5.7%** | Q2 2025 Net New Orders by Region (Units) | Region | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Northeast | 384 | 400 | -4.0% | | Southeast | 1,405 | 1,396 | +0.6% | | Florida | 1,773 | 1,746 | +1.5% | | Midwest | 1,272 | 1,265 | +0.6% | | Texas | 1,042 | 1,275 | -18.3% | | West | 1,207 | 1,567 | -23.0% | | **Total** | **7,083** | **7,649** | **-7.4%** | - The unit backlog at the end of Q2 2025 was **10,779 homes** with a value of **$6.8 billion**, down from 12,982 homes valued at $8.1 billion a year ago[9](index=9&type=chunk)[28](index=28&type=chunk) [Financial Services Operations](index=7&type=section&id=Financial%20Services%20Operations) The Financial Services segment reported pre-tax income of $42.8 million for Q2 2025, a decrease from $63.4 million in the prior-year quarter, primarily due to lower home closing volumes, with the mortgage capture rate remaining strong at 84.8%, slightly down from 86.5% in Q2 2024, and origination principal largely flat year-over-year - Pre-tax income for the Financial Services segment was **$42.8 million** in Q2 2025, compared to $63.4 million in Q2 2024[9](index=9&type=chunk)[25](index=25&type=chunk) Q2 Mortgage Originations | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Origination Volume (loans) | 4,984 | 5,105 | | Origination Principal | $2,164,755,000 | $2,140,103,000 | | Capture Rate | 84.8% | 86.5% | [Supplemental Information and Non-GAAP Reconciliation](index=9&type=section&id=Supplemental%20Information%20and%20Non-GAAP%20Reconciliation) This section provides supplemental data on interest capitalization and a reconciliation of non-GAAP measures, with the company's debt-to-capital ratio improving to 11.4% at the end of Q2 2025, and the net debt-to-capital ratio standing at 2.8%, reflecting the company's low leverage [Supplemental Data (Interest)](index=9&type=section&id=Supplemental%20Data%20(Interest)) In the second quarter of 2025, PulteGroup capitalized $26.1 million of interest and expensed $29.0 million, with the total interest in inventory at the end of the period being $136.6 million, a decrease from $149.4 million at the same time last year Interest Incurred and Expensed ($000's) | Description | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest capitalized | $26,129 | $29,284 | | Interest expensed | ($29,046) | ($28,023) | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) PulteGroup's debt-to-capital ratio improved to 11.4% as of June 30, 2025, down from 11.8% at the end of 2024, with the net debt-to-capital ratio at 2.8%, calculated by subtracting total cash from notes payable, which compares to a net cash position (negative 0.3% ratio) at year-end 2024, indicating a slight increase in net leverage but still a very strong balance sheet Debt-to-Capital Ratios Reconciliation ($000's) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Notes payable | $1,623,065 | $1,618,586 | | Shareholders' equity | $12,574,942 | $12,121,964 | | **Debt-to-capital ratio** | **11.4%** | **11.8%** | | Total net debt | $355,739 | ($35,094) | | **Net debt-to-capital ratio** | **2.8%** | **(0.3)%** | ```

Group 1 - PulteGroup is expected to report fiscal Q2 earnings on July 22, 2025, with anticipated earnings of $3.01 per share and revenue of $4.42 billion, reflecting a 16% drop in adjusted earnings and a 4% decline in revenue compared to the previous year [2] - The company's unit backlog decreased by 16% year-over-year in Q1, with a 12% decline in backlog value, indicating potential challenges for future revenue [3] - PulteGroup has a market capitalization of $23 billion, with revenue of $18 billion over the past twelve months, operating profits of $3.8 billion, and net income of $2.9 billion [3] Group 2 - Historical data shows that PulteGroup's stock has increased following earnings reports 70% of the time, with a median one-day gain of 4.4% and a peak increase of 9% [2][6] - In the last five years, there have been 20 earnings data points, with 14 positive and 6 negative one-day returns, resulting in a 70% occurrence of positive returns [6] - The correlation between short-term and medium-term returns following earnings announcements can provide a lower-risk trading strategy, particularly if the 1D and 5D returns exhibit strong correlation [7]

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].

Core Viewpoint - Analysts expect PulteGroup to report quarterly earnings of $2.93 per share, reflecting an 18.2% year-over-year decline, with revenues projected at $4.39 billion, down 4.5% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Revenue Forecasts - Analysts predict 'Homebuilding- Home sale revenues' to reach $4.23 billion, indicating a 5% decrease from the prior-year quarter [4] - 'Revenues- Financial Services' are expected to be $108.69 million, down 2.7% year over year [4] - 'Revenues- Homebuilding' is estimated at $4.26 billion, reflecting a 5.1% decline from the previous year [4] Additional Metrics - 'Homebuilding- Land sale revenues' are forecasted at $40.17 million, showing a 0.9% increase from the year-ago quarter [5] - The 'Average Selling Price - Total' is estimated at $565.10, up from $549.00 in the same quarter last year [5] - 'Net New Orders in Units - Total' is projected at 7,355, down from 7,649 a year ago [5] Backlog and Closings - 'Unit Backlog - Total' is expected to reach 11,181, compared to 12,982 last year [6] - 'Closings (units) - Total' are projected at 7,509, down from 8,097 in the same quarter last year [6] - 'Active Communities' are estimated to reach 971, up from 934 a year ago [6] Order Value and Backlog - 'Net New Orders (Value) - Total' is estimated at $4.30 billion, down from $4.36 billion last year [7] - 'Backlog Value - Total' is expected to be $7.27 billion, compared to $8.11 billion a year ago [7] Financial Services Performance - 'Income / (loss) before income taxes- Financial Services' is projected at $53.19 million, down from $63.38 million in the same quarter last year [8] Stock Performance - Over the past month, shares of PulteGroup have returned +10.2%, outperforming the Zacks S&P 500 composite's +4.2% change [8]

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 ...