32,409,009+$23.23+16.46%$164.32[Applied Materials][AMAT]• Vol: A Housing ETF Up 15.7% Despite 38% Plunge in Key Residential Demand Factor - 24/7 Wall St.[S&P 5006,835.60 -0.18%][Dow Jones49,472.00 -0.04%][Nasdaq 10024,720.00 -0.16%][Russell 20002,647.23 +1.20%][FTSE 10010,453.70 +0.18%][Nikkei 22557,538.00 +0.91%][Investing]# A Housing ETF Up 15.7% Despite 38% Plunge in Key Residential Demand Factor### Quick ReadSPDR S&P Homebuilders ETF (XHB) gained 15.7% year to date. DR Horton (DHI) and PulteGroup (PHM) ...

Core Viewpoint - PulteGroup, Inc. has announced a public offering of $800 million in senior unsecured notes, indicating a strategic move to raise capital for future investments and operations [1] Group 1: Offering Details - The offering consists of two tranches: $400 million of 4.250% senior notes due March 1, 2031, and $400 million of 4.900% senior notes due March 1, 2036 [1] - The senior notes due 2031 were offered to the public at 99.658% of the principal amount, reflecting a slight discount [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - PulteGroup, Inc. has declared a quarterly dividend of $0.26 per common share, payable on April 2, 2026, to shareholders of record as of March 17, 2026 [1] Company Overview - PulteGroup, Inc. is one of America's largest homebuilding companies, operating in over 45 markets across the country [1]

Homebuilding Operations - Homebuilding operations generated 98% of consolidated revenues, totaling $17.3 billion in 2025, $17.9 billion in 2024, and $16.1 billion in 2023[10] - The company delivered 29,572 homes in 2025, a decrease from 31,219 homes in 2024, but an increase from 28,603 homes in 2023[10] - The average selling price of homes was $566,000 in 2025, up from $555,000 in 2024 and $545,000 in 2023[11] - Backlog at December 31, 2025, was $5.3 billion (8,495 units), down from $6.5 billion (10,153 units) at December 31, 2024[22] - The company controlled 234,632 lots as of December 31, 2025, with 101,104 owned and 133,528 under land option agreements[15] - 38% of home closings in 2025 were to first-time homebuyers, 40% to move-up buyers, and 22% to active adults[17] - The company aims to enhance shareholder value through operational gains, increased lot optionality, and maintaining a balance of built-to-order and speculative homes[12] - The company is focused on energy efficiency in home designs, incorporating high-efficiency systems and smart home features[18] Financial Services - The company originated mortgage loans for 64% of homes closed in 2025, up from 63% in 2024 and 61% in 2023, demonstrating a consistent reliance on in-house financing[31] - The company’s financial services operations are highly correlated to homebuilding, emphasizing the integrated nature of its business model[31] - The company utilizes a centralized fulfillment center for mortgage operations, improving speed, efficiency, and quality, which enhances profitability[33] - The mortgage operations are subject to regulations from various government agencies, impacting the business[34] - The company sells substantially all originated mortgage loans in the secondary market within 30 days, reducing risks and costs[32] Market Position - The company holds approximately 4% market share of U.S. new home sales in 2025, indicating a highly competitive environment with numerous competitors[27] - The U.S. housing market is fragmented, with the company holding approximately 4% market share of new home sales in 2025[27] - Cash buyers represented 21% of home closings in both 2025 and 2024, and 22% in 2023, highlighting the importance of cash transactions in the home sales market[31] Workforce and Leadership - The company employed 6,506 people as of December 31, 2025, with 1,034 in Financial Services operations, reflecting a significant workforce dedicated to supporting homebuilding[38] - The average tenure of the executive team and homebuilding area presidents is 17 years, indicating stability in leadership[42] - The company focuses on developing future leaders from within, promoting from within for many leadership positions[42] - The company offers competitive compensation and benefits, including a 401(k) retirement plan and performance-based incentives[39] Risk Management and Operations - The company utilizes land option agreements to manage risk and enhance expected returns on land investments[14] - The construction process is primarily conducted by independent subcontractors, with a focus on quality and efficiency[23] - The company has not experienced significant claims related to its title operations, indicating a strong performance in this area[36]

Core Insights - PulteGroup has renewed its commitment to the homebuilding workforce by extending the Build Your Future Scholarship program, offering scholarships ranging from $3,000 to $5,000 for individuals pursuing careers in residential homebuilding [1] - The scholarship aims to empower the next generation of builders by providing essential skillsets for the industry, thereby addressing the skills gap and supporting community growth [1] - The SkillPointe Foundation will manage the scholarship program, which is open to individuals from diverse backgrounds seeking education or training in homebuilding-related careers that do not require a four-year degree [1] Company Overview - PulteGroup, Inc. is the third-largest homebuilder in the United States, operating in over 45 markets and offering a diverse brand portfolio including Pulte Homes, Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods [1] - The company's mission is to build incredible places where people can live their dreams, emphasizing the importance of investing in talent for future success [1] Scholarship Program Details - The Build Your Future Scholarship program is focused on states such as Florida, Georgia, North Carolina, South Carolina, and Texas, with an application deadline set for May 8, 2026 [1] - Since its inception in 2021, the SkillPointe Foundation has raised nearly $10 million for skills scholarships, partnering with various organizations to support workforce development [1]

Company Overview - PulteGroup (PHM) has shifted from a growth-at-all-costs strategy to a disciplined, returns-focused approach, consistently delivering above-average returns [1] Industry Context - The homebuilding industry is currently facing a soft market that has persisted through 2025 and is expected to continue [1]

Core Viewpoint - PulteGroup, Inc. is a prominent home construction company in the U.S., maintaining a positive outlook from Raymond James with an "Outperform" rating and an increased price target, reflecting confidence in its growth potential [1][3][6] Group 1: Stock Performance - PulteGroup's stock was priced at $130.46, marking a 2.67% increase from previous levels [2] - The stock exhibited volatility with a daily trading range between $126.13 and $135.60, and over the past year, it fluctuated between a high of $142.11 and a low of $88.07 [2] - The trading volume for the day reached 2,813,870 shares, indicating active investor interest [3] Group 2: Financial Results - For the fourth quarter ending December 31, 2025, PulteGroup reported a net income of $502 million, or $2.56 per share, despite incurring pre-tax charges related to asset divestitures and land impairments [4][5][6] - The pre-tax charge related to asset divestiture was $81 million, or $0.31 per share, and land impairment charges totaled $35 million, or $0.14 per share [4] - The company's strong financial performance underscores its resilience and strategic focus on optimizing operations and enhancing shareholder value [5]

Core Insights - PulteGroup (PHM) reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing estimates, despite year-over-year declines due to affordability pressures and margin compression [1][9] Revenue & Earnings Performance - Adjusted earnings for Q4 were $2.88 per share, exceeding the Zacks Consensus Estimate of $2.78 by 3.6%, but down from $3.50 in the previous year [3] - Total revenues reached $4.61 billion, beating the Zacks Consensus Estimate of $4.31 billion by 6.9%, although this represented a 6.3% decline year over year [4] - Home sale revenues fell 5% year over year to $4.48 billion, driven by a 3% decrease in closings to 7,821 homes and a 1% decline in average selling price (ASP) to $573,000 [4] Margin Performance - Home sale gross margin was 24.7%, down 280 basis points year over year, primarily due to $35 million in land impairment charges [5] - Selling, general and administrative expenses rose to 8.7% of home sale revenues from 4.2% a year ago, impacting adjusted operating margins [5] Segment-Level Details - Homebuilding revenues totaled $4.52 billion, down from $4.81 billion a year ago, with net new orders increasing 4% year over year to 6,428 homes [6] - The Financial Services segment generated pre-tax income of $35 million, down from $51 million in the previous year, reflecting lower closing volumes and a reduced mortgage capture rate of 84% compared to 86% last year [7] 2025 Performance Overview - Reported EPS for 2025 was $11.12, down from $14.69 a year ago, with total revenues at $17.3 billion, down from $17.9 billion in 2024 [8] - PulteGroup delivered 29,572 homes in 2025, down from 31,219 homes a year ago, while net new orders totaled 27,914 homes, indicating steady underlying demand despite macro uncertainty [8] Backlog and Capital Allocation - Ending backlog stood at 8,495 homes valued at $5.3 billion, down year over year, reflecting lower order conversion and a more cautious buyer environment [10] - The company exited 2025 with $2.0 billion in cash, up from $1.65 billion at the end of 2024, maintaining a conservative capital structure with a debt-to-capital ratio of 11.2% [11] Management Outlook - Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand [12] - PulteGroup aims for disciplined asset turnover and sustained land investment to support 3–5% annual community count growth over time, positioning the company for longer-term normalization in housing demand [12]

Core Insights - PulteGroup reported a revenue of $4.61 billion for Q4 2025, marking a year-over-year decline of 6.3% and an EPS of $2.88 compared to $3.50 a year ago, exceeding the Zacks Consensus Estimate of $4.31 billion by 6.96% and delivering an EPS surprise of 3.53% [1] Financial Performance - The average selling price was $573.00, surpassing the estimated $564.19 by analysts [4] - Net new orders in units totaled 6,428, exceeding the average estimate of 5,967 [4] - The unit backlog stood at 8,495, slightly above the average estimate of 8,439 [4] - Closings in units reached 7,821, compared to the average estimate of 7,416 [4] - Average active communities were 1,014, higher than the estimated 1,002 [4] Revenue Breakdown - Home sale revenues amounted to $4.48 billion, exceeding the average estimate of $4.16 billion, but reflecting a year-over-year decline of 4.9% [4] - Financial Services revenues were reported at $93.43 million, below the average estimate of $107.17 million, with an 18.9% year-over-year decline [4] - Homebuilding revenues totaled $4.52 billion, surpassing the average estimate of $4.2 billion, with a year-over-year decline of 6% [4] - Land sale and other revenues in homebuilding were $39.42 million, significantly lower than the average estimate of $58.6 million, representing a 60.2% year-over-year decline [4] Market Performance - PulteGroup shares returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]