Core Insights - PulteGroup Inc. reported better-than-expected third-quarter 2025 results, with adjusted earnings of $2.96 per share and total revenues of $4.4 billion, surpassing estimates but showing a year-over-year decline [1][4][8] - The company's performance was negatively impacted by a soft housing market, characterized by weaker consumer confidence and affordability challenges [2][3] - Despite optimism regarding lowered interest rates, buyer demand remains below normal levels, prompting the company to leverage its diversified business platform to navigate macro challenges [3] Financial Performance - Adjusted earnings of $2.96 per share exceeded the Zacks Consensus Estimate of $2.86 by 3.5%, but decreased from $3.35 in the prior year [4][8] - Total revenues of $4.4 billion surpassed expectations by 2.3% but declined 1.6% from $4.48 billion year-over-year [4][8] - Homebuilding revenues fell 1.4% year-over-year to $4.3 billion, while home sale revenues decreased 2.2% to $4.25 billion [5][8] Segment Analysis - Homebuilding segment revenues decreased 1.4% year-over-year, while land sale and other revenues increased significantly by 175.7% to $53.2 million [5] - The number of homes closed dropped 5% to 7,529 units, with an average selling price (ASP) of $564,000, up 2.9% year-over-year [6] - Financial Services segment revenues fell 9.3% year-over-year to $103.3 million, with pretax income declining from $55 million to $44 million [8] Backlog and Orders - At the end of Q3, PulteGroup's backlog was 9,888 units, down 18.2% year-over-year, with potential housing revenues from the backlog decreasing 19% to $6.23 billion [7] - Net new home orders declined 5.6% year-over-year to 6,638 units, with the value of these orders falling 7.4% to $3.64 billion [6][8] Cash and Share Repurchase - As of the end of Q3, the company had cash and cash equivalents of $1.48 billion, down from $1.65 billion at the end of 2024 [10] - In the first nine months of 2025, PulteGroup repurchased 8.2 million common shares for $900 million at an average price of $109.81 per share [11]