01—Abstract
Summary
Summary of the 10-K filed February 6, 2025. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported 2024 consolidated revenues of $17.9 billiona, up from $16.1 billion in 2023, and net income of $3.08 billion, or $14.69 diluted earnings per share, compared with $2.60 billion and $11.72 in 2023.
Homebuilding generated 98% of revenues. Closings rose to 31,219 homes from 28,603, and the average selling price increased to $555,000b from $545,000. Home sale gross margin was 28.9%, down from 29.3%, as the company used elevated sales incentives, especially mortgage interest rate buydowns, to address buyer affordability challenges.
Backlog fell to $6.5 billionc (10,153 units) from $7.3 billion, and net new orders rose 2% in units. Management said demand weakened in the second half of 2024 as mortgage rates rose, and it expects sales paces to stay volatile and gross margins to decline somewhat in future periods. Capital returns were significant.
The company repurchased 10.1 million shares for $1.2 billiond in 2024, and its quarterly dividend was raised from $0.20 to $0.22 per share effective with the January 2025 payment. The Board approved an additional $1.5 billion repurchase authorization in January 2025. Debt-to-total capitalization, excluding Financial Services debt, declined to 11.8% from 15.9%.
Cash and equivalents were $1.6 billion at year-end, with $928.9 million available under the Revolving Credit Facility. Notes payable declined to $1.62 billion after repurchases and repayments. Pulte Mortgage's $675.0 million repurchase agreement, which matures in August 2025, is a near-term refinancing item.
The filing also notes that Chief Financial Officer Robert T. O'Shaughnessy will be succeeded by James L. Ossowski effective February 7, 2025.
Insurance reserve reversals of $333.9 million in 2024 benefited SG&A and other results, and the company's self-insured reserves fell to $267.5 million from $563.1 million. Management attributed the reduction to lower construction defect claims experience.
02—Key points
Key Highlights
- Revenue of $17.9 billion in 2024 versus $16.1 billion in 2023; net income of $3.08 billion, or $14.69 diluted EPS, versus $11.72 in 2023
- Closings rose to 31,219 homes from 28,603, with average selling price of $555,000 versus $545,000
- Home sale gross margin of 28.9%, down from 29.3%, reflecting elevated sales incentives such as mortgage rate buydowns
- Backlog declined to $6.5 billion (10,153 units) from $7.3 billion (12,146 units) as demand softened in the second half of 2024
- Repurchased $1.2 billion of stock (10.1 million shares) in 2024; dividend raised 10% to $0.22 per share, and an additional $1.5 billion authorization was approved in January 2025
- Debt-to-total capitalization (excluding Financial Services debt) improved to 11.8% from 15.9%; $1.6 billion in unrestricted cash at year-end
- Insurance reserve reversals of $333.9 million in 2024, with self-insured reserves falling to $267.5 million from $563.1 million; Pulte Mortgage's $675.0 million repurchase agreement matures August 2025
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 6, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $17.95B$16.06B | +11.7% |
| SG&A Expenses | $1.32B$1.31B | +0.7% |
| Interest Expense | $479K$469K | +2.1% |
| Net Income | $3.08B$2.60B | +18.5% |
| EPS (Basic) | $14.82$11.79 | +25.7% |
| EPS (Diluted) | $14.69$11.72 | +25.3% |
| Shares Outstanding (Basic) | 208.11M219.96M | −5.4% |
| Shares Outstanding (Diluted) | 209.83M221.16M | −5.1% |
05—Questions
Frequently Asked Questions
How did PulteGroup perform financially in 2024?
Total revenues rose to $17.9 billion from $16.1 billion, and net income increased to $3.08 billion from $2.60 billion. Diluted EPS was $14.69, compared with $11.72 in 2023. The company reported income before income taxes of $4.01 billion, with Homebuilding contributing $3.80 billion and Financial Services $210.0 million.
Why did gross margins decline, and what does management expect?
Home sale gross margin was 28.9% in 2024 versus 29.3% in 2023. Management attributed the decline to elevated sales incentives, especially mortgage interest rate buydowns, used to address affordability challenges. It expects sales incentives and higher land and house costs to stay elevated, and says gross margins may decline somewhat in future periods.
What is the outlook for demand and backlog?
Backlog fell 11% in dollars to $6.5 billion at December 31, 2024, mainly due to weaker demand in the second half of 2024 as mortgage rates rose. Management expects sales paces to remain volatile on a monthly basis and sales incentives to stay elevated. It expects substantially all year-end backlog to close during 2025, subject to potential cancellation.
How is PulteGroup returning capital to shareholders and managing its balance sheet?
The company repurchased $1.2 billion of shares in 2024 and declared dividends of $171.4 million. The quarterly dividend increased to $0.22 per share, and the Board approved an additional $1.5 billion repurchase authorization in January 2025, with $682.9 million remaining at year-end before that increase. Debt-to-total capitalization excluding Financial Services debt fell to 11.8%, and $928.9 million was available under the Revolving Credit Facility.
Are there any notable upcoming financing or leadership changes?
Pulte Mortgage's master repurchase agreement, with $526.9 million outstanding at year-end, matures August 13, 2025, and must be repaid or refinanced; the company intends to refinance it. The Revolving Credit Facility matures June 2027, and the next senior notes tranche is due March 2026. Robert T. O'Shaughnessy, Chief Financial Officer, is transitioning out, and James L. Ossowski becomes Executive Vice President and Chief Financial Officer effective February 7, 2025.
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