01—Abstract
Summary
Summary of the 10-Q filed October 21, 2025. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported third-quarter 2025 net income of $585.8 milliona, or $2.96 diluted earnings per share, versus $697.9 million, or $3.35 per diluted share, in the third quarter of 2024.
Total revenues were $4.40 billionb for the quarter, compared with $4.48 billion a year earlier. Home sale revenues declined 2% to $4.25 billion, driven by a 5% decrease in closings partially offset by a 3% increase in average selling price. Home sale gross margin fell to 26.2% from 28.8% in the prior-year quarter and 27.0% in the second quarter of 2025, which the company attributes to higher land costs and elevated sales incentives.
Net new orders decreased 6% in units for the quarter and 7% for the first nine months, and backlog dollars fell 19% year over year to $6.23 billionc. For the nine months ended September 30, 2025, net income was $1.72 billion, or $8.55 diluted EPS, compared with $2.17 billion, or $10.28 diluted EPS, a year earlier. The company recorded $42.2 million of land inventory impairments and $26.5 million of write-offs of deposits and pre-acquisition costs in the period.
During the first nine months, PulteGroup repurchased 8.2 million shares for $900.0 milliond and declared $132.2 million in dividends, and it had $1.3 billion of remaining repurchase authorization at quarter end. Cash and equivalents totaled $1.45 billion, with $902.0 million available under its Revolving Credit Facility and no borrowings outstanding. The ratio of debt to total capitalization, excluding Financial Services debt, was 11.2%, compared with 11.8% at December 31, 2024.
Management said consumer demand weakness continued in the third quarter, reflecting affordability challenges from elevated mortgage rates and higher housing costs. It expects sales incentives to remain elevated and gross margins to decline somewhat in future periods, while it maintains a focus on liquidity and shareholder returns. The company noted that it must refinance the Pulte Mortgage repurchase agreement, which matures in August 2026, and that the Revolving Credit Facility matures in June 2027.
02—Key points
Key Highlights
- Third-quarter 2025 net income was $585.8 million, or $2.96 per diluted share, down from $697.9 million, or $3.35 per diluted share, in the third quarter of 2024.
- Home sale gross margin was 26.2% in the third quarter of 2025, compared with 28.8% a year earlier and 27.0% in the second quarter of 2025, due to higher land costs and elevated sales incentives.
- Net new orders decreased 6% in units for the quarter and 7% for the nine months; ending backlog dollars were $6.23 billion, down 19% year over year.
- Closings declined 5% in the quarter to 7,529 units, partially offset by a 3% increase in average selling price to $564 thousand.
- Nine-month results included $42.2 million of land inventory impairments and $26.5 million of write-offs of deposits and pre-acquisition costs.
- The company repurchased 8.2 million shares for $900.0 million in the first nine months and had $1.3 billion of remaining repurchase authorization at September 30, 2025.
- Liquidity remained solid, with $1.45 billion of cash and equivalents, $902.0 million available under the Revolving Credit Facility, and a debt-to-total-capitalization ratio of 11.2% excluding Financial Services debt.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 21, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.40B$4.48B | −1.6% |
| Cost of Revenue | $3.18B$3.12B | +2.1% |
| Gross Profit | $1.22B$1.36B | −10.0% |
| SG&A Expenses | $400.68M$406.90M | −1.5% |
| Net Income | $585.83M$697.91M | −16.1% |
| EPS (Basic) | $2.98$3.38 | −11.8% |
| EPS (Diluted) | $2.96$3.35 | −11.6% |
| Shares Outstanding (Basic) | 196.54M206.77M | −5.0% |
| Shares Outstanding (Diluted) | 198.14M208.46M | −5.0% |
05—Questions
Frequently Asked Questions
How did demand and pricing trend in the third quarter of 2025?
Consumer demand weakness from the first half continued, driven by affordability challenges from elevated mortgage rates and higher housing costs. Net new orders decreased 6% in units, and the company is using higher sales incentives, including mortgage rate buydowns and spec-home discounts, to support sales.
Why did gross margins decline?
The company attributes the decline in home sale gross margin to higher land acquisition and development costs combined with elevated sales incentives. Management expects margins to decline somewhat in future periods as these factors continue.
What are the company's capital return plans and liquidity position?
PulteGroup repurchased $900.0 million of shares and declared $132.2 million of dividends in the first nine months of 2025, with $1.3 billion of repurchase authorization remaining. It had $1.45 billion of cash and equivalents and $902.0 million of available revolving credit capacity at September 30, 2025.
What debt maturities and refinancing needs should investors watch?
The unsecured senior notes due March 2026 total $251.9 million. The Pulte Mortgage Repurchase Agreement matures in August 2026 and the company intends to refinance it, though it cannot assure renewal on commercially reasonable terms. The Revolving Credit Facility matures in June 2027.
How did the Financial Services segment perform?
Financial Services revenues were $103.3 million in the third quarter, down 9% from the prior year, and income before income taxes was $44.4 million, down 19%. The decline reflects lower homebuilding volume and lower insurance agency commissions.
06—Continue