01—Abstract
Summary
Summary of the 8-K filed July 22, 2025. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported second quarter 2025 results for the period ended June 30, 2025, per an earnings press release furnished as Exhibit 99.1 under Item 2.02.
The Company reported net income of $608 milliona, or $3.03 per diluted share, compared with net income of $809 million, or $3.83 per share, in the prior-year quarter, which included a $52 million pre-tax insurance benefit and a $13 million tax benefit. Home sale revenues were $4.3 billion, down 4% from the prior year, as closings fell 6% to 7,639 homes, partially offset by a 2% increase in average sales price to $559,000. Home sale gross margin was 27.0%, versus 29.9% a year earlier, consistent with prior guidance; operating margin was 17.9%.
Orders and backlog softened. Net new orders were 7,083 homes valued at $3.9 billionb, down 7% in units from 7,649 homes a year earlier. Backlog at quarter end was 10,779 homes worth $6.8 billion.
Management cited high interest rates, challenged affordability and macroeconomic concerns during the spring selling season, and said it had aligned home production and land investment with current core demand. Balance sheet and capital returns remained strong.
The debt-to-capital ratio improved to 11.4% from 11.8% at year-end 2024, and cash and equivalents were $1.23 billionc at June 30, 2025. The Company repurchased 3.0 million shares for $300 million in the quarter and 5.8 million shares for $600 million year to date, and paid a quarterly cash dividend of $0.22 per share.
02—Key points
Key Highlights
- Diluted EPS of $3.03 on net income of $608 million, versus $3.83 per share in the prior-year quarter, which included a $52 million pre-tax insurance benefit.
- Home sale revenues of $4.27 billion, down 4%, driven by a 6% decline in closings to 7,639 homes; average sales price rose 2% to $559,000.
- Home sale gross margin of 27.0%, down from 29.9% a year earlier and consistent with prior guidance.
- Net new orders of 7,083 homes (down 7% in units) valued at $3.9 billion; year-end backlog of 10,779 homes worth $6.8 billion.
- Debt-to-capital ratio lowered to 11.4% from 11.8% at December 31, 2024; cash and equivalents of $1.23 billion.
- Repurchased $300 million of common stock in the quarter (3.0 million shares at an average $100.54) and $600 million year to date.
- Financial Services pre-tax income declined to $43 million from $63 million on lower closing volumes; mortgage capture rate was 85% versus 86%.
03—Questions
Frequently Asked Questions
How did PulteGroup perform in the second quarter of 2025?
The Company reported net income of $608 million, or $3.03 per diluted share, versus $809 million, or $3.83 per share, a year earlier. Home sale revenues fell 4% to $4.3 billion as closings declined 6% to 7,639 homes.
Why did gross margins decline?
Home sale gross margin was 27.0%, down from 29.9% in the prior-year quarter. The Company stated this was consistent with its previously provided guidance range.
What is the trend in demand and backlog?
Net new orders were 7,083 homes, down 7% in units from 7,649 a year earlier, with a dollar value of $3.9 billion versus $4.4 billion. Ending backlog was 10,779 homes valued at $6.8 billion. Management cited high interest rates, affordability concerns and macroeconomic worries, and said it was encouraged by consumer response to interest rate declines in late June.
How strong is the balance sheet and how much is being returned to shareholders?
The debt-to-capital ratio was 11.4% at June 30, 2025, down from 11.8% at December 31, 2024. The Company ended the quarter with $1.3 billion in cash and restricted cash and repurchased $300 million of stock in the quarter and $600 million year to date. The quarterly dividend declared was $0.22 per share.
What changed in the Company's operating expenses?
Selling, general and administrative expense was $390 million, or 9.1% of home sale revenues, compared with $361 million, or 8.1%, in the prior-year quarter, which benefited from a $52 million pre-tax insurance benefit.
04—Continue