- Earnings Per Share of $4.43
- Closings Increased 6% to 8,103
- Home Sale Revenues Increased 13% to $4.7 Billion
- Home Sale Gross Margin of 27.5%
- Net New Orders of 6,167 Homes with a Value of $3.5
Billion
- Unit Backlog of 10,153 Homes with a Value of $6.5
Billion
- Repurchased $320 Million of Common Shares in the
Quarter
- Announces $1.5 Billion Increase to Share Repurchase
Authorization
PulteGroup, Inc. (NYSE: PHM) announced today financial results
for its fourth quarter ended December 31, 2024. For the quarter,
the Company reported net income of $913 million, or $4.43 per
share. Reported net income includes a pre-tax insurance benefit of
$255 million, or $0.93 per share. In the prior year period, the
Company reported net income of $711 million, or $3.28 per share,
inclusive of a pre-tax insurance benefit of $65 million, or $0.23
per share.
“PulteGroup’s strong fourth quarter financial results completed
a record-setting year,” said PulteGroup President and CEO, Ryan
Marshall. “For the full year, PulteGroup generated nearly $18
billion in revenues and net income of $3.1 billion, while
generating a return on equity of 27.5%*. These results allowed us
to invest $5.3 billion into our business, return $1.4 billion to
our shareholders through stock repurchases and dividends, and
retire $310 million of senior notes.
“Despite Federal Reserve actions to lower short-term interest
rates, mortgage interest rates remained elevated in the fourth
quarter, which impacted buyer demand as homebuyers continue to face
affordability challenges. The operational changes we have
implemented in response to these conditions, including targeted
sales incentives coupled with faster construction cycle times, have
yielded a sales backlog and inventory in process that have us
well-positioned for the upcoming spring selling season.”
Fourth Quarter Results
Home sale revenues in the fourth quarter increased 13% over the
prior year to $4.7 billion. Higher revenues in the fourth quarter
were driven by a 6% increase in closings to 8,103 homes. The
average selling price of homes closed in the period was $581,000,
an increase of 6% compared with $547,000 in the prior year
period.
The Company’s reported home sale gross margin in the fourth
quarter was 27.5%, compared with 28.9% in the prior year period.
Homebuilding SG&A expense for the fourth quarter was $196
million, or 4.2% of home sale revenues, compared with $308 million,
or 7.4% in the prior year period. Reported SG&A expense
reflects insurance benefits of $255 million and $65 million
recorded in the fourth quarter of 2024 and 2023, respectively.
The Company’s net new orders for the fourth quarter were 6,167
homes, which is consistent with net new orders of 6,214 homes in
the prior year period. The value of net new orders in the quarter
was $3.5 billion, or an increase of 4% over last year. Average
community count for the fourth quarter was 960, which is up 4% from
the prior year.
The Company's financial services operations generated pre-tax
income of $51 million, an increase of 16% over prior year pre-tax
income of $44 million. Higher pre-tax income for the period
reflects higher volumes and average selling prices in the Company’s
homebuilding operations, coupled with a slightly higher mortgage
capture rate of 86%, up from 85% last year.
Fourth quarter pre-tax income for the Company increased 25% over
the prior year period to $1.2 billion. Income tax expense for the
fourth quarter was $269 million, or an effective tax rate of
22.8%.
PulteGroup repurchased 2.5 million of its common shares in the
fourth quarter for $320 million, or an average price of $129.90 per
share. During 2024, the Company repurchased 10.1 million common
shares, or 4.7% of shares outstanding, for $1.2 billion, or $119.21
per share. The Company ended the quarter with $1.7 billion of cash
and a debt-to-capital ratio of 11.8%.
In a separate release, the Company announced that its Board of
Directors approved a $1.5 billion increase to the Company’s share
repurchase authorization, bringing its remaining share repurchase
authorization to $2.1 billion.
A conference call discussing PulteGroup's fourth quarter 2024
results is scheduled for Thursday, January 30, 2025, at 8:30 a.m.
Eastern Time. Interested investors can access the live webcast via
PulteGroup's corporate website at www.pultegroupinc.com.
* The Company's return on equity is calculated as net income for
the trailing twelve months divided by average shareholders' equity,
where average shareholders' equity is the sum of ending
shareholders' equity balances of the trailing five quarters divided
by five.
Forward-Looking Statements
This release includes “forward-looking statements.” These
statements are subject to a number of risks, uncertainties and
other factors that could cause our actual results, performance,
prospects or opportunities, as well as those of the markets we
serve or intend to serve, to differ materially from those expressed
in, or implied by, these statements. You can identify these
statements by the fact that they do not relate to matters of a
strictly factual or historical nature and generally discuss or
relate to forecasts, estimates or other expectations regarding
future events. Generally, the words “believe,” “expect,” “intend,”
“estimate,” “anticipate,” “plan,” “project,” “may,” “can,” “could,”
“might,” “should,” “will” and similar expressions identify
forward-looking statements, including statements related to any
potential impairment charges and the impacts or effects thereof,
expected operating and performing results, planned transactions,
planned objectives of management, future developments or conditions
in the industries in which we participate and other trends,
developments and uncertainties that may affect our business in the
future.
Such risks, uncertainties and other factors include, among other
things: interest rate changes and the availability of mortgage
financing; the impact of any changes to our strategy in responding
to the cyclical nature of the industry or deteriorations in
industry changes or downward changes in general economic or other
business conditions, including any changes regarding our land
positions and the levels of our land spend; economic changes
nationally or in our local markets, including inflation, deflation,
changes in consumer confidence and preferences and the state of the
market for homes in general; labor supply shortages and the cost of
labor; the availability and cost of land and other raw materials
used by us in our homebuilding operations; a decline in the value
of the land and home inventories we maintain and resulting possible
future writedowns of the carrying value of our real estate assets;
competition within the industries in which we operate; rapidly
changing technological developments including, but not limited to,
the use of artificial intelligence in the homebuilding industry;
governmental regulation directed at or affecting the housing
market, the homebuilding industry or construction activities, slow
growth initiatives and/or local building moratoria; the
availability and cost of insurance covering risks associated with
our businesses, including warranty and other legal or regulatory
proceedings or claims; damage from improper acts of persons over
whom we do not have control or attempts to impose liabilities or
obligations of third parties on us; weather related slowdowns; the
impact of climate change and related governmental regulation;
adverse capital and credit market conditions, which may affect our
access to and cost of capital; the insufficiency of our income tax
provisions and tax reserves, including as a result of changing laws
or interpretations; the potential that we do not realize our
deferred tax assets; our inability to sell mortgages into the
secondary market; uncertainty in the mortgage lending industry,
including revisions to underwriting standards and repurchase
requirements associated with the sale of mortgage loans, and
related claims against us; risks associated with the implementation
of a new enterprise resource planning system; risks related to
information technology failures, data security issues, and the
effect of cybersecurity incidents and threats; the impact of
negative publicity on sales; failure to retain key personnel; the
impairment of our intangible assets; the disruptions associated
with the COVID-19 pandemic (or another epidemic or pandemic or
similar public threat or fear of such an event), and the measures
taken to address it; the effect of cybersecurity incidents and
threats; and other factors of national, regional and global scale,
including those of a political, economic, business and competitive
nature. See Item 1A – Risk Factors in our Annual Report on Form
10-K for the fiscal year ended December 31, 2023 for a further
discussion of these and other risks and uncertainties applicable to
our businesses. We undertake no duty to update any forward-looking
statement, whether as a result of new information, future events or
changes in our expectations.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one
of America’s largest homebuilding companies with operations in more
than 45 markets throughout the country. Through its brand portfolio
that includes Centex, Pulte Homes, Del Webb, DiVosta Homes,
American West and John Wieland Homes and Neighborhoods, the company
is one of the industry’s most versatile homebuilders able to meet
the needs of multiple buyer groups and respond to changing consumer
demand. PulteGroup’s purpose is building incredible places where
people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup
brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com;
divosta.com; jwhomes.com; and americanwesthomes.com. Follow
PulteGroup, Inc. on X: @PulteGroupNews.
PulteGroup, Inc.
Consolidated Results of
Operations
($000's omitted, except per
share data)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Revenues:
Homebuilding
Home sale revenues
$
4,707,540
$
4,165,231
$
17,318,521
$
15,598,707
Land sale and other revenues
99,108
34,540
195,435
142,116
4,806,648
4,199,771
17,513,956
15,740,823
Financial Services
115,146
93,881
432,994
320,755
Total revenues
4,921,794
4,293,652
17,946,950
16,061,578
Homebuilding Cost of Revenues:
Home sale cost of revenues
(3,413,930
)
(2,961,920
)
(12,311,766
)
(11,030,206
)
Land sale and other cost of revenues
(88,690
)
(32,139
)
(189,893
)
(124,607
)
(3,502,620
)
(2,994,059
)
(12,501,659
)
(11,154,813
)
Financial Services expenses
(64,471
)
(50,036
)
(224,086
)
(187,280
)
Selling, general, and administrative
expenses
(195,640
)
(308,319
)
(1,321,276
)
(1,312,642
)
Equity income from unconsolidated
entities, net
1,625
213
44,201
4,561
Other income, net
22,040
5,367
61,749
37,863
Income before income taxes
1,182,728
946,818
4,005,879
3,449,267
Income tax expense
(269,489
)
(235,825
)
(922,617
)
(846,895
)
Net income
$
913,239
$
710,993
$
3,083,262
$
2,602,372
Net income per share:
Basic
$
4.47
$
3.30
$
14.82
$
11.79
Diluted
$
4.43
$
3.28
$
14.69
$
11.72
Cash dividends declared
$
0.22
$
0.20
$
0.82
$
0.68
Number of shares used in
calculation:
Basic
204,339
214,399
208,107
219,958
Effect of dilutive securities
1,841
1,364
1,722
1,205
Diluted
206,180
215,763
209,829
221,163
PulteGroup, Inc.
Condensed Consolidated Balance
Sheets
($000's omitted)
(Unaudited)
December 31,
2024
December 31,
2023
ASSETS
Cash and equivalents
$
1,613,327
$
1,806,583
Restricted cash
40,353
42,594
Total cash, cash equivalents, and
restricted cash
1,653,680
1,849,177
House and land inventory
12,665,813
11,795,370
Land held for sale
27,007
23,831
Residential mortgage loans
available-for-sale
629,582
516,064
Investments in unconsolidated entities
215,416
166,913
Other assets
2,001,991
1,545,667
Goodwill
68,930
68,930
Intangible assets
46,303
56,338
Deferred tax assets
55,041
64,760
$
17,363,763
$
16,087,050
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities:
Accounts payable
$
727,995
$
619,012
Customer deposits
512,580
675,091
Deferred tax liabilities
443,566
302,155
Accrued and other liabilities
1,412,166
1,645,690
Financial Services debt
526,906
499,627
Notes payable
1,618,586
1,962,218
Total liabilities
5,241,799
5,703,793
Shareholders' equity
12,121,964
10,383,257
$
17,363,763
$
16,087,050
PulteGroup, Inc.
Consolidated Statements of
Cash Flows
($000's omitted)
(Unaudited)
Year Ended
December 31,
2024
2023
Cash flows from operating
activities:
Net income
$
3,083,262
$
2,602,372
Adjustments to reconcile net income to net
cash from operating activities:
Deferred income tax expense
151,097
104,266
Land-related charges
34,572
43,115
Depreciation and amortization
89,162
80,824
Equity income from unconsolidated
entities
(44,201
)
(4,561
)
Distributions of earnings from
unconsolidated entities
2,557
4,564
Share-based compensation expense
54,690
48,200
Other, net
(13,460
)
(1,421
)
Increase (decrease) in cash due to:
Inventories
(787,475
)
(354,016
)
Residential mortgage loans
available-for-sale
(113,327
)
160,934
Other assets
(489,623
)
(290,631
)
Accounts payable, accrued and other
liabilities
(286,460
)
(196,884
)
Net cash provided by operating
activities
1,680,794
2,196,762
Cash flows from investing
activities:
Capital expenditures
(118,545
)
(92,201
)
Investments in unconsolidated entities
(16,037
)
(23,403
)
Distributions of capital from
unconsolidated entities
9,179
3,265
Other investing activities, net
30,927
(16,756
)
Net cash used in investing activities
(94,476
)
(129,095
)
Cash flows from financing
activities:
Repayments of notes payable
(355,826
)
(123,290
)
Financial Services borrowings
(repayments), net
27,279
(87,084
)
Debt issuance costs
(1,534
)
(1,572
)
Proceeds from liabilities related to
consolidated inventory not owned
50,047
129,656
Payments related to consolidated inventory
not owned
(105,787
)
(76,303
)
Share repurchases
(1,199,999
)
(1,000,000
)
Excise tax on share repurchases
(9,691
)
—
Cash paid for shares withheld for
taxes
(18,597
)
(11,991
)
Dividends paid
(167,707
)
(142,459
)
Net cash used in financing activities
(1,781,815
)
(1,313,043
)
Net increase (decrease)
(195,497
)
754,624
Cash, cash equivalents, and restricted
cash at beginning of period
1,849,177
1,094,553
Cash, cash equivalents, and restricted
cash at end of period
$
1,653,680
$
1,849,177
Supplemental Cash Flow
Information:
Interest paid (capitalized), net
$
26,052
$
10,786
Income taxes paid, net
$
739,680
$
784,453
PulteGroup, Inc.
Segment Data
($000's omitted)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
HOMEBUILDING:
Home sale revenues
$
4,707,540
$
4,165,231
$
17,318,521
$
15,598,707
Land sale and other revenues
99,108
34,540
195,435
142,116
Total Homebuilding revenues
4,806,648
4,199,771
17,513,956
15,740,823
Home sale cost of revenues
(3,413,930
)
(2,961,920
)
(12,311,766
)
(11,030,206
)
Land sale cost of revenues
(88,690
)
(32,139
)
(189,893
)
(124,607
)
Selling, general, and administrative
expenses
(195,640
)
(308,319
)
(1,321,276
)
(1,312,642
)
Equity income from unconsolidated
entities
1,625
213
43,151
3,506
Other income, net
22,043
5,367
61,752
39,201
Income before income taxes
$
1,132,056
$
902,973
$
3,795,924
$
3,316,075
FINANCIAL SERVICES:
Income before income taxes
$
50,672
$
43,845
$
209,955
$
133,192
CONSOLIDATED:
Income before income taxes
$
1,182,728
$
946,818
$
4,005,879
$
3,449,267
PulteGroup, Inc.
Segment Data,
continued
($000's omitted)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Home sale revenues
$
4,707,540
$
4,165,231
$
17,318,521
$
15,598,707
Closings - units
Northeast
464
421
1,518
1,417
Southeast
1,413
1,337
5,697
5,201
Florida
1,855
1,940
7,906
7,742
Midwest
1,370
1,262
4,750
3,955
Texas
1,167
1,265
5,452
5,295
West
1,834
1,390
5,896
4,993
8,103
7,615
31,219
28,603
Average selling price
$
581
$
547
$
555
$
545
Net new orders - units
Northeast
340
349
1,566
1,510
Southeast
1,233
1,264
5,363
5,541
Florida
1,510
1,507
6,909
6,893
Midwest
1,088
871
4,860
4,297
Texas
900
1,073
4,763
5,143
West
1,096
1,150
5,765
5,196
6,167
6,214
29,226
28,580
Net new orders - dollars
$
3,507,496
$
3,359,733
$
16,493,524
$
15,244,353
December 31,
2024
2023
Unit backlog
Northeast
615
567
Southeast
1,912
2,246
Florida
2,795
3,792
Midwest
1,802
1,692
Texas
948
1,637
West
2,081
2,212
10,153
12,146
Dollars in backlog
$
6,494,718
$
7,319,714
PulteGroup, Inc.
Segment Data,
continued
($000's omitted)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
MORTGAGE ORIGINATIONS:
Origination volume
5,328
4,657
19,770
17,427
Origination principal
$
2,342,489
$
1,871,531
$
8,340,836
$
6,924,910
Capture rate
85.9
%
84.6
%
85.9
%
81.6
%
Supplemental Data
($000's omitted)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Interest in inventory, beginning of
period
$
146,097
$
140,010
$
139,078
$
137,262
Interest capitalized
26,069
30,652
112,416
126,040
Interest expensed
(32,206
)
(31,584
)
(111,534
)
(124,224
)
Interest in inventory, end of period
$
139,960
$
139,078
$
139,960
$
139,078
PulteGroup, Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
This report contains information about our debt-to-capital
ratios. These measures could be considered non-GAAP financial
measures under the SEC's rules and should be considered in addition
to, rather than as a substitute for, comparable GAAP financial
measures. We calculate total net debt by subtracting total cash,
cash equivalents, and restricted cash from notes payable to present
the amount of assets needed to satisfy the debt. We use the
debt-to-capital and net debt-to-capital ratios as indicators of our
overall leverage and believe they are useful financial measures in
understanding the leverage employed in our operations. We believe
that these measures provide investors relevant and useful
information for evaluating the comparability of financial
information presented and comparing our profitability and liquidity
to other companies in the homebuilding industry. Although other
companies in the homebuilding industry report similar information,
the methods used may differ. We urge investors to understand the
methods used by other companies in the homebuilding industry to
calculate these measures and any adjustments thereto before
comparing our measures to those of such other companies.
The following table sets forth a reconciliation of the
debt-to-capital ratios ($000's omitted):
Debt-to-Capital Ratios
December 31,
2024
2023
Notes payable
$
1,618,586
$
1,962,218
Shareholders' equity
12,121,964
10,383,257
Total capital
$
13,740,550
$
12,345,475
Debt-to-capital ratio
11.8
%
15.9
%
Notes payable
$
1,618,586
$
1,962,218
Less: Total cash, cash equivalents, and
restricted cash
(1,653,680
)
(1,849,177
)
Total net debt
$
(35,094
)
$
113,041
Shareholders' equity
12,121,964
10,383,257
Total net capital
$
12,086,870
$
10,496,298
Net debt-to-capital ratio
(0.3
)%
1.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130519702/en/
Investors: Jim Zeumer (404) 978-6434
jim.zeumer@pultegroup.com
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