Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q1 2025 Earnings Presentation
23 slides from Pultegroup's earnings presentation, Apr 22, 2025
Slide 1: Q1 2025 Operating & Financial Results
Q1 2025 Operating & Financial Results April 22, 2025
Slide 2: Forward-looking statements
Forward-looking statements This presentation 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 s
Slide 3: PulteGroup Participants
PulteGroup Participants Ryan Marshall Jim Ossowski Jim Zeumer President & CEO EVP & CFO VP, Investor Relations 3
Slide 4: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights GUIDANCE • Generated net income of $523 (As of April 22, 2025) million, or $2.57 per share Q2 2025 FY 2025 Closings 7,400 – 7,800 29,000-30,000 • “PulteGroup’s financial results continue to Gross Margin 26.0% - 26.5% in benefit from our broadly diversified 26.5% - 27.0%
Slide 5: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Closings • Home sale revenues decreased 2% to $3.7B 8,000 6,000 7,095 6,394 6,583 6,039 Average sales price of homes 4,000 closed in Q1 increased 6% to 2,000 $570,000 0 Q1 2022 Q1 2023 Q1 2024 Q1 2025 Closings for the quarter decreased Home Sale Revenues ($M) 7% from p
Slide 6: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights • Q1 gross margin of 27.5% was flat sequentially Gross Margin * with Q4, and down 210 bps from the 29.6% 30% reported last year 28% 29.3% 29.1% 29.6% 26% 27.5% Gross margins include incentives of 8.0% incurred 24% in Q1 2025, up from 6.5% in Q1 2024 and 7.2% in 22% Q4
Slide 7: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Net New Orders • Net new orders decreased 7% from prior year to 7,765 homes 10,000 8,000 Q1 net new order value of $4.5B, 7,971 8,379 6,000 7,354 7,765 compared with $4.7B in prior year 4,000 2,000 • Cancellations as a percent of 0 beginning backlog of 11%, up from Q1
Slide 8: Increasing Efficiency of Land Pipeline
Increasing Efficiency of Land Pipeline Lots Under Control • Ended Q1 with ~244,000 lots under Owned Optioned control with 59% held under option 300,000 200,000 122,326 102,827 112,541 143,647 Option lot position increased by almost 100,000 112,216 107,528 107,001 30% over prior year 100,418 0 Q1 2
Slide 9: Consistent Return of Capital to Shareholders
Consistent Return of Capital to Shareholders Return on Equity * • $300M of common shares repurchased in Q1 40% 30% 32.9% Repurchased 2.8 million shares at an 20% 27.0% 27.5% 25.4% average price of $108.03 10% At quarter end, Company had $1.9B 0% 2022 2023 2024 TTM Q1 2025 remaining under current s
Slide 10: Q1 2025 Selected Financial Data
Q1 2025 Selected Financial Data Three Months Ended March 31, 2025 2024 Change Home Sale Revenues ($M) $3,749 $3,820 -2% Gross Margin Percentage 27.5% 29.6% -210 bps SG&A as Percent of Home Sale Revenues 10.5% 9.4% * 110 bps Financial Services Pre-tax Income ($M) $36 $41 -12% Net Income ($M) $523 $66
Slide 11: Q1 2025 Selected Balance Sheet Data
Q1 2025 Selected Balance Sheet Data March 31, 2025 December 31, 2024 Cash and Equivalents, including Restricted Cash ($M) $1,276 $1,654 House and Land Inventory ($M) $12,959 $12,693 Notes Payable ($M) $1,626 $1,619 Shareholders’ Equity ($M) $12,301 $12,122 Debt – to – Capital Ratio 11.7% 11.8% Net D
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures This presentation 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 financ
Slide 13: Building Returns for Our Shareholders
Building Returns for Our Shareholders 13
Slide 14: Nation's 3rd Largest Homebuilder
Nation’s SEATTLE 3rd Largest BOSTON Homebuilder PORTLAND MINNEAPOLIS DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS National SAN FRANCISCO WASHINGTON D.C. SALT LAKE CITY INDIANAPOLIS SAN JOSE DENVER LOUISVILLE Operating TRIAD LAS VEGAS RALEIGH CHARLOTTE NASHVILLE WILMINGTON Platform LOS
Slide 15: Strategically Positioned to Serve All Buyer Groups
Strategically Positioned to Serve All Buyer Groups 2024 Closings by Buyer Group First Time Move Up Active Adult 100% 90% 24% 22% 25% 25% 25% 80% 70% 60% 38% 45% 43% 39% 36% 50% 40% 30% 20% 36% 39% 40% 31% 32% 10% 0% 2020 2021 2022 2023 2024 Offering both spec and build-to- ~60% of closings among ord
Slide 16: Well Diversified Across Price Points
Well Diversified Across Price Points 2024 Closings by Price Point 15% 6% Under $300K 20% $300K - $399K $400K - $499K $500K - $749K 37% $750K and Above 22% 16
Slide 17: Control of Critical Land Resources
Control of Critical Land Resources Lots Under Control Land Acquisition & Development Spend ($B) 300,000 Acquisition Development Owned Optioned $6.0 250,000 $5.0 200,000 143,647 $4.0 102,264 118,115 132,413 $3.0 150,000 $2.6 $3.0 $2.5 100,000 $2.0 50,000 108,848 104,515 102,176 100,418 $1.0 $1.9 $1.8
Slide 18: Disciplined Land Investment Process is Key Driver of Sustained Business Success
Disciplined Land Investment Process is Key Driver of Sustained Business Success Land Underwriting Tied to Return on Invested Capital IRR 18% 18% 18% 18% 18% 19% 19% 20% 20% 21% 21% 22% 22% 23% 24% 25% 26% 27% 28% 29% 30% Threshold Score 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
Slide 19: Operating Model Launched a Decade Ago
Operating Model Launched a Decade Ago Strategic Capital Allocation Consistent • Invest in the business Land • Dividends Underwriting • Share Repurchase • Pay down debt Efficient Land Improve Homebuilder Generating Pipeline Profitability Consistent Cash Flow Goal: increase lot Industry leading option
Slide 20: Operating Model Aligned with Driving High Returns Over the Housing Cycle
Operating Model Aligned with Driving High Returns Over the Housing Cycle Drive superior • Strategic expansion homebuilding profitability into new markets to support growth • Disciplined underwriting process • Increase use of land options • Efficient Build to Order and Spec operating model • More eff
Slide 21: And Achieving Our Goal of Superior Total Shareholder Returns
And Achieving Our Goal of Superior Total Shareholder Returns 1 Year 3 Year 5 Year 40% 125% 300% 250% 100% 20% 200% 75% 150% 50% 0% 100% 25% 50% 0% 0% -20% Rankings based on results through the periods ending December 31, 2024 21
Slide 22: The Long-term Investment Thesis for PHM
The Long-term Investment Thesis for PHM Investing in the business to support the goal of growing volumes 5% to 10% annually • Opportunity to expand share of U.S. home sales Seek to maintain high returns on equity as we work to build long-term shareholder value, while maintaining a strong balance she
Slide 23: PulteGroup
a PULTEGROUP