Pultegroup, Inc. · NYSE:PHM

Pultegroup — Q2 2023 Earnings Presentation

20 slides from Pultegroup's earnings presentation, Jul 25, 2023

  1. Slide 1: Q2 2023 Operating and Financial Results

    Q2 2023 Operating and Financial Results July 25, 2023

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements As a cautionary note, except for the historical information contained herein, this presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risk

  3. Slide 3: PulteGroup Participants

    PulteGroup Participants Ryan Marshall President and CEO Bob O’Shaughnessy EVP and CFO Jim Ossowski SVP, Finance Jim Zeumer VP, Investor Relations ©2023 PulteGroup

  4. Slide 4: Q2 2023 Operating & Financial Highlights

    Q2 2023 Operating & Financial Highlights

  5. Slide 5: Q2 2023 Financial Highlights: Revenue and EPS

    Home Sale Revenues ($M) Q2 2023 Financial Highlights $4,059 $3,763 $3,187 • Q2 net income of $3.21 per share compared with $2.73 per share in the $2,432 prior year – Q2 2023 net income includes a $65 million pre- tax, or $0.21 per share, insurance benefit Q2 2020 Q2 2021 Q2 2022 Q2 2023 recorded in

  6. Slide 6: Q2 2023 Financial Highlights: Gross Margin and SG&A

    Home Sales Gross Margin Q2 2023 Financial Highlights 31.3% 29.6% • Q2 gross margin of 29.6% 27.0% – Q2 gross margin up 50 basis points 24.3% sequentially from first quarter 2023 – Margin strength reflects favorable Q2 2020 Q2 2021 Q2 2022 Q2 2023 demand and improved pricing on spec SG&A % of Home Sa

  7. Slide 7: Q2 2023 Financial Highlights: Orders and Backlog

    Unit Backlog Q2 2023 Financial Highlights 20,056 19,176 • Net new orders increased 24% over 13,558 prior year to 7,947 homes 13,214 – Q2 orders benefited from strong demand and increased community count Q2 2020 Q2 2021 Q2 2022 Q2 2023 – Cancelation rate in the quarter was 9% of beginning backlog, do

  8. Slide 8: Adapting to Market Changes: Land

    Adapting to Market Changes: Land Lots Under Control Owned Optioned • Q2 investment of $370 million in land 130,302 116,827 102,264 110,288 102,827 acquisition and $523 million in development of existing land assets – On track to invest $3.5B to $4.0B in land 112,956 114,835 108,848 107,528 104,128 a

  9. Slide 9: Adapting to Market Changes: Capital Allocation

    Adapting to Market Changes: Dividend & Share Repurchase ($M) Capital Allocation $1,219 $1,045 • Ended the quarter with $1.8 billion of cash $472 $397 • Debt-to-capital ratio of 17.3%, down $301 from 18.7% at 12/31/22 2019 2020 2021 2022 YTD 2023 – Net debt-to-capital ratio of 2.6% Cumulative Share R

  10. Slide 10: Delivering High Returns to Shareholders

    Delivering High Returns to Return on Equity* Shareholders 33% • YTD cash flow from operations of $1.5 32% billion 28% • Through first 6 months, company has 24% returned $472 million to shareholders 20% through share repurchases and dividends • Consistent with stated goal, continuing to deliver high

  11. Slide 11: Q2 2023 Selected Financial Data

    Q2 2023 Selected Financial Data Three Months Ended June 30, 2023 2022 Change Home Sale Revenues ($ millions) $4,059 $3,763 8% Gross Margin Percentage 29.6% 31.3% -170 bps SG&A as Percent of Home Sale Revenues* 7.8% 9.3% -150 bps Financial Services Pre-tax Income ($ millions) $46 $40 16% Net Income (

  12. Slide 12: Q2 2023 Selected Balance Sheet Data

    Q2 2023 Selected Balance Sheet Data June 30, 2023 December 31, 2022 Cash and Equivalents, including Restricted Cash ($ millions) $1,778 $1,095 House and Land Inventory ($ millions) $11,335 $11,326 Notes Payable ($ millions) $2,033 $2,046 Shareholders’ Equity ($ millions) $9,705 $8,914 Debt – to – Ca

  13. Slide 13: Company Profile

    Company Profile

  14. Slide 14: Nation's 3rd Largest Builder With a Broad and Balanced Geographic Footprint

    Nation’s 3rd Largest Builder With a Broad and Balanced Geographic Footprint SEATTLE BOSTON PORTLAND MINNEAPOLIS NEW HAVEN DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS SAN FRANCISCO WASHINGTON D.C. INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VEGAS CHARLOTTE NASHVILLE WILMI

  15. Slide 15: Industry Leading Brand Names

    Industry Leading Brand Names ©2023 PulteGroup 15

  16. Slide 16: Serving a Variety of Price Points

    Serving a Variety of Price Points 2022 Closings by Price Point 12% 5% 20% Under $300K $300K - $399K $400K - $499K $500K - $749K 37% $750K and Above 26% ©2023 PulteGroup 16

  17. Slide 17: Focused on Delivering High Returns Over the Housing Cycle

    Focused on Delivering High Returns Over the Housing Cycle • Drive superior homebuilding profitability – Disciplined underwriting process – Strategic use of build-to-order and spec-build operating models to more effectively serve diverse buyer groups – More efficient construction processes – Importan

  18. Slide 18: Supplemental Financial Tables

    Supplemental Financial Tables

  19. Slide 19: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures 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 me

  20. Slide 20: Slide 20

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