Pultegroup, Inc. · NYSE:PHM
Pultegroup — Q4 2024 Earnings Presentation
25 slides from Pultegroup's earnings presentation, Jan 30, 2025
Slide 1: Q4 2024 Operating & Financial Results
Q4 2024 Operating & Financial Results January 30, 2025 1
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 Bob O’Shaughnessy President & CEO EVP & CFO Jim Ossowski Jim Zeumer SVP, Finance VP, Investor Relations 3
Slide 4: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights • Earnings for Q4 increased 35% over prior Quarterly Earnings Per Share year to $4.43 per share $4.50 $4.00 • “PulteGroup’s strong fourth quarter $3.50 Q1 financial results completed a record-setting $3.00 Q2 year. For the full year, PulteGroup $2.50 Q3 generated nearly
Slide 5: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Closings • Home sale revenues 8,611 8,848 8,103 7,615 increased 13% to $4.7B Q4 closings of 8,103 homes, an increase of 6% over the prior Q4 2021 Q4 2022 Q4 2023 Q4 2024 year Home Sale Revenues ($M) $4,961 Average sales price of homes $4,165 $4,165 $4,708 closed in the
Slide 6: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Gross Margin * • Gross margin of 27.5%, compared with 28.9% in the prior year period 29.4% 28.9% Gross margins reflect higher incentives, which 27.2% 27.5% increased to 7.2% in the period • SG&A expense of $196 million, or 4.2% of Q4 2021 Q4 2022 Q4 2023 Q4 2024 home s
Slide 7: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Net New Orders • Net new orders of 6,167 were consistent with prior year 6,769 6,214 6,167 • Cancellations as a percent of 3,964 beginning backlog were 10.4%, up from 9.3% in the prior year period Q4 2021 Q4 2022 Q4 2023 Q4 2024 Unit Backlog • Year-end backlog of 10,153
Slide 8: Increasing Supply of Controlled Lots
Increasing Supply of Controlled Lots Lots Under Control • Increased land pipeline to ~235,000 Owned Optioned lots with 56% held under option 118,115 112,541 120,066 131,069 132,413 • $1.5B of land spend in Q4, as we invest 104,515 107,001 105,238 103,473 102,176 to support ongoing growth of operatio
Slide 9: Systematic Return of Funds to Shareholders
Systematic Return of Funds to Shareholders Return on Equity * • Repurchased $320M of common shares in Q4 and $1.2B YTD 33% 28% 28% Repurchased 2.5 million shares in Q4 at an 24% 27% average price of $129.90 Repurchased 10.1 million shares, or 4.7% of shares outstanding, in 2024 2020 2021 2022 20
Slide 10: Q4 2024 Selected Financial Data
Q4 2024 Selected Financial Data Three Months Ended December 31, 2024 2023 Change Home Sale Revenues ($M) $4,708 $4,165 13% Gross Margin Percentage 27.5% 28.9% -140 bps SG&A as Percent of Home Sale Revenues* 4.2% 7.4% -320 bps Financial Services Pre-tax Income ($M) $51 $44 16% Net Income ($M)* $913 $
Slide 11: Q4 2024 Selected Balance Sheet Data
Q4 2024 Selected Balance Sheet Data December 31, 2024 December 31, 2023 Cash and Equivalents, including Restricted Cash ($M) $1,654 $1,849 House and Land Inventory ($M) $12,666 $11,795 Notes Payable ($M) $1,619 $1,962 Shareholders’ Equity ($M) $12,122 $10,383 Debt – to – Capital Ratio 11.8% 15.9% Ne
Slide 12: 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
Slide 13: Today's Operating Model Driving Superior Financial Results
Today’s Operating Model Driving Superior Financial Results 13
Slide 14: Continuing to Expand Our Market Platform
Nation’s 3rd Largest Builder Continuing to Expand Our Market Platform Recent Market Entry SEATTLE BOSTON PORTLAND MINNEAPOLIS DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS SALT LAKE SAN FRANCISCO WASHINGTON D.C. CITY INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VEGAS CHARLO
Slide 15: Operating in an Undersupplied Market
Operating in an Undersupplied Market 2023 Housing Stock by Year Built and Building Type vs. U.S. Population 25,000 1 unit, detached 1 unit, attached 400,000,000 2 to 4 units 5 to 19 units 20+ units MH, mobile home, trailer or other 350,000,000 Population 20,000 300,000,000 Units (Thousands) 250,000,
Slide 16: Unmatched Ability to Serve All Buyer Groups
Unmatched Ability to Serve All Buyer Groups 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-order ~60% of closings among higher-mar
Slide 17: Diversified Across Price Points
Diversified Across Price Points 2024 Closings by Price Point 6% 15% 20% Under $300K $300K - $399K $400K - $499K $500K - $749K $750K and Above 37% 22% ©2025 PulteGroup 17
Slide 18: Disciplined Land Investment is Key Driver of Sustained Business Success
Disciplined Land Investment 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 Land inv
Slide 19: Operating Model Launched a Decade Ago
Operating Model Launched a Decade Ago Strategic Capital Allocation Consistent Invest in the business Land Underwriting Dividends Share Repurchase Pay down debt Improve Homebuilder Generating Consistent Efficient Land Pipeline Profitability Cash Flow Goal: increase lot Industry leading gross
Slide 20: Driving Outsized EPS Growth
Driving Outsized EPS Growth Closings Closings (2001 - 2005) (2020 - 2024) 50,000 40,000 40,000 45,630 30,000 38,612 31,219 30,000 32,693 28,894 29,111 28,603 28,903 20,000 24,624 20,000 22,915 10,000 10,000 0 0 2001 2002 2003 2004 2005 2020 2021 2022 2023 2024 EPS EPS (2001 - 2005) (2020 - 2024) $12
Slide 21: With Significantly Higher Returns on Equity
With Significantly Higher Returns on Equity Return on Equity Return on Equity (2001 – 2005) (2020 – 2024) 35.0% 35.0% 30.0% 5 Yr Avg – 27.8% 32.9% 30.0% 25.0% 28.9% 25.0% 27.9% 27.5% 5 Yr Avg – 22.2% 27.0% 25.3% 20.0% 20.0% 23.7% 20.6% 15.0% 18.0% 18.2% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2001 200
Slide 22: Generating Positive Cash Flows to Fund Operations
Generating Positive Cash Flows to Fund Operations Cash Flows from Operations ($M) Cash Flows from Operations ($M) (2001 – 2005) (2020 – 2024) $200 $2,500 $149 $19 $0 $2,000 $2,197 -$200 $1,500 $1,784 $1,681 -$336 -$407 -$400 $1,000 $1,004 -$600 -$692 $500 $669 -$800 $0 2001 2002 2003 2004 2005 2020
Slide 23: Allocating Capital to Grow the Business and Reward Shareholders
Allocating Capital to Grow the Business and Reward Shareholders Land Investment ($M) Share Repurchase & Dividends ($M) $6,000 $1,600 $1,400 $5,000 $5,260 $1,200 $1,368 $4,000 $4,539 $1,219 $4,236 $4,283 $1,000 $1,142 $1,045 $3,000 $800 $2,856 $600 $2,000 $400 $1,000 $200 $301 $0 $0 2020 2021 2022 20
Slide 24: 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% -20% 0% 0% TOL PHM TMHC DHI LEN MTH NVR KBH PHM TOL TMHC KBH NVR DHI MTH LEN Rankings based on results through the periods ending December 31, 2024 ©2025 Pu
Slide 25: PulteGroup
Ls * soucnar PULTEGROUP