Slide 1: Q2 2024 Operating & Financial Results
Q2 2024 Operating & Financial Results July 23, 2024
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
Slide 4: Q2 2024 Operating & Financial Highlights
Q2 2024 Operating & Financial Highlights
Slide 5: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights • Reported Q2 earnings increased 19% over Quarterly Earnings Per Share prior year to a period record $3.83 per $4.50 share $4.00 Reported earnings include a $0.19 per share $3.50 Q1 insurance benefit and a tax-related benefit of $3.00 Q2 $0.06 per share. Prior year ear
Slide 6: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Closings • Home sale revenues 8,097 increased 10% to $4.4B 7,232 7,177 7,518 Q2 closings increased 8% over the prior year to 8,097 homes Q2 2021 Q2 2022 Q2 2023 Q2 2024 Home Sale Revenues ($M) Average sales price of homes closed in the period increased $3,763 $4,059 $4
Slide 7: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Gross Margin * • Gross margin of 29.9% increased 30 basis points over prior year and Q1 of 2024 31.3% 29.6% 29.9% Q2 gross margin benefited from geographic mix, 27.0% pricing dynamics and a sequential decrease in incentives from Q1 2024 Q2 2021 Q2 2022 Q2 2023 Q2 2024
Slide 8: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Net New Orders • Net new orders were lower by 4% to 7,649 homes 8,322 7,947 Q2 buyer demand influenced by higher 6,418 7,649 interest rates which impacted affordability and overall consumer confidence Q2 2021 Q2 2022 Q2 2023 Q2 2024 • Q2 cancellations as a percent of Un
Slide 9: Investing to Support Future Growth
Investing to Support Future Growth Lots Under Control • Land pipeline of ~225,000 lots with 53% held under option Owned Optioned More than 70% of lots approved in 2024 110,288 119,339 118,115 112,541 120,066 were structured as options 104,128 103,754 104,515 107,001 105,238 • Q2 land investment in
Slide 10: Lowering Debt and Delivering High Returns
Lowering Debt and Delivering High Returns Return on Equity * • Returned $645M to shareholders in 2024 through share repurchases & 28% 33% 27% 27% dividends 24% Repurchased 2.8 million shares in Q2 at an average price of $113.79 2020 2021 2022 2023 TTM Q2 2024 Since 2013, Company has repurchased De
Slide 11: Q2 2024 Selected Financial Data
Q2 2024 Selected Financial Data Three Months Ended June 30, 2024 2023 Change Home Sale Revenues ($M) $4,448 $4,059 10% Gross Margin Percentage 29.9% 29.6% 30 bps SG&A as Percent of Home Sale Revenues 8.1% 7.8% 30 bps Financial Services Pre-tax Income ($M) $63 $46 36% Net Income ($M) $809 $720 12% Ea
Slide 12: Q2 2024 Selected Balance Sheet Data
Q2 2024 Selected Balance Sheet Data June 30, 2024 December 31, 2023 Cash and Equivalents, including Restricted Cash ($M) $1,446 $1,849 House and Land Inventory ($M) $12,302 $11,795 Notes Payable ($M) $1,650 $1,962 Shareholders’ Equity ($M) $11,223 $10,383 Debt – to – Capital Ratio 12.8% 15.9% Net De
Slide 13: 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 14: Today's Operating Model Driving Superior Financial Results
Today’s Operating Model Driving Superior Financial Results
Slide 15: Continuing to Expand Our Market Platform
Nation’s 3rd Largest Builder Continuing to Expand Our Market Platform Recent Market Entry SEATTLE BOSTON PORTLAND MINNEAPOLIS NEW HAVEN DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS SALT LAKE SAN FRANCISCO WASHINGTON D.C. CITY INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VE
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% 26% 25% 25% 25% 80% 70% 60% 45% 43% 39% 36% 50% 46% 40% 30% 20% 36% 39% 28% 31% 32% 10% 0% 2019 2020 2021 2022 2023 Offering both spec and build-to-order ~60% of closings among higher-mar
Slide 17: Diversified Across Price Points
Diversified Across Price Points 2023 Closings by Price Point 13% 6% Under $300K 22% $300K - $399K $400K - $499K $500K - $749K 36% $750K and Above 23% ©2024 PulteGroup 17
Slide 18: Disciplined Land Investment is Key Driver of Sustained Business Success
Disciplined Land Investment is Key Driver of Sustained Business Success Land Underwriting Tied to Return on Invested Capital IRR 18% 18% 18% 18% 18% 19% 19% 20% 20% 21% 21% 22% 22% 23% 24% 25% 26% 27% 28% 29% 30% Threshold Score 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Land inv
Slide 19: Operating Model Launched a Decade Ago
Operating Model Launched a Decade Ago Strategic Capital Allocation Consistent Invest in the business Land Underwriting Dividends Share Repurchase Pay down debt Improve Homebuilder Generating Consistent Efficient Land Pipeline Profitability Cash Flow Goal: increase lot Industry leading gross
Slide 20: Driving Outsized EPS Growth
Driving Outsized EPS Growth Closings Closings (2001 - 2005) (2019 - 2023) 50,000 50,000 40,000 45,630 40,000 38,612 30,000 30,000 32,693 28,903 28,894 29,111 28,603 20,000 20,000 24,624 22,915 23,232 10,000 10,000 0 0 2001 2002 2003 2004 2005 2019 2020 2021 2022 2023 EPS EPS (2001 - 2005) (2019 - 20
Slide 21: With Significantly Higher Returns on Equity
With Significantly Higher Returns on Equity Return on Equity Return on Equity (2001 – 2005) (2019 – 2023) 35.0% 35.0% 30.0% 30.0% 5 Yr Avg – 26.3% 32.9% 25.0% 28.9% 25.0% 27.9% 5 Yr Avg – 22.2% 27.0% 25.3% 20.0% 20.0% 23.7% 20.6% 20.0% 15.0% 18.0% 18.2% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2001 200
Slide 22: Generating Positive Cash Flows to Fund Operations
Generating Positive Cash Flows to Fund Operations Cash Flows from Operations ($M) Cash Flows from Operations ($M) (2001 – 2005) (2019 – 2023) $200 $2,500 $149 $19 $0 $2,000 $2,197 -$200 $1,500 $1,784 -$336 -$407 -$400 $1,000 $1,076 $1,004 -$600 -$692 $500 $669 -$800 $0 2001 2002 2003 2004 2005 2019
Slide 23: Allocating Capital to Grow the Business and Reward Shareholders
Allocating Capital to Grow the Business and Reward Shareholders Land Investment ($M) Share Repurchase & Dividends ($M) $5,000 $1,400 $4,539 $1,200 $4,000 $4,236 $4,283 $1,219 $1,000 $1,142 $1,045 $3,000 $800 $2,978 $2,856 $2,000 $600 $400 $1,000 $397 $200 $301 $0 $0 2019 2020 2021 2022 2023 2019 202
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 140% 150% 400% 120% 350% 125% 100% 300% 100% 250% 80% 75% 200% 60% 150% 50% 40% 100% 20% 25% 50% 0% 0% 0% Rankings based on results through the periods ending December 31, 2023 ©2024 PulteGroup 24
Slide 25: 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 26: PulteGroup
Ls * sae PULTEGROUP