Pultegroup, Inc. · NYSE:PHM

Pultegroup — Q3 2023 Earnings Presentation

20 slides from Pultegroup's earnings presentation, Oct 24, 2023

  1. Slide 1: Q3 2023 Operating and Financial Results

    Q3 2023 Operating and Financial Results October 24, 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: Q3 2023 Operating & Financial Highlights

    Q3 2023 Operating & Financial Highlights

  5. Slide 5: Q3 2023 Financial Highlights

    Home Sale Revenues ($M) Q3 2023 Financial Highlights $3,792 $3,887 $3,281 • Q3 net income of $2.90 per share $2,780 increased 8% over prior year earnings of $2.69 per share • Home sale revenues increased 3% to Q3 2020 Q3 2021 Q3 2022 Q3 2023 $3.9 billion EPS (diluted) – Average sales price for Q3 in

  6. Slide 6: Q3 2023 Financial Highlights: Gross Margin and SG&A

    Home Sales Gross Margin Q3 2023 Financial Highlights 30.5% 29.5% • Q3 home sale gross margin of 29.5% 26.9% – Continue to deliver industry leading 24.9% gross margins in support of higher returns on invested capital Q3 2020 Q3 2021 Q3 2022 Q3 2023 – Strong margin profile benefiting from SG&A % of Ho

  7. Slide 7: Q3 2023 Financial Highlights: Orders and Backlog

    Unit Backlog Q3 2023 Financial Highlights 19,845 • Net new orders in Q3 increased 43% over 17,053 14,962 prior year to 7,065 homes 13,547 – In Q3, Company realized strong order gains across all buyer groups: first-time, move-up and active-adult Q3 2020 Q3 2021 Q3 2022 Q3 2023 – Average community cou

  8. Slide 8: Disciplined Land Investment Process

    Disciplined Land Investment Process Lots Under Control Owned Optioned • Q3 land investment comprised of 116,827 102,264 110,288 119,339 102,827 $433 million for land acquisition and $723 million for development • Continuing to rebuild optionality 114,835 108,848 107,528 104,128 103,754 within our la

  9. Slide 9: Strategic Approach to Capital Allocation

    Strategic Approach to Capital Allocation Dividend & Share Repurchase ($M) $1,219 $1,045 • Repurchased $300 million of common $808 shares and retired $65 million of senior notes in the quarter $397 $301 – YTD Company has repurchased 10.2 2019 2020 2021 2022 YTD 2023 million shares, or 4.5% of shares

  10. Slide 10: Delivering High Returns to Shareholders

    Delivering High Returns to Return on Equity* Shareholders 33% • Strong profitability and improving cycle 30% times helped drive YTD cash flow from 28% operations of $1.9 billion 24% • Balanced and differentiated business model helping to deliver high ROE 20% – Large geographic presence across 45 maj

  11. Slide 11: Q3 2023 Selected Financial Data

    Q3 2023 Selected Financial Data Three Months Ended September 30, 2023 2022 Change Home Sale Revenues ($ millions) $3,887 $3,792 3% Gross Margin Percentage 29.5% 30.5% -100 bps SG&A as Percent of Home Sale Revenues 9.1% 9.2% -10 bps Financial Services Pre-tax Income ($ millions) $29 $28 5% Net Income

  12. Slide 12: Q3 2023 Selected Balance Sheet Data

    Q3 2023 Selected Balance Sheet Data Sept. 30, 2023 December 31, 2022 Cash and Equivalents, including Restricted Cash ($ millions) $1,900 $1,095 House and Land Inventory ($ millions) $11,585 $11,326 Notes Payable ($ millions) $1,981 $2,046 Shareholders’ Equity ($ millions) $10,013 $8,914 Debt – to –

  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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