Tue, Apr 22, 8:16 PM (19 days ago)
**PulteGroup, Inc. (PHM) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $3.89 billion, down 1.9% YoY. - **Net Income:** $522.8 million, down 21.1% YoY. - **EPS (Diluted):** $2.57, down 17.1% YoY. - **Gross Margin (Home Sales):** 27.5%, down 210 basis points YoY. - **Operating Cash Flow:** $134.2 million, down 44.1% YoY. **Profit Margins & Cash Flow:** - **Operating Margin:** 17.5%, down 250 basis points YoY. - **Free Cash Flow:** Negative $343.1 million, due to share repurchases and dividend payments. **Earnings Changes & Trends:** - **Homebuilding:** Revenue down 1.9% YoY, income before taxes down 22% YoY. - **Financial Services:** Revenue down 2% YoY, income before taxes down 12% YoY. - **Net New Orders:** Down 7% YoY in units, 5% YoY in dollars. - **Backlog:** Down 12% YoY in dollars, 16% YoY in units. **Quarterly Performance Discussion:** - Affordability challenges due to elevated mortgage rates and higher housing costs. - Increased sales incentives, particularly mortgage interest rate buydowns. - Strategic focus on lot optionality, spec inventory, shareholder returns, and liquidity. **Uncertainties & Future Operations Impact:** - Persistent affordability challenges and volatile macroeconomic conditions. - Pressure on land acquisition and development costs. - Strategic focus on balancing sales price and pace, maintaining market share, and generating healthy returns. **Key Metrics:** - **Closings:** 6,583 units, down 7% YoY. - **Average Selling Price:** $570,000, up 6% YoY. - **Cancellation Rate:** 13%, unchanged YoY. - **Active Communities:** 961, up 3% YoY. - **Backlog:** 11,335 units, down 16% YoY; $7.22 billion, down 12% YoY. **Segment Performance (Homebuilding):** - **Northeast:** Revenue up 25% YoY, income before taxes up 58% YoY. - **Southeast:** Revenue down 11% YoY, income before taxes down 22% YoY. - **Florida:** Revenue down 14% YoY, income before taxes down 29% YoY. - **Midwest:** Revenue up 10% YoY, income before taxes up 14% YoY. - **Texas:** Revenue down 21% YoY, income before taxes down 44% YoY. - **West:** Revenue up 26% YoY, income before taxes up 12% YoY. **Liquidity & Capital Resources:** - **Cash & Equivalents:** $1.28 billion, down 22.2% YoY. - **Debt-to-Capitalization:** 11.7%, unchanged YoY. - **Share Repurchase:** $300 million in Q1 2025, $1.9 billion remaining authorization. - **Dividends:** $44.7 million in Q1 2025, up 4.9% YoY. **Market Risks & Forward-Looking Statements:** - Interest rate changes, economic conditions, competition, regulatory environment, and other factors may impact future performance. - The company's forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.