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1. Company Snapshot

1.a. Company Description

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States.It acquires and develops land primarily for residential purposes; and constructs housing on such land.The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names.


As of December 31, 2021, it controlled 228,296 lots, of which 109,078 were owned and 119,218 were under land option agreements.In addition, the company arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers.PulteGroup, Inc.


was formerly known as Pulte Homes, Inc.and changed its name to PulteGroup, Inc.in March 2010.


The company was founded in 1950 and is headquartered in Atlanta, Georgia.

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1.b. Last Insights on PHM

PulteGroup's recent performance was negatively impacted by declining home closings, rising cancellations, and a shrinking backlog due to economic pressures and housing market weakness. Despite this, the company reported Q3 earnings that surpassed estimates, with quarterly earnings of $2.96 per share. Additionally, PulteGroup announced an 18% increase in its quarterly cash dividend to $0.26 per share. The company also plans to expand into the Cincinnati market, aiming to build on Midwest demand strength. Analysts have a "Moderate Buy" rating on the stock.

1.c. Company Highlights

2. PulteGroup's Q3 2025 Earnings: A Strong Performance Amidst a Challenging Environment

PulteGroup reported a robust financial performance in the third quarter of 2025, with home sale revenues reaching $4.2 billion, operating margins of 16.8%, and earnings per share of $2.96, beating analyst estimates of $2.86. The company closed 7,529 homes, with an average sales price of $564,000. Net new orders totaled 6,638 homes, a 6% decrease from the prior year, reflecting a challenging sales environment. The company's return on equity stood at 21% for the trailing 12 months, demonstrating its ability to generate strong returns for shareholders.

Publication Date: Nov -25

📋 Highlights
  • Strong Financial Performance:: Q3 revenue reached $4.2 billion with 16.8% operating margins and EPS of $2.96, reflecting efficient operations.
  • Healthy Land Pipeline:: $5 billion allocated for 2025 land investments, supporting growth amid a projected 3–4 million housing shortage.
  • Capital Discipline:: $300 million in share repurchases (2.4M shares) and $1.3 billion remaining under buyback authorization, alongside $1.4 billion annual cash flow and 11.2% debt-to-capital ratio.
  • Regional Stabilization:: Florida and Southeast saw 2.4% and 1% order growth, respectively, with improved demand and pricing stability in key markets.
  • Margin Resilience:: Q4 gross margin guidance of 25.5–26% maintained despite incentives rising to 8.9% of sales, balancing cost controls and competitive pricing.

Operational Highlights

PulteGroup's spec production is currently around 50%, up from its target of 40% to 45%, due to the challenging sales environment. However, the company remains focused on dirt-to-be-built sales. Regionally, Florida orders were up 2.4%, and the Southeast was up 1%, with stabilization in demand, pricing, and inventory in these markets. The active adult business, a key distinction for PulteGroup, continues to be a growth area, with the company aiming to grow this segment to 25% of its business.

Guidance and Outlook

PulteGroup expects to close between 7,200 to 7,600 homes in the fourth quarter and maintain its average sales price guidance of $560,000 to $570,000. The company guides for gross margins of 25.5% to 26% in 4Q, impacted by a mix of factors including lower mortgage rates and moving speculative inventory. SG&A guidance for 4Q is fairly consistent with Q3, with no significant changes expected.

Valuation and Capital Allocation

With a P/E Ratio of 8.91 and an ROE of 21.12%, PulteGroup's valuation appears reasonable, considering its strong profitability. The company's debt-to-capital ratio stands at 11.2%, and its net debt-to-capital ratio is 1.1%, indicating a healthy balance sheet. PulteGroup prioritizes investing in the business, paying a dividend, and returning excess cash to shareholders through share buybacks, having repurchased 2.4 million common shares for $300 million in the third quarter.

Regional Performance and Industry Trends

Regionally, Texas and the West are underperforming, with factors such as rapid price appreciation, high inventory, and tech-dependent jobs impacting these markets. However, the company remains optimistic about these markets, citing strong population growth and job creation. The industry is anticipating a housing shortage of 3 million to 4 million houses, and PulteGroup agrees with the need for more housing and better affordability.

3. NewsRoom

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3 Homebuilders in Focus Despite Challenging Market Backdrop

Dec -04

Source: zacks.com

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PulteGroup Reveals Home Design Trends for 2026

Dec -04

Source: businesswire.com

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PulteGroup's Fourth Quarter 2025 Earnings Release and Webcast Conference Call Scheduled for January 29, 2026

Dec -04

Source: businesswire.com

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PulteGroup to Attend the 2025 Goldman Sachs Industrials and Materials Conference

Dec -01

Source: businesswire.com

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PulteGroup Sees Unusually Large Options Volume (NYSE:PHM)

Nov -27

Source: defenseworld.net

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OFA Group (NASDAQ:OFAL) versus PulteGroup (NYSE:PHM) Financial Analysis

Nov -21

Source: defenseworld.net

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PulteGroup Increases Quarterly Cash Dividend by 18% to $0.26 Per Share

Nov -19

Source: businesswire.com

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PulteGroup to Boost Footprint by Debuting in the Cincinnati Market

Nov -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.31%)

6. Segments

Homebuilding - Florida

Expected Growth: 8.5%

Florida's strong economy, driven by tourism and retirees, fuels demand for housing. PulteGroup's diverse brand portfolio, including Pulte Homes, Del Webb, and Centex, cater to varying consumer preferences, driving growth in single-family homes and townhomes.

Homebuilding - West

Expected Growth: 6.3%

PulteGroup's West segment is driven by strong demand in Arizona, California, and Colorado, with Nevada and New Mexico providing additional growth opportunities, fueled by population growth and a shortage of housing supply.

Homebuilding - Southeast

Expected Growth: 7.3%

PulteGroup, Inc. benefits from a growing housing market, with a focus on first-time homebuyers and a strong presence in the Sun Belt region, driving long-term growth.

Homebuilding - Midwest

Expected Growth: 7.3%

PulteGroup's growth is driven by increasing housing demand, particularly in the 55+ age demographic, and its focus on entry-level and move-up buyers.

Homebuilding - Texas

Expected Growth: 7.5%

PulteGroup’s homebuilding operations in Texas benefit from the state’s strong economic growth, and growing population driven by major cities like Austin and Houston, as well as the company’s diverse product offerings and construction services.

Homebuilding - Northeast

Expected Growth: 5.5%

PulteGroup’s homebuilding operations in the Northeast region, driven by increasing demand for housing, low unemployment rates, and limited land supply, will fuel growth.

Homebuilding - Other

Expected Growth: 4.5%

PulteGroup’s Homebuilding - Other segment is driven by increasing demand for luxury homes, strategic land acquisition and development, and focus on construction quality, leading to higher average selling prices.

Financial Services

Expected Growth: 8.4%

PulteGroup’s growth is driven by increasing demand for new homes, strategic expansion into high-growth markets, and focus on first-time and move-up buyers.

7. Detailed Products

New Home Construction

PulteGroup builds and sells new homes in various communities across the United States, offering a range of floor plans, elevations, and amenities to suit different lifestyles and budgets.

Del Webb Active Adult Communities

Del Webb is a brand of PulteGroup that specializes in building active adult communities for people 55+, offering resort-style amenities and low-maintenance living.

Rental Properties

PulteGroup's rental division, Pulte Homes Rental, offers a range of rental properties, including single-family homes, townhomes, and apartments.

Land Development

PulteGroup's land development segment acquires, develops, and sells land to third-party builders, as well as develops land for its own homebuilding operations.

8. PulteGroup, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PulteGroup, Inc. faces moderate threat from substitutes due to the availability of alternative housing options, such as apartments and condominiums.

Bargaining Power Of Customers

PulteGroup, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

PulteGroup, Inc. relies on various suppliers for materials and labor, but the company's large scale of operations gives it some bargaining power to negotiate prices.

Threat Of New Entrants

The high barriers to entry in the homebuilding industry, including regulatory hurdles and significant capital requirements, make it difficult for new entrants to compete with PulteGroup, Inc.

Intensity Of Rivalry

The homebuilding industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.75%
Debt Cost 3.95%
Equity Weight 80.25%
Equity Cost 11.76%
WACC 10.22%
Leverage 24.61%

11. Quality Control: PulteGroup, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Toll Brothers

A-Score: 5.7/10

Value: 6.8

Growth: 8.1

Quality: 6.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

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D.R. Horton

A-Score: 5.4/10

Value: 5.9

Growth: 7.6

Quality: 6.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NVR

A-Score: 5.0/10

Value: 4.5

Growth: 7.6

Quality: 7.5

Yield: 0.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.99$

Current Price

126.99$

Potential

-0.00%

Expected Cash-Flows