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    Pultegroup Inc (PHM)

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    PulteGroup, Inc. is one of the largest homebuilders in the United States, primarily engaged in homebuilding operations, which account for the majority of its revenue . The company operates across 46 markets in 26 states, offering a diverse range of home designs through its brands, including Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West . PulteGroup predominantly sells single-family detached homes, with sales prices ranging from approximately $150,000 to over $2,500,000 . In addition to homebuilding, PulteGroup conducts financial services operations, including mortgage banking, title, and insurance agency services, through Pulte Mortgage and other subsidiaries .

    1. Homebuilding - Engages in the construction and sale of single-family detached homes across various markets, catering to first-time, move-up, and active adult buyers through multiple brands.
      • Centex - Offers affordable homes for first-time buyers.
      • Pulte Homes - Provides a range of home designs for move-up buyers.
      • Del Webb - Specializes in homes for active adult communities.
      • DiVosta Homes - Focuses on high-quality homes in select markets.
      • John Wieland Homes and Neighborhoods - Delivers luxury homes and neighborhoods.
      • American West - Builds homes in the Las Vegas area with a focus on innovative designs.
    2. Financial Services - Provides mortgage banking, title, and insurance agency services primarily to support homebuyers purchasing PulteGroup homes.
    NamePositionStart DateShort Bio
    Ryan R. MarshallPresident and Chief Executive OfficerSeptember 8, 2016Ryan R. Marshall has been serving as the President and CEO since September 8, 2016. He joined PulteGroup in various financial and operational roles, providing him with an in-depth understanding of the company's operations .
    Matthew W. KoartExecutive Vice President and Chief Operating OfficerMay 18, 2023Matthew W. Koart was appointed as the Executive Vice President and COO on May 18, 2023. Prior to joining PulteGroup, he served as the CEO of Koart Residential, Inc., a California residential developer .
    Robert T. O'ShaughnessyExecutive Vice President and Chief Financial OfficerMay 2011Robert T. O'Shaughnessy has been serving as the Executive Vice President and CFO since May 2011 .
    Todd N. SheldonExecutive Vice President, General Counsel, and Corporate SecretaryMarch 2017Todd N. Sheldon was appointed as Executive Vice President, General Counsel, and Corporate Secretary in March 2017 .
    Kevin A. HenryExecutive Vice President and Chief People OfficerJune 20, 2023Kevin A. Henry was appointed as Executive Vice President and Chief People Officer effective June 20, 2023. He previously served as Chief People Officer at BlueLinx Corporation and Extended Stay America .
    Brien P. O'MearaVice President and ControllerFebruary 2017Brien P. O'Meara was appointed as Vice President and Controller in February 2017 and was designated as the company's principal accounting officer in February 2020 .
    Bob O'ShaughnessyExecutive Vice President and Chief Financial Officer (until February 2025)May 2011Bob O'Shaughnessy has been serving as the Executive Vice President and CFO since May 2011 .
    Jim OssowskiSenior Vice President, Finance; Executive Vice President and Chief Financial Officer (effective February 2025)February 2025 (expected)Jim Ossowski currently serves as the Senior Vice President of Finance and has been named the next Executive Vice President and CFO, effective February 2025. He has had an outstanding 22-year career at PulteGroup .
    1. Given your goal to increase land optioning to 70% over the next 3 to 3.5 years, what challenges do you anticipate in achieving this target, especially regarding land banking terms and potential interest rate fluctuations?
    2. With recent hurricanes causing operational delays due to power outages and municipal slowdowns, how are you adjusting your investment and operational strategies in Florida and other high-risk regions to mitigate future disruptions?
    3. You mentioned balancing the desire to maximize profitability while efficiently turning land assets without being "margin proud"; how are you navigating this balance in the current competitive market without compromising long-term returns?
    4. As you increase speculative building and expect cycle times to improve, how will this impact your backlog conversion rates, and what risks do you foresee with relying more on spec homes that sell and close within the same quarter?
    5. Considering your net debt-to-capital ratio is at a low 1.4% and you view leverage as an outcome rather than a driver, under what circumstances would you consider increasing leverage to support growth or shareholder returns, especially as land banking frees up more cash?
    Program DetailsProgram 1
    Approval DateJanuary 30, 2024
    End Date/DurationNo expiration date
    Total additional amount$1.5 billion
    Remaining authorization$1.0 billion as of September 30, 2024
    DetailsPart of strategy to return excess funds to shareholders and capitalize on strong cash flows
    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$4.56Fixed-rate debt0.160.2% = (4.56 / 2,204.79) * 100
    2024$524.09Variable-rate debt6.6523.8% = (524.09 / 2,204.79) * 100
    2025$11.38Fixed-rate debt2.760.5% = (11.38 / 2,204.79) * 100
    2026$268.39Fixed-rate unsecured notes5.5012.2% = (268.39 / 2,204.79) * 100
    2027$337.28Fixed-rate unsecured notes5.0015.3% = (337.28 / 2,204.79) * 100
    2028$4.34Fixed-rate debtN/A0.2% = (4.34 / 2,204.79) * 100
    2032$300.00Fixed-rate unsecured notes7.8813.6% = (300.00 / 2,204.79) * 100
    2033$400.00Fixed-rate unsecured notes6.3818.1% = (400.00 / 2,204.79) * 100
    2035$300.00Fixed-rate unsecured notes6.0013.6% = (300.00 / 2,204.79) * 100
    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1973PresentCurrent auditor

    Recent developments and announcements about PHM.

    Financial Reporting

      Earnings Report

      ·
      6 days ago

      PulteGroup (PHM) Reports Fourth Quarter 2024 Earnings Results

      PulteGroup, Inc. (NYSE: PHM) has released its financial results for the fourth quarter of 2024, showcasing strong performance despite challenges in the housing market. Below are the key highlights from the earnings report:

      Financial Performance

      • Earnings Per Share (EPS): $4.43, up from $3.28 in the same quarter last year.
      • Net Income: $913 million, a 28% increase from $711 million in Q4 2023.
      • Home Sale Revenues: Increased by 13% to $4.7 billion, driven by a 6% rise in closings to 8,103 homes.
      • Average Selling Price: $581,000, a 6% increase from $547,000 in the prior year.
      • Home Sale Gross Margin: 27.5%, slightly lower than 28.9% in Q4 2023.

      Operational Highlights

      • Net New Orders: 6,167 homes valued at $3.5 billion, a 4% increase in value compared to the prior year.
      • Unit Backlog: 10,153 homes valued at $6.5 billion, reflecting a decrease from 12,146 units in Q4 2023.
      • Share Repurchases: $320 million worth of shares repurchased in Q4, with a $1.5 billion increase in share repurchase authorization announced, bringing the total authorization to $2.1 billion.

      Trends and Challenges

      • Market Conditions: Elevated mortgage interest rates continue to impact buyer demand, but operational adjustments, including targeted sales incentives and faster construction cycles, have positioned the company well for the spring selling season.
      • Financial Services: Pre-tax income from financial services rose 16% to $51 million, supported by higher mortgage capture rates (86% vs. 85% last year).

      CEO Commentary

      Ryan Marshall, President and CEO, stated, “PulteGroup’s strong fourth quarter financial results completed a record-setting year. Despite affordability challenges, we are well-positioned for the upcoming spring selling season due to operational changes and a robust sales backlog”.

      Outlook

      PulteGroup remains focused on leveraging its operational efficiencies and strong financial position to navigate market challenges and capitalize on opportunities in 2025.

      For more details, visit PulteGroup’s corporate website or access the earnings webcast scheduled for January 30, 2025, at 8:30 a.m. ET.