See which workplaces made this year's list.

2026_GPTW_best-places-by-industry-Construction-PulteGroup,_Inc.

Employees say:"We have an amazing culture. Management inspires, leads by example, and leads with humility. Teams support one another, hold each other accountable, and have each other's backs. Individuals are committed to working hard, growing, and doing the right thing. We are recognized for our contributions and successes. My job is absolutely one of the best parts of my life."

Best Large Workplaces in Construction

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100 Best Places to Work 2026_PulteGroup, Inc.

Fortune 100 Best Companies to Work For

The companies on this annual list make a conscious effort to be supportive, inclusive workplaces.

2025 Best Large Workplaces for Women_PulteGroup, Inc._US1__68a71dfc383bc91cadd06a7f_3

Employees say:"Management consistently demonstrates adaptability to departmental needs and communicates company metrics and initiatives with clarity and transparency. Emotional wellbeing is a core part of our culture, and we're provided with ample opportunities to maintain a healthy work-life balance. Our team is incredibly supportive, always striving to do the right thing and ensuring our division's clients are satisfied. The collective effort and dedication truly make this a great place to work."

100 Best Large Workplaces for Women

2025_GPTW_Construction_Large_PulteGroup, Inc._US1__685d50c0023fa8a026342320_1

Employees say:"I believe Pulte has established a culture that recognizes people as its most valuable asset. The company provides excellent wellness coverage and programs, competitive pay, paid holidays, company-wide celebratory events, and various other initiatives that prioritize its employees."

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GPTW_100BestCompaniesToWorkFor_2025-PulteGroup, Inc._US1__20241210214006_4

Employees say: "This company provides opportunities for employees to grow and develop to be the best employee that they can be. PulteGroup has built a great work culture and team that empowers its employees. Some examples are teambuilding events, great communication, and holiday events."

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GPTW_Women_Large_2024-PulteGroup, Inc._US1__20240830224000_3

Employees say:"The work like balance is unlike anything I have experienced before. You have enough PTO to not worry about using it all quickly. You do not feel like you have to miss moments in your kids/family life due to work."

GPTW-Construction-Large-2024-PulteGroup

Employees say:"I have worked in the new home sales business for 17 years and with 4 other home builders. Pulte has been beyond the best company to work for. Management truly wants you to succeed and is supportive. Everyone is welcoming and I feel as though I am really part of a team. They offer a leadership development program that I was invited to participate in. Upper management and the division president are approachable and easy to talk to, they ask for feedback and value my opinions. I genuinely ENJOY spending my free time with my co-workers and have cultivated many friendships."

Fortune partners with global people analytics firm Great Place to Work to analyze survey feedback representing employees from companies across the U.S.

GPTW Millennials 2024-Large-PulteGroup, Inc.

Employees say:"The people at Pulte are genuinely nice and compassionate. I've never felt so supported in my career as much as I do here. I feel at ease because I am not worried how I will be treated. I don't take for granted the excellence in behavior here."

100 Best Large Workplaces for Millennials

Industries included in the sector are construction and engineering services and homebuilders.

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100 Best Companies 2024-PulteGroup, Inc.

After weathering a difficult year in a nearly frozen housing market, PulteGroup fell seven places from its 2023 ranking. Yet it remains the third largest homebuilder in the U.S., with operations in more than 45 U.S. markets. PulteGroup aims to create affordable housing opportunities; provides mortgage-free homes to wounded veterans through its Built to Honor program; organizes food drives with local pantries; and launches fundraising initiatives for organizations employees care about.&nbsp; &nbsp;The PulteGroup Foundation launched Dollars for Doers in 2022: For every hour an employee volunteers, the foundation contributes the equivalent of up to $25 per hour, for up to 40 hours annually per employee.&nbsp; &nbsp;To bolster the success of its homebuilding operations team, which constitutes 75% of its workforce, PulteGroup offers mentorship and formal training programs, such as its Certified Field Trainer initiative to support trainees for up to six months.

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100 BEST COMPANIES 2023-PulteGroup

One of the largest homebuilders in the U.S. aims to continually improve the employee experience. As a result, nine out of 10 employees want to work at PulteGroup for “a long time.” 
<ul> 
 	<li>The diversity board’s outreach committee has enhanced PulteGroup’s recruitment, hiring, and onboarding efforts with a focus on identifying a large pool of diverse job candidates and building recruitment relationships with HBCUs.</li> 
 	<li>New hires are assigned an onboarding experience partner, responsible for ensuring new team members feel connected to the company.</li> 
 	<li>PulteGroup’s affordable housing committee is piloting a new program, Hope to Home, that will subsidize a percentage of the homes the company builds, offering them to first-time buyers in underserved groups.</li> 
 	<li>The company has a one-stop learning management system that provides employees with training, workshops, and developmental tools.</li> 
 	<li>PulteGroup’s new health and wellness program goes beyond physical and emotional health coverage to include financial and social wellness.</li> 
</ul>

GPTW Women 2023-PulteGroup, Inc.

Employees say: 
 
"Everyone on the team cares about doing a great job, taking care of each other, and doing what is right for our customers. There’s a high level of work ethic and pride from everyone."

Fortune partnered with Great Place to Work to analyze survey feedback representing nearly half a million U.S. employees.

GPTW Millennial Large 2023-PulteGroup

Employees say: 
 
"Every single employee seems genuinely happy to work at PulteGroup, Inc. I think I can speak for most, if not all, of us when I say we feel like this company and our superiors care about our happiness. I feel seen as something more than just an employee. My managers are happy in their roles and are great leaders. The opportunity to volunteer and have a day off to do so is so special. This company cares for our community, and I feel a massive sense of pride over it."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

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When it comes to supporting employees, flexibility, diversity, and a few extra paid days off go a long way.

100 Best 2022 PulteGroup,-Inc._1274415-5

America’s third-largest homebuilder has a laser focus on diversity, equity, and inclusion. PulteGroup created internal committees to work on recruiting and training a diverse talent pool of employees and to sponsor cultural awareness programming with live, interactive webinars that spotlight the achievements of a diverse range of individuals. Externally, in keeping with the company’s values, PulteGroup is working to create homeowning opportunities for lower-income families and minorities through affordable housing and down payment assistance initiatives. Part of the company’s emphasis on inclusion includes a flexible workweek. Once fully implemented, employees will work in the office two days per week and remotely for the other three.

Great Places to Work in Construction Large-2022-PulteGroup, Inc._1274415-5

Employees say: 
 
“This team is like a big family, and it is a lot of fun to be able to work with all of them. We have a strong bond and its great to feel like my work makes a difference. This is the only place I have worked that truly shows how much they appreciate our hard work and what we do.”

GPTW Women 2022-PulteGroup, Inc

Employees say: 
 
“Pulte offers a lot of development and growth opportunities that help you grow and advance in your career. There is a large focus on recognition and connection, even in a hybrid environment. I have been impressed with our increased efforts on diversity and inclusion the past couple of years and the launch of our BRGs and women in leadership series.”

To determine millennials' workplace preferences, Fortune's research partner Great Place to Work analyzed feedback representing more than 6.1 million U.S. employees.

GPTW 2022 Millennials List Large-Pulte Group

Employees say: 
 
“I have said this before and I’ll say it again, I feel blessed to be with a company who is not always thinking of the bottom line. Keeping people safe when weather is bad, during a pandemic making sure we had the essentials, and listening to its employees when they chime in with ideas. I have several close friends working for other builders and they cannot say the same. I’m a proud Pulte employee!”

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100 Best Companies 2021-76-PulteGroup,-Inc.

The homebuilder was hit hard by the pandemic, which forced it to make painful staff reductions in the form of furloughs and layoffs. In response, PulteGroup CEO Ryan Marshall, his direct reports, and the entire board of directors took pay cuts, raising $400,000 for a relief fund aiding those who lost their jobs. In the end, the company was able to bring back 100% of furloughed employees within 60 days, and actively set about rehiring those who were laid off. Marshall has also made a commitment to improving PulteGroup’s diversity practices, forming an internal diversity and inclusion board meant to hold the organization accountable to its goals.

The companies on this year's list make a conscious effort to be supportive, inclusive workplaces.

Best-Workplaces-Women-2021-Large-PulteGroup,-Inc

Employees say: 
 
“The company is always making an effort to recognize its employees and show their appreciation. The CEO knows front-line employees by name and makes an effort to build relationships with employees at all levels of the organization.”

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-284-PulteGroup

Started by 18-year-old homebuilder Bill Pulte in 1950, PulteGroup is now the third-largest home construction company in the U.S. based on number of homes closed. Its brands include Del Webb and Centex.

We surveyed tens of thousands of employees to create this list of millennials’ favorite workplaces.

Best Large Workplaces Millennials 2021-PulteGroup,-Inc

Employees say: 
 
“My managers trust me to get the job done well, and as result, I have incredible opportunity and flexibility. I trust my team, and they too enjoy complete flexibility and opportunity. Together - we always WIN! This is truly a Great Place to Work!”

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

Best Workplaces Women 2020-PulteGroup

Employees say: 
 
“People are genuinely interested in my career advancement. I've been mentored and challenged, which directly resulted in several promotions. This is truly a team where people care for each other and look for ways to build them up to promote.”

This year's Fortune 500 marks the 66th running of the list.

F500-2020_309_PulteGroup

The Atlanta-based homebuilder, whose brands include Del Webb and Centex, is considered the third-largest home construction company in the U.S. based on the number of homes closed. It operates in more than 40 markets.

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Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fortune Global 500

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Compressed work weeks

Option to work remotely

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PulteGroup is one of the largest homebuilders in the U.S., having constructed over 800,000 homes since 1950. The company operates in more than 45 markets across 24 states through its portfolio of brands, including Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods.

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PulteGroup (PHM): Company Profile, Stock Price, News, Rankings

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PulteGroup

pultegroup

Good morning, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the PulteGroup, Inc. Q1 twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Jim Zummer. Please go ahead.

Great, Calvin. Thank you. Good morning, and welcome to today's call. We look forward to discussing our first quarter operating and financial results. With me today are Ryan Marshall, President and CEO and Jim Ossowski, Executive Vice President and CFO.

As always, a copy of our earnings release and this morning's presentation have been posted to our corporate website at poltigroup.com. We'll also post an audio replay of this call later today. I would highlight that today's presentation includes forward looking statements about the company's expected future performance. Actual results could differ materially from those suggested by our comments today. The most significant risk factors that could affect future results are summarized as part of today's earnings release and within the accompanying presentation.

These risk factors and other key information are detailed in our SEC filings, including our annual and quarterly reports. Now let me turn the call over to Ryan Marshall. Ryan?

Thanks, Jim, and good morning. I appreciate the opportunity to speak with everyone today. In addition to discussing PulteGroup's Q1 results this morning, I will also share our views on the current macro environment and how our business model and execution against our strategic initiatives are helping us navigate today's evolving market conditions. Let me start by recognizing the incredible work our teams did in delivering PulteGroup's strong first quarter results. Given the cross currents the housing industry has encountered in 2025, we believe our results show the value of PulteGroup's proven operating model, balanced portfolio and the expertise of our local operating teams.

In what proved to be a dynamic operating environment, we met or exceeded our guidance in delivering over 6,500 homes, gross margins of 27.5%, net income of $523,000,000 and most importantly, a trailing twelve month return on equity of 25.4%. As the country moves through economic cycles, the housing industry will inevitably encounter periods when we are experiencing changes in the operating environment. I truly believe that the balanced and highly diversified operating model that we have built over the past decade, in combination with our strategic focus on generating high returns over the housing cycle, offer important competitive advantages. Our national footprint and strategy of serving all buyer groups with a targeted offering of spec and built to order homes, along with our broader capacity to use both price and or pace to drive returns, give our operators more flexibility when navigating periods of economic transition. In the back half of 2024, many of our meetings with analysts and investors included questions about housing demand and the state of the housing cycle.

In response to these questions, we indicated that the spring selling season of 2025 would provide the best opportunity to assess the condition of today's home buying consumer. Having reached the midway point of the spring selling season, I wanted to provide a few thoughts on what we've experienced and how we are responding. First and foremost, I strongly believe people still aspire to homeownership. And if you can provide the right value equation, they are excited to get into a new home. We saw this as the first quarter progressed and demonstrated a typical seasonal pattern with traffic, gross orders and net new orders trending higher as we move through the quarter.

Within the quarter, we also saw the level of home buying activity respond positively to the thirty year mortgage rate dropping below 7%, which allowed roughly 20% of our divisions to increase prices within many of our communities. Consistent with the relative strength we've seen among move up and active adult buyers over the past few quarters, we saw the average spend on options and lot premiums per home climb to $110,000 in Q1. This is up from the $102,000 and $107,000 in the first and fourth quarters, respectively, of last year. The financial strength of move up and active adult homebuyers is why we have purposely aligned 60% of our portfolio to serve these key buyer groups. However, the quarter also saw consumers continuing to face affordability challenges that exist for would be homebuyers in metro regions across the country.

From the high absolute selling prices of today's homes to the resulting high monthly mortgage payments, consumers are struggling with the affordability challenges when it comes to purchasing a home. These headwinds have only been exacerbated recently by growing concerns about the potential for a slowing economy. As one of the nation's largest homebuilders, we have developed and deployed a variety of tools to help consumers overcome their personal homeownership hurdles. This includes offering new product designs and more efficient floor plans, as well as offering meaningful incentives, including programs that can offer consumers a below market rate on a full thirty year fixed rate mortgage. We leaned into incentives a little more heavily in the first quarter as we executed on our plan to reduce excess spec inventory by actively selling our in process and finished spec inventory while also adjusting our start pace to better match current demand.

As a result, our incentive rate increased 8% for the period, but we lowered specs to 47% of production, down from 53% in the fourth quarter, while still reporting strong gross margins of 27.5%. In sum, buyer interest and activity in the first quarter were directionally in line with our planning expectations heading into the period. As we've moved from March to April, however, we have seen consumers at all price points impacted by changing macro conditions and any resulting decline in overall consumer confidence. Whether it's the volatility in the stock market, concerns about tariff induced inflation, the fluctuation in interest rates or the growing talk of recession, demand in April has been more volatile and less predictable day to day. We can certainly empathize with our customers' concerns as our business is happy to adapt and manage through constantly changing and shifting tariff landscape, the potential cost of which could be significant.

While our Q1 build costs were effectively flat on a year over year basis, proposed tariffs had the potential to add thousands of dollars to the cost of construction. We are a builder with seventy five years of experience and a resilient operating model. And as tariffs have been imposed or proposed, our cycle tested procurement teams have developed and begin implementing response strategies. Let me now turn the tallow call over to Jim Wissowski. You will recall that in February, Jim officially assumed his responsibilities as PulteGroup's chief financial officer.

I'm excited to have him in his new role, and I know that our organization will benefit greatly from Jim's leadership and experience. After his remarks, I will offer some additional thoughts on how we plan to manage our business given the current operating environment. Jim?

Thank you, Ryan, and good morning. I appreciate the opportunity to review PulteGroup's quarterly results. In the first quarter, our net new orders totaled 7,765 homes, which is a decrease of 7% from the first quarter of twenty twenty four. Lower orders in the period were driven primarily by a 10% decrease in net new orders per store, which is partially offset by the 3% increase in our average community count to nine sixty one for the quarter. Notably, the cancellation rate as a percentage of starting backlog increased only slightly to 11% compared to 10% in the prior year.

Specific to the quarter, we would say that demand conditions followed a pretty typical seasonal pattern, with net new orders increasing as the quarter progressed. On a sequential basis, net new orders increased 26% from the fourth quarter of twenty twenty four. This increase is, however, below historic averages, reflects a consumer that is carefully assessing the high cost of homeownership and, more recently, concerns about the economy and overall employment conditions. On a year over year basis, net new orders by first time buyers were down 11%, move up buyers were down 4%, and active adult buyers declined 5%. We continue to realize meaningful relative outperformance among our move up and active adult consumers as they have greater financial flexibility and can more easily adjust to market changes.

That being said, the extreme volatility in the financial markets can cause even these consumers to pause when making a large purchase. Moving from orders to closings, home sale revenues in the first quarter totaled $3,700,000,000 down 2% from the $3,800,000,000 of revenues generated last year. Lower home sale revenues for the period were the result of a 7% decrease in closings to 6,583 homes, largely offset by a 6% increase in average sales price of $570,000 By buyer group, the breakdown in closings in the first quarter was thirty nine percent first time, 40% move up, and 21% active adult. In the first quarter of last year, our closings were comprised of forty two percent first time, 35% move up, and 23% active adult. As we have discussed on prior calls, we have experienced a modest decline in the percentage of closings from active adult buyers driven by the closeout of several Del Webb communities for the past twelve months twelve plus months.

I'm happy to report that we are extremely pleased with buyer response to recent Del Webb openings in Cleveland, Indianapolis and Southern California. We are equally excited about the additional Webb community openings coming later this year. Closings from these new web communities will be more heavily weighted towards 2026 and beyond. Getting these communities open for sales is a critical first step. Based on sales and closings activities in the period, we ended the quarter with a backlog of 11,335 homes, which is down 16% from last year.

On a dollar basis, our backlog was $7,200,000,000 which is down 12% compared with last year's first quarter. As Ryan mentioned earlier, we adjusted our starts pace as part of a process to lower spec inventory in alignment with our target range. In the first quarter, we started approximately 6,700 homes, which is down from the approximately 7,500 homes we started in both Q1 and Q4 of last year. Reflective of this action, we ended the first quarter with 16,548 homes in production, of which 7,840 were spec units. In just one quarter, we reduced our spec count by over 900 homes while lowering our spec percentage from 53% to 47% of inventory.

This moves us closer to our target range of 40% to 45% of overall units in production. Of our spec units, 1,800 were completed at quarter end, and we expect finished spec to continue trending lower in the slowdown in our start space. The goal in aggressively managing our production pipeline is to more effectively balance the need to have units available to meet immediate buyer demand while still selling from a position of strength within our communities. In the current environment, we believe prioritizing price and margin over volume makes the most strategic sense. Based on recent sales paces and the mix of units under construction, we expect to deliver between 414,800 closings in the second quarter.

While buyer demand over the next few months will be a key determinant, given the more than 16,000 units we have under production and cycle times of approximately one hundred and ten days, we currently expect to deliver between 59,000 homes for the full year, slightly below our prior guidance of 31,000. Embedded within our updated delivery guide is our expectation that quarterly community count will be 3% to 5% higher in 2025 than in the comparable prior year period. Consistent with our first quarter results and our previous guidance, we currently expect the average sales price to closings to be in the range of 560,000 to $570,000 in each of the remaining three quarters. Continuing down the income statement. Our gross margin in the first quarter was 27.5%, which is flat on a sequential basis from the fourth quarter, but down from a very strong Q1 of twenty twenty four.

While sales incentives increased to 8% in the quarter, gross margins in the period benefited from a favorable mix of homes closed both in terms of geography and buyer group. As it relates to gross margins going forward, we continue to expect gross margins in the second quarter to be in the range of 26.5% to 27%, and we now expect gross margins in the third and fourth quarters to be in the range of 26% to 26.5%, down slightly from our prior range of 26.5% to 27%. Our guide on gross margin assumes incentives remain elevated at the elevated levels experienced in the first quarter. Further, gross margins in the back half of the year reflect the estimated impact of tariffs that have been imposed, which are expected to increase our house costs by an estimated 1% of average selling price. In the first quarter, we reported SG and A expense of $393,000,000 or 10.5% of home sale revenues, which compares with prior year reported SG and A expense of $358,000,000 or 9.4 percent of home sale revenues.

Reported prior year SG and A expense includes a pretax insurance benefit of $27,000,000 Based on anticipated closing volumes, we now expect SG and A expense for the full year 2025 to be in the range of 9.5 to 9.7% of home sale revenue. Given the uncertainties of the current operating environment, we continue to carefully assess SG and A expenditures as we seek to maintain an appropriate overhead structure. Our financial services operations reported first quarter pretax income of $36,000,000 compared with $41,000,000 in the prior year. The lower pretax income primarily reflects the impact of lower closing volumes within the company's homebuilding operations. Capture rate in the quarter increased to 86%, up from 84% last year.

For the first quarter, our reported pretax income was $681,000,000 and we recorded a tax expense of $158,000,000 or an effective tax rate of 23.2%. Our first quarter effective tax rate was benefited by renewable energy tax credits and stock compensation deductions reported in the period. At this time, we continue to expect our tax rate to be approximately 24.5%, excluding the impact of any discrete period specific tax events. For our first quarter, we reported net income of $523,000,000 or $2.57 per share. In the first quarter of twenty twenty four, reported net income of $663,000,000 or $3.1 per share.

Prior year results are inclusive of $65,000,000 or $0.23 per share in pretax benefits related to the sale of a joint venture and the aforementioned insurance benefit. Earnings per share for the quarter was calculated based on $2.00 4,000,000 diluted shares, which is down 5% from the prior year as we continue to systematically repurchase our shares. In the first quarter of twenty twenty five, we repurchased 2,800,000.0 shares for $300,000,000 or an average price of $108.3 per share. As noted in this morning's release, we ended the first quarter with $1,900,000,000 remaining under our existing share repurchase authorization. In addition to repurchasing our shares, in the first quarter, we allocated $1,200,000,000 to land acquisition and development.

In Q1, '50 '2 percent of our spend was associated with the development of our existing land assets. As Ryan noted, given today's macro uncertainties, we are asking our land teams to review project returns and confirm they still meet our hurdle rates given changing market conditions. We are confident that in this type of operating environment, our disciplined underwriting process will serve us well as it is done during prior periods of uncertainty. Given our current pace of sales and starts, we now expect our land investment in 2025 to be approximately $5,000,000,000 We remain positive on the long term outlook for housing, but we are prepared to adjust our near term land spend in response to changes up or down in buyer demand. While we are slowing projected land spend, we are still prepared to use our financial strength to capitalize on land opportunities that could develop during these choppier market conditions.

Based on the updated expectations for our homebuilding operations, we continue to expect operating cash flow generation for the full year to be approximately $1,400,000,000 We have such flexibility because we already control a strong land pipeline that can support the future growth of our business platform. At the end of the first quarter, PulteGroup had 244,000 lots under control, of which 59% were controlled via option. In just the past year, we have increased our option lot count by almost 30% while reducing our owned lot count at the same time. I want to underscore that whether these land options are with the underlying land seller or one off transactions with a land banker, our ability to mitigate market risk is as important as the rate of return when assessing each transaction. On a deal by deal basis, we continue to strike balance in evaluating the profitability and risk management opportunities that might result from optioning the underlying land parcel.

And finally, I am pleased to say that PulteGroup remains in an exceptionally strong financial position as it ended the quarter with a debt to capital ratio of 11.7% with $1,300,000,000 of cash, Further validating the strength of our operating and financial positions, Moody's recently upgraded our senior unsecured notes to DAA1. Now let me turn the call back to Ryan for some final comments.

Thanks, Jim. Given our backlog, units under production and current build cycle, we now expect to deliver between 59,000 homes in 2025, assuming home buying demand is sufficient and in alliance with our prioritizing price over pace to drive near term returns. As Jim detailed, we lowered our starts pace in the first quarter by approximately 10%. Our strategy has always been about balancing price and pace to drive higher returns. Rather than try to chase a volume number, we will continue with our efforts to reduce any excess spec inventory and move closer to our target of 40% to 45%.

We will remain agile and are prepared to make further adjustments up or down to our starts pace in response to changes in buyer demand. For PulteGroup, balancing price and pace with a bias towards price has resulted in gross margin being an important driver of our returns. Our Q1 gross margin of 27.5% is reflective of our approach. In addition to driving top tier returns, our industry leading gross margin gives our divisions more room to maneuver in managing their communities on a day to day basis. In 2024, we invested $5,300,000,000 in land acquisition and development and entered 2025 with plans to increase our land spend to $5,500,000,000 Given greater macroeconomic uncertainty, we are recalibrating our land spend and expect it will be closer to $5,000,000,000 Given the strength of our existing land pipeline, deferring a small percentage of our land acquisition spend will not impact our ability to grow our operating platform in the future.

For any changes we will implement over the near term in response to evolving demand conditions, what won't change is our focus on delivering high returns over the housing cycle. As we have demonstrated working through the myriad of macro challenges of the past five years, generating high returns requires decision making that is consistently in alignment with long term goals and objectives. We have remained disciplined in our business practices while making prudent adjustments such as moderating our starts pace in response to changing market conditions as we work to successfully navigate the current environment. We continue to believe in the long term demand dynamics within the housing industry. In a country that has a growing population and has already short several million housing units, it is reasonable to expect that demand will be there in the future.

As Jim suggested earlier, disruptions in the marketplace can create exciting opportunities that have the potential to accelerate future performance. We certainly have the balance sheet strength to take advantage of any such opportunities should they emerge. In closing, I want to highlight that we've worked hard over the past decade to build a business platform that is arguably unmatched in terms of its presence across major markets and buyer groups. Our performance over time has demonstrated the competitive advantages of such a portfolio in driving high returns and navigating through market changes. Further, we've shown our commitment to intelligently allocate capital to support the growth of PulteGroup, while consistently returning funds to shareholders through dividends and share repurchases.

And finally, I want to again thank our entire organization for their efforts in delivering an unmatched home buying experience to our customers. We don't talk about it enough, but I want to recognize our divisions for reaching record build quality and record net promoter scores, all while all while creating a culture that once again put PulteGroup on Fortune's top 100 best companies to work for list for the fifth year in a row. You are truly the best in the business. Now let me turn the call over to Jim Zummer. Thanks, Ryan.

We're now prepared to open the call to questions so we can get to as many questions as possible during the remaining time of this call. We ask that you limit yourself to one question and one follow-up. Thank you. And I'll now ask the operator to open up Q and A.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Your first question comes from the line of John Lovallo of UBS. Please go ahead.

Good morning, guys. Thanks for taking my questions. The first one I just wanted to kind of zone in on the second half margin expectations and maybe a two parter here. I I guess, the incentives on orders in the first quarter consistent with the 8% that were on deliveries? And then can you also provide any color on the two half or the second half tariff impact that you're expecting, the total dollars for home, which products and sort of the ability to push back on suppliers?

Yes, John. So the incentive load that we've assumed is consistent with the 8% that we realized in Q1. So that's embedded in the margin guide, and that's throughout all four quarters of this year. Relating to the tariff question, I mentioned it's 1% of average sales price. So we're

the range of $5,000 on average. And it'll impact every single price point and consumer group that we serve. There might be a few minor nuances, but it's pretty broad across the spectrum. Look, our procurement teams are cycle tested. They're the best in the business.

They do a really nice job. Jim highlighted that we've kept our build costs flat on a year over year basis. And so I think that's a tremendous accomplishment. You know, we've got good relationships with our suppliers. We want it to be a win win, but, you know, we think we offer value in the volume and predictability.

And so we do look for, you know, better pricing than I think what you'd find in kind of the broader homebuilding universe. Every I think every business is dealing with added costs, and we're going to work to minimize it. I think keeping it to the 1% that we've talked about is significantly less than what you're hearing from the broader home building universe. So, you know, I think you're seeing pretty good execution from us in the guide that we've given about 1% of ASP.

Yes. We would agree 100% with that. And then maybe the second question, just on the share repurchases, 300,000,000 in the quarter, which is a really good level. Just I guess the question would be that that's consistent with what you guys have done over the past couple of quarters. Why not lean in a little bit more as the stock pulled back?

Yes, John. Look, it's a great question. Dollars 300,000,000 is significantly more than pocket change. So we feel pretty good about what we did. Our Board authorized an incremental $1,500,000,000 in share authorization in January.

PulteGroup (PHM) Q1 2025 Earnings Call Transcript

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