PulteGroup (PHM) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $523 million ($2.57 per share), down 21% year-over-year, with strong gross margin of 27.5% despite a 2% decrease in home sale revenues and a 7% drop in closings.

• Trailing 12-month return on equity reached 25.4%.

• Results met or exceeded guidance despite a dynamic housing market and macroeconomic headwinds.

• Disciplined capital allocation enabled continued investment and shareholder returns, including $300 million in share repurchases.

• Maintained a balanced, diversified operating model focused on high returns and flexibility.

Financial highlights

• Home sale revenues were $3.7 billion, down 2% year-over-year; closings fell 7% to 6,583 homes; average sales price increased 6% to $570,000.

• Net new orders totaled 7,765 homes, down 7% year-over-year; backlog at quarter-end was 11,335 homes valued at $7.2 billion.

• Gross margin was 27.5%, down 210 bps year-over-year but flat sequentially.

• SG&A expense was $393 million (10.5% of revenue), up from $358 million (9.4%) last year.

• Net income was $523 million ($2.57 per share), down from $663 million ($3.10 per share) in Q1 2024.

Outlook and guidance

• FY 2025 guidance: 29,000–30,000 closings, below prior guidance of 31,000; average sales price $560,000–$570,000.

• Gross margin guidance: 26.5–27.0% in Q2, 26.0–26.5% in Q3/Q4, reflecting higher incentives and tariff impacts.

• Q2 closings expected between 7,400 and 7,800.

• Land investment for 2025 expected to be ~$5 billion, down from $5.5 billion; operating cash flow projected at ~$1.4 billion.

• Management remains constructive on long-term demand but expects continued affordability challenges and volatile sales.