PulteGroup (PHM) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $608M ($3.03/share), down from $809M ($3.83/share) last year, which included $0.25/share in one-time benefits; home closings totaled 7,639 units with gross margin at 27.0%.

• Home sale revenues declined 4% year-over-year to $4.3B, with average sales price up 2% to $559,000.

• Return on equity for the trailing twelve months was 23%.

• 3.0M shares repurchased in Q2 for $300M; $600M in share repurchases year-to-date.

• S&P upgraded credit rating to BBB+ in Q2.

Financial highlights

• Q2 net new orders: 7,083 homes (down 7% year-over-year), valued at $3.9B; backlog at quarter-end: 10,779 homes valued at $6.8B, down 17% in units and 16% in value.

• Home sale revenues: $4.3B, down 4% year-over-year; closings down 6% to 7,639 homes; average sales price up 2% to $559,000.

• Gross margin: 27.0%, down 290 bps year-over-year, mainly due to higher incentives (8.7% vs. 6.3%).

• SG&A expense: $390M (9.1% of home sale revenues), up from 8.1% prior year, which included a $52M insurance benefit.

• Financial services pre-tax income declined 32% to $43M.

Outlook and guidance

• Q3 closings expected between 7,200 and 7,600 homes; full-year 2025 closings projected at 29,000.

• Average sales price for remaining quarters and full year expected at $560,000–$570,000.

• Gross margin guidance for Q3 and Q4 affirmed at 26.0%–26.5%.

• SG&A expense for full year expected at 9.5%–9.7% of home sale revenues; tax rate at 24.5%.

• Land spend for 2025 projected at $5.0B.