PulteGroup Tops Q1 Estimates Despite Drop In Closings As Housing Slowdown

PulteGroup, Inc.PHM shares are trading higher after the company reported first-quarter 2025 results.

Total revenues of $3.89 billion topped the consensus of $3.82 billion.

Adjusted earnings per share of $2.57 beat the consensus estimate of $2.45.

Home sale revenues fell 2% year over year (Y/Y) to $3.7 billion. This reflects a 7% decline in closings to 6,583 homes and an average sales price of $570,000 (+6% Y/Y).

Also Read: Analyst Predicts Moderate Decline In Housing Starts For 2025, Upgrades PulteGroup

The gross margin contracted 210 basis points Y/Y. Home sales gross margin stood at 27.5% in the quarter.

Net new orders fell to 7,765 from 8,379 homes last year, and the dollar value of net new orders dipped to $4.5 billion from $4.7 billion in the quarter.

At the end of the first quarter, the company's backlog was 11,335 homes, valued at $7.2 billion.

The company ended the quarter with $1.3 billion of cash and a debt-to-capital ratio of 11.7%.

During the quarter, the company repurchased 2.8 million of its common shares for $300 million, or an average price of $108.03 per share.

At the quarter-end, the company had $1.9 billion remaining under its existing share repurchase authorization.

PulteGroup CEO Ryan Marshall credited the company’s “broadly diversified operating platform and strategic approach” for delivering “high returns.”

“Given the structural shortage of housing, we remain constructive on long-term housing demand, and are adapting to the short-term impacts on consumer demand resulting from greater economic and financial uncertainty,” he added.

Investors can gain exposure to the stock via IShares U.S. Home Construction ETF ITB and Pacer US Cash Cows Growth ETF BUL.

Price Action: PHM shares are trading higher by 2.57% at $95.50 in premarket at the last check Thursday.

Read Next:

• Homebuilders in Freefall: Bargain Opportunity or Falling Knife?