PulteGroup Reports Second Quarter 2023 Financial Results

  • Net Income of $3.21 Per Share
  • Home Sale Revenues Increased 8% to $4.1 Billion
  • Closings Increased 5% to 7,518 Homes; Average Sales Price Up 3% to $540,000
  • Home Sale Gross Margin of 29.6%
  • Net New Orders Increased 24% to 7,947 Homes with a Value of $4.3 Billion
  • Unit Backlog of 13,558 Homes with a Value of $8.2 Billion
  • Company Repurchased $250 Million of Shares in the Quarter
ATLANTA - July 25, 2023 – PulteGroup, Inc. (NYSE: PHM) announced today financial results for its second quarter ended June 30, 2023.  For the quarter, the Company reported net income of $720 million, or $3.21 per share.  Reported net income for the quarter includes a $65 million pre-tax, or $0.21 per share, insurance benefit recorded in the period.  In the prior year, the Company reported net income for the second quarter of $652 million, or $2.73 per share. 

“Our outstanding financial results reflect the benefits of our operating model as we strategically align production of build-to-order and quick-move-in homes with applicable demand across our consumer groups,” said Ryan Marshall, President and Chief Executive Officer of PulteGroup.  “By remaining disciplined and balanced in executing our business plan, we were able to realize higher closings and prices in the period, along with driving exceptional margins of 29.6% and a return on equity* of 32%.”

“Our net new orders increased 24% over last year, which reflects our ability to help solve affordability challenges caused by today’s higher mortgage rates and capitalize on the ongoing strength in demand for new homes,” added Mr. Marshall.  “While there remains an extremely limited supply of existing homes, we have an expanded community count and a much improved supply chain that has PulteGroup well positioned to meet buyer demand going forward.”

Home sale revenues for the second quarter increased 8% over the prior year to $4.1 billion.  Higher revenues in the quarter were driven by a 5% increase in closings to 7,518 homes, in combination with a 3% increase in average sales price to $540,000. 

The Company’s second quarter homebuilding gross margin of 29.6% was down 170 basis points from the prior year, but represents a sequential increase of 50 basis points from the first quarter of 2023.  Reported second quarter SG&A expense of $315 million, or 7.8% of home sale revenues, includes the $65 million pre-tax insurance benefit recorded in the period.  Prior year SG&A expense was $351 million, or 9.3% of home sale revenues.    
Net new orders for the second quarter increased 24% over last year to 7,947 homes.  The dollar value of net new orders in the second quarter was $4.3 billion, which is an increase of 9% over the prior year period.  For the second quarter, the Company operated out of an average of 903 communities, which is an increase of 14% over the second quarter of 2022.

At the end of the second quarter, the Company’s backlog totaled 13,558 homes with a value of $8.2 billion.     
Second quarter pre-tax income for the Company's financial services operations increased 16% over last year to $46 million.  Mortgage capture rate for the second quarter was 80%, up from 78% last year.

The Company’s reported income tax expense for the second quarter was $233 million, representing an effective tax rate of 24.4%.  

The Company ended the second quarter with $1.8 billion of cash and a debt-to-capital ratio of 17.3%.  In the second quarter, the Company repurchased 3.7 million of its shares for $250 million, or an average price of $68.31 per share.  In the first six months of 2023, the Company repurchased a total 6.4 million shares, or approximately 3% of its outstanding shares, for $400 million, or $62.28 per share.
A conference call discussing PulteGroup's second quarter 2023 results is scheduled for Tuesday, July 25, 2023, at 8:30 a.m. Eastern Time.  Interested investors can access the live webcast via PulteGroup's corporate website at

* The Company's return on equity is calculated as net income for the trailing twelve months divided by average shareholders' equity, where average shareholders' equity is the sum of ending shareholders' equity balances of the trailing five quarters divided by five.
Forward-Looking Statements
This release includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “project,” “may,” “can,” “could,” “might,” “should,” “will” and similar expressions identify forward-looking statements, including statements related to any potential impairment charges and the impacts or effects thereof, expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; labor supply shortages and the cost of labor; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks related to information technology failures or data security issues; failure to retain key personnel; the disruptions associated with the COVID-19 pandemic (or another epidemic or pandemic or similar public threat or fear of such an event), and the measures taken to address it; the effect of cybersecurity incidents and threats; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Item 1A – Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for a further discussion of these and other risks and uncertainties applicable to our businesses. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 40 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup brands, go to;;;;;; and  Follow PulteGroup, Inc. on Twitter: @PulteGroupNews.
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