PulteGroup Reports 4% Revenue Decline and Decreased Net Income in Q2 2025

PulteGroup, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $4.4 billion, a decrease of 4% compared to $4.6 billion in the same period last year. The company's net income also fell to $608.5 million, down from $809.1 million in the prior year, resulting in diluted earnings per share of $3.03, compared to $3.83 in the second quarter of 2024. The decrease in revenue and profitability was attributed to a 6% decline in home closings, which totaled 7,639 units, and a 7% decrease in net new orders, reflecting ongoing affordability challenges in the housing market.

In terms of operational metrics, PulteGroup's gross margin from home sales decreased to 27.0% from 29.9% in the prior year, primarily due to increased land acquisition costs and elevated sales incentives. The company reported a backlog of 10,779 units valued at $6.8 billion, a 17% decrease from the previous year. The average selling price of homes increased slightly to $559,000, up 2% from $549,000 in the same quarter last year. The company also noted a cancellation rate of 15% for the quarter, compared to 14% in the previous year.

Strategically, PulteGroup has focused on adjusting sales prices and enhancing sales incentives to address the current market conditions. The company has increased its share repurchase authorization by $1.5 billion, bringing the total remaining authorization to $1.6 billion as of June 30, 2025. Additionally, PulteGroup declared cash dividends totaling $88.7 million in the first half of 2025, compared to $84.7 million in the same period last year. The company continues to maintain a strong liquidity position, with $1.2 billion in unrestricted cash and equivalents and $908.8 million available under its revolving credit facility.

Looking ahead, PulteGroup anticipates that the housing market will remain challenging due to high mortgage interest rates and economic volatility. However, the company believes that favorable demographics will support long-term housing demand. PulteGroup plans to continue managing its inventory levels and production cadence to align with market conditions, while also focusing on shareholder returns through dividends and share repurchases. The company remains committed to navigating the current environment and positioning itself for future growth and profitability.