PulteGroup, Inc. reported a strong financial performance for the fiscal year ended December 31, 2024, with total revenues reaching $17.9 billion, an increase of 5.5% from $16.1 billion in 2023. The company's net income also rose significantly to $3.1 billion, up from $2.6 billion in the previous year, resulting in diluted earnings per share of $14.69 compared to $11.72 in 2023. The homebuilding segment was a key driver of this growth, with home sale revenues increasing by 11% to $17.3 billion, supported by a 9% rise in closings and a 2% increase in average selling price.
In terms of operational metrics, PulteGroup reported 31,219 home closings in 2024, a 9% increase from 28,603 in 2023. The company also saw a 2% growth in net new orders, totaling 29,226 units, with a cancellation rate of 15%, slightly down from 16% in the previous year. However, the backlog of homes decreased by 16% to 10,153 units, reflecting a decline in demand in the latter half of 2024 due to rising mortgage interest rates. The average active communities increased by 4% to 945, indicating a strategic focus on expanding market presence.
PulteGroup's strategic initiatives included a significant share repurchase program, with the company repurchasing 10.1 million shares for $1.2 billion during 2024. The Board of Directors approved an increase in the share repurchase authorization by $1.5 billion, with $682.9 million remaining available as of December 31, 2024. Additionally, the company declared cash dividends totaling $171.4 million, reflecting a commitment to returning value to shareholders.
The company faced challenges related to affordability in the housing market, driven by increased mortgage rates and construction costs. Despite these pressures, PulteGroup maintained a focus on adjusting sales prices and offering sales incentives to enhance buyer affordability. The company expects continued volatility in sales paces and elevated sales incentives in the near term, as the market adjusts to the higher interest rate environment.
Looking ahead, PulteGroup remains optimistic about its ability to navigate the evolving market conditions. The company anticipates that the limited supply of existing homes, low unemployment levels, and favorable demographics will support housing demand. However, it acknowledges that gross margins may face downward pressure due to ongoing cost increases in land acquisition and construction labor. The company plans to continue its disciplined capital allocation strategy, focusing on liquidity and shareholder returns while adapting to market dynamics.
About PULTEGROUP INC/MI/
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