PulteGroup Announces Q2 2025 Financial Results
PulteGroup, Inc. one of the largest homebuilding companies in the United States, has released its financial results for the second quarter ended June 30, 2025, showcasing continued operational strength despite industry-wide challenges such as affordability constraints and elevated mortgage rates. The company delivered $608 million in net income, or $3.03 per share, during the quarter — a decrease from $809 million, or $3.83 per share, in the same period last year.
The prior year’s second-quarter performance was enhanced by a $52 million pre-tax insurance gain and a $13 million tax benefit, amounting to a combined earnings per share boost of $0.25. Despite the absence of such benefits this year, PulteGroup’s disciplined financial management and consistent execution helped maintain robust profitability and strong shareholder returns.
Resilience in a Volatile Market
“PulteGroup continues to deliver strong financial results, as our disciplined business practices allow us to navigate today’s highly competitive homebuilding environment,” said Ryan Marshall, President and Chief Executive Officer. “We achieved second quarter earnings of $3.03 per share, as we closed 7,639 homes while driving exceptional gross and operating margins of 27.0% and 17.9%, respectively.”
Marshall emphasized the company’s focus on profitability and long-term value creation, highlighting its ability to generate a 23% return on equity in the quarter. The company also returned significant capital to shareholders by repurchasing $300 million of stock during the period.
The CEO acknowledged that the 2025 spring selling season was shaped by persistent headwinds including elevated interest rates, reduced affordability, and broader macroeconomic uncertainty. Nonetheless, PulteGroup remained encouraged by improved buyer sentiment in response to temporary interest rate declines, particularly in late June.
“Given the market dynamics we experienced in the first half of the year, we have aligned our home production and land investment to effectively serve today’s core demand, while positioning us to retain and grow our market share as demand strengthens in the future,” Marshall added.
Revenue and Sales Volume
Total home sales revenue for the second quarter stood at $4.3 billion, representing a 4% decline compared to the same period in 2024. This drop was largely attributable to a 6% decrease in closings, which totaled 7,639 homes, partially offset by a modest 2% increase in average selling price, which rose to $559,000.
PulteGroup’s reported home sales gross margin was 27.0% — a decrease from 29.9% in Q2 2024, though in line with the company’s guidance range. Selling, general, and administrative (SG&A) expenses for the quarter were $390 million, or 9.1% of home sales revenue. Comparatively, SG&A expenses in the prior year were lower at $361 million, or 8.1%, primarily due to the one-time $52 million insurance benefit that offset costs in 2024.
Orders and Backlog
The company reported net new home orders totaling 7,083 units in Q2 2025 — a 7% year-over-year decline from 7,649 units in the second quarter of 2024. In terms of value, net new orders decreased from $4.4 billion last year to $3.9 billion this quarter.
Despite the decrease in orders, PulteGroup grew its operational footprint, averaging 994 active communities during the quarter — a 6% increase over the previous year. This strategic expansion is expected to better position the company to capitalize on demand when the housing market strengthens.
As of June 30, 2025, the company’s backlog stood at 10,779 homes, representing a total value of $6.8 billion. While slightly lower than the previous year’s figures, this backlog provides a strong foundation for future revenue and activity.
Financial Services Segment and Mortgage Operations
PulteGroup’s financial services arm reported pre-tax income of $43 million for the second quarter, compared to $63 million during the same period last year. The decline was attributed primarily to lower closing volumes from the homebuilding segment.
The company maintained a high mortgage capture rate of 85% in Q2 2025, down only slightly from 86% in the prior year, underscoring PulteGroup’s continued success in integrating mortgage offerings within its home sales process.
Liquidity, Capital Position, and Shareholder Returns
PulteGroup remains on firm financial footing, ending the quarter with $1.3 billion in cash and a conservative debt-to-capital ratio of 11.4%. The company’s strong balance sheet enabled it to continue its robust capital return program.
During the quarter, PulteGroup repurchased 3.0 million shares of its common stock for $300 million, at an average price of $100.54 per share. This builds on share repurchase activity earlier in the year, bringing the total for the first six months of 2025 to 5.8 million shares — equivalent to approximately 3% of the company’s outstanding common stock — for a total cost of $600 million.
This sustained capital return program reflects the company’s confidence in its long-term business outlook and commitment to delivering value to shareholders.
