On October 24, 2023, PulteGroup Inc (PHM, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a net income of $639 million, or $2.90 per share, marking an 8% increase from the prior year period. Home sale revenues also saw a 3% increase, amounting to $3.9 billion.
Financial Highlights
PulteGroup Inc (PHM, Financial) reported a home sale gross margin of 29.5%. The company's net new orders increased by 43% to 7,065 homes with a value of $3.8 billion. The unit backlog totaled 13,547 homes with a value of $8.1 billion. The company also repurchased $300 million of common shares and retired $65 million of senior notes in the quarter. The debt-to-capital ratio was reduced to 16.5%, with a net debt-to-capital ratio of 1%, including the company's cash balance of $1.9 billion.
Management Commentary
“PulteGroup’s third quarter results show a continuation of recent positive trends, as top line revenue growth combined with strong margin performance drove record third quarter earnings of $2.90 per share,” said Ryan Marshall, PulteGroup President and CEO. “Earnings growth and disciplined balance sheet management allowed the Company to realize a return on equity* of 30.1%, while using the resulting cash flows to invest in our business, to repurchase $300 million of common shares, to retire $65 million of senior notes and to further strengthen our overall liquidity profile.”
Financial Tables Overview
The company's financial tables reveal that home sale revenues for the third quarter increased by 3% over the prior year to $3.9 billion. This was primarily driven by a 2% increase in the average sales price of homes closed to $549,000, as closings increased by less than 1% to 7,076 homes. The company's net new orders increased 43% over the prior year to 7,065 homes, with the value of net new orders in the period increasing 36% over last year to $3.8 billion.
Company Performance Analysis
PulteGroup Inc (PHM, Financial) has demonstrated strong performance in the third quarter of 2023, with significant increases in net income, home sale revenues, and net new orders. The company's strategic financial management, including the repurchase of common shares and retirement of senior notes, has also contributed to its robust financial position. The company's ability to maintain a high home sale gross margin and reduce its debt-to-capital ratio indicates effective cost management and a strong balance sheet.
Other Pertinent Details
PulteGroup Inc (PHM, Financial) also announced a conference call discussing the company's third quarter 2023 results scheduled for Tuesday, October 24, 2023, at 8:30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website.
