PulteGroup Posts Solid Earnings, But Revenue Misses—What's Next For The Homebuilder?

Rising interest rates and economic uncertainties are reshaping the landscape for homebuilders, challenging companies to adapt their strategies. As the housing market navigates these shifts, PulteGroup Inc. (NYSE:PHM) stands out with its latest financial performance, revealing both the pressures and opportunities within the sector.

PulteGroup shares traded higher Tuesday after the homebuilder reported mixed financial results for the second quarter of 2025.

The company posted adjusted earnings of $3.03 per share, beating the consensus estimate of $3.00. Revenue came in at $4.40 billion, slightly below analysts' expectations of $4.41 billion.

Home sale revenue declined 4% year over year to $4.27 billion, driven by a 6% drop in closings to 7,639 homes. The decrease was partially offset by a 2% rise in the average selling price to $559,000. Home sale gross margin was 27.0%, down from 29.9% a year ago, but in line with company guidance.

Net new orders fell to 7,083 homes from 7,649 in the prior-year quarter, with the dollar value of new orders declining to $3.9 billion from $4.4 billion. The company ended the quarter with a backlog of 10,779 homes valued at $6.8 billion.

SG&A rose to 9.1% of revenue, reflecting inflation and the absence of prior-year benefits. Financial services income declined to $43 million due to lower closings.

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PulteGroup finished the quarter with $1.3 billion in cash and reduced its debt-to-capital ratio to 11.4%. During the period, the company repurchased 3 million shares for $300 million at an average price of $100.54 per share.

For the six months ended June 30, 2025, PulteGroup reported net cash provided by operating activities of $421.73 million, down from $657.26 million in the same period a year earlier — a 36% year-over-year decline.

"Our disciplined business practices continue to deliver strong results in a competitive housing environment," CEO Ryan Marshall said. "We're encouraged by improving consumer activity in response to recent pullbacks in interest rates."

Looking ahead, Marshall said PulteGroup has strategically aligned home production and land investment with current demand, positioning the company to "retain and grow our market share as demand strengthens in the future."

PHM Price Action: PulteGroup shares were up 3.28% at $112.21 during premarket trading on Tuesday, according to Benzinga Pro.

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