PulteGroup reported first-quarter net income of $523 million, or $2.57 per diluted share, a 21% decline from $663 million, or $3.10 per share, in the same period last year. The company attributed the lower earnings to decreased revenues and higher operating expenses.
Home sale revenues fell 2% to $3.7 billion, down from $3.8 billion in Q1 2024. The company closed 6,583 homes during the quarter, a 7% decrease from 7,095 homes one year earlier. Despite the decline in volume, the average selling price increased 6% to $570,000, up from $538,000.
Home sale gross margin was 27.5%, down 210 basis points year over year but unchanged from the previous quarter. Selling, general, and administrative expenses rose to $393 million, accounting for 10.5% of home sale revenues, compared to 9.4% a year earlier.
Net new orders dropped 7% to 7,765 homes and fell 5% in value to $4.5 billion, compared to 8,379 homes valued at $4.7 billion in Q1 2024. The quarter-end backlog declined 16% in units and 12% in value to 11,335 homes worth $7.2 billion.
PulteGroup repurchased 2.8 million shares for $300 million and ended the quarter with $1.3 billion in cash. Its debt-to-capital ratio was 11.7%. The company operated from an average of 961 communities, up 3% from 935 communities a year ago.
While not providing specific guidance, PulteGroup expressed optimism about long-term housing demand, citing a structural shortage in the U.S. market. The company acknowledged continued affordability challenges but noted that consumer sentiment improved as mortgage rates eased. Management highlighted its disciplined operations and financial position as key strengths for navigating near-term uncertainty and delivering long-term value.
