Jun 30, 2021

PulteGroup Q2 2021 Earnings Report

PulteGroup reported strong financial performance driven by top-line growth and increased gross margin.

Key Takeaways

PulteGroup reported outstanding second quarter financial results with a 270-basis point increase in gross margin. Net income was $1.90 per share, and adjusted net income was $1.72 per share. The company saw increases in net new orders, closings, home sale revenues, and backlog.

Net new orders increased by 28% to 8,322 homes.

Closings increased by 22% to 7,232 homes.

Home sale revenues increased by 31% to $3.2 billion.

Backlog increased by 52% to 20,056 homes, valued at $9.8 billion.

Total Revenue
$3.36B
Previous year: $2.59B
+29.5%
EPS
$1.72
Previous year: $1.15
+49.6%
Total Closings Units
7.23K
Previous year: 5.94K
+21.8%
Total Avg Selling Price
$447K
Previous year: $416K
+7.5%
Total Backlog Units
20.06K
Previous year: 13.21K
+51.8%
Gross Profit
$860M
Previous year: $659M
+30.5%
Cash and Equivalents
$1.66B
Previous year: $1.66B
+0.3%
Free Cash Flow
$239M
Previous year: $587M
-59.3%
Total Assets
$12.1B
Previous year: $11B
+10.3%

PulteGroup

PulteGroup

PulteGroup Revenue by Segment

Forward Guidance

PulteGroup did not provide specific forward guidance in the provided text. The report mentions optimism about demand conditions and the overall strength of the housing market going forward, driven by favorable market dynamics, strong housing demand, limited inventory, economic recovery, positive job market, low interest rates, and high consumer confidence.

Positive Outlook

  • Strong housing demand
  • Limited inventory of new and existing homes
  • Recovering economy
  • Positive job market
  • High levels of consumer confidence

Challenges Ahead

  • Interest rate changes
  • Availability and cost of land and other raw materials
  • Shortages and the cost of labor
  • Weather related slowdowns
  • Governmental regulation affecting the housing market