Dec 31, 2021

PulteGroup Q4 2021 Earnings Report

PulteGroup's financial performance surged in Q4 2021, marked by substantial increases in net income, home sale revenues, and closings.

Key Takeaways

PulteGroup reported a strong fourth quarter in 2021, with net income increasing by 61% to $2.61 per share. Home sale revenues rose by 38% to $4.2 billion, driven by a 26% increase in closings and a 10% increase in average sales price. The company also saw a significant increase in homebuilding gross margin and a 19% increase in unit backlog.

Net income increased 61% to $2.61 per share.

Home sale revenues increased 38% to $4.2 billion.

Closings increased 26% to 8,611 homes.

Unit backlog increased 19% to 18,003 homes.

Total Revenue
$4.36B
Previous year: $3.19B
+36.6%
EPS
$2.51
Previous year: $1.49
+68.5%
Total Closings Units
8.61K
Previous year: 6.86K
+25.5%
Total Avg Selling Price
$490K
Previous year: $446K
+9.9%
Total Backlog Units
18K
Previous year: 15.16K
+18.8%
Gross Profit
$1.13B
Previous year: $809M
+40.0%
Cash and Equivalents
$1.78B
Previous year: $2.58B
-31.1%
Free Cash Flow
$435M
Previous year: $504M
-13.7%
Total Assets
$13.4B
Previous year: $12.2B
+9.4%

PulteGroup

PulteGroup

PulteGroup Revenue by Segment

Forward Guidance

PulteGroup anticipates strong buyer demand to continue in 2022, driven by a resilient economy and desire for home ownership. The company believes it is well-positioned to grow its business, leveraging its size and community count, despite ongoing supply chain disruptions.

Positive Outlook

  • Strong buyer demand is expected to continue in 2022.
  • The company is well-positioned to grow its business.
  • PulteGroup has a growing community count.
  • There is an available inventory of new homes.
  • The company is focused on delivering exceptional returns.

Challenges Ahead

  • Ongoing supply chain disruptions continue to challenge the industry.
  • A more competitive operating environment may impact financial services.
  • Lower orders in the quarter primarily reflect a 7% decrease in average community count.
  • Company actions to limit the rate of sales in many of its communities.
  • Uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans