PulteGroup Q3 home sale revenue falls 9% as demand weakens
PHM•PulteGroup’s third-quarter home sale revenue fell 9% year over year to $3.86 billion, while earnings per share declined to $2.53 from $2.96. The company said rising mortgage rates and stretched affordability pressured demand.
1. Quarterly results
PulteGroup reported third-quarter home sale revenue of $3.86 billion, down 9% year over year as closings and prices fell. Earnings per share declined to $2.53 from $2.96 a year earlier; home sale gross margin was 24.8%, and orders totaled $3.5 billion.
2. Demand and margins
The company said rising mortgage rates and stretched affordability pressured homebuying demand. More than 60% of its business now comes from move-up and active-adult buyers, which it said helped maintain strong gross margins. Third-quarter gross margin included $26 million of land impairments, reducing margin by about 70 basis points.
3. Share repurchases
PulteGroup repurchased $350 million of common shares during the quarter and said it continues to balance price and sales pace while aligning production with market conditions.
