PulteGroup Inc

Strong Q1 Performance: PulteGroup delivered over 6,500 homes and reported a net income of $523 million with a trailing twelve-month return on equity of 25.4%. Gross margins were stable at 27.5%, demonstrating robustness despite a challenging market. This indicates the company's strong operating model and diversified portfolio, essential in navigating changing market conditions.

Forecasted Deliveries and Adjustments: The company revised its 2025 home delivery forecast to between 29,000 and 30,000 homes, down from prior guidance of 31,000. This revision reflects the current volatility in consumer demand and a deliberate strategy to prioritize price over volume in response to economic uncertainty.

Impact of Tariffs and Incentives: PulteGroup is expecting a 1% increase in costs due to proposed tariffs, impacting pricing across all buyer groups. Sales incentives have increased to 8% of revenues, indicative of a market where affordability remains a challenge for consumers, necessitating incentives to stimulate demand.