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What changed in PulteGroup's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PulteGroup's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+184 added−193 removedSource: 10-K (2026-02-04) vs 10-K (2025-02-06)

Top changes in PulteGroup's 2025 10-K

184 paragraphs added · 193 removed · 151 edited across 6 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

47 edited+11 added−13 removed82 unchanged
Biggest changeIf we are unable to obtain letters of credit or surety bonds when required, or the conditions imposed by issuers increase significantly, our liquidity and cost of operations could be adversely affected. 14 Our income tax provision and tax reserves may be insufficient if a taxing authority is successful in asserting positions that are contrary to our interpretations and related reserves, if any.
Biggest changeThese letters of credit are generally issued via our unsecured Revolving Credit Facility, which contains certain financial covenants and other limitations. If we are unable to obtain letters of credit or surety bonds when required, or the conditions imposed by issuers increase significantly, our liquidity and cost of operations could be adversely affected.
If market conditions were to deteriorate in the future, we could elect not to execute additional options and again be required to record significant write downs to our land inventory, which would decrease the asset values reflected on our balance sheet and could materially and adversely affect our earnings and our shareholders' equity.
If market conditions were to deteriorate in the future, we could elect to not execute additional options and again be required to record significant write-downs to our land inventory, which would decrease the asset values reflected on our balance sheet and could materially and adversely affect our earnings and our shareholders' equity.
The ERP implementation will require the integration of the new ERP with multiple new and existing information systems and business processes, and will be designed to accurately maintain our books and records and provide information to our management teams important to the operation of the business. Our ERP implementation will continue to require ongoing maintenance and monitoring.
The ERP implementation will require the integration of the new ERP systems with multiple new and existing information systems and business processes and will be designed to accurately maintain our books and records and provide information to our management teams important to the operation of the business. Our ERP implementation will continue to require ongoing maintenance and monitoring.
While to our knowledge we have not experienced a significant cybersecurity incident that has materially affected our business strategy, results of operations or financial condition in the last three years, and we are frequently working to improve our information technology systems and provide employee awareness training around phishing, malware, and other cyber risks to enhance our levels of protection, to the extent possible, against cyber risks and security breaches, and to enhance our 16 monitoring to prevent, detect, contain, address, and mitigate the risk of unauthorized access, misuse, computer viruses, and other events that could have an impact on our business, there is no assurance that advances in computer capabilities, new technologies, methods, or other developments will detect or prevent security breaches and safeguard access to proprietary or confidential information or otherwise prevent material consequences for our business and reputation.
While to our knowledge we have not experienced a significant cybersecurity incident that has materially affected our business strategy, results of operations or financial condition in the last three years, and we are frequently working to improve our information technology systems and provide employee awareness training around phishing, malware, and other cyber risks to enhance our levels of protection, to the extent possible, against cyber risks and security breaches, and to enhance our monitoring to prevent, detect, contain, address, and mitigate the risk of unauthorized access, misuse, computer viruses, and other events that could have an impact on our business, there is no assurance that advances in computer capabilities, new technologies, methods, or other developments will detect or prevent security breaches and safeguard access to proprietary or confidential information or otherwise prevent material consequences for our business and reputation.
If we were unable to sell loans into the secondary mortgage market or directly to Fannie Mae and Freddie Mac, we would have to either (a) curtail our origination of residential mortgage loans, which, among other things, could significantly reduce our ability to sell homes, or (b) commit our own funds to long-term investments in mortgage loans, which, in addition to requiring 15 us to deploy substantial amounts of our own funds, could delay the time when we recognize revenues from home sales on our statements of operations.
If we were unable to sell loans into the secondary mortgage market or directly to Fannie Mae and Freddie Mac, we would have to either (a) curtail our origination of residential mortgage loans, which, among other things, could significantly reduce our ability to sell homes, or (b) commit our own funds to long-term investments in mortgage loans, which, in addition to requiring us to deploy substantial amounts of our own funds, could delay the time when we recognize revenues from home sales on our statements of operations.
Governmental rulings or changes in state or local laws that make us responsible for labor practices by our subcontractors could create substantial exposures for us in situations that are not within our control. 13 Natural disasters, severe weather conditions and changing climate patterns could delay deliveries, increase costs, and decrease demand for new homes in affected areas.
Governmental rulings or changes in state or local laws that make us responsible for labor practices by our subcontractors could create substantial exposures for us in situations that are not within our control. Natural disasters, severe weather conditions and changing climate patterns could delay deliveries, increase costs, and decrease demand for new homes in affected areas.
Also, the loss of a significant number of operating employees in key roles or geographies where we are not able to hire qualified replacements could have a material adverse effect on our business. 17 We have significant intangible assets. If these assets become impaired, then our profits and shareholders’ equity may be reduced.
Also, the loss of a significant number of operating employees in key roles or geographies where we are not able to hire qualified replacements could have a material adverse effect on our business. We have significant intangible assets. If these assets become impaired, then our profits and shareholders’ equity may be reduced.
Any such disruption could damage our reputation, result in lost customers, lost revenue, and market value declines, lead to legal proceedings against us by affected third parties resulting in penalties or fines, result in government investigations or related inquiries, and require us to incur significant costs to remediate or otherwise resolve these issues.
Any such disruption could damage our reputation, result in lost customers, lost revenue, and market value declines, lead to legal proceedings against us by affected third parties resulting in penalties or fines, result in government investigations or related inquiries, and require us to incur significant costs to remediate or otherwise resolve these 16 issues.
However, in the second quarter of 2022, in response to the Federal Reserve's increases to the federal funds rate as part of their effort to reduce inflation, mortgage rates increased, reaching their highest levels since 2008. Despite recent interest rate cuts by the Federal Reserve beginning in September 2024, interest rates have remained elevated.
However, in the second quarter of 2022, in response to the Federal Reserve's increases to the federal funds rate as part of their effort to reduce inflation, mortgage rates increased, reaching their highest levels since 2008. Despite recent interest rate cuts by the Federal Reserve beginning in September 2024, home mortgage interest rates have remained elevated.
The availability of finished and partially finished lots and undeveloped land for purchase that meet our internal criteria depends on a number of factors outside our control, including land availability in general, competition with other homebuilders and land buyers for desirable property, inflation in land prices, zoning, allowable housing density, and other regulatory requirements.
The availability of finished and partially finished lots and undeveloped land for purchase that meet our internal criteria depends on a number of factors outside our control, including land availability, competition with other homebuilders and land buyers for desirable property, inflation in land prices, zoning, allowable housing density, and other regulatory requirements.
Policies issued by our captive insurance subsidiaries represent self-insurance of these risks by us. We reserve for costs to cover our self-insured and deductible amounts under these policies and for any costs of claims and lawsuits based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported.
Policies issued by our captive insurance subsidiaries represent self-insurance of those risks by us. We reserve for costs to cover our self-insured and deductible amounts under these policies and for any costs of claims and lawsuits based on actuarial analyses of our historical claims, which include estimates of claims incurred but not yet reported.
If we are unable to adequately implement and maintain procedures and controls relating to our new ERP, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired and impact our assessment of the effectiveness of our internal controls over financial reporting.
If we are unable to adequately implement and maintain procedures and controls relating to our new ERP systems, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired and impact our assessment of the effectiveness of our internal controls over financial reporting.
The impact of environmental laws on our operations varies depending upon the prior uses of the 12 building site or adjoining properties and may be greater in areas with less supply where undeveloped land or desirable alternatives are less available.
The impact of environmental laws on our operations varies depending upon the prior uses of the building site or adjoining properties and may be greater in areas with less supply where undeveloped land or desirable alternatives are less available.
To date, the significant majority of these claims made by investors against our mortgage operations relate to loans originated prior to 2009, during which time inherently riskier loan products became more common in the origination market.
To date, the significant majority of these claims made by investors against our mortgage operations relate to loans originated prior to 2009, during 15 which time inherently riskier loan products became more common in the origination market.
While we aim to develop, integrate, and use AI responsibly, we may ultimately be unsuccessful in identifying or resolving issues, such as accuracy, cybersecurity risks, unintended biases, and discriminatory outputs, before they arise.
While we aim to develop, integrate, and use AI responsibly, we may ultimately be unsuccessful in identifying or resolving issues, such as accuracy limitations, cybersecurity risks, unintended biases, and discriminatory outputs, before they arise.
We also are subject to a variety of local, state, and federal laws and regulations concerning protection of health, safety, and the environment, including laws and regulations relating to the disclosure of certain information relating to the environmental impact of our operations.
We also are subject to a variety of local, state, and federal laws and regulations concerning protection of health, safety, and the environment, including laws and regulations governing the disclosure of certain information relating to the environmental impact of our operations.
These insurance policies protect us against a portion of our risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program sponsored by us.
These insurance policies protect us against a portion of our risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. In certain instances, we may offer our subcontractors the opportunity to purchase insurance through one of our captive insurance subsidiaries or participate in a project-specific insurance program.
We rely on subcontractors to perform the actual construction of our homes and, in some cases, to select and obtain building materials. Despite our detailed specifications and quality control procedures, in limited cases, subcontractors may use improper construction processes or defective materials. In such cases, it can result in the need to perform repairs to homes.
We rely on subcontractors to perform the actual construction of our homes and, in some cases, to select and procure building materials. Despite our detailed specifications and quality control procedures, in limited cases, subcontractors may use improper construction processes or defective materials. In such cases, it can result in the need to perform repairs to homes.
When market conditions are such that land values are not appreciating, land option arrangements previously entered into may become less desirable, at which time we may elect to forgo deposits and pre-acquisition costs and terminate the agreements.
When market conditions are such that land values are not appreciating, land option or land banking arrangements previously entered into may become less desirable, at which time we may elect to forgo deposits and pre-acquisition costs and terminate the agreements.
Inflation can adversely affect us by increasing costs of land, materials, and labor. In addition, significant inflation is often accompanied by higher interest rates, which recently have had a negative impact on demand for our homes.
Inflation can adversely affect us by increasing costs of land, materials, and labor. In addition, significant inflation is often accompanied by higher interest rates, which have had a negative impact on demand for our homes in recent years.
Our insurance coverage, our subcontractor arrangements, and our reserves may not be adequate to address all our warranty and construction defect claims in the future, and there is typically a lag between our payment of claims and reimbursements from applicable insurance carriers.
Our insurance coverage, our subcontractor arrangements, and our reserves may not be adequate to address all our warranty and construction defect claims in the future, and there is typically a lag between our payment of claims and reimbursements from applicable insurance carriers or other third parties.
We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations. We are beginning the process of a multi-year implementation of a new enterprise resource planning system (“ERP”).
We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations. We are in the process of a multi-year implementation of new enterprise resource planning systems (“ERP”).
In an inflationary environment like the one we have experienced in recent years, economic conditions and other market factors may make it difficult for us to raise home prices enough to keep up with the rate of inflation, which could reduce our profit margins or reduce the number of consumers who can afford to purchase one of our homes.
In an inflationary environment like the one we experienced in years following the COVID-19 pandemic, economic conditions and other market factors may make it difficult for us to raise home prices enough to keep up with the rate of inflation, which could reduce our profit margins or reduce the number of consumers who can afford to purchase one of our homes.
Several of these factors, along with the consolidation of ownership of the source of supply for certain building materials, have resulted in increases to the prices of some materials. Increased costs and shortages of labor and materials can cause increases in construction costs, and construction delays.
Several of these factors, along with the consolidation of ownership of the source of supply for certain building materials, could result in increases to the prices of some materials. Increased costs and shortages of labor and materials can cause increases in construction costs, and construction delays.
The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. At December 31, 2024, we had outstanding letters of credit and surety bonds totaling $321.1 million and $2.9 billion, respectively.
The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure. At December 31, 2025, we had outstanding letters of credit and surety bonds totaling $357.1 million and $3.1 billion, respectively.
Additionally, the supply of certain building materials, especially lumber, wood-based materials such as roof and floor trusses and oriented strand boards, steel, resin, concrete, copper, and petroleum-based materials, is limited and has been impacted by the combination of strong consumer demand, disruptions in the global supply chain, and major weather events at the point of manufacture of certain products.
Additionally, the supply of certain building materials, especially lumber, wood-based materials such as roof and floor trusses and oriented strand boards, steel, resin, concrete, copper, and petroleum-based materials, could be limited by factors such as strong consumer demand, disruptions in the global supply chain, and major weather events at the point of manufacture of certain products.
However, regardless of the steps we take after we learn of practices that do not comply with applicable laws, regulations, or government guidelines, we can in some instances be subject to fines or other governmental penalties, and our reputation can be injured, due to the practices having taken place.
However, regardless of the steps we take after we learn of practices that do not comply with applicable laws, regulations, or government guidelines, we can in some instances be subject to fines or other governmental penalties, and our reputation can be injured, due to the practices having taken place. 13 The homes we sell are built by employees of subcontractors and other contract parties.
As of December 31, 2024, we had deferred tax assets of $77.4 million, against which we provided a valuation allowance of $22.4 million. The ultimate realization of our deferred tax assets is dependent upon generating future taxable income.
As of December 31, 2025, we had deferred tax assets of $70.6 million, against which we provided a valuation allowance of $21.4 million. The ultimate realization of our deferred tax assets is dependent upon generating future taxable income.
As a result, we cannot predict future developments in AI and related impacts to our business and our industry. If we are unable to successfully and accurately develop, integrate, and use AI technology, as well as address the risks and challenges associated with AI, our business, results of operations, and financial position could be negatively impacted.
In addition, we cannot predict future developments in AI or their potential impact on our business and our industry. If we are unable to successfully and accurately develop, integrate, and use AI technology, as well as address the risks and challenges associated with AI, our business, results of operations, and financial position could be negatively impacted.
The homebuilding industry is highly competitive for skilled labor. Labor shortages have continued to limit the availability of construction labor.
The homebuilding industry is highly competitive for skilled labor. Labor shortages could limit the availability of construction labor.
Beginning in 2020, the COVID-19 pandemic also impacted our business and resulted in a significant slowdown in our business and impacts to our financial results, followed by historically high inflation, increased interest rates and weaker economic conditions all of which impacted the affordability of our homes and consumer sentiment.
Beginning in 2020, the COVID-19 pandemic also impacted our business and resulted in a significant slowdown in our business and impacts to our financial results, followed by historically high inflation, increased interest rates and weaker economic conditions, all of which impacted the affordability of our homes and consumer sentiment. 10 Inflation has resulted in increased costs that we may not be able to recoup and has impacted home affordability and consumer sentiment.
In addition, inflation through the broader economy, especially when combined with higher mortgage interest rates, has negatively impacted home affordability and consumer sentiment and created some volatility in demand for new housing. Supply shortages and other risks related to the demand for skilled labor and building materials increased costs and delayed deliveries and could continue to do so.
In addition, inflation through the broader economy, especially when combined with higher mortgage interest rates, can negatively impact home affordability and consumer sentiment and created significant volatility in demand for new housing. Supply shortages and other risks related to the demand for skilled labor and building materials could increase costs and delay deliveries.
Conversion from our old system to the new ERP may cause inefficiencies until the ERP is stabilized and mature. The implementation of our new ERP will mandate new procedures and certain modifications to our disclosure controls and procedures and internal control over financial reporting and it will take time for such procedures and controls to become mature in their operation.
The implementation of our new ERP systems will mandate new procedures and certain modifications to our disclosure controls and procedures and internal control over financial reporting, and it will take time for such procedures and controls to become mature in their operation.
Our evaluation of our tax matters is based on a number of factors, including relevant facts and circumstances, applicable tax law, correspondence with tax authorities during the course of audits, and effective settlement of audit issues.
In the ordinary course of business, there may be matters for which the ultimate outcome is uncertain. Our evaluation of our tax matters is based on a number of factors, including relevant facts and circumstances, applicable tax law, correspondence with tax authorities during the course of audits, and effective settlement of audit issues.
If housing demand decreases below what we anticipated when we acquired our inventory, we may not be able to make profits similar to what we have made in the past, we may experience less-than-anticipated profits, and/or we may not be able to recover our costs when we sell and build homes.
If housing demand decreases below what we anticipated when we acquired our inventory, our profitability could be adversely affected, we may experience less-than-anticipated profits, and/or we may not be able to recover our costs when we sell and build homes.
Heightened labor and material prices resulting from inflation have increased operational costs in recent years. If the inflationary environment in recent years continues or worsens, we may not be able to adjust the pricing we charge for homes to offset these increased costs in the future, which would adversely impact our results of operations and cash flows.
Heightened labor and material prices resulting from inflation can increase operational costs as well. If inflation persists or increases, we may not be able to adjust the pricing we charge for homes to offset these increased costs, which would adversely impact our results of operations and cash flows.
We have significant intangible assets related to business combinations. If the carrying value of intangible assets is deemed impaired, the carrying value is written down to fair value. This would result in a charge to our earnings. If management’s expectations of future results and cash flows decrease significantly, impairments of intangible assets may occur.
We have significant intangible assets related to business combinations. If the carrying value of intangible assets is deemed impaired, the carrying value is written down to fair value. This would result in a charge to our earnings.
However, various governmental agencies have attempted to hold contract parties like us responsible for violations of wage and hour laws and other work-related laws by firms whose employees are performing contracted services.
We do not have the ability to control what these contract parties pay their employees or subcontractors or the work rules they impose on their employees or subcontractors. However, various governmental agencies have attempted to hold contract parties like us responsible for violations of wage and hour laws and other work-related laws by firms whose employees are performing contracted services.
While we have recorded valuation allowances against certain of our deferred tax assets, the valuation allowances are subject to change as facts and circumstances change.
While we have recorded valuation allowances against certain of our deferred tax assets, the valuation allowances are subject to change as facts and circumstances change. The value of our deferred tax assets and liabilities are also dependent upon the tax rates expected to be in effect at the time they are realized.
However, our internal sources of liquidity and Revolving Credit Facility may prove to be insufficient, and, in such case, we may not be able to successfully obtain additional financing on terms acceptable to us, or at all.
However, our internal sources of liquidity and Revolving Credit Facility may prove to be insufficient, and, in such case, we may not be able to successfully obtain additional financing on terms acceptable to us, or at all. 14 Another source of liquidity is our ability to use letters of credit and surety bonds relating to certain performance-related obligations and as security for certain land option agreements and insurance programs.
Our inability to sell mortgages into the secondary market could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate. We sell substantially all of the residential mortgage loans we originate within a short period in the secondary mortgage market.
A change in enacted corporate tax rates in our major jurisdictions, especially the U.S. federal corporate tax rate, would change the value of our deferred taxes, which could be material. Our inability to sell mortgages into the secondary market could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate.
Without sufficient liquidity, we may not be able to purchase additional land or develop land, which could adversely affect our financial results. At December 31, 2024, we had cash, cash equivalents, and restricted cash of $1.7 billion as well as $928.9 million available under our revolving credit facility ("Revolving Credit Facility").
Without sufficient liquidity, we may not be able to purchase additional land or develop land, which could adversely affect our financial results.
Furthermore, if our insurance does not fully cover business interruptions or losses resulting from these events, our earnings, liquidity, or capital resources could be adversely affected. The impact of climate change and climate change or other governmental regulation may adversely impact our business.
Furthermore, if our insurance does not fully cover losses or business interruptions resulting from these events, our earnings, liquidity, or capital resources could be adversely affected. Across various regions in which we operate, costs associated with homeowner, hazard, and flood insurance have increased in recent years, driven in part by the increasing frequency and severity of weather‑related losses.
Significant judgment is required in determining our provision for income taxes and our reserves for federal, state, and local taxes. In the ordinary course of business, there may be matters for which the ultimate outcome is uncertain.
Our income tax provision and tax reserves may be insufficient if a taxing authority is successful in asserting positions that are contrary to our interpretations and related reserves, if any. Significant judgment is required in determining our provision for income taxes and our reserves for federal, state, and local taxes.
Any epidemic, pandemic, or similar serious public health issue, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.
Public health emergencies may result in measures taken by international, federal, state, and local governments, agencies, law enforcement, and or health authorities, including travel restrictions, quarantines, business closures, workforce limitations, and other regulatory or emergency actions. These measures could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period of time.
As a result, the impact of such public health issues and the related governmental actions could have a significant adverse impact on our consolidated financial statements.
Any of these factors, individually or in the aggregate, could have a material adverse impact on our consolidated financial statements.
Our business was materially and adversely disrupted by the outbreak and worldwide spread of COVID-19 and could be materially and adversely disrupted by another epidemic or pandemic like COVID-19, or similar public threat, or fear of such an event, and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it.
Our business could be materially and adversely disrupted by the outbreak and spread of contagious diseases, including epidemics, pandemics, or other serious public health threats, such as the COVID-19 pandemic, as well as by the fear of such events.
Removed
In addition, over the last three years, the U.S. economy experienced significant inflation and mortgage and other interest rate increases, which negatively impacted home affordability and consumer sentiment and created some volatility in demand for new housing. 10 Inflation has resulted in increased costs that we may not be able to recoup and has impacted home affordability and consumer sentiment.
Added
Further, if our competitors are able to develop or leverage AI technologies more effectively than we do, including to better anticipate customer preferences, improve operational efficiency, or enhance products or services, our competitive position could be adversely affected.
Removed
The homes we sell are built by employees of subcontractors and other contract parties. We do not have the ability to control what these contract parties pay their employees or subcontractors or the work rules they impose on their employees or subcontractors.
Added
Although recently imposed tariffs have not had a material impact on our construction costs, newly imposed or increased tariffs, duties and/or trade restrictions on imported materials and goods that are used in connection with the construction and delivery of our 12 homes may raise our costs for these items or for the products made with them.
Removed
Another source of liquidity is our ability to use letters of credit and surety bonds relating to certain performance-related obligations and as security for certain land option agreements and insurance programs.
Added
In some cases, these conditions have constrained homeowners’ ability to obtain adequate coverage. While these issues have not had a material impact on our business thus far, continued increases in insurance costs, further limitations on coverage availability, or insufficient insurance coverage for business interruptions or losses could adversely affect home affordability, demand, and our operating results in the future.
Removed
These letters of credit are generally issued via our unsecured Revolving Credit Facility, which contains certain financial covenants and other limitations.
Added
The impact of climate change or other governmental regulation may adversely impact our business.
Removed
Our ability to utilize net operating losses (“NOLs”) and other tax attributes to offset our future taxable income or income tax would be limited if we were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code ("Section 382").
Added
At December 31, 2025, we had cash, cash equivalents, and restricted cash of $2.0 billion as well as $892.9 million available under our revolving credit facility, which was amended effective February 4, 2026 to extend its maturity date to February 4, 2031, increase the total committed capacity to $1.75 billion, and expand the uncommitted accordion feature to $750 million, providing for potential capacity of $2.5 billion, subject to certain conditions and the availability of additional bank commitments ("Revolving Credit Facility").
Removed
An "ownership change" under Section 382 would establish an annual limitation to the amount of NOLs and other tax attributes we could utilize to offset our taxable income or income tax in any single year. The application of these limitations might prevent full utilization of the deferred tax assets.
Added
We sell substantially all of the residential mortgage loans we originate within a short period in the secondary mortgage market.
Removed
To preserve our ability to utilize NOLs and other tax attributes in the future without a Section 382 limitation, we adopted a shareholder rights plan (the “Rights Plan”), which is triggered upon certain transfers of our securities, and amended our by-laws to prohibit certain transfers of our securities.
Added
Conversion from our old systems to the new ERP systems may cause inefficiencies until the ERP systems are stabilized and mature.
Removed
The Rights Plan, as amended, expires June 1, 2025, unless our Board of Directors and shareholders approve an amendment to extend the term prior thereto.
Added
If management’s expectations of future results and cash flows decrease significantly, impairments of intangible assets may occur. 17 Our business could be materially and adversely affected by epidemics, pandemics, or other public health emergencies.
Removed
At a meeting of the Board of Directors held on February 5, 2025, due to the limited NOLs and other tax attributes remaining that would be affected by an “ownership change” under Section 382, the Board of Directors determined not to approve an amendment to extend the term of the Rights Plan beyond its expiration date of June 1, 2025 and determined to consider, at a future meeting of the Board of Directors, amendments to the provisions of the Company’s by-laws that prohibit certain transfers of our securities.
Added
Any epidemic, pandemic, or similar public health issue, including events like COVID-19, and the related governmental, regulatory, or private sector responses could adversely affect our operations, supply chain, workforce availability, customer demand, and ability to deliver products or services.
Removed
Notwithstanding the foregoing measures, and in particular if they are no longer in place, there can be no assurance that we will not undergo an ownership change within the meaning of Section 382 at a time when NOLs and other tax attributes that would be affected by an “ownership change” under Section 382 exist.
Added
Such events and responses could also contribute to broader macroeconomic effects, including inflation, labor shortages, changes in consumer behavior, and supply chain disruptions, which could further negatively impact our business, financial condition, and results of operations.
Removed
In addition, our Rights Plan, while in effect, may adversely affect the marketability of our common stock, because any non-exempt third party that acquires shares of our common stock in excess of the applicable threshold would suffer substantial dilution of its ownership interest.
Added
The extent to which future public health emergencies may affect our business will depend on a number of factors, including the duration and severity of the outbreak, the timing and effectiveness of containment measures, the impact on global and regional economic conditions, and our ability to adapt our operations in response to changing circumstances.
Removed
The value of our deferred tax assets and liabilities are also dependent upon the tax rates expected to be in effect at the time they are realized. A change in enacted corporate tax rates in our major jurisdictions, especially the U.S. federal corporate tax rate, would change the value of our deferred taxes, which could be material.
Removed
Our business was previously materially and adversely impacted by events related to the COVID-19 pandemic and related macroeconomic impacts, including inflation, labor shortages, and supply chain disruptions, and our business could be materially and adversely disrupted by another epidemic or pandemic like COVID-19, or similar public threat, or fear of such an event, and the measures that international, federal, state, and local governments, agencies, law enforcement, and/or health authorities implement to address it.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+1 added−1 removed12 unchanged
Biggest changeIn August of 2024, our information technology operations were centralized under a single CIO and a single CISO, each with enterprise-wide responsibilities. Our CISO reports to our CIO and is responsible for managing the information security team and working to ensure the team is assessing and managing cybersecurity risks in accordance with our processes and procedures.
Biggest changeOur CISO reports to our CIO and is responsible for managing the information security team and working to ensure the team is assessing and managing cybersecurity risks in accordance with our processes and procedures. Our CIO has over 30 years’ experience managing enterprise information technology systems.
Our CIO has over 30 years’ experience managing enterprise information technology systems. Our CISO has over 25 years’ experience working in information technology and cybersecurity roles and is a certified information security manager as certified by the Information Systems Audit and Control Association (ISACA).
Our CISO has over 30 years’ experience working in information technology and cybersecurity roles and is a certified information security manager as certified by the Information Systems Audit and Control Association ("ISACA").
Our Audit Committee regularly reviews and discusses with management the strategies, processes, procedures, and controls pertaining to the management of the Company’s information technology operations, including cybersecurity risks.
Our Audit Committee regularly reviews and discusses with management the strategies, processes, procedures, and controls pertaining to the management of the Company’s information technology operations, including cybersecurity risks. This enables management to provide oversight, set risk tolerances, and support a comprehensive cybersecurity program that manages material cybersecurity risks to the Company.
Removed
This enables management to provide oversight, set risk tolerances, and support a comprehensive cybersecurity program that manages material cybersecurity risks to the Company. 18 Aspects of the information systems of our Homebuilding operations and our Financial Services operations are separate and distinct, and, prior to the third quarter of 2024, each operation had a separate CIO and CISO.
Added
Aspects of the information systems of our Homebuilding operations and our Financial Services operations are separate where appropriate 18 based on differences in business needs, though our information technology operations are centralized under a single CIO and a single CISO, each with enterprise-wide responsibilities.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−1 removed0 unchanged
Biggest changeBecause of the nature of our Homebuilding operations, significant amounts of property are held as inventory in the ordinary course. Such properties are not included in response to this Item.
Biggest changeIn total across our organization, we lease approximately 1.6 million square feet of office space. The Company considers its properties suitable and adequate for its current business operations. Because of the nature of our Homebuilding operations, significant amounts of property are held as inventory in the ordinary course. Such properties are not included in response to this Item.
ITEM 2. PROPERTIES Our homebuilding and corporate headquarters are located in leased office facilities at 3350 Peachtree Road NE, Suite 1500, Atlanta, Georgia 30326. Pulte Mortgage leases its primary office facilities in Englewood, Colorado. We also maintain various support functions in leased facilities in Tempe, Arizona.
ITEM 2. PROPERTIES Our homebuilding and corporate headquarters are located in leased office facilities at 3350 Peachtree Road NE, Suite 1500, Atlanta, Georgia 30326. Pulte Mortgage leases its primary office facilities in Denver, Colorado. Our Homebuilding divisions and Financial Services branches lease office space in the geographic locations in which they conduct their daily operations.
Removed
Our Homebuilding divisions and Financial Services branches lease office space in the geographic locations in which they conduct their daily operations. In total across our organization, we lease approximately 1.6 million square feet of office space. The Company considers its properties suitable and adequate for its current business operations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe declaration of future cash dividends is at the discretion of our Board of Directors and will depend upon our future earnings, capital requirements and liquidity, cash flows, and financial conditions. 19 Issuer Purchases of Equity Securities Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs ($000’s omitted) October 1, 2024 to October 31, 2024 814,038 $ 139.41 814,038 $ 889,414 (2) November 1, 2024 to November 30, 2024 788,499 130.80 788,499 $ 786,275 (2) December 1, 2024 to December 31, 2024 860,862 120.09 860,862 $ 682,898 (2) Total 2,463,399 $ 129.90 2,463,399 (1) During 2024, participants surrendered shares for payment of minimum tax obligations upon the vesting or exercise of previously granted share-based compensation awards.
Biggest changeThe declaration of future cash dividends is at the discretion of our Board of Directors and will depend upon our future earnings, capital requirements and liquidity, cash flows, and financial conditions. 19 Issuer Purchases of Equity Securities Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs ($000’s omitted) October 1, 2025 to October 31, 2025 839,372 $ 124.81 839,372 $ 1,178,138 (2) November 1, 2025 to November 30, 2025 759,867 119.07 759,867 $ 1,087,663 (2) December 1, 2025 to December 31, 2025 847,009 123.68 847,009 $ 982,902 (2) Total 2,446,248 $ 122.64 2,446,248 (1) During 2025, participants surrendered shares for payment of minimum tax obligations upon the vesting or exercise of previously granted share-based compensation awards.
The information required by this item with respect to equity compensation plans is set forth under Item 12 of this Annual Report on Form 10-K and is incorporated herein by reference. 20 Performance Graph The following line graph compares, for the fiscal years ended December 31, 2020, 2021, 2022, 2023, and 2024, (a) the yearly cumulative total shareholder return (i.e., the change in share price plus the cumulative amount of dividends, assuming dividend reinvestment, divided by the initial share price, expressed as a percentage) on PulteGroup’s common shares, with (b) the cumulative total return of the Standard & Poor’s 500 Stock Index and with (c) the Dow Jones U.S.
The information required by this item with respect to equity compensation plans is set forth under Item 12 of this Annual Report on Form 10-K and is incorporated herein by reference. 20 Performance Graph The following line graph compares, for the fiscal years ended December 31, 2021, 2022, 2023, 2024, and 2025, (a) the yearly cumulative total shareholder return (i.e., the change in share price plus the cumulative amount of dividends, assuming dividend reinvestment, divided by the initial share price, expressed as a percentage) on PulteGroup’s common shares, with (b) the cumulative total return of the Standard & Poor’s 500 Stock Index and with (c) the Dow Jones U.S.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares are listed on the New York Stock Exchange (Symbol: PHM). At January 24, 2025, there were 1,918 shareholders of record.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common shares are listed on the New York Stock Exchange (Symbol: PHM). At January 22, 2026, there were 1,842 shareholders of record.
There is no expiration date for this program, under which $682.9 million remained available as of December 31, 2024. During 2024, we repurchased 10.1 million shares for a total of $1.2 billion under this program.
There is no expiration date for this program, under which $982.9 million remained available as of December 31, 2025. During 2025, we repurchased 10.6 million shares for a total of $1.2 billion under this program.
Such shares were not repurchased as part of our publicly-announced share repurchase programs and are excluded from the table above. (2) On January 30, 2024, the Company announced that the Board of Directors approved a share repurchase authorization increase of $1.5 billion on January 29, 2024.
Such shares were not repurchased as part of our publicly-announced share repurchase programs and are excluded from the table above. (2) On January 29, 2025, the Board of Directors approved an increase to our share repurchase authorization of $1.5 billion, which was publicly announced on January 30, 2025.
In November 2024, our Board of Directors approved a quarterly cash dividend of $0.22 per common share, payable on January 3, 2025, to shareholders of record on December 17, 2024.
In November 2025, our Board of Directors approved a quarterly cash dividend of $0.26 per common share, payable on January 6, 2026, to shareholders of record on December 16, 2025.
Select Home Construction Index 100.00 126.99 190.20 140.90 238.93 244.95 * Assumes $100 invested on December 31, 2019, and the reinvestment of dividends.
Select Home Construction Index 100.00 149.77 110.95 188.14 192.88 183.73 * Assumes $100 invested on December 31, 2020, and the reinvestment of dividends.
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN* AMONG PULTEGROUP, INC., S&P 500 INDEX, AND PEER INDEX Fiscal Year Ended December 31, 2024 2019 2020 2021 2022 2023 2024 PULTEGROUP, INC. $ 100.00 $ 112.65 $ 151.00 $ 121.98 $ 279.07 $ 296.48 S&P 500 Index - Total Return 100.00 118.40 152.39 124.79 157.59 197.02 Dow Jones U.S.
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN* AMONG PULTEGROUP, INC., S&P 500 INDEX, AND PEER INDEX Fiscal Year Ended December 31, 2025 2020 2021 2022 2023 2024 2025 PULTEGROUP, INC. $ 100.00 $ 134.05 $ 108.29 $ 247.74 $ 263.19 $ 285.70 S&P 500 Index - Total Return 100.00 128.71 105.40 133.10 166.40 196.16 Dow Jones U.S.
Removed
On January 29, 2025, the Board of Directors approved an increase to our share repurchase authorization by an additional $1.5 billion, which was publicly announced on January 30, 2025. There is also no expiration date for this program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeFY 2023 2023 Net new orders - units: Northeast 1,566 4% 1,510 Southeast 5,363 (3)% 5,541 Florida 6,909 —% 6,893 Midwest 4,860 13% 4,297 Texas 4,763 (7)% 5,143 West 5,765 11% 5,196 29,226 2% 28,580 Net new orders - dollars: Northeast $ 1,165,949 13% $ 1,034,819 Southeast 2,786,663 1% 2,758,983 Florida 4,015,536 —% 4,019,271 Midwest 2,642,969 14% 2,309,404 Texas 1,841,487 (4)% 1,916,753 West 4,040,920 26% 3,205,123 $ 16,493,524 8% $ 15,244,353 Cancellation rates: Northeast 7% 8% Southeast 12% 10% Florida 16% 16% Midwest 10% 11% Texas 17% 19% West 19% 22% 15% 16% Unit backlog: Northeast 615 8% 567 Southeast 1,912 (15)% 2,246 Florida 2,795 (26)% 3,792 Midwest 1,802 7% 1,692 Texas 948 (42)% 1,637 West 2,081 (6)% 2,212 10,153 (16)% 12,146 Backlog dollars: Northeast $ 506,121 24% $ 408,371 Southeast 1,127,517 (8)% 1,221,736 Florida 1,808,363 (28)% 2,497,827 Midwest 1,064,162 5% 1,011,503 Texas 431,177 (41)% 730,389 West 1,557,378 7% 1,449,888 $ 6,494,718 (11) % $ 7,319,714 29 The following table presents additional selected financial information for our reportable Homebuilding segments: Operating Data by Segment ($000's omitted) Years Ended December 31, 2024 2023 Land-related charges*: Northeast $ 8,142 $ 497 Southeast 4,006 7,853 Florida 2,804 2,683 Midwest 1,598 7,786 Texas 9,643 3,661 West 7,412 19,343 Other homebuilding 967 1,292 $ 34,572 $ 43,115 * Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs.
Biggest changeFY 2024 2024 Net new orders - units: Northeast 1,541 (2)% 1,566 Southeast 5,437 1% 5,363 Florida 7,068 2% 6,909 Midwest 4,829 (1)% 4,860 Texas 4,195 (12)% 4,763 West 4,844 (16)% 5,765 27,914 (4)% 29,226 Net new orders - dollars: Northeast $ 1,112,945 (5)% $ 1,165,949 Southeast 2,861,575 3% 2,786,663 Florida 3,974,320 (1)% 4,015,536 Midwest 2,622,300 (1)% 2,642,969 Texas 1,572,662 (15)% 1,841,487 West 3,375,114 (16)% 4,040,920 $ 15,518,916 (6)% $ 16,493,524 Cancellation rates: Northeast 9% 7% Southeast 13% 12% Florida 15% 16% Midwest 10% 10% Texas 17% 17% West 21% 19% 15% 15% Unit backlog: Northeast 507 (18)% 615 Southeast 1,751 (8)% 1,912 Florida 2,421 (13)% 2,795 Midwest 1,605 (11)% 1,802 Texas 791 (17)% 948 West 1,420 (32)% 2,081 8,495 (16)% 10,153 Backlog dollars: Northeast $ 376,551 (26)% $ 506,121 Southeast 1,030,029 (9)% 1,127,517 Florida 1,520,814 (16)% 1,808,363 Midwest 958,730 (10)% 1,064,162 Texas 328,300 (24)% 431,177 West 1,055,688 (32)% 1,557,378 $ 5,270,112 (19) % $ 6,494,718 29 The following table presents additional selected financial information for our reportable Homebuilding segments: Operating Data by Segment ($000's omitted) Years Ended December 31, 2025 2024 Land-related charges (a) : Northeast $ 1,779 $ 8,142 Southeast 20,216 4,006 Florida 11,743 2,804 Midwest 4,905 1,598 Texas 24,967 9,643 West 59,259 7,412 Other homebuilding 4,045 967 $ 126,914 $ 34,572 (a) Land-related charges include land impairments, net realizable value adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs.
These changes in actuarial estimates did not involve any significant changes in actuarial methodology but did impact the development of estimates for future periods, which resulted in adjustments to the IBNR portion of our recorded liabilities. There were no material adjustments to individual claims.
These 38 changes in actuarial estimates did not involve any significant changes in actuarial methodology but did impact the development of estimates for future periods, which resulted in adjustments to the IBNR portion of our recorded liabilities. There were no material adjustments to individual claims.
For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio Texas: Texas West: Arizona, California, Colorado, Nevada, New Mexico, Oregon, Utah, Washington We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking, title, and insurance agency operations.
For reporting purposes, our Homebuilding operations are aggregated into six reportable segments: Northeast: Maryland, Massachusetts, New Jersey, Pennsylvania, Rhode Island, Virginia Southeast: Georgia, North Carolina, South Carolina, Tennessee Florida: Florida Midwest: Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio Texas: Texas West: Arizona, California, Colorado, Nevada, New Mexico, Oregon, Utah, Washington We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking, title, and insurance agency operations.
For those communities whose carrying values exceed the expected undiscounted cash flows, we determine the fair value of the community and impairment charges are recorded if the fair value of the community’s inventory is less than its carrying value.
For those communities whose carrying values exceed the expected undiscounted cash 37 flows, we determine the fair value of the community and impairment charges are recorded if the fair value of the community’s inventory is less than its carrying value.
It also should be read in conjunction with the disclosure under “Special Notes Concerning Forward-Looking Statements” found in Item 7A of this Annual Report on Form 10-K. The following tables and related discussion set forth key operating and financial data as of and for the fiscal years ended December 31, 2024 and 2023.
It also should be read in conjunction with the disclosure under “Special Notes Concerning Forward-Looking Statements” found in Item 7A of this Annual Report on Form 10-K. The following tables and related discussion set forth key operating and financial data as of and for the fiscal years ended December 31, 2025 and 2024.
And we remain confident in our ability to navigate the future environment and to position the Company to take advantage of opportunities as they arise and support future growth and continued profitability and financial strength. 23 Homebuilding Operations The following is a summary of income before income taxes for our Homebuilding operations ($000’s omitted): Years Ended December 31, 2024 FY 2024 vs.
We remain confident in our ability to navigate the future environment and to position the Company to take advantage of opportunities as they arise and support future growth and continued profitability and financial strength. 23 Homebuilding Operations The following is a summary of income before income taxes for our Homebuilding operations ($000’s omitted): Years Ended December 31, 2025 FY 2025 vs.
The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of December 31, 2024, we were in compliance with all covenants and requirements.
The Revolving Credit Facility contains financial covenants that require us to maintain a minimum Tangible Net Worth and a maximum Debt-to-Capitalization Ratio (as each term is defined in the Revolving Credit Facility). As of December 31, 2025, we were in compliance with all covenants and requirements.
Supplemental Guarantor Financial Information As of December 31, 2024 PulteGroup, Inc. had outstanding $1.6 billion principal amount of unsecured senior notes due at dates from March 2026 through February 2035 and no amounts outstanding on its Revolving Credit Facility.
Supplemental Guarantor Financial Information As of December 31, 2025 PulteGroup, Inc. had outstanding $1.6 billion principal amount of unsecured senior notes due at dates from March 2026 through February 2035 and no amounts outstanding on its Revolving Credit Facility.
The Financial Services segment operates generally in the same markets as the Homebuilding segments. 27 The following table presents selected financial information for our reportable Homebuilding segments: Operating Data by Segment ($000's omitted) Years Ended December 31, 2024 FY 2024 vs.
The Financial Services segment operates generally in the same markets as the Homebuilding segments. 27 The following table presents selected financial information for our reportable Homebuilding segments: Operating Data by Segment ($000's omitted) Years Ended December 31, 2025 FY 2025 vs.
Additionally, given the disruption in economic activity, supply chain challenges, increase in mortgage interest rates, and other macroeconomic factors, our quarterly results in 2024 and 2023 are not necessarily indicative of results that may be achieved in the future.
Additionally, given the disruption in economic activity, supply chain challenges, increase in mortgage interest rates, and other macroeconomic factors, our quarterly results in 2025 and 2024 are not necessarily indicative of results that may be achieved in the future.
Liabilities related to IBNR and related claim expenses represented approximately 68% and 77% of the total general liability reserves at December 31, 2024 and 2023, respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data.
Liabilities related to IBNR and related claim expenses represented approximately 74% and 68% of the total general liability reserves at December 31, 2025 and 2024, respectively. The actuarial analyses that determine the IBNR portion of reserves consider a variety of factors, including the frequency and severity of losses, which are based on our historical claims experience supplemented by industry data.
For similar operating and financial data and discussion of our fiscal 2023 results compared to our fiscal 2022 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 5, 2024.
For similar operating and financial data and discussion of our fiscal 2024 results compared to our fiscal 2023 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 6, 2025.
Additionally, we have $1.1 billion of deposits and pre-acquisition costs at December 31, 2024 related to option agreements to acquire additional land. In the event of an extended economic slowdown, we could elect to 37 cancel a large portion of such land option agreements, which would generally result in the write-off of the related deposits and pre-acquisition costs.
Additionally, we have $1.3 billion of deposits and pre-acquisition costs at December 31, 2025 related to option agreements to acquire additional land. In the event of an extended economic slowdown, we could elect to cancel a large portion of such land option agreements, which would generally result in the write-off of the related deposits and pre-acquisition costs.
Based on the actuarial analyses performed, we believe the range of reasonably possible losses related to these claims is $200 million to $325 million.
Based on the actuarial analyses performed, we believe the range of reasonably possible losses related to these claims is $175 million to $325 million.
We are under contract to purchase federal transferable tax credits that we expect to use to offset future federal income tax obligations totaling $222 million. The timing of such purchases is intended to approximate the timing of our expected federal income tax obligations.
We are under contract to purchase federal transferable tax credits that we expect to use to offset future federal income tax obligations totaling $354.1 million. The timing of such purchases is intended to approximate the timing of our expected federal income tax obligations.
The following tables present selected financial information for our Financial Services operations ($000’s omitted): Years Ended December 31, 2024 FY 2024 vs.
The following tables present selected financial information for our Financial Services operations ($000’s omitted): Years Ended December 31, 2025 FY 2025 vs.
The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects. If the obligations related to a project are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At December 31, 2024, we had outstanding letters of credit of $321.1 million.
The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects. If the obligations related to a project are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At December 31, 2025, we had outstanding letters of credit of $357.1 million.
Other homebuilding consists primarily of write-offs of capitalized interest resulting from land-related charges. See Notes 2 and 3 to the Consolidated Financial Statements for additional discussion of these charges. Northeast: For 2024, Northeast home sale revenues increased 10% compared with 2023 due to a 7% increase in closings combined with a 3% increase in average selling price.
Other homebuilding consists primarily of write-offs of capitalized interest resulting from land-related charges. See Notes 2 and 3 to the Consolidated Financial Statements for additional discussion of these charges. Northeast: For 2025, Northeast home sale revenues increased 16% compared with 2024 due to a 9% increase in closings combined with a 7% increase in average selling price.
(d) Other homebuilding includes income from unconsolidated entities, interest, the amortization of intangible assets, the amortization of capitalized interest, other items not allocated to the operating segments, and the elimination of internal capital charges allocated to the operating segments.
(b) Other homebuilding includes income from unconsolidated entities, interest, the amortization of intangible assets,impairment of intangible assets, the amortization of capitalized interest, and other items not allocated to the operating segments, and the elimination of internal capital charges allocated to the operating segments.
Our overall gross margin realized during 2024 and our average gross margin in backlog at December 31, 2024 both exceeded 27%, and we have only a small minority of communities with gross margins below 10%.
Our overall gross margin realized during 2025 and our average gross margin in backlog at December 31, 2025 both exceeded 25%, and we have only a small minority of communities with gross margins below 10%.
Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $2.9 billion at December 31, 2024, are typically outstanding over a period of approximately three to five years.
Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $3.1 billion at December 31, 2025, are typically outstanding over a period of approximately three to five years.
A court could void or subordinate any Guarantor’s guarantee under the fraudulent conveyance laws if existing or future creditors of any such Guarantor were successful in establishing that such Guarantor: (a) incurred the guarantee with the intent of hindering, delaying or defrauding creditors; or (b) received less than reasonably equivalent value or fair consideration in return for incurring the guarantee and, in the case of any one of the following is also true at the time thereof: • such Guarantor was insolvent or rendered insolvent by reason of the issuance of the incurrence of the guarantee; • the incurrence of the guarantee left such Guarantor with an unreasonably small amount of capital or assets to carry on its business; • such Guarantor intended to, or believed that it would, incur debts beyond its ability to pay as they mature; • such Guarantor was a defendant in an action for money damages, or had a judgment for money damages docketed against it, if the judgment is unsatisfied after final judgment. 35 The measures of insolvency for purposes of determining whether a fraudulent conveyance occurred would vary depending upon the laws of the relevant jurisdiction and upon the valuation assumptions and methodology applied by the court.
A court could void or subordinate any Guarantor’s guarantee under the fraudulent conveyance laws if existing or future creditors of any such Guarantor were successful in establishing that such Guarantor: 35 (a) incurred the guarantee with the intent of hindering, delaying or defrauding creditors; or (b) received less than reasonably equivalent value or fair consideration in return for incurring the guarantee and, in the case of any one of the following is also true at the time thereof: • such Guarantor was insolvent or rendered insolvent by reason of the issuance of the incurrence of the guarantee; • the incurrence of the guarantee left such Guarantor with an unreasonably small amount of capital or assets to carry on its business; • such Guarantor intended to, or believed that it would, incur debts beyond its ability to pay as they mature; • such Guarantor was a defendant in an action for money damages, or had a judgment for money damages docketed against it, if the judgment is unsatisfied after final judgment.
Income Taxes Our effective income tax rate was 23.0% and 24.6% for 2024 and 2023, respectively. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense. See Note 8 for additional discussion of our effective income tax rate.
Income Taxes Our effective income tax rate was 23.8% and 23.0% for 2025 and 2024, respectively. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and federal tax credits. See Note 8 for additional discussion of our effective income tax rate.
Our recorded reserves for all such claims totaled $267.5 million and $563.1 million at December 31, 2024 and 2023, respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses.
Our recorded reserves for all such claims totaled $259.4 million and $267.5 million at December 31, 2025 and 2024, respectively, the vast majority of which relate to general liability claims. The recorded reserves include loss estimates related to both (i) existing claims and related claim expenses and (ii) IBNR and related claim expenses.
(b) Includes insurance reserve reversals of $333.9 million and $130.8 million in 2024 and 2023, respectively. (c) Equity income from unconsolidated entities includes a gain of $39.5 million in 2024 related to the sale of our minority interest in a joint venture. (d) Percentage not meaningful.
(b) Includes insurance reserve reversals of $42.3 million and $333.9 million in 2025 and 2024, respectively. (c) Equity income from unconsolidated entities includes a gain of $39.5 million in 2024 related to the sale of our minority interest in a joint venture. (d) Percentage not meaningful.
Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sales and other revenues contributed income of $5.5 million and $17.5 million in 2024 and 2023, respectively.
Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sales and other revenues contributed income of $13.7 million and $5.5 million in 2025 and 2024, respectively.
During 2024 and 2023, we reduced general liability reserves by $333.9 million and $130.8 million, respectively, as a result of changes in estimates resulting from actual claim experience observed being less than anticipated in previous actuarial projections. The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims.
During 2025 and 2024, we reduced general liability reserves by $42.3 million and $333.9 million, respectively, as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections. The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims.
Financing activities Net cash used in financing activities was $1.8 billion in 2024 compared with $1.3 billion during 2023. The net cash used in financing activities for 2024 resulted primarily from the repurchase of 10.1 million common shares for $1.2 billion under our repurchase authorization, cash dividends of $167.7 million, and repayments of debt of $355.8 million.
Net cash used in financing activities for 2024 resulted primarily from the repurchase of 10.1 million common shares for $1.2 billion under our repurchase authorization, cash dividends of $167.7 million, and repayments of debt of $355.8 million.
In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At December 31, 2024, these agreements had an aggregate remaining purchase price of $9.2 billion.
In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At December 31, 2025, these agreements had an aggregate remaining purchase price of $10.0 billion.
Florida: For 2024, Florida home sale revenues increased 1% compared with 2023 due to a 2% increase in closings partially offset by a 1% decrease in average selling price. The increase in closings was mixed among markets, while the decrease in average selling price occurred across the majority of markets.
Southeast: For 2025, Southeast home sale revenues increased 3% compared with 2024 due to a 5% increase in average selling price partially offset by a 2% decrease in closings. The increase in average selling price was mixed among markets, while the decrease in closings occurred across the majority of markets.
The remaining purchase price under our land option agreements totaled $9.2 billion at December 31, 2024. 26 Homebuilding Segment Operations Our Homebuilding operations represent our core business. Homebuilding offers a broad product line to meet the needs of homebuyers in our targeted markets. As of December 31, 2024, we conducted our operations in 46 markets located throughout 25 states.
The remaining purchase price under our land option agreements totaled $10.0 billion at December 31, 2025. 26 Homebuilding Segment Operations Our Homebuilding operations represent our core business. Homebuilding offers a broad product line to meet the needs of homebuyers in our targeted markets. As of December 31, 2025, we conducted our operations in 47 markets located throughout 26 states.
We believe our strategic approach with respect to sales incentives, advertising, and our production cadence will enable us to meet consumer demand at the selling prices necessary to turn our inventory, maintain market share, and generate healthy returns.
We believe our strategic approach with respect to balancing sales price with sales pace, including actions taken related to sales incentives and our production cadence, will enable us to meet consumer demand at the selling prices necessary to turn our inventory, maintain market share, and generate healthy returns.
The increase in closings occurred across all markets while the increase in average selling price occurred across the majority of markets. Income before income taxes increased 38%, primarily due to increased revenues and gross margins across all markets.
The increase in closings occurred across the majority of markets, while the increase in average selling price occurred across all markets. Income before income taxes increased 28%, primarily due to increased revenues across the majority of markets, and higher gross margins across all markets. Net new orders decreased across the majority of markets.
Pursuant to these land option agreements, we provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At December 31, 2024, outstanding deposits totaled $639.8 million, of which $18.4 million is refundable.
Pursuant to these land option agreements, we provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At December 31, 2025, outstanding deposits totaled $724.2 million, of which $23.9 million is refundable.
At December 31, 2024, we had unrestricted cash and equivalents of $1.6 billion, restricted cash balances of $40.4 million, and $928.9 million available under our Revolving Credit Facility (as defined below). Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 11.8% at December 31, 2024 as compared with 15.9% at December 31, 2023.
At December 31, 2025, we had unrestricted cash and equivalents of $2.0 billion, restricted cash balances of $27.9 million, and $892.9 million available under our Revolving Credit Facility (as defined below). Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 11.2% at December 31, 2025 as compared with 11.8% at December 31, 2024.
Our positive cash flow from operations for 2024 was primarily due to our net income of $3.1 billion, which was partially offset by a $787.5 million net increase in inventories primarily attributable to investment in land inventory.
Our positive cash flow from operations for 2025 was primarily due to our net income of $2.2 billion, which was partially offset by a $213.4 million net increase in inventories primarily attributable to investment in land inventory.
Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. At December 31, 2024, we had no borrowings outstanding, $321.1 million of letters of credit issued, and $928.9 million of remaining capacity under the Revolving Credit Facility.
Outstanding amounts and other obligations under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries. At December 31, 2025, we had no borrowings outstanding, $357.1 million of letters of credit issued, and $892.9 million of remaining capacity under the Revolving Credit Facility.
Net cash provided by operating activities in 2023 was primarily due to our net income of $2.6 billion, which was partially offset by a $354.0 million net increase in inventories primarily attributable to investment in land inventory. 34 Investing activities Net cash used in investing activities totaled $94.5 million in 2024, compared with $129.1 million in 2023.
Net cash provided by operating activities in 2024 was primarily due to our net income of $3.1 billion, which was partially offset by a $787.5 million net increase in inventories primarily attributable to investment in land inventory. Investing activities Net cash used in investing activities totaled $80.4 million in 2025, compared with $94.5 million in 2024.
The following tables present summarized financial information for PulteGroup, Inc. and the Guarantor Subsidiaries on a combined basis after intercompany transactions and balances have been eliminated among PulteGroup, Inc. and the Guarantor Subsidiaries, as well as their investment in and equity in earnings from the Non-Guarantor Subsidiaries ($000’s omitted): PulteGroup, Inc. and Guarantor Subsidiaries Summarized Balance Sheet Data December 31, ASSETS 2024 2023 Cash, cash equivalents, and restricted cash $ 1,218,207 $ 1,471,293 House and land inventory 12,354,274 11,474,861 Amount due from Non-Guarantor Subsidiaries 1,024,762 839,673 Total assets 15,589,227 14,451,614 LIABILITIES Accounts payable, customer deposits, accrued and other liabilities $ 2,735,190 $ 2,810,832 Notes payable 1,618,586 1,962,218 Total liabilities 4,801,056 5,078,696 36 Years Ended December 31, Summarized Statement of Operations Data 2024 2023 Revenues $ 17,200,473 $ 15,447,595 Cost of revenues 12,228,331 10,895,197 Selling, general, and administrative expenses 1,314,547 1,312,645 Income before income taxes 3,789,812 3,334,858 Critical Accounting Estimates The preparation of the Company's financial statements in conformity with U.S. generally accepted accounting principles and the discussion and analysis of its financial condition and operating results requires management to make estimates and assumptions, including estimates about the future resolution of existing uncertainties that affect the amounts reported.
The following tables present summarized financial information for PulteGroup, Inc. and the Guarantor Subsidiaries on a combined basis after intercompany transactions and balances have been eliminated among PulteGroup, Inc. and the Guarantor Subsidiaries, as well as their investment in and equity in earnings from the Non-Guarantor Subsidiaries ($000’s omitted): 36 PulteGroup, Inc. and Guarantor Subsidiaries Summarized Balance Sheet Data December 31, ASSETS 2025 2024 Cash, cash equivalents, and restricted cash $ 1,632,196 $ 1,218,207 House and land inventory 12,635,442 12,354,274 Amount due from Non-Guarantor Subsidiaries 1,083,631 1,024,762 Total assets 16,507,470 15,589,227 LIABILITIES Accounts payable, customer deposits, accrued and other liabilities $ 2,601,837 $ 2,735,190 Notes payable 1,631,098 1,618,586 Total liabilities 4,682,755 4,801,056 Years Ended December 31, Summarized Statement of Operations Data 2025 2024 Revenues $ 16,594,878 $ 17,200,473 Cost of revenues 12,220,999 12,228,331 Selling, general, and administrative expenses 1,508,055 1,314,547 Income before income taxes 3,047,519 3,789,812 Critical Accounting Estimates The preparation of the Company's financial statements in conformity with U.S. generally accepted accounting principles and the discussion and analysis of its financial condition and operating results requires management to make estimates and assumptions, including estimates about the future resolution of existing uncertainties that affect the amounts reported.
Revolving credit facility We maintain a revolving credit facility ("Revolving Credit Facility") maturing in June 2027 that has a maximum borrowing capacity of $1.3 billion and contains an uncommitted accordion feature that could increase the capacity to $1.8 billion, subject to certain conditions and availability of additional bank commitments.
Revolving credit facility As of December 31, 2025, we maintained a revolving credit facility ("Revolving Credit Facility") scheduled to mature in June 2027 with a maximum borrowing capacity of $1.3 billion and an uncommitted accordion feature that could increase the capacity to $1.8 billion, subject to certain conditions and availability of additional bank commitments.
(f) Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders. 24 Home sale revenues Home sale revenues for 2024 were higher than 2023 by $1.7 billion, or 11%.
(f) Net new order dollars represent a composite of new order dollars combined with other movements of the dollars in backlog related to cancellations and change orders. 24 Home sale revenues Home sale revenues for 2025 were lower than 2024 by $575.0 million, or 3%.
Income before income taxes decreased 6%, primarily due to lower gross margins across the majority of markets. Net new orders decreased across the majority of markets. Midwest: For 2024, Midwest home sale revenues increased 24% compared with 2023 due to a 20% increase in closings combined with a 3% increase in average selling price.
Income before income taxes decreased 11% primarily due to lower gross margins across all markets. Net new orders increased across the majority of markets. Florida: For 2025, Florida home sale revenues decreased 9% compared with 2024 due to a 6% decrease in closings combined with a 4% decrease in average selling price.
Accordingly, we are focused on protecting liquidity and closely managing our cash flows while also continuing to focus on shareholder returns, including the following actions: – Increasing our lot optionality within our land pipeline for increased flexibility; – Producing sufficient levels of spec inventory (houses without customer orders) to service buyers seeking to close within 30 to 90 days; – Maintaining a focus on shareholder return through share buybacks and dividends, including a 10% increase in our dividends from $0.20 to $0.22 per share effective with our January 2025 dividend payment and an additional $1.5 billion share repurchase authorization effective January 2025; – Taking an opportunistic approach to repurchasing debt; and – Maintaining ample liquidity.
Accordingly, we 22 are focused on protecting liquidity and closely managing our cash flows while also continuing to emphasize shareholder returns, including the following actions: – Increasing our lot optionality within our land pipeline for increased flexibility; – Producing sufficient levels of spec inventory to service buyers seeking to close within 30 to 90 days; – Maintaining a focus on shareholder return through dividends and share buybacks, including an 18% increase in our dividends from $0.22 to $0.26 per share effective with our January 2026 dividend payment and approving an additional $1.5 billion share repurchase authorization effective January 2025, bringing our total remaining share repurchase authorization to $1.0 billion as of December 31, 2025, after $1.2 billion of share repurchases in 2025; and – Maintaining a modest leverage profile and ample liquidity.
Contractual obligations We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of December 31, 2024, while others are considered future commitments.
These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of December 31, 2025, while others are considered future commitments.
For further information regarding our primary obligations, refer to Note 5 , "Debt" and Note 11 , "Commitments and Contingencies" to the Consolidated Financial Statements included elsewhere in this Annual Report on 10-K for amounts outstanding as of December 31, 2024, related to debt and commitments and contingencies, respectively.
For further information regarding our primary obligations, refer to Note 5 , "Debt" and Note 11 , "Commitments and Contingencies" to the Consolidated Financial Statements included elsewhere in this Annual Report on 10-K for amounts outstanding as of December 31, 2025, related to debt and commitments and contingencies, respectively. 34 Cash flows Operating activities Net cash provided by operating activities in 2025 was $1.9 billion, compared with net cash provided by operating activities of $1.7 billion in 2024.
We expect that homebuyers will continue to face affordability challenges, so our sales paces may remain volatile on a monthly basis and we expect our sales incentives to remain elevated. Additionally, we continued to face pressures in 2024 in the cost of land acquisition and development and the cost and availability of construction labor.
We expect that many homebuyers will continue to face affordability challenges, so our sales paces may remain volatile on a monthly basis. In response, we expect our sales incentives to remain elevated and for our pace of house starts to remain dynamic. Additionally, we continue to face pressure in the cost of land acquisition and development.
Homes in production The following is a summary of our homes in production at December 31, 2024 and 2023: 2024 2023 Sold 7,680 9,508 Unsold Under construction 6,897 6,118 Completed 1,862 1,263 8,759 7,381 Models 1,593 1,465 Total 18,032 18,354 The number of homes in production at December 31, 2024 was 2% lower compared to December 31, 2023.
Homes in production The following is a summary of our homes in production at December 31, 2025 and 2024: 2025 2024 Sold 6,489 7,680 Unsold Under construction 5,217 6,897 Completed 1,999 1,862 7,216 8,759 Models 1,759 1,593 Total 15,464 18,032 The number of homes in production at December 31, 2025 was 14% lower compared to December 31, 2024.
This strategy results in owning the loans and related servicing rights for only a short period of time. Operating as a captive business model primarily targeted to supporting our Homebuilding operations, the business levels of our Financial Services operations are highly correlated to Homebuilding. Our Homebuilding customers continue to account for substantially all Financial Services activities.
Operating as a captive business model primarily targeted to supporting our Homebuilding operations, the business levels of our Financial Services operations are highly correlated to Homebuilding. Our Homebuilding customers continue to account for substantially all Financial Services activities.
We may from time to time repurchase our unsecured senior notes through open market purchases, privately negotiated transactions, or otherwise. We believe that our current cash position and other available financing resources, coupled with our ongoing operating activities, will provide sufficient liquidity to fund our business needs over the next twelve months and beyond.
We believe that our current cash position and other available financing resources, coupled with our ongoing operating activities, will provide sufficient liquidity to fund our business needs over the next twelve months and beyond.
The Repurchase Agreement also contains an accordion feature that could increase the commitment by $50.0 million above its active commitment level. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains 33 various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity.
Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity.
Other income (expense), net Other income (expense), net includes the following ($000’s omitted): 2024 2023 Write-offs of deposits and pre-acquisition costs (Note 2) $ (18,266) $ (23,512) Amortization of intangible assets (Note 1) (10,034) (10,538) Gain (loss) on debt retirement (222) 663 Interest income 59,486 61,533 Interest expense (479) (469) Miscellaneous, net (a) 31,267 11,524 Total other income (expense), net $ 61,752 $ 39,201 (a) Includes a gain of $17.5 million in 2024 related to the sale of a non-homebuilding property.
Other income (expense), net Other income (expense), net includes the following ($000’s omitted): 2025 2024 Write-offs of deposits and pre-acquisition costs (Note 2) $ (48,442) $ (18,266) Amortization of intangible assets (Note 1) (20,093) (10,034) Goodwill impairment ( Note 1 ) (28,553) — Property and equipment impairments (49,629) — Gain (loss) on debt retirement — (222) Interest income 44,428 59,486 Interest expense (605) (479) Miscellaneous, net (a) 11,392 31,267 Total other income (expense), net (b) $ (91,502) $ 61,752 (a) Includes a gain of $17.5 million in 2024 related to the sale of a non-homebuilding property.
Southeast: For 2024, Southeast home sale revenues increased 8% compared with 2023 due to a 10% increase in closings partially offset by 1% decrease in average selling price. The increase in closings occurred across the majority of markets while the decrease in average selling price was mixed among markets.
West: For 2025, West home sale revenues decreased 1% compared with 2024 primarily due to an 7% decrease in closings partially offset by a 6% increase in average selling price. The decrease in closings occurred across the majority of markets while the increase in average selling price occurred across the majority of markets.
Cash flows Operating activities Net cash provided by operating activities in 2024 was $1.7 billion, compared with net cash provided by operating activities of $2.2 billion in 2023. Generally, the primary drivers of our cash flow from operations are profitability and changes in inventory levels and residential mortgage loans available-for-sale, each of which experiences seasonal fluctuations.
Generally, the primary drivers of our cash flow from operations are profitability and changes in inventory levels and residential mortgage loans available-for-sale, each of which experiences seasonal fluctuations.
Income before income taxes decreased 7%, primarily due to decreased gross margins in Central Texas. The decrease in net new orders was mixed among markets. West: For 2024, West home sale revenues increased 24% compared with 2023 primarily due to an 18% increase in closings combined with a 5% increase in average selling price.
Income before income taxes increased 10%, primarily due to increased revenues and gross margins across the majority of markets. The decrease in net new orders was mixed among markets. 30 Texas: For 2025, Texas home sale revenues decreased 22% compared with 2024 due to a 20% decrease in closings combined with a 2% decrease in average selling price.
Unsecured senior notes At December 31, 2024, we had $1.6 billion of unsecured senior notes outstanding with no repayments due until March 2026, when $251.9 million of notes are scheduled to mature.
Unsecured senior notes At December 31, 2025, we had $1.6 billion of unsecured senior notes outstanding with no repayments due until March 2026, when $251.9 million of notes are scheduled to mature. Other notes payable Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $47.2 million at December 31, 2025.
Net cash used in financing activities for 2023 resulted primarily from the repurchase of 13.8 million common shares for $1.0 billion under our repurchase authorization and cash dividends of $142.5 million.
The net cash used in financing activities for 2025 resulted primarily from the repurchase of 10.6 million common shares for $1.2 billion under our repurchase authorization, cash dividends of $176.7 million, and repayments of debt of $24.5 million.
Controlled lots The following is a summary of our lots under control at December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Owned Optioned Controlled Owned Optioned Controlled Northeast 3,946 6,693 10,639 4,204 8,718 12,922 Southeast 17,843 32,770 50,613 18,911 27,666 46,577 Florida 27,041 34,499 61,540 26,922 35,543 62,465 Midwest 11,271 20,061 31,332 12,290 14,461 26,751 Texas 15,420 23,663 39,083 16,487 17,378 33,865 West 26,655 14,727 41,382 25,701 14,349 40,050 Total 102,176 132,413 234,589 104,515 118,115 222,630 44 % 56 % 100 % 47 % 53 % 100 % Developed (%) 48 % 24 % 34 % 45 % 18 % 31 % While competition for well-positioned land is robust, we have continued to pursue land investments that we believe can achieve appropriate risk-adjusted returns on invested capital.
Controlled lots The following is a summary of our lots under control at December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Owned Optioned Controlled Owned Optioned Controlled Northeast 3,671 7,202 10,873 3,946 6,693 10,639 Southeast 18,853 36,519 55,372 17,843 32,770 50,613 Florida 25,849 34,345 60,194 27,041 34,499 61,540 Midwest 10,319 21,660 31,979 11,271 20,061 31,332 Texas 16,220 19,162 35,382 15,420 23,663 39,083 West 26,192 14,640 40,832 26,655 14,727 41,382 Total 101,104 133,528 234,632 102,176 132,413 234,589 43 % 57 % 100 % 44 % 56 % 100 % Developed (%) 50 % 25 % 36 % 48 % 24 % 34 % While competition for well-positioned land is robust, we have continued to pursue land investments that we believe can achieve appropriate risk-adjusted returns on invested capital.
The 2024 cash outflows primarily reflect capital expenditures of $118.5 million related to our ongoing investment in new communities, construction operations, and information technology applications.
The 2025 cash outflows primarily reflect capital expenditures of $122.7 million related to our ongoing investment in new communities, construction operations, and information technology applications, partially offset by distributions of capital from unconsolidated entities of $63.7 million.
The increase in closings was mixed among markets, while the increase in average selling price occurred across the majority of markets. Income before income taxes increased 9%, primarily due to increased revenues, which were mixed among markets, and increased gross margins across the majority of markets. Net new orders increased across the majority of markets.
The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 27%, primarily due to lower revenue across the majority of markets and lower gross margins across all markets. Net new orders increased across the majority of markets.
This decrease was primarily due to a decreased number of sold homes due to lower backlog and improved production cycle times, which reduces the length of time a home sits in inventory.
This decrease was primarily due to lower order volumes and improved production cycle times, which reduces the length of time a home remains under construction.
FY 2023 2023 Home sale revenues $ 17,318,521 11 % $ 15,598,707 Land sale and other revenues 195,435 38 % 142,116 Total Homebuilding revenues 17,513,956 11 % 15,740,823 Home sale cost of revenues (a) (12,311,766) 12 % (11,030,206) Land sale and other cost of revenues (189,893) 52 % (124,607) Selling, general, and administrative expenses ("SG&A") (b) (1,321,276) 1 % (1,312,642) Equity income from unconsolidated entities (c) 43,151 (d) 3,506 Other income (expense), net (e) 61,752 58 % 39,201 Income before income taxes $ 3,795,924 14 % $ 3,316,075 Supplemental data: Gross margin from home sales (a) 28.9 % (40) bps 29.3 % SG&A % of home sale revenues (b) 7.6 % (80) bps 8.4 % Closings (units) 31,219 9 % 28,603 Average selling price $ 555 2 % $ 545 Net new orders (f) : Units 29,226 2 % 28,580 Dollars $ 16,493,524 8 % $ 15,244,353 Cancellation rate 15 % 16 % Average active communities 945 4 % 906 Backlog at December 31: Units 10,153 (16) % 12,146 Dollars $ 6,494,718 (11) % $ 7,319,714 (a) Includes the amortization of capitalized interest.
FY 2024 2024 Home sale revenues $ 16,743,522 (3) % $ 17,318,521 Land sale and other revenues 179,764 (8) % 195,435 Total Homebuilding revenues 16,923,286 (3) % 17,513,956 Home sale cost of revenues (a) (12,341,421) — % (12,311,766) Land sale and other cost of revenues (166,041) (13) % (189,893) Selling, general, and administrative expenses ("SG&A") (b) (1,573,928) 19 % (1,321,276) Equity income from unconsolidated entities (c) 2,897 (d) 43,151 Other income (expense), net (e) (91,502) (d) 61,752 Income before income taxes $ 2,753,291 (27) % $ 3,795,924 Supplemental data: Gross margin from home sales (a) 26.3 % (260) bps 28.9 % SG&A % of home sale revenues (b) 9.4 % 180 bps 7.6 % Closings (units) 29,572 (5) % 31,219 Average selling price $ 566 2 % $ 555 Net new orders (f) : Units 27,914 (4) % 29,226 Dollars $ 15,518,916 (6) % $ 16,493,524 Cancellation rate 15 % 15 % Average active communities 993 5 % 945 Backlog at December 31: Units 8,495 (16) % 10,153 Dollars $ 5,270,112 (19) % $ 6,494,718 (a) Includes the amortization of capitalized interest.
Substantially all of the loans we originate are sold in the secondary market within a short period of time after origination, generally within 30 days. We also sell the servicing rights for the loans we originate through fixed-price servicing sales contracts to reduce the risks and costs inherent in servicing loans.
We also sell the servicing rights for the loans we originate through fixed-price servicing sales contracts to reduce the risks and costs inherent in servicing loans. This strategy results in owning the loans and related servicing rights for only a short period of time.
SG&A SG&A as a percentage of home sale revenues was 7.6% and 8.4% in 2024 and 2023, respectively. The gross dollar amount of our SG&A increased $8.6 million, or 1%, in 2024 compared with 2023.
SG&A SG&A as a percentage of home sale revenues was 9.4% and 7.6% in 2025 and 2024, respectively. The gross dollar amount of our SG&A increased $252.7 million, or 19%, in 2025 compared with 2024. This increase resulted primarily from insurance reserve reversals of $42.3 million in 2025 compared to $333.9 million in 2024.
Dividends and share repurchase program We declared quarterly cash dividends totaling $171.4 million and $149.8 million in 2024 and 2023, respectively, and repurchased 10.1 million and 13.8 million shares in 2024 and 2023, respectively, for a total of $1.2 billion and $1.0 billion in 2024 and 2023, respectively.
Pulte Mortgage was in compliance with all of its covenants and requirements as of such dates. 33 Dividends and share repurchase program We declared quarterly cash dividends totaling $183.0 million and $171.4 million in 2025 and 2024, respectively, and repurchased 10.6 million and 10.1 million shares in 2025 and 2024, respectively, for a total of $1.2 billion and $1.2 billion in 2025 and 2024, respectively.
In August 2025, we need to repay or refinance Pulte Mortgage's master repurchase agreement 32 with third-party lenders (as amended, the "Repurchase Agreement"). While we intend to refinance the Repurchase Agreement, there can be no assurances that the Repurchase Agreement can be renewed or replaced on commercially reasonable terms upon its expiration.
While we intend to refinance the Repurchase Agreement, there can be no assurances that the Repurchase Agreement can be renewed or replaced on commercially reasonable terms upon its expiration. 32 However, we believe we have adequate liquidity to meet Pulte Mortgage's anticipated financing needs.
On January 29, 2024, the Board of Directors increased our share repurchase authorization by $1.5 billion. At December 31, 2024, we had remaining authorization to repurchase $682.9 million of common shares. On January 29, 2025, the Board of Directors increased our share repurchase authorization by an additional $1.5 billion.
On January 29, 2025, the Board of Directors increased our share repurchase authorization by $1.5 billion, which was publicly announced on January 30, 2025. At December 31, 2025, we had remaining authorization to repurchase $982.9 million of common shares. Contractual obligations We are a party to many contractual obligations involving commitments to make payments to third parties.
Pulte Mortgage maintains a master repurchase agreement with third-party lenders entered into in August 2023 (the "Repurchase Agreement") that matures on August 13, 2025. The maximum aggregate commitment was $675.0 million at December 31, 2024 and decreased to $650.0 million at January 14, 2025, which continues until maturity.
Pulte Mortgage maintains a master repurchase agreement with third-party lenders entered into in August 2025 (the "Repurchase Agreement") that matures on August 12, 2026. The maximum aggregate commitment was $625.0 million at December 31, 2025, which continues until maturity. The Repurchase Agreement also contains an accordion feature that could increase the commitment by $50.0 million above its active commitment level.
Net new orders increased across the majority of markets. 30 Texas: For 2024, Texas home sale revenues increased 5% compared with 2023 due to a 3% increase in closings combined with a 2% increase in average selling price. The increase in closings occurred across the majority of markets, while the increase in average selling price was mixed among markets.
Midwest: For 2025, Midwest home sale revenues increased 5% compared with 2024 due to a 6% increase in closings partially offset by a slight decrease in average selling price. The increase in closings and decrease in average selling price occurred across the majority of markets.
Though we experienced significant improvement in 2023 and 2024, the elongation of our production cycle in recent years has required a greater investment of cash in our homes under production. Additionally, we plan to continue our dividend payments and repurchases of common stock.
Though we generated significant cash flows from operations in 2024 and 2025, as we increase the number of homes under production in the future, this will require a greater use of cash. Additionally, we plan to continue our dividend payments and repurchases of common stock.
Net cash used in investing activities in 2023 primarily reflected $23.4 million of investments in unconsolidated entities primarily in support of our land development activities and capital expenditures of $92.2 million related to our ongoing investment in new communities, construction operations, and information technology applications.
Net cash used in investing activities in 2024 primarily reflects capital expenditures of $118.5 million related to our ongoing investment in new communities, construction operations, and information technology applications. Financing activities Net cash used in financing activities was $1.4 billion in 2025 compared with $1.8 billion during 2024.
FY 2023 2023 Mortgage revenues $ 298,128 47 % $ 202,614 Title services revenues 99,103 16 % 85,462 Insurance agency commissions 35,763 9 % 32,679 Total Financial Services revenues 432,994 35 % 320,755 Expenses (224,086) 20 % (187,280) Equity income from unconsolidated entities 1,050 — % 1,055 Other expense, net (3) (a) (1,338) Income before income taxes $ 209,955 58 % $ 133,192 Total originations: Loans 19,770 13 % 17,427 Principal $ 8,340,836 20 % $ 6,924,910 (a) Percentage not meaningful 31 Years Ended December 31, 2024 2023 Supplemental Pulte Mortgage data: Capture rate 85.9 % 81.6 % Average FICO score 750 748 Funded origination breakdown: Government (FHA, VA, USDA) 25 % 23 % Other agency 72 % 74 % Total agency 97 % 97 % Non-agency 3 % 3 % Total funded originations 100 % 100 % Revenues Total Financial Services revenues during 2024 increased 35% compared with 2023 primarily due to an increase in origination volumes resulting from increased closings within Homebuilding and improved capture rates.
FY 2024 2024 Mortgage revenues $ 283,799 (5) % $ 298,128 Title services revenues 97,669 (1) % 99,103 Insurance agency commissions 7,199 (80) % 35,763 Total Financial Services revenues 388,667 (10) % 432,994 Expenses (231,887) 3 % (224,086) Equity income from unconsolidated entities 1,250 19 % 1,050 Other expense, net — (a) (3) Income before income taxes $ 158,030 (25) % $ 209,955 Total originations: Loans 18,977 (4) % 19,770 Principal $ 8,229,007 (1) % $ 8,340,836 (a) Percentage not meaningful 31 Years Ended December 31, 2025 2024 Supplemental Pulte Mortgage data: Capture rate 84.7 % 85.9 % Average FICO score 752 750 Funded origination breakdown: Government (FHA, VA, USDA) 26 % 25 % Other agency 70 % 72 % Total agency 96 % 97 % Non-agency 4 % 3 % Total funded originations 100 % 100 % Revenues Total Financial Services revenues during 2025 decreased 10% compared with 2024 reflective of the lower homebuilding volume and lower margins on loan production in a more competitive environment.
However, we believe we have adequate liquidity to meet Pulte Mortgage's anticipated financing needs. Beyond the next twelve months, we will need to repay or refinance our Revolving Credit Facility, which matures in June 2027, and our unsecured senior notes, the next tranche of which becomes due in 2026.
Beyond the next twelve months, we will need to repay or refinance our Revolving Credit Facility, which matures in 2031, and our unsecured senior notes, the next tranche of which becomes due in March 2026. We may from time to time repurchase our unsecured senior notes through open market purchases, privately negotiated transactions, or otherwise.
Due to the length of our land development and construction cycle times, there is a lag between when such cost changes occur and when they impact our operating results. While we expect to continue to generate healthy gross margins, they may decline somewhat in future periods as a result of these factors.
While we expect to continue to generate healthy gross margins, they may decline somewhat in future periods as a result of these factors.
FY 2023 2023 Revenues: Northeast $ 1,068,199 10 % $ 969,107 Southeast 2,880,882 8 % 2,669,065 Florida 4,706,048 1 % 4,650,355 Midwest 2,590,309 24 % 2,084,807 Texas 2,140,699 5 % 2,040,164 West 3,933,430 24 % 3,182,947 Other Homebuilding 194,389 35 % 144,378 $ 17,513,956 11 % $ 15,740,823 Income before income taxes (a) : Northeast $ 229,996 9 % $ 210,508 Southeast 631,527 5 % 603,843 Florida (b) 1,121,311 (6) % 1,193,481 Midwest 490,185 38 % 353,966 Texas 345,594 (7) % 371,902 West (c) 552,839 45 % 379,993 Other homebuilding (d) 424,472 110 % 202,382 $ 3,795,924 14 % $ 3,316,075 Closings (units): Northeast 1,518 7 % 1,417 Southeast 5,697 10 % 5,201 Florida 7,906 2 % 7,742 Midwest 4,750 20 % 3,955 Texas 5,452 3 % 5,295 West 5,896 18 % 4,993 31,219 9 % $ 28,603 Average selling price: Northeast $ 704 3 % $ 684 Southeast 506 (1) % 513 Florida 595 (1) % 601 Midwest 545 3 % 527 Texas 393 2 % 385 West 667 5 % 637 $ 555 2 % $ 545 (a) Includes land-related charges as summarized in the following land-related charges table ( Notes 2 and 3 ).
FY 2024 2024 Revenues: Northeast $ 1,242,515 16 % $ 1,068,199 Southeast 2,959,063 3 % 2,880,882 Florida 4,264,540 (9) % 4,706,048 Midwest 2,727,733 5 % 2,590,309 Texas 1,675,539 (22) % 2,140,699 West 3,876,804 (1) % 3,933,430 Other Homebuilding 177,092 (9) % 194,389 $ 16,923,286 (3) % $ 17,513,956 Income before income taxes (a) : Northeast $ 293,867 28 % $ 229,996 Southeast 560,480 (11) % 631,527 Florida 821,646 (27) % 1,121,311 Midwest 539,061 10 % 490,185 Texas 162,179 (53) % 345,594 West 378,997 (31) % 552,839 Other homebuilding (b) (2,939) (c) 424,472 $ 2,753,291 (27) % $ 3,795,924 Closings (units): Northeast 1,649 9 % 1,518 Southeast 5,598 (2) % 5,697 Florida 7,442 (6) % 7,906 Midwest 5,026 6 % 4,750 Texas 4,352 (20) % 5,452 West 5,505 (7) % 5,896 29,572 (5) % $ 31,219 Average selling price: Northeast $ 753 7 % $ 704 Southeast 529 5 % 506 Florida 573 (4) % 595 Midwest 543 0 % 545 Texas 385 (2) % 393 West 704 6 % 667 $ 566 2 % $ 555 (a) Includes land-related charges as summarized in the following land-related charges table ( Notes 2 and 3 ).
Other notes payable Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $35.8 million at December 31, 2024. These notes have maturities ranging up to five years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets.
These notes have maturities ranging up to 4 years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 9%. Joint venture debt At December 31, 2025, aggregate outstanding debt of unconsolidated joint ventures was $43.9 million.
At December 31, 2024, Pulte Mortgage had $526.9 million outstanding at a weighted average interest rate of 6.13%, and $148.1 million of remaining capacity under the Repurchase Agreement. Pulte Mortgage was in compliance with all of its covenants and requirements as of such dates.
At December 31, 2025, Pulte Mortgage had $532.3 million outstanding at a weighted average interest rate of 5.51%, and $92.7 million of remaining capacity under the Repurchase Agreement.
Net new orders increased across all markets. Financial Services Operations We conduct our Financial Services operations, which include mortgage banking, title, and insurance agency operations, through Pulte Mortgage and other subsidiaries. In originating mortgage loans, we initially use our own funds, including funds available pursuant to credit agreements with third parties.
Income before income taxes decreased 31%, primarily due to decreased gross margin across the majority of markets. Net new orders decreased across the majority of markets. Financial Services Operations We conduct our Financial Services operations, which include mortgage banking, title, and insurance agency operations, through Pulte Mortgage and other subsidiaries.
Also includes insurance reserve reversals of $333.9 million and $130.8 million in 2024 and 2023, respectively ( Note 11 ), and a gain of $39.5 million in 2024 related to the sale of our minority interest in a joint venture. 28 The following table presents additional selected financial information for our reportable Homebuilding segments: Operating Data by Segment ($000's omitted) Years Ended December 31, 2024 FY 2024 vs.
Also includes insurance reserve reversals of $42.3 million and $333.9 million in 2025 and 2024, respectively ( Note 11 ), goodwill impairment of $28.6 million in 2025 ( Note 1 ), impairment of property and equipment of $49.6 million in 2025 ( Note 1 ), and a gain of $39.5 million in 2024 related to the sale of our minority interest in a joint venture.
The following is a summary of our operating results by line of business ($000's omitted, except per share data): Years Ended December 31, 2024 2023 Income before income taxes: Homebuilding $ 3,795,924 $ 3,316,075 Financial Services 209,955 133,192 Income before income taxes 4,005,879 3,449,267 Income tax expense (922,617) (846,895) Net income $ 3,083,262 $ 2,602,372 Diluted earnings per share $ 14.69 $ 11.72 Overview In 2022, the Federal Reserve began raising its benchmark interest rate in response to persistent inflation that began after the onset of the COVID-19 pandemic.
The following is a summary of our operating results by line of business ($000's omitted, except per share data): Years Ended December 31, 2025 2024 Income before income taxes: Homebuilding $ 2,753,291 $ 3,795,924 Financial Services 158,030 209,955 Income before income taxes 2,911,321 4,005,879 Income tax expense (692,591) (922,617) Net income $ 2,218,730 $ 3,083,262 Diluted earnings per share $ 11.12 $ 14.69 Overview In 2025, consumer demand weakened due to ongoing affordability challenges, resulting from elevated mortgage interest rates and higher housing costs, as well as volatility in other macroeconomic and geopolitical conditions, including higher job losses and weakened consumer confidence.
Income before income taxes increased 5%, primarily due to increased revenues across the majority of markets and increased gross margins, which were mixed among markets. Net new orders decreased across the majority of markets.
The decrease in closings occurred across all markets, while the decrease in average selling price was primarily due to decreases in Central Texas. Income before income taxes decreased 53%, primarily due to decreased gross margins across the majority of markets. Net new orders decreased across all markets.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2024 for the Years Ended December 31, 2025 2026 2027 2028 2029 Thereafter Total Fair Value Rate-sensitive liabilities: Fixed rate debt $ 10,563 $ 268,390 $ 337,277 $ 4,340 $ 4,340 $ 1,000,000 $ 1,624,910 $ 1,701,270 Average interest rate 2.82 % 5.30 % 5.00 % 5.00 % 5.00 % 6.71 % 6.09 % Variable rate debt (a) $ 526,906 $ — $ — $ — $ — $ — $ 526,906 $ 526,906 Average interest rate 6.13 % — % — % — % — % — % 6.13 % As of December 31, 2023 for the Years Ended December 31, 2024 2025 2026 2027 2028 Thereafter Total Fair Value Rate-sensitive liabilities: Fixed rate debt $ 48,111 $ 6,240 $ 463,359 $ 443,875 $ 4,340 $ 1,004,340 $ 1,970,265 $ 2,080,187 Average interest rate 2.98 % 1.22 % 5.44 % 5.00 % — % 6.68 % 5.89 % Variable rate debt (a) $ 499,627 $ — $ — $ — $ — $ — $ 499,627 $ 499,267 Average interest rate 7.15 % — % — % — % — % — % 7.15 % (a) Includes the Pulte Mortgage Repurchase Agreement.
Biggest changeAs of December 31, 2025 for the Years Ended December 31, 2026 2027 2028 2029 2030 Thereafter Total Fair Value Rate-sensitive liabilities: Fixed rate debt $ 282,084 $ 342,348 $ 7,556 $ 4,341 $ — $ 1,000,000 $ 1,636,329 $ 1,755,396 Average interest rate 5.16 % 5.03 % 6.64 % 5.00 % — % 6.71 % 6.09 % Variable rate debt (a) $ 532,338 $ — $ — $ — $ — $ — $ 532,338 $ 532,338 Average interest rate 5.51 % — % — % — % — % — % — % As of December 31, 2024 for the Years Ended December 31, 2025 2026 2027 2028 2029 Thereafter Total Fair Value Rate-sensitive liabilities: Fixed rate debt $ 10,563 $ 268,390 $ 337,277 $ 4,340 $ 4,340 $ 1,000,000 $ 1,624,910 $ 1,701,270 Average interest rate 2.82 % 5.30 % 5.00 % 5.00 % 5.00 % 6.71 % 6.09 % Variable rate debt (a) $ 526,906 $ — $ — $ — $ — $ — $ 526,906 $ 526,906 Average interest rate 6.13 % — % — % — % — % — % 6.13 % (a) Includes the Pulte Mortgage Repurchase Agreement.
You can identify these statements by the fact that they do 39 not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events.
You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events.
We generally enter into one of the aforementioned derivative financial instruments upon accepting IRLCs. Changes in the fair value of IRLCs and the other derivative financial instruments are recognized in Financial Services revenues. We do not use any derivative financial instruments for trading purposes.
We generally enter into one of the aforementioned derivative financial instruments upon accepting IRLCs. Changes in the fair value of IRLCs and the other 39 derivative financial instruments are recognized in Financial Services revenues. We do not use any derivative financial instruments for trading purposes.
There were no borrowings outstanding under our Revolving Credit Facility at either December 31, 2024 or 2023. Derivative instruments and hedging activities Pulte Mortgage is exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend.
There were no borrowings outstanding under our Revolving Credit Facility at either December 31, 2025 or 2024. Derivative instruments and hedging activities Pulte Mortgage is exposed to market risks from commitments to lend, movements in interest rates, and canceled or modified commitments to lend.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; labor supply shortages and the cost of labor; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; rapidly changing technological developments including, but not limited to, the use of artificial intelligence in the homebuilding industry; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks associated with the implementation of a new enterprise resource planning system; risks related to information technology failures, data security issues, and the effect of cybersecurity incidents and threats; the impact of negative publicity on sales; failure to retain key personnel; the impairment of our intangible assets; the disruptions associated with the COVID-19 pandemic (or another epidemic or pandemic or similar public threat or fear of such an event), and the measures taken to address it; the effect of cybersecurity incidents and threats; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature.
Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry conditions or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; supply shortages and the cost of labor and building materials; the availability and cost of land and other raw materials used by us in our homebuilding operations; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; competition within the industries in which we operate; rapidly changing technological developments including, but not limited to, the use of artificial intelligence in the homebuilding industry; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and/or local building moratoria; the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims; damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us; weather related slowdowns; the impact of climate change and related governmental regulation; adverse capital and credit market conditions, which may affect our access to and cost of capital; the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations; the potential that we do not realize our deferred tax assets; our inability to sell mortgages into the secondary market; uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us; risks associated with the implementation of a new enterprise resource planning system; risks related to information technology failures, data security issues, and the effect of cybersecurity incidents and threats; the impact of negative publicity on sales; failure to retain key personnel; the impairment of our intangible assets; disruptions associated with epidemics, pandemics or other serious public health threats (as well as fear of such events), and the measures taken to address it; the effect of cybersecurity incidents and threats; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature.
At December 31, 2024 and 2023, residential mortgage loans available-for-sale had an aggregate fair value of $629.6 million and $516.1 million, respectively. At December 31, 2024 and 2023, we had aggregate IRLCs of $469.4 million and $404.7 million, respectively, which were originated at interest rates prevailing at the date of commitment.
At December 31, 2025 and 2024, residential mortgage loans available-for-sale had an aggregate fair value of $613.7 million and $629.6 million, respectively. At December 31, 2025 and 2024, we had aggregate IRLCs of $820.2 million and $469.4 million, respectively, which were originated at interest rates prevailing at the date of commitment.
Unexpired forward contracts totaled $977.0 million and $745.0 million at December 31, 2024 and 2023, respectively, and whole loan investor commitments totaled $237.1 million and $207.9 million, respectively, at such dates.
Unexpired forward contracts totaled $1.3 billion and $977.0 million at December 31, 2025 and 2024, respectively, and whole loan investor commitments totaled $270.6 million and $237.1 million, respectively, at such dates.
As a result, interest rate risk and changes in fair value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance or repurchase such debt. 38 The following tables set forth the principal cash flows by scheduled maturity, weighted-average interest rates, and estimated fair value of our debt obligations as of December 31, 2024 and 2023 ($000’s omitted).
As a result, interest rate risk and changes in fair value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance or repurchase such debt.
Added
The following tables set forth the principal cash flows by scheduled maturity, weighted-average interest rates, and estimated fair value of our debt obligations as of December 31, 2025 and 2024 ($000’s omitted).