PulteGroup, Inc. announced financial results for its Q4 ended December 31, 2023. For the quarter, the Company reported net income of $711 million, or $3.28 per share, compared to prior year reported net income of $882 million, or $3.85 per share.
For the Q4 2023, home sale revenues totaled $4.2 billion, compared with $5.0 billion in the prior year. Revenues in the quarter reflect closings of 7,615 homes at an average sales price of $547,000. Closings in the Q4 2022 totaled 8,848 homes at an average sales price of $561,000.
The Company’s home sale gross margin for the Q4 2023 was 28.9%, compared with 29.4% in the prior year period. Fourth quarter SG&A expense was $308 million, or 7.4% of home sale revenues, compared with $351 million, or 7.1%, in the prior year. Reported SG&A expense reflects a $65 million pre-tax insurance benefit recorded in the Q4 of both 2023 and 2022.
Net new orders in the Q4 2023 increased 57% over the prior year to 6,214 homes, while the dollar value of these orders increased 56% to $3.4 billion. The increase in net new orders reflects both an improved selling environment and a decrease in cancelations. Cancelations in the quarter were 9% of starting backlog, down from 11% in the comparable prior year period.
The average community count in the fourth quarter increased 8% from the prior year to 919 communities.
“PulteGroup’s strong Q4 financial results complete a record setting year, while the 57% increase in net new orders provides tremendous momentum heading into 2024,” said Ryan Marshall, PulteGroup President and CEO. “For the full year, PulteGroup generated nearly $16 billion in revenues and net income of $2.6 billion, while delivering a return on equity of 27.0% and returning over $1.1 billion to shareholders through stock repurchases and dividends.
“As the Q4 progressed, we experienced a significant increase in buyer activity as interest rates moved lower, resulting in December being the highest sales month of the quarter. With expectations for interest rates to remain lower in 2024, we are optimistic that improved affordability dynamics will continue attracting buyers into the market.
“After multiple years of variable macroeconomic activity, expectations are that 2024 can be a year of increased homebuying demand given a strong job market, lower interest rates and a limited inventory of existing homes. With a ready supply of homes and lots, I believe PulteGroup is extremely well positioned to capitalize on such market conditions as we seek to grow our business, while delivering strong cash flow and high returns.”
PulteGroup, Inc., based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 40 markets throughout the country.
