PulteGroup Announces $1.5 Billion Increase to Share Repurchase Authorization

Rhea-AI Summary

PulteGroup (NYSE: PHM) has announced a $1.5 billion increase to its share repurchase authorization, bringing the total remaining authorization to $2.1 billion. The announcement follows a year of record earnings and strong operational cash flows. The company also implemented a 10% dividend increase in Q4 2024.

In 2024, PulteGroup returned $1.4 billion to shareholders through dividends and share purchases. Over the past decade, the company has returned more than $8.4 billion to shareholders. Since the program's initiation in 2013, PulteGroup has repurchased over 50% of its outstanding shares.

Positive

• Board approved $1.5 billion increase in share repurchase authorization
• Record earnings and strong cash flows from operations in 2024
• 10% dividend increase in Q4 2024
• Returned $1.4 billion to shareholders in 2024
• Repurchased over 50% of outstanding shares since 2013

Negative

• None.

Insights

Financial Analyst

This substantial buyback authorization increase signals exceptional financial strength in a challenging housing market environment. The $2.1 billion total authorization represents approximately 9% of PulteGroup's current market capitalization, suggesting significant potential for EPS accretion and share price support.

The timing is particularly strategic, as homebuilders face market uncertainties due to interest rate dynamics. By aggressively repurchasing shares while maintaining strong operational performance, PHM is demonstrating confidence in its business model and future cash flow generation capacity. The company's decade-long track record of reducing share count by over 50% has meaningfully enhanced per-share metrics and created substantial shareholder value.

The combined approach of share repurchases and a recent 10% dividend increase reflects a balanced capital return strategy. Historical data shows PHM returned $1.4 billion to shareholders in 2024, indicating strong free cash flow generation even in a complex housing market. This latest authorization provides flexibility to opportunistically repurchase shares while maintaining financial strength for land acquisition and operational needs.

Notably, this aggressive capital return approach distinguishes PHM among peers, potentially warranting a premium valuation multiple. The sustainability of such returns is supported by the company's efficient operating model, strong margins and proven ability to generate consistent cash flows across housing cycles.

ATLANTA--(BUSINESS WIRE)-- PulteGroup, Inc. (NYSE: PHM) announced today that its Board of Directors has approved a $1.5 billion increase to the Company’s share repurchase authorization. This increase brings the Company’s remaining share repurchase authorization to $2.1 billion.

“Following another year of record earnings and strong cash flows from operations, we are increasing our share repurchase authorization by $1.5 billion,” said Ryan Marshall, PulteGroup President and CEO. “This latest increase, along with the 10% increase in our dividend in the fourth quarter of 2024, reflects our well established commitment to return excess funds to our shareholders.”

The Company returned $1.4 billion to shareholders through dividends and share purchases in 2024, and has returned over $8.4 billion to its shareholders over the past decade. Since initiating the program in 2013, the Company has repurchased over 50% of its shares outstanding.

About PulteGroup

PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.

For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; jwhomes.com; and americanwesthomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130134044/en/

Company Contact

Investors: Jim Zeumer

(404) 978-6434

Email: jim.zeumer@pultegroup.com

Source: PulteGroup, Inc.

FAQ

How much did PulteGroup increase its share repurchase authorization in 2024?

PulteGroup increased its share repurchase authorization by $1.5 billion, bringing the total remaining authorization to $2.1 billion.

What is PHM's total shareholder return value for 2024?

PulteGroup returned $1.4 billion to shareholders through dividends and share purchases in 2024.

How much has PHM returned to shareholders over the past decade?

PulteGroup has returned over $8.4 billion to shareholders over the past decade.

What percentage of shares has PHM repurchased since 2013?

Since initiating the share repurchase program in 2013, PulteGroup has repurchased over 50% of its shares outstanding.

How much did PHM increase its dividend in Q4 2024?

PulteGroup increased its dividend by 10% in the fourth quarter of 2024.