Since its founding in 1950, Atlanta-based Pulte Groupe has delivered more than 700,000 homes and is one of the nation’s largest homebuilders with operations in approximately 50 major metro markets. Through its unique multi-brand strategy— PulteGroup serves all major consumer groups: Centex for first-time buyers; Pulte Homes for move-up buyers; and Del Webb for active adults age 55 and over—the homebuilder is focused on earnings growth and delivering superior returns on invested capital over the housing cycle.
When it comes to dominating last year’s surge in housing demand, Pulte Group delivered gains for the fourth quarter in 2019, reporting a net income of $336 million. “As demonstrated by our 33 percent increase in orders, the recovery in housing demand that began earlier this year gained momentum through the fourth quarter as we realized strong sales across all buyer groups,” said President and CEO of Pulte Group Ryan Marshall in a statement announcing the company’s fourth quarter earnings. “The quarter completes an outstanding year during which we continued to invest in growing our business, generated $1.1 billion in operating cash ow, returned $397 million to shareholders, paid down $310 million of homebuilder debt, and realized a 20 percent return on equity.”
“Strong demand for new homes is bene tting from favorable market dynamics including improved affordability in part due to low mortgage rates, high employment and consumer con dence, and a generally balanced inventory of new homes,” added Marshall. “The sustained strength in housing demand allowed us to deliver strong fourth quarter and full-year results, and has PulteGroup well positioned to increase delivery volumes, revenues, homebuilding gross margins and earnings in 2020.”
Making investments as necessary to positioning the company for long-term success, PulteGroup also recently announced that it has acquired the assets of Innovative Construction Group (ICG), a leading off-site solutions provider focused on single-family and multifamily wood framed construction. Based in Jacksonville, Florida, ICG will remain a stand-alone operation and continue serving its existing customer base and builder clients. “In response to ongoing labor constraints which are impacting construction trades throughout the country, we have made the strategic decision to acquire off-site manufacturing capabilities that we believe can help us drive greater production efficiencies,” said Marshall. “We view this acquisition as a logical next step in the common plan management platform we have been advancing for years and see the potential to open comparable production plants in future years.”