PulteGroup, Inc.

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Great. Thank you, Jeannie. Good morning, and thank you for joining today's call as we look forward to discussing Policy Group's second quarter operating and financial results. With me today are Ryan Marshall, President and CEO, Jim Osowski, Executive Vice President and CFO, and David Carrier, Senior VP of Finance. As always, a copy of our earnings release and this morning's presentation have been posted to our corporate website at policygroup.com. We will also post an audio replay of this call later today. I would highlight that today's presentation includes forward-looking statements about the company's expected future performance. Actual results could differ materially from those suggested by our comments made today. most significant risk factors that could affect future results are summarized as part of today's earnings release and within the accompanying presentation. These risk factors and other key information are detailed on our ICC filings, including our annual and quarterly reports. Now let me turn the call over to Ryan Marshall.

Good morning and thank you for joining our call. As always, I appreciate the opportunity to update you on Multigroup and our work in delivering outstanding business results. Multigroup's earnings delivered strong closings, gross margins, and overhead leverage. Consistent with such results, we also continue to realize high returns as the company generated a return on equity of 23% for the trailing 12 months ended June 30. In a few minutes, I'll turn the call over to Jim for a detailed review of the numbers. Our results demonstrate that in an operating environment In this competitive operating environment, we are reaping the advantages of being diversified across all buyer groups, particularly our industry-leading position in serving active adult buyers. Specific to this group, I am pleased to report that we are experiencing a great response to our newest Dell Web and Dell Web Explorer communities as buyers embrace the active lifestyle at the core of both brands. As it relates to this part of our business, I would highlight that along with being among our higher price homes, these homes typically represent our highest margin closings. Along with the broad customer base, we have geographic breadth and market diversity that are again proving their value. Our business results continue to demonstrate the benefit of having large and stable operations in the Midwest, Southeast, and Northeast, as these work to offset some of the more challenging market conditions the industry is facing out west and in Texas. And I'm pleased to highlight the relative strength of our Florida operations displayed in the quarter, as net new orders increased 2% over last year. Beyond Florida remaining a beneficiary of long-established migration patterns in this country, we have exceptional land positions throughout the region. I would also highlight that our operating teams across Florida are second to none, and I truly believe we are seeing the importance of having such experienced leadership in place. And finally, our ability to serve both the buyer who needs the immediacy of an in-production spec home as well as the buyer seeking to build a more personalized home from scratch remains an important competitive advantage. The former allows us to effectively serve the first-time buyer and use our national rate incentive. While the lotter allows the buyer to select a lot and options that they value most, which in turn provides margin enhancement opportunities for us. Through the first half of 2025, we realized an average of $109,000 of options and lot premiums, which is an important driver of multi-group superior gross margins. But half the year, including the important spring selling season now complete, I thought it would be useful to offer a few high-level comments on the demand dynamics we have been experiencing. Over the past few quarters, our industry has routinely referenced demand conditions being volatile, and that remains the most accurate description of buyer activity in the first and second quarters. Within a market demonstrating a typical seasonal pattern from month to month, we do see days of strong demand, followed by days displaying a step down in sign-up activity. Feedback from would-be homebuyers indicates a variety of concerns ranging from affordability and the inability to sell an existing home to a slowing economy and the fear of potentially losing their job. In sum, I think consumer confidence is uncertain at best, and confidence is something that's difficult to solve with a lower price or higher incentive. This is where our disciplined approach to the market Two, the market focuses on capturing incremental volume without giving up too much price. If we look beyond the day-to-day volatility, the overall demand environment isn't far off our historical pre-COVID absorption paces. Our Q1 absorption pace of 2.7 homes per month was consistent with our pre-COVID averages, while our Q2 absorptions of 2.4 homes per month were just under our 2.6. pre-COVID average. In other words, our demand is reasonable, but we are having to compete for each home sale, and we are seeing meaningful differences in demand strengths and weaknesses from market to market. One of the most encouraging dynamics that I would highlight is that a drop in interest rates does stimulate traffic into our communities and a corresponding increase in sign of activity. This was clearly evident as rates dropped in the last two weeks of June, as well as at different points during our first and second quarters. I think this supports our view that people desire home ownership and remain actively engaged in the process. They just need the value equation to work and to have confidence in their financial circumstances to feel more comfortable signing the contracts. Given the demand conditions we have experienced in the first six months and an overall heightened sense of uncertainty among consumers, We have taken actions to adjust our operations to today's market conditions. We made the decision early in the year to slow our land spend, reduce our starts rate, and we have worked aggressively to sell excess spec inventory. We have been proactive and very tactical in responding to demand conditions as they exist in each market. Our focus on achieving high returns doesn't change, but the approach may as we balance the primary drivers pace, and price within each community. Before turning the call over to Jim, I do want to recognize and thank our incredibly talented team as they continue to deliver the highest quality homes and customer experience while still achieving exceptional financial results. Now let me turn the call over to Jim Olsowski.