PulteGroup, Inc.

Thank you for standing by and welcome to the Pulte Group Inc. Third Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I'd now like to turn the call over to Jim Zoomer. You may begin.

Thanks, Rob. Good morning, and thank you for joining today's call as we look forward to discussing Pulte Group's third 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 Vice President of Finance. As always, a copy of our earnings release this morning's presentation has been posted to our corporate website at PulteGroup.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 today. The 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 in our ICC filings, including our annual and quarterly reports. Now let me turn the call over to Ryan. Ryan?

Good morning, and thank you for joining this morning's call. I look forward to updating you on Pulte Group's strong Q3 financial results and underlying business strategies that have positioned our operations for ongoing success. Specific to the company's third quarter results, our home building operations successfully closed over 7,500 homes, which helped to drive another quarter of overall strong financial results. As Jim will expand on shortly, I am pleased to highlight that Fulte Group generated third quarter home sale revenues of $4.2 billion, operating margins of 16.8%, and earnings of $2.96 per share. And given our focus on returns, I would also highlight that the company has delivered a return on equity of 21% for the trailing 12 months. These results reflect the strength of our diversified operating model, which continues to serve us well in a U.S. housing market where home buying demand has been challenging. Geographically, our diversified operating platform that spans across 47 major markets remains a key strain, while our broad reach across buyer groups, first-time, move-up, and active adult provides unique strategic advantages that are helping us to successfully navigate today's demand dynamics. Specifically in today's market, weaker consumer confidence and stretched affordability are limiting opportunities with first-time buyers, while demand has been more resilient within the active adult segment, where we, through our Dell Web brand, are a recognized leader. For those of you that have not had the opportunity to visit a Dell Web community, think Disney Cruise ship for those 55 and older. At 500 to 1,000 homes, Del Webb communities are larger and offer amenity packages that can include everything from tennis, pickleball, fitness, spa, to social activities, food, and dining. But more than anything, Del Webb communities offer personal connections and a place to belong. As we highlighted on previous calls, we are capitalizing on the brand recognition and power of the Del Webb name through our new Del Webb Explore communities. Our new Del Webb Explore brand is designed to serve today's Gen X buyers looking for the amazing luxury lifestyle, but without the age restriction. We are in the early stages of planning a Get to Know Del Webb event in 2026, and we will keep you posted on the timing. Getting back to our results, in the third quarter, traffic to our communities was higher than last year. although conversion rates fluctuated from week to week. Based on feedback from our sales associates, consumers remain engaged in the home buying process, but they are proceeding with caution given concerns which I think range from economic weakness and job stability to stretched affordability. I think that is why buyer response to the decrease in interest rates was more muted than we experienced in other periods of recent rate declines. We have always said that lower interest rates are a positive for housing demand, but rates don't operate in a vacuum. There is a clear offset if rates are coming down because the economy is slowing and people are worried about their jobs. I believe that is the scenario we are experiencing right now. That being said, I would note that our Q3 absorption rate of 2.2 homes per month was consistent with our pre-COVID average although down from last year's third quarter absorption rate of 2.4. Again, while demand conditions differ by market and buyer segment, we would characterize U.S. housing demand as good, albeit competitive and with some challenges, but one in which our size and scale allow us to compete effectively. As discussed on prior calls, Earlier in the year, we proactively made decisions to better align production levels with sales volumes. In the third quarter, we started 6,557 homes, which effectively equaled our Q3 sales pace. This pace is consistent with our strategy to match starts with sales as we work toward an appropriate level of inventory relative to current market demand. When setting our starts pace, Our goal is to have the right level of inventory to meet core demand while avoiding excess finished spec production, thus allowing our sales team to sell from a position of strength. With our average build cycle now down to just 106 days, we can carry less inventory and still be responsive to any demand acceleration in Q4 or as we enter 2026. Along with adjusting our pace of production, earlier in the year we moderated our planned land spend for 2025 and remain on track to invest approximately $5 billion in land acquisition and development. At over $5 billion, our land spend would be down 5% from last year, but we remain in a strong position with a healthy land pipeline, a pipeline that can enable us to grow the business when home buying demand increases. Let me finish my comments by recognizing and saying thank you to the entire Pulte team. They have truly done an outstanding job navigating 2025's evolving market conditions while staying focused on delivering outstanding quality and service to our homebuyers. You've done an amazing job, team. Now let me turn the call over to Jim for a detailed review of our third quarter results.