PulteGroup (PHM) stock surged 8.36% in pre-market trading on Tuesday following the release of its second-quarter 2025 financial results, which exceeded analyst expectations despite challenging market conditions. The homebuilder reported earnings per share of $3.03, surpassing the consensus estimate of $2.95, demonstrating resilience in navigating the current housing market environment.
While the company's quarterly revenue of $4.40 billion slightly missed analysts' expectations of $4.41 billion, PulteGroup's performance remained strong in the face of economic headwinds. Home sale revenues reached $4.27 billion, with the company closing 7,639 homes during the quarter. Despite a 6% drop in closings compared to the previous year, PulteGroup maintained a robust gross margin of 27%, in line with company guidance.
CEO Ryan Marshall expressed optimism about the company's performance, stating, "PulteGroup continues to deliver strong financial results, as our disciplined business practices continue to deliver in a competitive housing environment." He also noted positive consumer responses to recent pullbacks in interest rates, suggesting potential improvements in market conditions. The company's strategic alignment of home production and land investment with current demand positions it well for future growth, contributing to investor confidence and driving the stock's significant pre-market rally.