What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-04 compared with 2025-02-06 · 109 added, 114 removed, 886 unchanged (20% of the section changed)

8 unchanged sentences

House and land inventory 12,925,413 12,692,820

Land held for sale 27,007 23,831

Residential mortgage loans available-for-sale 613,665 629,582

2 unchanged sentences

Goodwill 40,377 68,930

Intangible assets 46,303 56,338

Other intangible assets 26,210 46,303

Deferred tax assets 49,157 55,041

11 unchanged sentences

Shareholders’ equity:

Preferred shares, $ 0.01 par value;

25,000,000 shares authorized, none issued

Common shares, $ 0.01 par value;

36 unchanged sentences

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2024, 2023, and 2022

($000’s omitted)

2024 2023 2022

Net income $ 3,083,262 $ 2,602,372 $ 2,617,317

Other comprehensive income, net of tax:

Change in value of derivatives — — 45

Other comprehensive income — — 45

Comprehensive income $ 3,083,262 $ 2,602,372 $ 2,617,362

See Notes to Consolidated Financial Statements.

PULTEGROUP, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

2 unchanged sentences

Common Shares Additional

Capital Accumulated

Comprehensive

(Loss) Retained

Capital Retained

Earnings Total

3 unchanged sentences

Share repurchases ( 13,793 ) ( 138 ) — ( 999,862 ) ( 1,000,000 )

Excise tax on share repurchases — — — ( 9,691 ) ( 9,691 )

Cash paid for shares withheld for taxes — — — ( 11,991 ) ( 11,991 )

1 unchanged sentence

Net income — — — 2,602,372 2,602,372

Other comprehensive income — — — 45 — 45

Shareholders' equity, December 31, 2023 212,558 $ 2,126 $ 3,368,407 $ 7,012,724 $ 10,383,257

26 unchanged sentences

Land-related charges 126,914 34,572 43,115

Goodwill impairment 28,553 — —

Property and equipment impairments 49,629 — —

Depreciation and amortization 112,507 89,162 80,824

13 unchanged sentences

Distributions of capital from unconsolidated entities 63,743 9,179 3,265

Business acquisition — — ( 10,400 )

Other investing activities, net ( 5,707 ) 30,927 ( 16,756 )

2 unchanged sentences

Repayments of notes payable ( 24,508 ) ( 355,826 ) ( 123,290 )

Borrowings under revolving credit facility — — 2,869,000

Repayments under revolving credit facility — — ( 2,869,000 )

Financial Services borrowings (repayments), net 5,432 27,279 ( 87,084 )

52 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Intangible assets

Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, totaled $ 68.9 million at both December 31, 2024 and 2023.

Goodwill and goodwill impairment

Goodwill, which represents the cost of acquired businesses in excess of the fair value of the net assets of such businesses at the acquisition date, totaled $ 40.4 million and $ 68.9 million at December 31, 2025 and 2024, respectively.

We assess goodwill for impairment annually in the fourth quarter and if events or changes in circumstances indicate the carrying amount may not be recoverable.

Intangible assets consist primarily of tradenames acquired in connection with acquisitions and totaled $ 46.3 million, net of accumulated amortization of $ 108.3 million, at December 31, 2024, and $ 56.3 million, net of accumulated amortization of $ 98.2 million, at December 31, 2023.

In accordance with ASC 350, management evaluates the recoverability of goodwill by comparing the carrying value of the Company’s reporting units to their fair value.

Fair value is determined using accepted valuation methods, including the use of discounted cash flows supplemented by market-based assessments of fair value.

In conjunction with our annual impairment test in the fourth quarter of 2025, it was determined that $ 28.6 million of goodwill was not recoverable based on the estimated fair value of the related assets.

Other intangible assets

Other intangible assets consist primarily of tradenames acquired in connection with acquisitions and totaled $ 26.2 million, net of accumulated amortization of $ 128.4 million, at December 31, 2025, and $ 46.3 million, net of accumulated amortization of $ 108.3 million, at December 31, 2024.

Such tradenames are generally being amortized over 20-year lives.

Amortization expense totaled $ 10.0 million, $ 10.5 million, and $ 11.1 million in 2024, 2023 and 2022, respectively, and is expected to be $ 9.3 million in 2025, $ 8.9 million in 2026, $ 6.5 million in 2027, $ 6.3 million in 2028, and $ 4.5 million in 2029.

Amortization expense totaled $ 20.1 million, $ 10.0 million, and $ 10.5 million in 2025, 2024 and 2023, respectively, and is expected to be $ 5.7 million in 2026, 2027, and 2028, $ 3.9 million in 2029, and $ 0.9 million in 2030.

The ultimate realization of these assets is dependent upon the future cash flows and benefits that we expect to generate from their use.

We assess intangibles for impairment if events or changes in circumstances indicate the carrying amount may not be recoverable.

In 2025, we reassessed the recoverability of certain intangible assets, which resulted in impairments totaling $ 10.8 million .

Property and equipment

13 unchanged sentences

Company contributions to the plan totaled $ 33.0 million, $ 31.2 million, and $ 27.8 million in 2025, 2024, and 2023, respectively.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Other income (expense), net

5 unchanged sentences

( 20,093 ) ( 10,034 ) ( 10,538 )

Goodwill impairment ( Note 1 )

( 28,553 ) — —

Property and equipment impairments ( 49,629 ) — —

Gain (loss) on debt retirement — ( 222 ) 663

3 unchanged sentences

11,392 31,264 10,186

Total other income (expense), net $ 61,749 $ 37,863 $ ( 64,398 )

Total other income (expense), net (b)

$ ( 91,502 ) $ 61,749 $ 37,863

(a) Includes a gain of $ 17.5 million in 2024 related to the sale of a non-homebuilding property.

(b) Other income (expense), net includes impairments in 2025 resulting from our expected divestiture of certain manufacturing assets.

The net assets and operating results related to such manufacturing assets are immaterial.

Earnings per share

2 unchanged sentences

Anti-dilutive shares were immaterial in 2025, 2024, and 2023.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

In accordance with Accounting Standards Codification ("ASC") 260, "Earnings Per Share", the two-class method determines earnings per share for each class of common stock and participating securities according to an earnings allocation formula that adjusts the Numerator for dividends or dividend equivalents and participation rights in undistributed earnings.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method.

A decreasing number of our outstanding restricted share units are considered participating securities such that there was no impact for the year ended December 31, 2024.

The following table presents a reconciliation of the Numerator used in the earnings per share calculation for the years ended December 31, 2023 and 2022 ($000's omitted):

December 31, 2023 December 31, 2022

A decreasing number of our outstanding restricted share units are considered participating securities such that there was no impact for the years ended December 31, 2025 and 2024.

The following table presents a reconciliation of the Numerator used in the earnings per share calculation for the year ended December 31, 2023 ($000's omitted):

December 31, 2023

Net income $ 2,602,372

5 unchanged sentences

Numerator for diluted earnings per share $ 2,592,938

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Share-based compensation

17 unchanged sentences

Interest and penalties related to income taxes and unrecognized tax benefits are recognized as a component of income tax expense (benefit).

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revenue recognition

14 unchanged sentences

Servicing fees are based on a contractual percentage of the outstanding principal balance and are credited to income when related mortgage payments are received.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed.

17 unchanged sentences

The construction cost of the home includes amounts paid through the closing date of the home, plus an accrual for costs incurred but not yet paid.

Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

estimates to complete.

Total community land acquisition and development costs are based on an analysis of budgeted costs compared with actual costs incurred to date and estimates to complete.

The development cycles for our communities range from under one year to in excess of ten years for certain master planned communities.

10 unchanged sentences

Warranty liabilities

Homebuyers are provided with a limited warranty against certain building defects, including a one-year comprehensive limited warranty and coverage for certain other aspects of the home's construction and operating systems for periods of up to (and in limited instances exceeding) 10 years.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

limited instances exceeding) 10 years.

We estimate the costs to be incurred under these warranties and record a liability in the amount of such costs at the time revenue is recognized (see Note 11 ).

19 unchanged sentences

At December 31, 2025 and 2024, residential mortgage loans available-for-sale had an aggregate fair value of $ 613.7 million and $ 629.6 million, respectively, and an aggregate outstanding principal balance of $ 621.6 million and $ 645.7 million, respectively.

These changes

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

in fair value were substantially offset by changes in fair value of the corresponding derivative instruments.

These changes in fair value were substantially offset by changes in fair value of the corresponding derivative instruments.

Net gains from the sale of mortgages during 2025, 2024, and 2023 were $ 227.9 million, $ 235.1 million, and $ 149.8 million, respectively, and have been included in Financial Services revenues .

13 unchanged sentences

At December 31, 2025 and 2024, we had aggregate IRLCs of $ 820.2 million and $ 469.4 million, respectively, which were originated at interest rates prevailing at the date of commitment.

Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements.

Since we can terminate a loan commitment if the borrower does not comply with the terms of the

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements.

We evaluate the creditworthiness of these transactions through our normal credit policies.

1 unchanged sentence

Forward contracts on mortgage-backed securities are the predominant derivative financial instruments we use to minimize market risk during the period from the time we extend an interest rate lock to a loan applicant until the time the loan is sold to an investor.

At December 31, 2024 and 2023, we had unexpired forward contracts of $ 977.0 million and $ 745.0 million, respectively, and whole loan investor commitments of $ 237.1 million and $ 207.9 million, respectively.

At December 31, 2025 and 2024, we had unexpired forward contracts of $ 1.3 billion and $ 977.0 million, respectively, and whole loan investor commitments of $ 270.6 million and $ 237.1 million, respectively.

Changes in the fair value of IRLCs and other derivative financial instruments are recognized in Financial Services revenues, and the fair values are reflected in other assets or other liabilities, as applicable.

9 unchanged sentences

$ 4,799 $ 24,321 $ 14,735 $ 16,969

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Credit losses

3 unchanged sentences

Counterparties associated with these assets are generally highly rated.

Allowances on the aforementioned assets were not material as of December 31, 2024.

Allowances on the aforementioned assets were not material as of December 31, 2025 or 2024.

New accounting pronouncements

In 2024, we adopted ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which requires expanded disclosure of significant segment expenses and other segment items on an annual and interim basis.

In December 2023, FASB issued ASU 2023-09, "Income Taxes (Topic 740):

In 2025, we adopted ASU 2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires expanded disclosure of our income rate reconciliation and income taxes paid.

ASU 2023-09 is effective for us for annual periods beginning after December 31, 2024.

We are currently evaluating the impact ASU 2023-09 will have on our financial statement disclosures.

We adopted ASU 2023-09 following the prospective method.

Accordingly, prior period disclosures have not been modified.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

2 unchanged sentences

We are currently evaluating the impact ASU 2024-03 will have on our financial statement disclosures.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Major components of inventory at December 31, 2025 and 2024 were ($000’s omitted):

4 unchanged sentences

120,160 102,865

Land held for sale $ 19,590 $ 27,007

$ 12,925,413 $ 12,692,820

8 unchanged sentences

Interest in inventory, end of period $ 122,327 $ 139,960 $ 139,078

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Land option agreements

11 unchanged sentences

The following provides a summary of our interests in land option agreements ($000’s omitted):

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2025 December 31, 2024

10 unchanged sentences

Statement of Operations Classification 2025 2024 2023

Net realizable value adjustments ("NRV") - land held for sale Land sale and other cost of revenues $ 4,318 $ — $ 107

Land impairments Home sale cost of revenues 77,357 11,988 19,603

Net realizable value adjustments ("NRV") - land held for sale Land sale and other cost of revenues $ 1,115 $ 4,318 $ —

Write-offs of deposits and pre-acquisition costs Other income (expense), net 48,442 18,266 23,512

2 unchanged sentences

Due to uncertainties in the estimation process, the significant volatility in demand for new housing, the long life cycles of certain of our communities, and potential changes in our strategy related to certain communities, actual results could differ significantly from such estimates.

As land impairments were not significant in 2025, 2024, or 2023, we have not disclosed certain unobservable inputs and ranges used to determine the fair value of associated communities.

Segment information

1 unchanged sentence

and the construction of housing on such land.

Home sale revenues for detached and attached homes were $ 14.5 billion and $ 2.8 billion in 2024, $ 13.1 billion and $ 2.5 billion in 2023, and $ 13.2 billion and $ 2.3 billion in 2022, respectively.

Home sale revenues are composed of single-family detached homes, as well as attached homes, such as townhomes, condominiums, and duplexes.

For reporting purposes, our Homebuilding operations are aggregated into six reportable segments:

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia

Maryland, Massachusetts, New Jersey, Pennsylvania, Rhode Island, Virginia

Georgia, North Carolina, South Carolina, Tennessee

5 unchanged sentences

Each reportable segment generally follows the same accounting policies described in Note 1 .

In 2024, we adopted ASU 2023-07, which requires expanded disclosure of significant segment expenses and other segment items on an annual and interim basis.

The adoption of ASU 2023-07 impacted the presentation of the performance measures presented in the below tables.

Information for previous periods in the below tables conforms with the current year presentation.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Our Chief Executive Officer ("CEO"), who has been identified as the chief operating decision maker for the purposes of the following reportable segment disclosures, is regularly provided operating results of individual operating segments which comprise our reportable segments.

25 unchanged sentences

( 12,507,462 ) ( 12,501,659 ) ( 11,154,813 )

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Operating Data by Segment ($000’s omitted)

Years Ended December 31,

2024 2023 2022

Northeast $ ( 102,160 ) $ ( 94,925 ) $ ( 85,666 )

7 unchanged sentences

( 1,573,928 ) ( 1,321,276 ) ( 1,312,642 )

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Operating Data by Segment ($000’s omitted)

Years Ended December 31,

2025 2024 2023

Other Segment Items (d) :

10 unchanged sentences

$ ( 319,242 ) $ ( 118,136 ) $ ( 144,856 )

Income (loss) before income taxes (f) :

Income (loss) before income taxes (e) :

Northeast $ 293,867 $ 229,996 $ 210,508

13 unchanged sentences

(d) Other Segment Items reflects other sources of income and expense, including internal capital charge allocations that are eliminated within Other Homebuilding.

(e) Other Homebuilding includes income from unconsolidated entities, interest, the amortization of intangible assets, impairment of intangible assets, and other items not allocated to the operating segments.

Also includes goodwill impairment of $ 28.6 million in 2025 ( Note 1 ), impairment of property and equipment of $ 49.6 million in 2025 ( Note 1 ), and a gain of $ 39.5 million in 2024 related to the sale of our minority interest in a joint venture.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(e) Other Homebuilding includes income from unconsolidated entities, interest, the amortization of intangible assets, and other items not allocated to the operating segments.

Other Homebuilding also includes a gain of $ 39.5 million in 2024 related to the sale of our minority interest in a joint venture.

(f) Includes certain land-related charges (see the following table and Note 2 ).

Also includes gains related to sales of individual properties of $ 17.5 million in Florida in 2024, $ 10.7 million in West in 2024, and $ 49.1 million.in West in 2022.

Operating Data by Segment ($000's omitted)

1 unchanged sentence

2025 2024 2023

Land-related charges*:

Land-related charges (a) :

Northeast $ 1,779 $ 8,142 $ 497

6 unchanged sentences

$ 126,914 $ 34,572 $ 43,115

* Land-related charges include land impairments, NRV adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue.

(a) Land-related charges include land impairments, NRV adjustments for land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue.

See Note 2 for additional discussion of these charges.

31 unchanged sentences

(a) Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, other corporate items that are not allocated to the operating segments, and eliminations of certain inventory not owned and land held for sale allocated to the operating segments.

Other homebuilding also includes goodwill of $ 68.9 million , net of cumulative impairment charges of $ 20.2 million at December 31, 2024 and 2023.

Other homebuilding also includes goodwill of $ 40.4 million, net of cumulative impairment charges of $ 48.7 million at December 31, 2025, and goodwill of $ 68.9 million , net of cumulative impairment charges of $ 20.2 million at December 31, 2024.

Investments in unconsolidated entities

34 unchanged sentences

At December 31, 2025, we were in compliance with all of the covenants and requirements under the senior notes.

We retired outstanding debt totaling $ 355.8 million, $ 123.3 million, and $ 4.9 million during 2024, 2023, and 2022, respectively.

We retired outstanding debt totaling $ 355.8 million and $ 123.3 million during 2024 and 2023, respectively.

The retirements in 2024 included open market repurchases of $ 193.4 million and $ 106.6 million of our unsecured senior notes scheduled to mature in 2026 and 2027, respectively.

2 unchanged sentences

Other notes payable include non-recourse and limited recourse collateralized notes with third parties that totaled $ 47.2 million and $ 35.8 million at December 31, 2025 and 2024, respectively.

These notes have maturities ranging up to five years , are secured by the applicable land positions to which they relate, and generally have no recourse to any other assets.

These notes have maturities ranging up to 4 years, are secured by the applicable land positions to which they relate, and generally have no recourse to any other assets.

The stated interest rates on these notes range up to 9 %.

1 unchanged sentence

Revolving credit facility

We maintain a revolving credit facility ("Revolving Credit Facility") maturing in June 2027 that has a maximum borrowing capacity of $ 1.3 billion and contains an uncommitted accordion feature that could increase the capacity to $ 1.8 billion, subject to certain conditions and availability of additional bank commitments.

As of December 31, 2025, we maintained a revolving credit facility ("Revolving Credit Facility") scheduled to mature in June 2027 with a maximum borrowing capacity of $ 1.3 billion and an uncommitted accordion feature that could increase the capacity to $ 1.8 billion, subject to certain conditions and availability of additional bank commitments.

Effective February 4, 2026, we amended and restated our Revolving Credit Facility to (i) extend the maturity to February 4, 2031, (ii) increase total committed capacity to $ 1.75 billion, and (iii) expand the uncommitted accordion feature to $ 750.0 million, providing for potential capacity of up to $ 2.5 billion, subject to customary conditions and additional lender commitments.

The Revolving Credit Facility also provides for the issuance of letters of credit that reduce the available borrowing capacity under the Revolving Credit Facility, up to the maximum borrowing capacity.

2 unchanged sentences

As of December 31, 2025, we were in compliance with all covenants and requirements.

Outstanding balances under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries.

At December 31, 2024, we had no borrowings outstanding, $ 321.1 million of letters of credit issued, and $ 928.9 million of remaining capacity under the Revolving Credit Facility.

At December 31, 2023, we had no borrowings outstanding, $ 312.7 million of letters of credit issued, and $ 937.3 million of remaining capacity under the Revolving Credit Facility.

Outstanding amounts and other obligations under the Revolving Credit Facility are guaranteed by certain of our wholly-owned subsidiaries.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

At December 31, 2025, we had no borrowings outstanding, $ 357.1 million of letters of credit issued, and $ 892.9 million of remaining capacity under the Revolving Credit Facility.

At December 31, 2024, we had no borrowings outstanding, $ 321.1 million of letters of credit issued, and $ 928.9 million of remaining capacity under the Revolving Credit Facility.

Financial Services debt

Pulte Mortgage maintains a master repurchase agreement with third-party lenders entered into in August 2023 (the "Original Repurchase Agreement", and as amended, the "Repurchase Agreement") that matures on August 12, 2026.

The maximum aggregate commitment was $ 675.0 million at December 31, 2024 and decreased to $ 650.0 million at January 14, 2025, which continues until maturity.

The maximum aggregate commitment was $ 625.0 million at December 31, 2025 which continues until maturity.

The Repurchase Agreement also contains an accordion feature that could increase the commitment by $ 50.0 million above its active commitment level.

7 unchanged sentences

Under a share repurchase program authorized by our Board of Directors, we repurchased 10.6 million, 10.1 million, and 13.8 million shares in 2025, 2024, and 2023, respectively, for a total of $ 1.2 billion, $ 1.2 billion, and $ 1.0 billion in 2025, 2024, and 2023, respectively.

On January 29, 2024, the Board of Directors increased our share repurchase authorization by $ 1.5 billion.

On January 29, 2025, the Board of Directors increased our share repurchase authorization by $ 1.5 billion, which was publicly announced on January 30, 2025.

At December 31, 2025, we had remaining authorization to repurchase $ 982.9 million of common shares.

On January 29, 2025, the Board of Directors increased our share repurchase authorization by an additional $ 1.5 billion.

Under our stock compensation plans, we accept shares as payment under certain conditions related to vesting of restricted shares and share units, generally related to the payment of tax obligations.

48 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table reconciles the statutory federal income tax rate to the effective income tax rate:

The following table reconciles the statutory federal income tax rate to the effective income tax rate ($000's omitted, expect percentages):

2025 2024 2023

Amount Percent Percent Percent

Income taxes at federal statutory rate $ 611,377 21.0 % 21.0 % 21.0 %

State and local income taxes, net of federal tax 3.6 3.5 3.4

State and local income taxes, net of federal tax (a)

101,631 3.5 3.6 3.5

Domestic federal reconciling items

Federal tax credits ( 23,001 ) ( 0.8 ) ( 1.1 ) ( 0.2 )

1 unchanged sentence

Effective rate $ 692,591 23.8 % 23.0 % 24.6 %

(a) State taxes in Florida, California, and Illinois comprised the majority (greater than 50 percent) of the tax effect in this category in 2025.

The effective tax rates differ from the federal statutory rate primarily due to state income tax expense and benefits associated with various federal energy tax credits.

The following table presents our income taxes paid, net of any refunds, by jurisdiction ($000's omitted):

US federal (a)

State and local

Florida 46,543

Total $ 698,756

(a) Includes cash payments of $ 341.4 million to acquire transferable tax credits, which were applied to our federal income tax obligations.

Deferred tax assets and liabilities reflect temporary differences arising from the different treatment of items for tax and accounting purposes.

15 unchanged sentences

Net deferred tax liability $ ( 399,336 ) $ ( 388,525 )

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

We have state NOLs in various jurisdictions that may generally be carried forward up to 20 years, depending on the jurisdiction.

12 unchanged sentences

Additionally, we had accrued interest and penalties of $ 0.6 million and $ 1.9 million at December 31, 2025 and 2024, respectively.

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

We do not expect the total amount of gross unrecognized tax benefits to increase or decrease by a material amount within the next twelve months.

18 unchanged sentences

The fair value hierarchy can be summarized as follows:

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities.

1 unchanged sentence

Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Our assets and liabilities measured or disclosed at fair value are summarized below ($000’s omitted):

24 unchanged sentences

If quoted market prices are not available, fair values are based on quoted market prices of similar issues .

The carrying value of the senior notes payable was $ 1.6 billion at December 31, 2024 and $ 1.9 billion at December 31, 2023.

The carrying value of the senior notes payable was $ 1.6 billion at both December 31, 2025 and December 31, 2024.

PULTEGROUP, INC.

3 unchanged sentences

Accounts and notes receivable 252,308 248,308

Insurance receivables (Note 11)

$ 6,613 $ 26,928

Other receivables 241,695 179,249

248,308 206,177

Deposits and pre-acquisition costs (Note 1)

22 unchanged sentences

Income tax liabilities 60,843 76,002

Dividends payable ( Note 6 )

47,442 43,916

Dividends payable 53,566 47,442

Accrued interest 26,425 29,095

Loan origination liabilities (Note 11)

186,093 207,517

$ 1,338,330 $ 1,412,166

(a) Other liabilities primarily include liabilities associated with property taxes, forward contracts on mortgage-backed securities, and other miscellaneous liabilities.

(a) Other liabilities primarily include liabilities associated with property taxes, derivative instruments related to mortgage operations, and other miscellaneous liabilities.

Commitments and contingencies

2 unchanged sentences

The majority of these letters of credit and surety bonds are in support of our land development and construction obligations to various municipalities, other government agencies, and utility companies related to the construction of roads, sewers, and other infrastructure.

We had outstanding letters of credit and surety bonds totaling $ 321.1 million and $ 2.9 billion, respectively, at December 31, 2024, and $ 312.7 million and

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

$ 2.4 billion, respectively, at December 31, 2023.

We had outstanding letters of credit and surety bonds totaling $ 357.1 million and $ 3.1 billion, respectively, at December 31, 2025, and $ 321.1 million and $ 2.9 billion, respectively, at December 31, 2024.

In the event any such letter of credit or surety bonds is drawn, we would be obligated to reimburse the issuer of the letter of credit or surety bond.

2 unchanged sentences

rather, we are released from the surety bonds as the underlying contractual performance is completed.

Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Because significant construction and development work has been performed related to the applicable projects but has not yet received final acceptance by the

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Litigation and regulatory matters

29 unchanged sentences

Policies issued by our captive insurance subsidiaries represent self-insurance of these risks by us, limited by reinsurance policies that we purchase.

General liability

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year.

General liability coverage for the homebuilding industry is complex, and our coverage varies from policy year to policy year.

Our insurance coverage requires a per occurrence retention as well as an overall aggregate amount.

1 unchanged sentence

Any amounts incurred in excess of the occurrence or aggregate retention levels are covered by insurance up to the purchased coverage levels.

Our insurance policies, including the captive insurance subsidiaries' reinsurance policies, are maintained with highly-rated carriers for whom we believe counterparty default risk is not significant.

Our insurance policies, including the captive

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

insurance subsidiaries' reinsurance policies, are maintained with highly-rated carriers for whom we believe counterparty default risk is not significant.

At any point in time, we are managing numerous individual claims related to general liability, property, errors and omission, workers compensation, and other business insurance coverages.

13 unchanged sentences

Adjustments to reserves are recorded in the period in which the change in estimate occurs.

During 2024, 2023, and 2022, we reduced reserves, primarily general liability reserves, by $ 333.9 million, $ 130.8 million, and $ 65.0 million, respectively, as a result of changes in estimates resulting from actual claim experience observed being less than anticipated in previous actuarial projections.

During 2025, 2024, and 2023, we reduced reserves, primarily general liability reserves, by $ 42.3 million, $ 333.9 million, and $ 130.8 million, respectively, as a result of changes in estimates resulting from actual claim experience being less than anticipated in previous actuarial projections.

The changes in actuarial estimates were driven by changes in actual claims experience that, in turn, impacted actuarial estimates for potential future claims.

2 unchanged sentences

Rather, the adjustments reflect an overall lower level of claims and related losses in recent years as compared with our previous experience.

We attribute the favorable experience in more recent years to a variety of factors, including improved construction techniques, rising home values, and increased participation from our subcontractors in resolving claims.

We attribute the favorable experience in more recent years to a variety of factors, including improved construction techniques, higher home values, and increased participation from our subcontractors in resolving claims.

The cumulative effect of these factors, as evidenced by the favorable claims experience for an extended period, resulted in our actuarial estimates placing less weight on older, higher cost policy years and relatively more weight on our more recent, lower cost policy years, which is the primary driver of the change in actuarial estimate in 2024.

8 unchanged sentences

Balance, end of period $ 259,410 $ 267,474 $ 563,103

(a) Includes net changes in amounts expected to be recovered from our insurance carriers, which are recorded in other assets (see below).

PULTEGROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(a) Includes net changes in amounts expected to be recovered from our insurance carriers, which are recorded in other assets (see below).

Estimates of anticipated recoveries of our costs under various insurance policies or from subcontractors or other third parties are recorded when recovery is considered probable.

32 unchanged sentences

We have audited the accompanying consolidated balance sheets of PulteGroup, Inc.

(the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

(the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S.

34 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data