PULTEGROUP INC/MI/ (PHM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that PULTEGROUP INC/MI/ surfaced in its latest filing.

• Federal Reserve increased federal funds rate in Q2 2022, pushing mortgage rates to highest since 2008.2022
• Federal Reserve began cutting interest rates in September 2024, but mortgage rates remain elevated.September 2024
• COVID-19 pandemic began in 2020, causing significant business slowdown and financial impact.2020
• Revolving Credit Facility amended effective February 4, 2026, extending maturity to February 4, 2031, and increasing total committed capacity to $1.75 billion with accordion feature expanded to $750 million.February 4, 2026
• At December 31, 2025, cash, cash equivalents, and restricted cash were $2.0 billion; $892.9 million available under revolving credit facility; outstanding letters of credit $357.1 million; surety bonds $3.1 billion.December 31, 2025
• Deferred tax assets of $70.6 million at December 31, 2025, with valuation allowance of $21.4 million.December 31, 2025
• Company faces mortgage loan repurchase claims, predominantly from loans originated prior to 2009, including potential indemnification for loans from former Centex subsidiary acquired in 2009.2009
• New enterprise resource planning (ERP) system implementation underway, expected to be multi-year and requires integration with multiple systems.
• No significant cybersecurity incident materially affecting business in the last three years.