Pultegroup (PHM) risk factors, FY2025 10-K

Other

1. 01Risks Associated With Our Industry
2. 02Increases in interest rates, reductions in mortgage availability, or other increases in the effective costs of owning a home have prevented potential customers from buying our homes and adversely affected our business and financial results
3. 03The homebuilding industry is cyclical and deteriorations in industry conditions or downward changes in general economic or other business conditions have historically affected our business and financial results and could do so in the future
4. 04Inflation has resulted in increased costs that we may not be able to recoup and has impacted home affordability and consumer sentiment47% rewritten
5. 05Supply shortages and other risks related to the demand for skilled labor and building materials could increase costs and delay deliveries
6. 06Our success depends on our ability to acquire land suitable for residential homebuilding in accordance with our land investment criteria
7. 07If the market value of our land drops significantly, our profits could decrease and result in write-downs of the carrying values of land we own
8. 08Competition for homebuyers could reduce our deliveries or decrease our profitability
9. 09An inability to accurately predict customer preferences or demand, or to respond effectively to technological developments, including artificial intelligence, could materially impact the business31% rewritten
10. 10Government regulations could increase the cost and limit the availability of our development and homebuilding projects or affect our related Financial Services operations and adversely affect our business or financial results84% rewritten
11. 11homes may raise our costs for these items or for the products made with them. All of these factors have caused and could in the future cause an increase in the effective cost of our homesNew
12. 12Homebuilding is subject to warranty and other claims in the ordinary course of business that can be significant
13. 13We can be injured by improper acts of persons over whom we do not have control or by the attempt to impose liabilities or obligations of third parties on us
14. 14Natural disasters, severe weather conditions and changing climate patterns could delay deliveries, increase costs, and decrease demand for new homes in affected areas44% rewritten
15. 15The impact of climate change or other governmental regulation may adversely impact our business

Risks Related to Our Business Model and Capital Structure

1. 16Adverse capital and credit market conditions may significantly affect our access to capital and cost of capital35% rewritten
2. 17Our income tax provision and tax reserves may be insufficient if a taxing authority is successful in asserting positions that are contrary to our interpretations and related reserves, if any
3. 18We may not realize our deferred tax assets79% rewritten
4. 19Our inability to sell mortgages into the secondary market could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate
5. 20We are subject to claims related to mortgage loans we sold in the secondary mortgage market that may be significant
6. 21representations and warranties
7. 22We are implementing a new enterprise resource planning system, and challenges with the implementation of the system may impact our business and operations33% rewritten
8. 23Information technology failures or data security breaches could harm our business and result in substantial costs
9. 24Negative publicity could negatively impact sales, which could cause our revenues or results of operations to decline
10. 25The loss of the services of members of our senior management or a significant number of our operating employees could negatively affect our business
11. 26We have significant intangible assets. If these assets become impaired, then our profits and shareholders’ equity may be reduced76% rewritten
12. 27Our business could be materially and adversely affected by epidemics, pandemics, or other public health emergenciesNew