PulteGroup
PulteGroup, Inc. (NYSE: PHM) is an American homebuilding company founded in 1950 by William J. Pulte, who constructed the firm's first home in Detroit, Michigan, at the age of 18.[1] Headquartered in Atlanta, Georgia, the company ranks as the third-largest homebuilder in the United States by sales volume, having delivered over 800,000 homes since its inception.[2] It operates in more than 45 markets across 24 states, focusing on land acquisition, development, single-family home construction, and related financial services like mortgage banking and insurance.[3] The company serves diverse buyer segments through its portfolio of brands, including Pulte Homes for move-up buyers, Centex for entry-level and first-time buyers, Del Webb for active adults aged 55 and older, and others such as DiVosta Homes and John Wieland Homes and Neighborhoods.[4] PulteGroup's business model emphasizes operational efficiency, with homebuilding accounting for 98% of its consolidated revenues, which reached a record $17.9 billion in 2024 amid rising demand and closings of approximately 30,000 homes annually.[5] Defining characteristics include its scale-driven cost advantages and adaptability to market cycles, as demonstrated by consistent profitability through economic fluctuations since its public listing in 1973.[6] While the firm has expanded via strategic acquisitions, such as Centex in 2011, it maintains a disciplined approach to inventory and debt management to mitigate housing sector volatility.[7]Overview
Founding and Core Mission
William J. Pulte founded the company that became PulteGroup in Detroit, Michigan, in 1950 at the age of 18 by constructing his first single-family home with his own hands and basic tools.[8][9] This initial project marked the origin of a business focused on residential construction amid the post-World War II housing boom, emphasizing affordable, durable homes for working-class families seeking stability and ownership.[1] Pulte's early operations prioritized hands-on craftsmanship and efficient building techniques, drawing from his self-taught skills without formal training in architecture or engineering.[10] The core mission from inception centered on delivering high-quality, value-driven homes that provide shelter, security, and opportunities for family advancement, as articulated in Pulte's vision of homes representing more than mere structures but foundational assets for dignity and prosperity.[11] This principle guided the company's expansion from a local builder to a national entity, with an unwavering commitment to integrity, customer satisfaction, and superior construction standards.[12] By the 1970s, as Pulte Homes formalized, the mission evolved to encompass not only homebuilding but also community development, integrating financial services like mortgages to facilitate homeownership dreams.[13] PulteGroup's enduring vision, rooted in these origins, is to be regarded as America's most respected homebuilder, upheld through core values of honesty, quality workmanship, open communication, and employee development.[12][14] These tenets have sustained the firm through economic cycles, prioritizing empirical outcomes like durable builds over speculative trends, with over 800,000 homes delivered since 1950 as evidence of mission fidelity.[8]Scale and Market Position
PulteGroup reported consolidated revenues of $17.9 billion in 2024, with homebuilding accounting for 98% of the total, reflecting its dominant focus on residential construction.[5] The company closed approximately 30,000 homes that year, operating an average of 945 active communities across diverse U.S. markets.[15] With 6,793 employees as of December 31, 2024, PulteGroup maintains a lean operational structure relative to its output, having delivered over 800,000 homes since its founding in 1950.[16] [8] In the U.S. homebuilding industry, PulteGroup ranks as the third-largest builder by revenue, trailing D.R. Horton and Lennar Corporation, each with approximately $33.8 billion in 2024 revenues.[17] Despite this scale, its national market share comprised about 4% of total U.S. new home sales in 2024, underscoring the industry's fragmentation where no single firm dominates.[18] The company's geographic diversification spans multiple states, enabling resilience against localized economic fluctuations, though it remains exposed to broader housing market cycles influenced by interest rates and affordability constraints.[18]History
Early Development (1950-1999)
William J. Pulte, an 18-year-old aspiring builder, constructed and sold his first home in Detroit, Michigan, in 1950 for $10,000.[1] Between 1951 and 1958, Pulte focused on building custom homes in the metropolitan Detroit area, establishing a local reputation for quality construction.[1] In 1956, he incorporated the business as William J. Pulte, Inc., marking the formal founding of what would become Pulte Homes.[1] By 1959, the company introduced its first subdivision, Concord Green in Bloomfield Township, Michigan, where homes sold for $29,000.[1] Expansion accelerated in the 1960s as Pulte entered new markets, starting with Washington, D.C., in 1960 and Chicago in 1961, followed by Atlanta in 1968.[1] The company went public in 1969 as Pulte Home Corporation, issuing 200,000 shares and acquiring American Builders, Inc., which facilitated further growth.[1] By 1972, its stock traded on the American Stock Exchange under the symbol PHM, and Pulte established ICM Mortgage Corporation to integrate financing services.[1] The 1970s saw additional market entries, including Puerto Rico in 1973, Phoenix in 1977, and Texas in 1978, culminating in a record year in 1979 with 4,714 homes sold and $294 million in revenue.[1] In the 1980s, Pulte enhanced operational capabilities by establishing Pulte University in 1980 for training construction personnel and launching the Pulte Quality Leadership program in 1985 under President and COO Robert K. Burgess.[1] The company's stock shifted to the New York Stock Exchange in 1983, and it entered North Carolina in 1986 while acquiring Texas thrift institutions in 1988 to form First Heights Bank, diversifying into financial services.[1] The 1990s brought national prominence: the name changed to Pulte Corporation in 1992, with entries into Las Vegas and Cleveland; Burgess assumed the roles of Chairman and CEO in 1993, launching the Pulte Protection Plan for home warranties.[1] Pulte ventured into active adult communities in 1994 across multiple states and joint ventures in Mexico, achieving status as the largest U.S. homebuilder by 1995.[1] Recognized as “America’s Best Builder” in 1997 after further market expansions, the company acquired Radnor Homes and DiVosta Homes in 1998 and joined the Fortune 500 in 1999, selling a record 26,622 homes that year.[1]Expansion Through Acquisitions (2000-2008)
During the early 2000s, Pulte Homes pursued strategic acquisitions to diversify its product offerings and expand geographically amid a robust housing market. The most significant was the 2001 acquisition of Del E. Webb Corporation, announced on May 1 and completed on July 31, for approximately $1.8 billion in stock and assumed debt. This deal integrated Del Webb's established brand in active adult communities targeting the 55+ demographic, adding over 8,400 annual home closings and $1.93 billion in revenue from the prior year to Pulte's operations. The merger enhanced Pulte's national scale, positioning it as the largest U.S. homebuilder by combining traditional family housing with retirement-focused developments across multiple states.[19][20][21] In 2003, Pulte targeted regional growth by acquiring Sivage-Thomas Homes, a private builder in Albuquerque, New Mexico, in early July for an undisclosed cash price. This move provided immediate access to the Southwest market, incorporating Sivage-Thomas's local land inventory and operational expertise without significant overlap in Pulte's existing footprint. Such tuck-in acquisitions complemented the Del Webb integration by filling niche geographic gaps, supporting Pulte's strategy of bolt-on expansions during peak demand years when home closings rose from 27,781 in 2000 to over 36,000 by 2005.[22][23] These deals bolstered Pulte's market position through enhanced brand portfolios and inventory, though by 2008, as housing starts declined amid economic pressures, acquisition activity tapered in favor of inventory management. The expansions yielded diversified revenue streams, with the active adult segment proving resilient relative to entry-level housing amid shifting demographics.[1]Recovery and Modern Era (2009-Present)
Following the 2008 financial crisis, which severely impacted the U.S. housing market with widespread foreclosures and declining demand, Pulte Homes pursued a strategic merger with Centex Corporation, announced on April 8, 2009, and completed on August 19, 2009, in a $1.3 billion stock-for-stock transaction that created the nation's largest homebuilder by combining operations across 59 markets in 29 states and the District of Columbia.[24][25] The deal enhanced Pulte's land inventory and market share, particularly in first-time buyer segments via Centex's strengths, while enabling cost synergies and debt reduction efforts, including a $1.5 billion bond tender offer post-merger.[26] In 2010, the company rebranded as PulteGroup, Inc., marking its 60th anniversary and shifting focus toward operational efficiency amid ongoing market recovery driven by low interest rates and regulatory reforms.[1] PulteGroup prioritized balance sheet deleveraging and inventory management during the early recovery phase, delivering approximately 17,000 homes annually by 2013 with $5.4 billion in revenue, signaling a return to profitability as home prices stabilized and sales orders increased.[1] By 2012, it ranked as the largest builder by revenue and second by unit volume, benefiting from broader market rebound fueled by pent-up demand and favorable lending conditions.[1] The company introduced innovations like Life-Tested designs in 2011 for aging-in-place functionality and launched the Built to Honor program in 2013 to provide mortgage-free homes to injured veterans, reaching 20 homes by 2014 and 100 by April 2025.[1][27] Expansion continued through targeted acquisitions, such as Dominion Homes in 2014 for entry into Columbus, Ohio, and Lexington, Kentucky markets, and John Wieland Homes assets in 2016, alongside land deals like American West's 3,600 lots in 2019.[1] Home deliveries grew to 19,951 units in 2016 ($7.7 billion revenue), 21,052 in 2017 ($8.4 billion), and a peak of 23,232 in 2019 ($10.2 billion), reflecting sustained demand in move-up and active-adult segments under brands like Del Webb.[1] Ryan Marshall succeeded Richard Dugas as CEO in 2016, overseeing adoption of technologies including virtual reality tours and Smart Neighborhood initiatives.[1] In the 2020s, PulteGroup navigated the COVID-19 pandemic by maintaining operations and acquiring Innovative Construction Group in 2020, while earning recognitions as a Great Place to Work and Best Workplace for Women.[1] Rising mortgage rates from 2022 onward slowed the sector, leading to quarterly revenue dips such as 4% in Q2 2025 ($4.3 billion home sales) and profit declines in Q3 2025 amid weaker margins and fewer closings (7,639 in Q2).[28][29] Despite these headwinds, the company held $1.3 billion in cash at mid-2025, introduced Del Webb Explore communities like Palm Desert in February 2025 for resort-style active-adult living, and positioned for recovery via land options and focus on multi-functional, sustainable designs.[30] By 2025, PulteGroup ranked third-largest U.S. homebuilder, having delivered over 800,000 homes since 1950.[2]Business Model and Operations
Homebuilding Processes
PulteGroup employs a systematic homebuilding process that integrates land development, design customization, and on-site construction, with a strong emphasis on operational efficiency and quality assurance across its portfolio of single-family homes, townhomes, and condominiums. The company's approach leverages controlled communities where it manages entitlements, infrastructure, and vertical construction to optimize asset turnover and returns. Central to this is the Build Quality Experience (BQE), a 10-step protocol developed to embed rigorous quality controls and buyer transparency throughout the build cycle.[8][31] The BQE commences with an introductory meeting between the buyer and a dedicated construction manager, who outlines the timeline, establishes communication channels, and addresses initial queries prior to groundbreaking. Construction phases follow standard industry sequences—site preparation, foundation pouring, framing, mechanical rough-ins, insulation, drywall installation, and finishing—but are punctuated by mandatory inspections at critical junctures, including foundation integrity, structural framing, and mechanical systems, adhering to or surpassing local building codes and internal benchmarks. These inspections mitigate defects and ensure durability, with the process refined iteratively based on aggregated customer feedback from prior builds.[31][32] Buyer engagement is formalized through orientations: a pre-drywall walk-through allows verification of hidden systems like plumbing and electrical before enclosure, while a pre-closing orientation, typically 1-2 weeks before handover, reviews installed features, operational functionalities, and warranty terms. The sequence concludes with a "celebration" final tour post-inspection, transitioning to customer care for post-occupancy support, backed by a 10-year limited structural warranty. This structured involvement has contributed to PulteGroup's reported high customer satisfaction scores, with the BQE enabling early issue resolution and personalized adjustments within design parameters.[31] To enhance efficiency amid labor constraints and rising costs, PulteGroup has piloted advanced automation. In February 2025, in collaboration with Australian firm FBR, the company deployed the Hadrian X AI-guided robotic system to erect structural walls in a home within the TerraWalk community at Babcock Ranch, Florida—one of only 10 such robotic-built residences in the U.S. at the time. The robot autonomously positions precision-manufactured concrete blocks secured by a specialized adhesive twice as strong as conventional mortar, streamlining masonry while reducing on-site waste by up to 90%, minimizing labor exposure to hazards, and shortening wall construction timelines without compromising PulteGroup's quality standards. This initiative, tested in an innovation lab established in 2024, signals potential broader adoption of robotics to scale production, lower costs, and promote sustainability in future projects.[33][3]Financial Services Integration
PulteGroup integrates financial services into its homebuilding operations primarily through its wholly-owned subsidiary Pulte Mortgage LLC, which originates mortgage loans for the majority of the company's homebuyers.[34] This segment also encompasses title insurance and insurance brokerage services, enabling a coordinated financing process that aligns with the home construction timeline.[35] By handling mortgage origination in-house, PulteGroup captures origination fees and interest income, contributing to overall profitability while streamlining the customer experience from contract to closing.[36] The integration facilitates faster loan processing due to shared systems with PulteGroup's homebuilding brands, such as Centex and Pulte Homes, reducing delays in home closings.[37] Pulte Mortgage offers over 200 loan options tailored to new construction purchases, including conventional, FHA, and VA loans, with a focus on first-time buyers who represent a significant portion of PulteGroup's sales.[38] In the third quarter of 2025, the financial services operations generated $44 million in pre-tax income, up from the prior year, reflecting synergies with home sales volumes of 7,639 closings company-wide.[39] This model enhances revenue diversification beyond home sales, as financial services typically yield higher margins—often exceeding 50% pre-tax—compared to the core homebuilding gross margins of around 27%.[40] However, the segment's performance remains tied to homebuilding activity, with risks from fluctuating interest rates affecting origination volumes; for instance, rising rates in 2023 prompted adaptations like targeted incentives for entry-level buyers.[41] Title and insurance services further integrate by providing escrow and coverage bundled with mortgages, minimizing external dependencies and supporting efficient transaction closings.[42]Land Acquisition and Development
PulteGroup employs a disciplined land acquisition strategy focused on balancing owned land with option contracts to optimize capital deployment and mitigate market risks. The company prioritizes acquiring entitled or entitlement-ready land in high-demand markets, targeting communities that enable home sales within 24 to 36 months of opening to ensure rapid inventory turnover and profitability.[43] This approach includes direct purchases for core holdings and option agreements that allow flexibility to walk away from underperforming parcels without significant capital loss. As of the third quarter of 2024, PulteGroup controlled approximately 235,000 lots nationwide, with 56% secured via options, reflecting a deliberate shift toward non-owned inventory to preserve liquidity.[44] To further enhance efficiency, PulteGroup aims to elevate its lot option percentage to 70%, enabling quicker adaptation to housing demand fluctuations while sustaining gross margins above 25%.[45] Land investments are scaled annually based on projected sales volumes and economic conditions; for instance, the company committed roughly $17 billion to land acquisition and development from 2018 to 2022, supporting consistent community expansions across 24 states.[2] In 2025, planned expenditures approximate $5 billion, directed toward smaller, faster-cycle projects that yield higher returns on invested capital compared to larger, longer-term holdings.[46] The development phase follows acquisition and emphasizes operational streamlining, including securing zoning entitlements, engineering site plans, obtaining permits, and installing infrastructure such as utilities, roads, and drainage systems.[6] PulteGroup reduces owned land supply years—targeting under three years of forward inventory—to align development timelines with market absorption rates, thereby minimizing exposure to interest rate volatility and land value swings.[6] In 2023, land and development expenses totaled $1.58 billion, underscoring the scale of these activities in supporting annual home deliveries exceeding 30,000 units.[47] This process is managed through dedicated teams that coordinate with local regulators and engineers to accelerate approvals and avoid delays, prioritizing projects in suburban and exurban areas conducive to single-family homebuilding.[8]Brands and Subsidiaries
Primary Homebuilding Brands
PulteGroup markets its homes through a portfolio of specialized brands that target distinct buyer segments, including first-time buyers, move-up families, active adults, and regional luxury markets. These brands—Pulte Homes, Centex, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods—enable the company to address varied demographic needs across more than 45 U.S. markets, emphasizing quality construction, innovative designs, and customer satisfaction.[8][48] Pulte Homes caters to a broad spectrum of homebuyers, particularly families seeking customizable single-family residences with open floor plans and personalization options. Operating nationwide, it prioritizes innovative designs and strong foundational quality to foster family-oriented living spaces.[49][48] Centex focuses on affordable, entry-level homes for first-time and value-conscious buyers, offering modern floor plans with adaptable features, smart home integrations, and energy-efficient construction. It emphasizes great value through functional designs and an industry-leading 10-year structural warranty, serving markets like Texas and Florida.[50][51] Del Webb specializes in 55+ active adult communities, building resort-style neighborhoods with flexible floor plans and lifestyle amenities tailored for seniors seeking vibrant, low-maintenance living. As the leading U.S. builder in this segment, it develops in desirable locations across states like Florida, California, and Texas.[52] DiVosta Homes targets luxury buyers in South Florida, constructing high-end single-family homes and townhomes in resort-style communities with sophisticated designs and superior quality. With over 50 years in the region, it focuses on coastal markets like Palm Beach and Sarasota, blending elegance with year-round or seasonal appeal.[53][54] American West, acquired by PulteGroup in April 2019 for $150 million, operates primarily in Western states such as Nevada, delivering award-winning single-family homes noted for customer satisfaction and high construction standards developed over 65 years. It serves growing markets like Las Vegas with value-driven, quality-focused builds.[55][48][56] John Wieland Homes and Neighborhoods concentrates on the Southeast, including Georgia, South Carolina, and Tennessee, offering luxury townhomes and single-family homes in master-planned neighborhoods from the low $200,000s to over $1 million. It emphasizes exceptional design, streetscapes, and lifestyle integration drawn from over 45 years of regional expertise.[57][48]Mortgage and Related Services
Pulte Mortgage LLC, a wholly-owned subsidiary of PulteGroup, Inc., operates as the primary provider of mortgage financing services, focusing exclusively on loans for new construction homes built by the company's homebuilding brands, including Pulte Homes, Centex, Del Webb, and others.[58][13] Established in 1972, the subsidiary has originated financing for more than 700,000 customers, emphasizing a streamlined application process integrated with PulteGroup's homebuilding operations to facilitate efficient closings.[13] It offers over 200 loan products tailored to new home buyers, including conventional, FHA, VA, and USDA options, with dedicated mortgage advisors coordinating directly with homebuilding teams.[38] In addition to mortgage origination, PulteGroup's financial services encompass insurance brokerage and title services, which support the end-to-end home purchase process by providing homeowners insurance placement and title insurance through affiliated entities.[18][42] These operations generate revenue from origination fees, premiums, and related services, contributing to the company's Financial Services segment, which reported revenues tied to approximately 45-50% of PulteGroup's home closings in recent fiscal years.[18] The integration of these services aims to capture a higher share of buyer financing, reducing reliance on third-party lenders while maintaining compliance with federal lending regulations.[18] Pulte Mortgage maintains regional offices across states like Arizona, California, Colorado, and others to service its geographically diverse operations, with lending decisions supported by partnerships such as the August 2025 extension of its mortgage purchase agreement with JPMorgan Chase Bank, N.A., to ensure liquidity for loan sales on the secondary market.[59][60] This captive financing model, while enhancing customer convenience, exposes the segment to interest rate fluctuations and regulatory scrutiny, as evidenced by standard disclosures in PulteGroup's SEC filings.[18]Financial Performance
Historical Revenue and Profit Trends
Pulte Homes, the predecessor to PulteGroup, experienced robust revenue growth during the U.S. housing boom of the early 2000s, culminating in $9.3 billion in 2007, driven by high demand for new homes and acquisitions expanding its geographic footprint.[61] The 2008 financial crisis triggered a severe contraction, with revenues dropping 32% to $6.3 billion in 2008 amid collapsing home sales, rising inventory write-downs, and widespread impairments on land holdings.[61] The August 2009 merger with Centex Corporation formed PulteGroup, combining operations to achieve cost synergies estimated at $350 million annually, though pro forma 2008 revenues of $11.6 billion masked the immediate post-merger realities of a depressed market, resulting in further revenue declines to around $4.1 billion in 2009.[62][63] Post-merger, PulteGroup's revenues bottomed out during the housing recession, fluctuating between $4.1 billion in 2011 and $4.6 billion in 2010, before initiating a sustained recovery aligned with broader market rebound, low interest rates, and strategic land investments.[63] Revenue growth accelerated from 2012 onward, rising 18% to $5.7 billion in 2013, then compounding at an average annual rate of approximately 9-12% through the 2010s, reaching $7.7 billion by 2016 as home closings increased and average selling prices rose.[64][63] This expansion continued into the 2020s, with revenues surpassing $13.7 billion in 2021, $16.0 billion in 2022, $16.1 billion in 2023, and a record $17.9 billion in 2024, reflecting higher volumes, pricing power, and operational efficiencies despite periodic supply chain disruptions.[65][66][67] Net profits mirrored the revenue trajectory but with greater volatility due to impairment charges, debt restructuring, and margin pressures during downturns. PulteGroup posted substantial losses immediately post-merger, including $1.1 billion in 2010 and $210 million in 2011, exacerbated by ongoing write-downs and low absorption rates.[68] Profitability returned modestly in 2012 at $206 million, followed by an outsized $2.6 billion gain in 2013 from favorable tax adjustments, warranty resolutions, and market stabilization.[68] From 2014 to 2024, net income trended positively with cyclical upswings, dipping to $443 million in 2017 amid rising input costs before climbing steadily to over $1 billion annually by 2018, then accelerating to $3.1 billion in 2024 on improved gross margins averaging 25-27% and share repurchases enhancing per-share earnings.[68]| Year | Revenue ($ billions) | Net Income ($ millions) |
|---|---|---|
| 2010 | 4.6 | -1,097 |
| 2011 | 4.1 | -210 |
| 2012 | 4.8 | 206 |
| 2013 | 5.7 | 2,601 |
| 2014 | 5.8 | 474 |
| 2015 | 6.0 | 491 |
| 2016 | 7.7 | 598 |
| 2020 | 11.0 | 1,394 |
| 2021 | 13.7 | 1,930 |
| 2022 | 16.0 | 2,601 |
| 2023 | 16.1 | 2,593 |
| 2024 | 17.9 | 3,083 |
Key Metrics and Shareholder Returns
PulteGroup's key operational metrics in the third quarter of 2025 included 7,529 home closings generating $4.2 billion in home sale revenues, a 2% decline from the prior year, alongside net new orders of 6,638 homes valued at $3.6 billion.[39][69] Home sale gross margins stood at 26.2%, reflecting ongoing buyer incentives amid softening demand, while operating margins reached 16.8%.[39][70] Total revenues for the quarter were $4.4 billion, down 1.6% year-over-year, with diluted earnings per share of $2.96, exceeding analyst expectations.[71][72] Broader financial health indicators as of mid-2025 show PulteGroup maintaining a focus on capital efficiency, with priorities including business investments, dividends, and share repurchases to drive returns.[2] The company reported a trailing twelve-month dividend yield of approximately 1.85%, supplemented by a buyback yield of 8.69%, contributing to a total shareholder yield of 10.54%.[73] Quarterly dividends have been consistent, with the most recent payout of $0.22 per share declared in October 2025, part of an annualized dividend of $0.88 and a payout ratio of around 6.6%.[74][75] Over the longer term, PulteGroup's total shareholder return, incorporating dividends and price appreciation, has delivered compounded annual growth exceeding 20% in recent multi-year periods, driven by share repurchases that reduced outstanding shares and enhanced per-share metrics.[76] This approach aligns with the firm's strategy to allocate excess capital toward high-return activities rather than expansive debt-financed growth, amid cyclical housing market pressures.[2]Recent Developments (2020-2025)
In 2020, PulteGroup navigated COVID-19 restrictions by maintaining operations as an essential service, achieving revenue of $11.0 billion, an 8% increase from 2019, and net income of $1.4 billion, supported by steady home closings and demand for suburban housing.[66][68] The company's adaptability included enhanced virtual sales processes, contributing to net new orders rising 24% in the fourth quarter to 7,056 homes.[77] The period from 2021 to 2022 marked peak growth amid historically low mortgage rates and remote work trends fueling migration to larger homes. Revenue surged 26% to $13.9 billion in 2021, with net income climbing 38% to $1.9 billion, reflecting higher average selling prices and closings.[78][66] In 2022, revenue grew another 15% to $16.1 billion and net income rose 35% to $2.6 billion, though net new orders declined 27% year-over-year due to emerging inflationary pressures and rate hikes.[79][68]| Year | Revenue ($B) | Net Income ($B) | Key Driver |
|---|---|---|---|
| 2020 | 11.0 | 1.4 | Pandemic resilience and suburban demand |
| 2021 | 13.9 | 1.9 | Low rates boosting orders and prices |
| 2022 | 16.1 | 2.6 | Continued volume growth pre-rate peak |