PulteGroup (PHM) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $347 million ($1.79 per share), down 34% year-over-year, reflecting lower home closings and margins amid challenging demand and macroeconomic conditions.

• Revenues declined 12% to $3.3 billion, driven by a 7% decrease in closings and a 5% drop in average selling price, as affordability pressures and higher incentives persisted.

• Net new orders rose 3% year-over-year to 8,034 homes valued at $4.6 billion, with Florida orders up 18%.

• $1.3 billion invested in land acquisition and development; $360 million returned to shareholders; ended quarter with $1.8 billion in cash and net debt-to-capital ratio near zero.

• Repurchased 2.4 million shares for $308 million; board authorized an additional $1.5 billion for repurchases, with total availability now $2.1 billion.

Financial highlights

• Home sale revenues were $3.3 billion, down 12% year-over-year, with average selling price down 5% to $542,000 and closings down 7% to 6,102 homes.

• Gross margin from home sales declined to 24.4% from 27.5% year-over-year, impacted by higher incentives and lot costs.

• SG&A expense was $380 million (11.5% of home sale revenues), up as a percentage from 10.5% last year.

• Financial services pre-tax income dropped 65% to $13 million, reflecting lower volumes and reduced mortgage gains.

• Ended quarter with $1.8 billion in cash and a debt-to-capital ratio of 12.3%.

Outlook and guidance

• FY 2026 guidance: 28,500–29,000 closings, gross margin 24.1%–24.4%, land spend ~$5.4 billion, operating cash flow $1.0 billion.

• Q2 2026 guidance: 6,700–7,100 closings, gross margin 24.1%–25.0%, ASP $540,000–$560,000.

• Community count expected to grow 3%–5% in 2026, with higher build-to-order mix in H2.

• SG&A expense for 2026 guided at 9.5%–9.7% of home sale revenues.

• Management expects continued affordability challenges and elevated sales incentives, with dynamic house start pacing in response to market conditions.