PulteGroup (PHM) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $472M ($2.48/share), down from $608M ($3.03/share) year-over-year, reflecting lower closings and average selling prices amid challenging demand.

• Net new orders rose 6% year-over-year to 7,536 homes, with order value up 5% to $4.1B and backlog up 2% to 10,966 homes valued at $6.8B.

• Home sale revenues declined 11% to $3.8B, driven by an 8% decrease in closings and a 3% lower average sales price ($544,000).

• Gross margin for Q2 2026 was 25.0%, down from 27.0% last year but up sequentially, aided by disciplined cost control.

• $373M of common shares were repurchased in Q2; 5.5M shares for $681M YTD (3% of shares outstanding).

Financial highlights

• SG&A expense was $383M (10.1% of revenues), up 100 bps year-over-year, with full-year guidance reaffirmed at 9.5%-9.7%.

• Financial services pre-tax income was $37M, down from $43M last year, mainly due to lower home closings.

• Ended Q2 with $1.4B in cash and a debt-to-capital ratio of 12.3%.

• Net debt-to-capital ratio was 3.3%, compared to -3.0% at year-end 2025.

• Average FICO score for mortgage originations was 750; mortgage capture rate was 85%.

Outlook and guidance

• Q3 2026 guidance: 7,000–7,400 closings, gross margin 24.5%–25.0%, ASP $550K–$560K, SG&A 9.5%–9.7%.

• FY 2026 guidance: 28,500–29,000 closings, gross margin 24.5%–25.0%, ASP $550K–$560K, land spend ~$5.4B, operating cash flow ~$1.0B.

• Management expects affordability challenges and elevated incentives to persist, with dynamic house start pace and margin pressure.

• Management continues tactical adjustments to balance price and pace for high returns.

• Early signs of stabilization are emerging in select geographies.