Highlights

  • Net income for the second quarter was $472.0 million, or $2.48 per diluted share, versus $608.5 million, or $3.03.
  • Home sale gross margin was 25.0% against 27.0%, closings fell 8% to 6,997 and net new orders rose 6%.
  • PulteGroup repurchased $681.2 million of stock in the first half and added $1.5 billion to its repurchase authorization in April.
  • PulteGroup issued $800.0 million of notes in February and held $1.3 billion of cash; a mortgage facility matures in August.

PulteGroup (NYSE:PHM) shares were trading near their 52-week low at USD 114.06 on October 21, 2026, down 0.41%. The homebuilder filed its second quarter 2026 report on July 22, showing lower revenue and gross margin alongside higher orders, after issuing $800.0 million of senior notes in February and adding $1.5 billion to its share repurchase authorization in April.

Based in Atlanta, Georgia, PulteGroup is a Michigan corporation that builds and sells houses and operates a financial services business, including Pulte Mortgage. As of June 30, 2026, it conducted homebuilding operations in 48 markets across 26 states, grouped into six reportable segments: Northeast, Southeast, Florida, Midwest, Texas and West.

Lower Prices and Margins, Higher Orders

Total revenues for the quarter ended June 30, 2026 were $3.98 billion versus $4.40 billion. Home sale revenues fell 11% to $3.81 billion as closings declined 8% to 6,997 homes and the average selling price slipped 3% to $544 thousand. Management attributed the lower closings to a weaker order backlog entering the year, and the lower price to product and geographic mix and efforts to reduce unsold inventory.

Home sale gross margin was 25.0%, down from 27.0% a year earlier but up from 24.4% in the first quarter. The company pointed to higher land costs, pricing actions and elevated incentives such as spec home discounts, closing cost help and mortgage rate buydowns. SG&A was 10.1% of home sale revenues versus 9.1%, though its dollar amount fell 2%. Homebuilding pre-tax income was $585.1 million versus $764.4 million, and financial services pre-tax income was $37.4 million versus $42.8 million.

Demand indicators were firmer. Net new orders rose 6% to 7,536 homes and 5% in dollars to $4.08 billion, the cancellation rate eased to 13% from 15%, and average active communities grew 8% to 1,074. Backlog ended June at 10,966 homes, up 2%, worth $6.80 billion, down 1%.

Buybacks, Debt and Liquidity

For six months, the company repurchased 5.5 million shares for $681.2 million and declared dividends of $99.5 million, with the quarterly dividend raised 18% to $0.26 per share in January. Remaining repurchase authorization was $1.8 billion at June 30. Operating cash flow for the half was $176.8 million against $421.7 million, as inventories grew by $807.3 million. Net income for the half was $819.0 million versus $1.13 billion.

In February, PulteGroup issued $400.0 million of 4.250% notes due 2031 and $400.0 million of 4.900% notes due 2036, using proceeds to repay $251.9 million of maturing notes and redeem $337.3 million of notes due January 2027. It also extended its revolving credit facility to February 2031 and raised commitments to $1.75 billion. At June 30 it had no borrowings, $1.4 billion of remaining capacity, and unsecured senior notes of $1.8 billion with no repayments due until March 2031. The debt-to-capitalization ratio, excluding financial services debt, was 12.3% versus 11.2% at year-end.

Pulte Mortgage's master repurchase agreement, with a $625.0 million commitment and $477.9 million outstanding, matures on August 12, 2026. The company intends to refinance it but said there is no assurance it can be renewed or replaced on commercially reasonable terms, while stating it believes it has adequate liquidity for the mortgage unit's needs.

Management's Stated Outlook

The filing does not provide numerical guidance. Management said it expects sales incentives to stay elevated, house starts to remain responsive to demand and gross margins to be affected by pricing and land costs in the near term. It is taking what it called a measured approach to capital allocation, has walked away from several land option agreements and is rebalancing toward build-to-order homes, while saying it remains confident in its ability to navigate the environment.