PulteGroup Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 22 July 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Quarterly earnings declined year over year: Net income was $472 million, or $2.48 diluted EPS, compared with $608 million, or $3.03, a year earlier. Source
• Home sale revenue fell 11%: Home sale revenues were $3.8 billion, down 11%. Closings fell 8% to 6,997 homes and average sales price fell 3% to $544,000. Source
• Home sale gross margin fell to 25.0%: Gross margin was 25.0%, down from 27.0% a year earlier and up 60 basis points from 24.4% in the first quarter of 2026. Source
• Net new orders rose 6%: Net new orders were 7,536 homes, up 6% from 7,083, with a dollar value of $4.1 billion, up 5%. Source
• Backlog units up 2%: Unit backlog was 10,966 homes, up 2% from 10,779 a year earlier. Backlog value was $6.8 billion, down 1%. Source
• Early signs of stabilization: Management said early signs of stabilization are visible in some geographies, while competition stays high. Source
• Repurchased $373 million of shares: The company repurchased 3.1 million shares for $373 million in the quarter, at an average of $119.42. Six-month repurchases were 5.5 million shares, or 3% of common shares, for $681 million. Source
• Debt-to-capital ratio at 12.3%: Debt-to-capital ratio was 12.3%, the same as at March 31, 2026 and up from 11.2% at December 31, 2025. Notes payable were $1.82 billion. Source

“We continue to capture benefits from our return-focused operating model and business platform that is well diversified across markets and buyer groups,”

Ryan Marshall, President and CEO of PulteGroup

Earnings and revenue

• Quarterly earnings declined year over year: Net income was $472 million, or $2.48 diluted EPS, compared with $608 million, or $3.03, a year earlier. Source
• Home sale revenue fell 11%: Home sale revenues were $3.8 billion, down 11%. Closings fell 8% to 6,997 homes and average sales price fell 3% to $544,000. Source
• Six-month earnings also lower: Six-month net income was $819 million, or $4.27 diluted EPS, against $1,131 million, or $5.60, in the first half of 2025. Source

Segments and regions

• Florida led order growth: Florida net new orders were 2,115 homes, up from 1,773, and Florida backlog rose to 3,178 homes from 2,905. Net orders also rose in the Northeast, Southeast, Midwest and Texas, and fell in the West. Source
• West closings and orders declined: West closings fell to 1,127 homes from 1,414, and West net new orders fell to 1,118 from 1,207. West backlog was 1,751 homes, down from 2,063. Source
• Northeast backlog increased year over year: Northeast unit backlog was 755 homes against 613 a year earlier, while Northeast closings fell to 331 from 451. Source

“The resulting benefits helped PulteGroup generate earnings of $2.48 per share in the quarter, while realizing a 6% increase in net new orders and generating a sequential increase in gross margin of 60 basis points.”

Ryan Marshall, President and CEO of PulteGroup

Financial services and mortgage

• Financial services pre-tax income fell: Financial services pre-tax income was $37 million, against $43 million a year earlier. Source
• Capture rate held at 85%: The release text gives a capture rate of 85% in both periods; the origination table shows 85.2% against 84.8%. Source
• Origination volume declined: Origination volume was 4,629 units against 4,984, and origination principal was $1.98 billion against $2.16 billion. Source

Costs and margins

• Home sale gross margin fell to 25.0%: Gross margin was 25.0%, down from 27.0% a year earlier and up 60 basis points from 24.4% in the first quarter of 2026. Source
• SG&A ratio rose to 10.1%: SG&A was $383 million, down from $390 million, but 10.1% of home sale revenues against 9.1% a year earlier. Source
• Average price fell 3%: Average sales price fell 3% to $544,000 from $559,000 a year earlier. Management said it is balancing price and pace community by community. Source
• Interest in inventory declined: Interest in inventory at June 30, 2026 was $125 million, against $137 million a year earlier. Interest capitalized in the quarter was $28 million. Source

“Within this operating environment, we continue to execute focused, tactical adjustments as we work to balance price and pace within each community in support of delivering high returns across the enterprise.”

PulteGroup Inc., press release

Demand and order book

• Net new orders rose 6%: Net new orders were 7,536 homes, up 6% from 7,083, with a dollar value of $4.1 billion, up 5%. Source
• Backlog units up 2%: Unit backlog was 10,966 homes, up 2% from 10,779 a year earlier. Backlog value was $6.8 billion, down 1%. Source
• Community count up 8%: Average community count was 1,074 in the quarter, up 8% from the second quarter of 2025 and above the first quarter's 1,043. Source
• Early signs of stabilization: Management said early signs of stabilization are visible in some geographies, while competition stays high. Source

Capital and shareholder returns

• Repurchased $373 million of shares: The company repurchased 3.1 million shares for $373 million in the quarter, at an average of $119.42. Six-month repurchases were 5.5 million shares, or 3% of common shares, for $681 million. Source
• Debt-to-capital ratio at 12.3%: Debt-to-capital ratio was 12.3%, the same as at March 31, 2026 and up from 11.2% at December 31, 2025. Notes payable were $1.82 billion. Source
• Net debt position at June 30: Net debt was $443 million, a 3.3% net debt-to-capital ratio, against net cash of $378 million and a (3.0)% ratio at December 31, 2025. Source
• Operating cash flow lower over six months: Six-month operating cash flow was $177 million, against $422 million, with inventory investment of $807 million against $533 million. Source
• Dividend declared at $0.26: Cash dividends declared were $0.26 per share, the same as in the first quarter and up from $0.22 a year earlier. Source
• Repurchase authorization raised in first quarter: The first-quarter release said the board raised the repurchase authorization by $1.5 billion, bringing the remaining authorization to $2.1 billion.

Inventory, investment and land

• House and land inventory rose: House and land inventory was $13.7 billion at June 30, 2026, up from $12.9 billion at December 31, 2025. Source
• Capex and unconsolidated investments: Six-month capital expenditures were $55 million, against $64 million, and investments in unconsolidated entities were $41 million, against $8 million. Source
• Land-related charges declined: Six-month land-related charges were $28 million, against $42 million a year earlier. Source

Figures management reported

Risks management discussed

• External: Management cited macroeconomic uncertainty and volatile interest rates as weighing on housing demand. Source
• Demand: Management described the market as highly competitive. Source
• Operational: Management is making tactical adjustments to price and pace in each community to balance the two. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.