PulteGroup, Inc.

Second-quarter 2026 net new orders increased 6% year over year to 7,536 homes, and order value rose 5% to $4.1 billion. Home sale revenues were $3.8 billion versus $4.3 billion last year, reflecting 6,997 closings, down 8%, and a 3% decline in average sales price to $544,000. Gross margin was 25.0% in Q2, up 60 bps sequentially, with incentives at 10.4% of sales, down 50 bps sequentially. Net income was $472 million, or $2.48 per share, versus $608 million, or $3.03 per share a year ago. Backlog ended at 10,966 homes worth $6.8 billion. For Q3, closings are expected to be 7,000-7,400 homes and average sales price is expected to be $550,000-$560,000; for full-year 2026, closings are reaffirmed at 28,500-29,000, gross margin at 24.5%-25.0%, SG&A at 9.5%-9.7% of home sale revenues, tax rate at 24.5%, and operating cash flow at approximately $1 billion.

Ryan Marshall framed the quarter as proof that PulteGroup’s operating model is working, pointing to stronger orders, a rising build-to-order mix, and disciplined spec reduction. He said the company is prioritizing “pace price balance” rather than pushing volume for its own sake, even if that limits overhead leverage at times. He also emphasized that the current strategy is designed to sell from a position of strength and preserve returns, not chase growth at any cost.

Jim Ossowski walked through the quarter’s financials and guides in detail: 25.0% gross margin, 10.4% incentives, $383 million of homebuilding SG&A, $622 million of pretax income, $472 million of net income, and $2.48 EPS. He noted house costs were just under $75 per sq. ft., down 5% year over year and about 1% sequentially, and said year-over-year house costs should still be slightly down in 2026 even as the lumber tailwind fades. He also highlighted $1.4 billion of land spend in Q2, $2.7 billion year to date, $1.4 billion of cash, a 12.3% debt-to-capital ratio, and reaffirmed the roughly $1 billion operating cash flow target for 2026.

Analysts focused on early signs of stabilization, incentive trends, community-count growth, the margin cadence into Q3/Q4, and how Pulte will get to its SG&A and cash-flow targets. Management said demand looked steadier in the Midwest, Southeast, Florida, and parts of Texas, but the West remained softer and incentives should stay elevated because affordability remains stretched. On build-to-order, management said the 60% target likely comes sometime next year, and on M&A they reiterated that deals must make Pulte “better, not just bigger,” with preference for smaller tuck-in transactions.