PulteGroup, Inc.
Home sale revenue fell 11% year over year (Y/Y) to $3.8 billion, owing to an 8% Y/Y decline in home closings to 6,997 units and a 3% Y/Y decrease in average sales price to $544,000.
The decline in average selling price primarily reflected a geographic mix shift, with fewer home closings in the higher-priced Northeast and Western markets.
PulteGroup CEO Ryan Marshall said that housing markets remain challenging due to economic uncertainty, interest rate volatility, and affordability pressures, but added that some regions are showing signs of stabilization.
By region, Florida operations remained strong, with orders rising 19% Y/Y, while demand was also solid across key Midwest markets and the Carolinas. However, demand in the West remained softer, though orders improved in California and the Pacific Northwest.
Margins & Liquidity
Home sale gross margin stood at 25%, compared with 27% in the prior-year period.
PulteGroup's financial services business generated $37 million in pre-tax income, compared with $43 million a year ago, while mortgage capture remained unchanged at 85%.
During the second quarter, PulteGroup repurchased 3.1 million shares for $373 million. The company ended the quarter with $1.4 billion in cash.
Orders and Backlog
Net new orders increased 6% Y/Y to 7,536 homes, led by a higher community count, which averaged 1,074 communities, up 8% Y/Y. Active adult demand remained a key growth driver, with second-quarter orders rising 12% Y/Y. First-time buyer orders increased 5% Y/Y, while move-up buyer orders grew 4% Y/Y in the quarter.
The dollar value of net new orders rose 5% Y/Y to $4.1 billion, while backlog increased 2% Y/Y to 10,966 homes, although backlog value declined 1% Y/Y to $6.8 billion.
PulteGroup reduced speculative inventory, ending the quarter with 6,638 spec homes under construction, representing 44% of total production, down 13% Y/Y. Finished spec inventory improved to about 1,400 homes, or 1.3 homes per community, compared with 1.9 a year ago.
The company invested $1.4 billion in land during the quarter and $2.7 billion year to date, with full-year land investment expected at $5.4 billion.
Outlook
Management remains cautiously optimistic despite ongoing pricing pressures and elevated incentives.
PulteGroup maintained its 2026 outlook, expecting 28,500-29,000 home closings with an average sales price of $550,000-$560,000 in the second half of the year.
It expects third quarter and full-year 2026 gross margins to remain in the 24.5%-25.0% range.
PHM Stock Price Activity: PulteGroup shares were up 0.86% at $125.33 at the time of publication on Wednesday, according to Benzinga Pro data.
