01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported first-quarter 2026 net income of $346,996 thousanda ($347.0 million), or $1.79 diluted earnings per share, down from $522,799 thousand ($2.57 diluted) in the first quarter of 2025.
Total revenues were $3.41 billionb versus $3.89 billion, driven by home sale revenues of $3.31 billion, down from $3.75 billion. Closings decreased 7% to 6,102 units, and average selling price fell 5% to $542 thousand. Home sale gross margin declined to 24.4% from 27.5%, which management attributes to pricing actions, elevated sales incentives, and higher land acquisition and development costs.
Net new orders rose 3% in units to 8,034, with higher volume concentrated in Florida, while backlog dollars decreased 10%. Liquidity remained substantial, with $1.8 billionc of unrestricted cash and equivalents and $1.4 billion available under the Revolving Credit Facility. In February 2026 the company issued $800.0 million of senior notes (4.250% due 2031 and 4.900% due 2036) and amended its revolving credit facility, raising committed capacity to $1.75 billion and extending maturity to February 2031.
The debt-to-total capitalization ratio, excluding Financial Services debt, rose to 12.3% from 11.2%. Shareholder returns continued, with $308.2 milliond of share repurchases and a quarterly dividend increased from $0.22 to $0.26 per share.
On April 22, 2026, the Board approved an additional $1.5 billion repurchase authorization. Management flagged that the Pulte Mortgage repurchase agreement, with $455.1 million outstanding, matures in August 2026 and must be refinanced.
02—Key points
Key Highlights
- Net income fell to $346,996 thousand from $522,799 thousand; diluted EPS was $1.79 versus $2.57 a year earlier.
- Home sale revenues declined 12% to $3.31 billion, reflecting a 7% drop in closings to 6,102 units and a 5% decrease in average selling price to $542 thousand.
- Home sale gross margin decreased to 24.4% from 27.5%, attributed to pricing actions, elevated sales incentives, and higher land costs.
- Net new orders rose 3% in units to 8,034, led by Florida, while backlog dollars decreased 10% to $6.53 billion.
- The company issued $800.0 million of senior notes in February 2026 and expanded its revolving credit facility to $1.75 billion committed capacity, maturing February 2031.
- Share repurchases totaled $308.2 million in the quarter; the quarterly dividend rose to $0.26 per share from $0.22, and the Board added a $1.5 billion repurchase authorization on April 22, 2026.
- Pulte Mortgage's $625.0 million repurchase agreement, with $455.1 million outstanding, matures August 12, 2026 and must be repaid or refinanced.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.41B$3.89B | −12.4% |
| Cost of Revenue | $2.53B$2.77B | −8.8% |
| Gross Profit | $881.27M$1.12B | −21.5% |
| SG&A Expenses | $380.33M$393.34M | −3.3% |
| Net Income | $347.00M$522.80M | −33.6% |
| EPS (Basic) | $1.81$2.59 | −30.1% |
| EPS (Diluted) | $1.79$2.57 | −30.4% |
| Shares Outstanding (Basic) | 192.09M202.06M | −4.9% |
| Shares Outstanding (Diluted) | 193.40M203.66M | −5.0% |
05—Questions
Frequently Asked Questions
Why did PulteGroup's earnings decline in the first quarter of 2026?
Income before income taxes fell to $449.4 million from $681.1 million. Management attributed the decline to lower home sale revenues from fewer closings and lower average selling prices, along with a home sale gross margin of 24.4% versus 27.5% a year earlier. Pricing actions, elevated sales incentives, and higher land acquisition and development costs drove the margin compression.
Is demand for PulteGroup's homes improving?
Partially. Net new orders in units increased 3% to 8,034, with Florida driving the increase, but backlog dollars decreased 10% to $6.53 billion and closings fell 7%. Management said affordability challenges persist and that sales incentives are expected to remain elevated.
How strong is PulteGroup's liquidity position?
At March 31, 2026, the company had $1.8 billion of unrestricted cash and equivalents and $1.4 billion of remaining capacity under its Revolving Credit Facility, which had no borrowings outstanding. The debt-to-total capitalization ratio, excluding Financial Services debt, increased to 12.3% from 11.2%.
What capital returns did PulteGroup make, and what is planned?
In the quarter, the company repurchased 2.4 million shares for $308.2 million and declared $50.2 million in dividends. The quarterly dividend increased to $0.26 per share from $0.22. On April 22, 2026, the Board approved an additional $1.5 billion share repurchase authorization, on top of $674.7 million remaining at March 31, 2026.
What refinancing risks does PulteGroup face?
The Pulte Mortgage Repurchase Agreement matures on August 12, 2026, with $455.1 million outstanding at a weighted-average rate of 5.43%. Management intends to refinance it but states there can be no assurance of renewal or replacement on commercially reasonable terms.
06—Continue