01—Abstract
Summary
Summary of the 10-Q filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.
PulteGroup, Inc. (NYSE: PHM) reported net income of $472.0 milliona, or $2.48 per diluted share, for the three months ended June 30, 2026, down from $608.5 million, or $3.03 per diluted share, in the prior-year quarter.
For the six months, net income was $819.0 millionb, or $4.27 per diluted share, versus $1.13 billion, or $5.60 per diluted share, a year earlier. Total revenues were $3.98 billion for the quarter, compared with $4.40 billion a year earlier. Home sale revenues fell 11% as closings dropped 8% and average selling price declined 3%, while the company's gross margin from home sales fell to 25.0% from 27.0%.
Management attributes the pressure to elevated mortgage rates, affordability challenges, higher land and development costs, and increased sales incentives. Demand improved modestly on an order basis: net new orders rose 6%c in units and 5% in dollars for the quarter, driven mainly by Florida and Midwest, while the West declined. Backlog units grew 2% to 10,966, although backlog dollars fell 1%.
The company returned capital to shareholders, repurchasing $681.2 milliond of shares in the first six months and raising its quarterly dividend to $0.26 per share from $0.22. Shareholders' equity rose to $13.01 billion at June 30, 2026, and cash and equivalents declined to $1.34 billion from $1.98 billion at year-end 2025, while notes payable increased to $1.82 billion after the company issued $800.0 million of senior notes in February 2026. Liquidity remains a focus.
Operating cash flow was $176.8 million for the six months, as inventory investment of $807.3 million absorbed much of net income. Pulte Mortgage's $625.0 million master repurchase agreement matures on August 12, 2026, and management says it intends to refinance it, though no assurance is given on commercially reasonable terms. The company reported $1.4 billion of remaining capacity under its Revolving Credit Facility, which was extended to February 2031 and increased to $1.75 billion in committed capacity.
02—Key points
Key Highlights
- Net income fell to $472.0 million ($2.48 diluted EPS) in Q2 2026 from $608.5 million ($3.03) in Q2 2025; six-month net income was $819.0 million ($4.27) versus $1.13 billion ($5.60).
- Home sale revenues decreased 11% to $3.81 billion in Q2 as closings fell 8% to 6,997 units and average selling price declined 3% to $544 thousand.
- Gross margin from home sales was 25.0% in Q2 2026 versus 27.0% a year earlier, attributed to higher land costs, pricing actions, and elevated sales incentives.
- Net new orders rose 6% in units to 7,536 and 5% in dollars to $4.08 billion in Q2, led by Florida and Midwest; the West declined.
- Shareholder returns included $681.2 million of share repurchases in the first six months of 2026 and a quarterly dividend increase from $0.22 to $0.26 per share.
- Operating cash flow was $176.8 million for the six months of 2026, down from $421.7 million, as inventory investment reached $807.3 million.
- The $625.0 million Pulte Mortgage repurchase agreement, with $477.9 million outstanding, matures August 12, 2026; management intends to refinance it.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 22, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.98B$4.40B | −9.6% |
| Cost of Revenue | $2.92B$3.15B | −7.0% |
| Gross Profit | $1.06B$1.26B | −15.9% |
| SG&A Expenses | $382.96M$390.45M | −1.9% |
| Net Income | $472.00M$608.48M | −22.4% |
| EPS (Basic) | $2.49$3.05 | −18.4% |
| EPS (Diluted) | $2.48$3.03 | −18.2% |
| Shares Outstanding (Basic) | 189.39M199.24M | −4.9% |
| Shares Outstanding (Diluted) | 190.58M200.68M | −5.0% |
05—Questions
Frequently Asked Questions
How did PulteGroup's profitability change in the second quarter of 2026?
Net income was $472.0 million, or $2.48 per diluted share, compared with $608.5 million, or $3.03 per diluted share, in the second quarter of 2025. Income before income taxes was $622.4 million versus $807.2 million a year earlier, with lower home sale revenues and a lower gross margin from home sales (25.0% versus 27.0%) as the main drivers.
Is demand for PulteGroup's homes improving?
Orders improved on a unit basis, with net new orders up 6% to 7,536 units in the second quarter, and cancellation rates fell to 13% from 15%. However, closings declined 8% because of a lower order backlog entering 2026, and ending backlog dollars decreased 1% to $6.80 billion. Management says many buyers still face affordability challenges and expects sales incentives to remain elevated.
What are the main liquidity considerations for investors?
Cash and equivalents fell to $1.34 billion at June 30, 2026 from $1.98 billion at year-end 2025, and operating cash flow was $176.8 million for the first six months. The Pulte Mortgage repurchase agreement matures on August 12, 2026, and management intends to refinance it but gives no assurance of renewal on commercially reasonable terms. The company reports $1.4 billion of remaining capacity under its Revolving Credit Facility, which matures in February 2031.
How is PulteGroup returning capital to shareholders?
In the first six months of 2026, the company repurchased 5.5 million shares for $681.2 million and declared $99.5 million in cash dividends. The quarterly dividend was raised to $0.26 per share from $0.22. At June 30, 2026, remaining repurchase authorization totaled $1.8 billion after a $1.5 billion increase approved on April 22, 2026.
What did the company do with its debt in 2026?
In February 2026, PulteGroup issued $800.0 million of unsecured senior notes, $400.0 million at 4.250% due 2031 and $400.0 million at 4.900% due 2036. The proceeds repaid $251.9 million of notes that matured March 1, 2026 and redeemed in full the $337.3 million of notes due January 2027. The revolving credit facility was also extended to February 2031 and its committed capacity raised to $1.75 billion.
06—Continue