PHM · PulteGroup, Inc.

PulteGroup's Q1 2026 results showed net income of $347 million and diluted EPS of $1.79, down from $523 million and $2.57 in the prior year, primarily due to a 12% decline in home sale revenues to $3.3 billion. This reflected a 7% drop in closings to 6,102 homes and a 5% decrease in average sales price to $542,000. Home sale gross margin contracted to 24.4% from 27.5%, driven by higher incentives to address competitive dynamics and reduce excess spec inventory. SG&A expense was $380 million or 11.5% of home sale revenues, up slightly from 10.5% prior year. Despite revenue pressure, net new orders grew 3% to 8,034 homes valued at $4.6 billion, supported by a 9% increase in average communities to 1,043. Backlog stood at 10,427 homes worth $6.5 billion. Financial services pre-tax income fell to $13 million with an 85% capture rate. The company repurchased 2.4 million shares for $308 million at $127.39 average price and invested $1.3 billion in land acquisition and development while returning $360 million to shareholders. Balance sheet remains strong with $1.8 billion cash and 12.3% debt-to-capital. Concurrently, the Board approved a $1.5 billion increase to share repurchase authorization, bringing remaining capacity to $2.1 billion, signaling confidence in valuation and capital allocation priorities. Management highlighted navigating affordability concerns and economic dynamics through managed sales, incentives, and production.