A major American homebuilder, PulteGroup builds houses under brands like Pulte Homes, Centex, and Del Webb, serving everyone from first-time buyers to retirees in 55-and-over communities. It grew out of a single house built by 18-year-old Bill Pulte on Detroit's east side in 1950. The company took its name from its founder and even shares its name with his family's charitable foundation.
Q2 2026 net income fell 22% to $472M as home sale gross margin contracted to 25.0%
Home sale fell to 25.0%, the lowest in the reported quarterly series. declined 11% to $3.81B and dropped as pricing actions and higher land costs compressed profitability, with down 22% to $472M . The that began in 2025 is still deepening, leaving the company with less earnings power per home sold.
Key takeaways
Home sale contracted 200 to 25.0% from 27.0% a year earlier, driven by elevated sales incentives, pricing actions, and rising land acquisition and development costs.
Home sale revenues declined 11% to $3.81B on an 8% drop in closings and a 3% lower average selling price, pulling total down 11% for the quarter.
fell 22% to $472M and the company repurchased $681.2M in shares while raising its quarterly 18% to $0.26 per share.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income fell 22% to $472M as home sale gross margin contracted 200 bps to 25.0% on pricing actions and higher land costs.
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Home sale revenues declined 11% to $3.81B, driven by an 8% drop in closings and a 3% lower average selling price.
Net new orders rose 6% in units, led by Florida and Midwest, while the West saw declines.
expenses fell 2% in dollars but rose to 10.1% of home sale revenues as lower reduced .
Liquidity stood at $1.3B unrestricted cash plus $1.4B available under the .
What changed
Q2 2026 home sale came in at 25.0%, extending the compression flagged after Q1's 24.4% — the margin has fallen every quarter since Q2 2025's 27.0%.
Net new orders rose 6% in units after Q1's 3% rise and 2025's 4% full-year decline, with the cancellation rate not restated this quarter but Q1 at 12% versus 15% in 2025.
Share repurchases accelerated to $681.2M in Q2 from $308.2M in Q1, against the $1.2B deployed in all of 2025 and $2.0B cash at 2025 year-end.
was not separately stated in the Q2 narrative but the table shows $159.8M for Q1 2026, down from $287.5M in Q2 2025, continuing the cash flow softness flagged through 2025.
Land-related charges were not quantified this quarter after $126.9M in FY2025 and $27.6M in Q3 2025, leaving the pace unaddressed in this filing.
What to watch
Q3 2026 home sale against the 25.0% Q2 level to see if the 200 compression reverses or continues.
Q3 2026 net new orders and cancellation rate after the 6% unit rise and the West 's continued declines.
Pace of land-related charges after FY2025 totaled $126.9M and Q2 gave no update.
Level of H2 2026 share repurchases after $989.4M deployed through Q2 against remaining authorization.
Home sale decreased to 25.0% from 27.0%, pressured by elevated sales incentives, pricing actions, and rising land costs.
Net new orders rose 6% in units, led by Florida and Midwest, while the West saw declines.
SG&A expenses fell 2% in dollars but rose as a percentage of home sale revenues to 10.1% due to lower .
The company repurchased $681.2M in shares and increased its quarterly 18% to $0.26 per share.
Liquidity remained strong with $1.3B in unrestricted cash and $1.4B available under the .
There have been no material developments with respect to the information previously reported under Part I, Item 3 of our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material developments with respect to the information previously reported under Part I, Item 3 of our Annual Report on Form 10-K for the year ended December 31, 2025.
There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. 41
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There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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