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PHM FY2026 Q2 IN LINE

PulteGroup, Inc. earnings call

Jul 22, 2026 · 04:30 ET Jim OssowskiJim ZeumerRyan Marshall
Buzzberg read

Orders up 6% year-over-year, active adult up 12%

PulteGroup reported a solid Q2 with orders up 6% YoY, gross margin of 25%, and continued reduction of spec inventory. Management maintained full-year guidance as they navigate a mixed demand environment, strong Florida performance, and cautious recovery in the West. The call also highlighted successful transition back to build-to-order and normalizing build cycles. Net new orders increased 6% YoY to 7,536 homes; Florida orders surged 19%.

Buzzberg read Orders up 6% year-over-year, active adult up 12% PulteGroup reported a solid Q2 with orders up 6% YoY, gross margin of 25%, and continued reduction of spec inventory. Management maintained full-year guidance as they navigate a mixed demand environment, strong Florida performance, and cautious recovery in the West. The call also highlighted successful transition back to build-to-order and normalizing build cycles. Net new orders increased 6% YoY to 7,536 homes; Florida orders surged 19%. Read full analysisCollapse analysis

PulteGroup reported a solid Q2 with orders up 6% YoY, gross margin of 25%, and continued reduction of spec inventory. Management maintained full-year guidance as they navigate a mixed demand environment, strong Florida performance, and cautious recovery in the West. The call also highlighted successful transition back to build-to-order and normalizing build cycles. Net new orders increased 6% YoY to 7,536 homes; Florida orders surged 19%.

  • Finished spec inventory dropped to 1.3 per community, down from 1.9 a year ago.
  • Gross margin came in at 25%, 50 bps above Q1, driven by favorable mix and lower build costs.
  • Full-year guidance reaffirmed: closings 28,500–29,000, gross margin 24.5%–25.0%, SG&A 9.5%–9.7%.
Revenue $3.983B +17% QoQ
EPS $2.48 +39% QoQ
Gross margin 20.72% reported
Op margin 11.11% reported

What changed this quarter

01
Demand

Orders up 6% year-over-year, active adult up 12%

Management was confident in the quarter's results and strategy execution, highlighting strong orders, margins, and disciplined inventory management despite macroeconomic uncertainties.

02
Margins

Gross margin 25% in Q2, reaffirmed full-year guide

Reported gross margin was 20.72%, reinforcing the quarter's better-than-guided profitability.

03
Other

Finished spec inventory dropped to 1.3 per community

, down from 1.9 a year ago.

04
Margins

Incentives on closings down 50 bps sequentially

Reported gross margin was 20.72%, reinforcing the quarter's better-than-guided profitability.

Demand

Demand

Bookings & conversion

Orders up 6% year-over-year, active adult up 12%. Management was confident in the quarter's results and strategy execution, highlighting strong orders, margins, and disciplined inventory management despite macroeconomic uncertainties.

Tone · confident

Management was confident in the quarter's results and strategy execution, highlighting strong orders, margins, and disciplined inventory management despite macroeconomic uncertainties.

Supply-chain alpha

A1

Build cycles have recovered to 100 working days or fewer, enabling faster conversion of sold homes to closings and a strategic shift back to build-to-order.

“With build cycles down to 100 days or fewer in some cases, we can effectively manage our starts cadence while still meeting our overall production goals.”
Ryan Marshall
A2

Incentives on closings fell 50 bps sequentially from Q1 to Q2, signaling improving pricing power even as overall incentive levels remain elevated.

“Incentives on closings in Q2 dropped 50 basis points from the first quarter.”
Ryan Marshall
A3

Florida operations continued to outperform with net new orders up 19% year-over-year, marking multiple quarters of strong growth.

“The strength of demand in our Florida operations continued to stand out as net new orders in Q2 increased by 19% over the same period in 2025.”
Jim Ossowski

Forward guidance

In LineGuidance tone
MetricPeriodRangeMidpointStatus
Gross marginFY2026 Q324.5%–25%24.75%GUIDED
Gross marginFY202624.5%–25%24.75%MAINTAINED
UnitsFY2026 Q37000–74007200GUIDED
UnitsFY202628500–2900028750MAINTAINED

Guidance credibility

2 / 3met or beat
IssuedMetricTargetGuideActualOutcome
FY2026 Q1UnitsFY2026 Q26700–71006997Met / beat
FY2025 Q3Free cash flowFY2025$1.4B$1.9BMet / beat
FY2025 Q3Gross marginFY2025 Q425.5%–26%24.78%Missed