Pultegroup Stock Earnings Reports

PulteGroup delivered a solid Q1 2026 despite macro and geopolitical uncertainty: home sale revenue was $3.3 billion, gross margin 24.4%, and GAAP EPS $1.79. Net new orders rose 3% to 8,034 homes (value $4.6B), driven by an 18% order increase in Florida and a 9% rise in community count to 1,043. The company continues a strategic shift from specs toward build-to-order (BTO) — BTOs were 43% of Q1 orders (vs. 40% a year ago) — and reduced finished spec inventory to an average 1.4 finished specs per community (inside its 1.0–1.5 target). Closings were 6,102 homes; Q2 closings are guided to 6,700–7,100 and full-year closings reaffirmed at 28,500–29,000. ASP was down ~5% YoY to $542k; Q2 ASP guidance is $540k–$550k and full-year ASP remains $550k–$560k. Incentives were elevated at 10.9% of gross sales price (up 290 bps YoY), a key driver of the YoY margin decline (Q1 gross margin 24.4% vs. 27.5% last year). Management expects Q2 margins to be the low point (24.1%–24.4%) and full-year gross margin of 24.5%–25% (likely toward the low end). House costs were down ~5% YoY to $75/sq ft, and land costs show signs of stabilization or easing. Capital allocation: invested $1.3B in land acquisition and development in Q1 (guiding $5.4B for 2026), ended the quarter with $1.8B cash and net debt-to-capital effectively zero, repurchased 2.4M shares for $308M in Q1 and announced an additional $1.5B buyback authorization (total available $2.1B). Financial Services pretax income was $13M (down YoY) due to lower volumes and lower mortgage sale gains. Management expects ~ $1B free cash flow in 2026 given planned land spend and higher BTO mix, with conversion expected to improve as BTO closings increase later in 2026/early 2027. Overall tone: disciplined operations (starts matched to demand), confident in long-term demand and balance sheet strength, but near-term margins and incentives remain pressured by competitive environment and elevated incentive usage.