PulteGroup Q2 2026 Earnings Call: Complete Transcript

PulteGroup (NYSE: PHM ) reported second-quarter financial results on Wednesday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary PulteGroup Inc. reported a 6% increase in net new orders for Q2 2026, with active adult orders up 12% and first-time buyer orders up 5%. Homebuilding gross margins were strong at 25% for the quarter, reflecting disciplined land underwriting and successful transition back to build-to-order models. 9 in the prior year, and aims for a future mix of 60% build-to-order and 40% spec homes.

8 billion, a decrease from last year due to an 8% decline in closings and a 3% decrease in average sales price. PulteGroup reaffirmed its guidance for 2026, expecting to close between 28,500 and 29,000 homes with an average sales price of $550,000 to $560,000 in the latter half of the year. 4 billion in land for the full year. Management highlighted the benefits of their strategic business model and strong performances across all buyer groups, particularly in Florida and the Midwest.

The sentiment on future market conditions remains cautiously optimistic, with expectations of continued competitive pressures and elevated incentives. Full Transcript Jordan, Conference Operator Thank you for standing by. My name is Jordan and I'll be your conference operator today. At this time I'd like to welcome everyone to the PulteGroup Inc.

Q2 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad.

If you'd like to withdraw your question, press STAR one again. Thank you. I would now like to turn the call over to Jim Zeumer. Please go ahead.

Jim Zeumer, Vice President, Investor Relations Thank you, Jordan. Good morning. I want to welcome everyone to today's call to review PulteGroup's operating and financial results for our second quarter ended June 30, 2026. Joining me on today's call are Ryan Marshall, President and CEO; Jim Ossowski, Executive Vice President and Chief Financial Officer; and David Carrier, Senior Vice President, Finance.

com. We will also post an audio replay of this call later today. I would highlight that today's presentation includes forward-looking statements about the company's expected future performance. Actual results could differ materially from those suggested by our comments made today.

The most significant risk factors that could affect future results are summarized as part of today's earnings release and within the accompanying presentation. These risk factors and other key information are detailed in our SEC filings, including our annual and quarterly reports. Now let me turn the call over. Ryan Marshall, President and CEO Thanks, Jim, and good morning.

Let me start by saying that I'm extremely pleased with the operating and financial results PulteGroup delivered both for our second quarter and for the first six months of 2026. Specific to our second quarter performance, I want to highlight a few key metrics that I think demonstrate the ongoing success of the company. Net new orders in the quarter increased by 6% over the same period last year as we realized higher orders across all buyer groups. Active adult orders were up 12% while orders among first-time buyers increased 5%.

On a sequential basis, incentives on closings in Q2 dropped 50 basis points from the first quarter. 3 homes per community at quarter end. Before turning the call to Jim for a thorough review of the quarter, let me offer a few additional comments about our results and general market conditions. Expanding on my earlier comment, on a year-over-year basis, net new orders were higher by 6% in the second quarter and up 5% year to date.

Through the first six months of 2026 we sold 720 more homes than this same period last year. I'd also highlight that as a percentage of total orders year to date, signups for build-to-order homes were up 500 basis points to 39% for the same six-month period last year. The ongoing increase in build-to-order homes is consistent with the plan we articulated coming into this year, namely to increase the percentage of build-to-order homes sold among our move-up and active adult homebuyers. These are individuals who expect choice, and our operating model allows them to choose their preferred lot and select the options and upgrades they desire.

I know our field teams are excited to execute the strategy as it affirms our build cycles have fully recovered from the global supply chain disruptions that hit the industry after COVID. Our decision to build more spec homes once supply chains collapsed and build cycles effectively doubled was the right one at the time, but we much prefer having a growing backlog of sold homes consistent with our operating strategies. We are achieving greater sales while still maintaining strong gross margin. 7% for the first half of the year.

In some instances, our homebuilding gross margin