PULTEGROUP INC/MI/ (PHM) · Material Event (8-K) SEC Filing

EX-99.1 2 ex991earningspr06302026.htm EX-99.1 - 2Q 2026 EARNINGS RELEASE Document FOR IMMEDIATE RELEASE Company Contact Investors Jim Zeumer (404) 978-6434 jim.zeumer pultegroup.com PULTEGROUP REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS Earnings of $2.48 Per Share Home Sale Revenues of $3.8 Billion Driven by Closings of 6,997 Homes Home Sale Gross Margin of 25.0% Net New Orders Increased 6% Over Prior Year to 7,536 Homes Order Value Increased 5% to $4.1 Billion Unit Backlog Increased 2% to 10,966 Homes with a Value of $6.8 Billion Company Repurchased $373 Million of Common Shares in the PeriodATLANTA - July 22, 2026 PulteGroup, Inc. (NYSE PHM) announced today financial results for its second quarter ended June 30, 2026. For the quarter, the Company reported net income of $472 million, or $2.48 per share. In the prior year period, the Company reported net income of $608 million, or $3.03 per share. We continue to capture benefits from our return-focused operating model and business platform that is well diversified across markets and buyer groups, said Ryan Marshall, President and CEO of PulteGroup. The resulting benefits helped PulteGroup generate earnings of $2.48 per share in the quarter, while realizing a 6% increase in net new orders and generating a sequential increase in gross margin of 60 basis points. Overall, market conditions remain highly competitive as macroeconomic uncertainty, volatile interest rates and strained affordability weigh on housing demand, but there are early signs that conditions may be stabilizing in select geographies around the country. Within this operating environment, we continue to execute focused, tactical adjustments as we work to balance price and pace within each community in support of delivering high returns across the enterprise. Second quarter home sale revenues decreased 11% from the prior year to $3.8 billion. Lower revenues for the period reflect an 8% decrease in closing volumes to 6,997 homes, in combination with a 3% decrease in average sales price to $544,000.For its second quarter, PulteGroup reported home sale gross margin of 25.0%, a sequential increase of 60 basis points from the first quarter of 2026, which is down from 27.0% last year. Second quarter SG A expense for the Company was $383 million, or 10.1% of home sale revenues. Prior year SG A expense was $390 million, or 9.1% of home sale revenues.Net new orders for the second quarter increased 6% to 7,536 homes, as higher community count helped to drive an increase in orders across all buyer groups. The dollar value of net new orders in the period was $4.1 1billion, which is an increase of 5% over the prior year quarter. Community count for the second quarter averaged 1,074, which is an increase of 8% over the second quarter of 2025.The Company ended the second quarter with a backlog of 10,966 homes, which is an increase of 2% over the second quarter of last year. Backlog value for the second quarter decreased 1% over last year to $6.8 billion. The Company's financial services operations reported second quarter pre-tax income of $37 million, compared with prior year pre-tax income of $43 million. Mortgage capture rate was 85% for the second quarter in both the current and prior year periods.The Company ended the quarter with $1.4 billion in cash and a debt-to-capital ratio of 12.3%. In the second quarter, the Company repurchased 3.1 million of its outstanding common shares for $373 million, or an average price of $119.42 per share. Through the first six months of 2026, the Company has repurchased 5.5 million shares, or 3% of its common shares, for $681 million.A conference call discussing PulteGroup's second quarter 2026 results is scheduled for Wednesday, July 22, 2026, at 8 30 a.m. Eastern Time. Interested investors can access the live webcast via PulteGroup's corporate website at www.pultegroup.com.Forward-Looking StatementsThis release includes forward-looking statements. These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words believe, expect, intend, estimate, anticipate, plan, project, may, can, could, might, should, will and similar expressions identify forward-looking statements, including statements related to any potential impairment charges and the impacts or effects thereof, expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future. Such risks, uncertainties and other factors include, among other things interest rate changes and the availability of mortgage financing the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry conditions or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend economic changes nationally or in our local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general supply shortages and the cost of labor and building materials the availability and cost of land and other raw materials used by us in our homebuilding operations a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets competition within the industries in which we operate rapidly changing technological developments including, but not limited to, the use of artificial intelligence in the homebuilding industry governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities, slow growth initiatives and or local building moratoria the availability and cost of insurance covering risks associated with our businesses, including warranty and other legal or regulatory proceedings or claims damage from improper acts of persons over whom we do not have control or attempts to impose liabilities or obligations of third parties on us weather related slowdowns the impact of climate change and related governmental regulation adverse capital and credit market conditions, which may affect our access to and cost of capital the insufficiency of our income tax provisions and tax reserves, including as a result of changing laws or interpretations the potential that we do not realize our deferred tax assets our inability to sell mortgages into the secondary market uncertainty in the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans, and related claims against us risks associated with the implementation of a new enterprise resource planning system risks related to information technology failures, data security issues, and the effect of 2cybersecurity incidents and threats the impact of negative publicity on sales failure to retain key personnel the impairment of our intangible assets disruptions associated with epidemics, pandemics or other serious public health threats (as well as fear of such events), and the measures taken to address it and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See Item 1A Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, for a further discussion of these and other risks and uncertainties applicable to our businesses. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations.About PulteGroupPulteGroup, Inc. (NYSE PHM), based in Atlanta, Georgia, is one of America s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the company is one of the industry s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup s purpose is building incredible places where people can live their dreams.For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com pulte.com centex.com delwebb.com divosta.com and jwhomes.com. Follow PulteGroup, Inc. on X PulteGroupNews.# # #3PulteGroup, Inc.Consolidated Statements of Operations($000's omitted, except per share data)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenues Homebuilding Home sale revenues $ 3,807,097 $ 4,267,975 $ 7,114,607 $ 8,017,244 Land sale and other revenues 78,921 34,622 108,235 87,176 3,886,018 4,302,597 7,222,842 8,104,420 Financial Services 96,939 101,158 168,687 191,986 Total revenues 3,982,957 4,403,755 7,391,529 8,296,406 Homebuilding Cost of Revenues Home sale cost of revenues (2,856,634) (3,115,450) (5,356,788) (5,834,564) Land sale and other cost of revenues (68,129) (30,488) (95,276) (81,443) (2,924,763) (3,145,938) (5,452,064) (5,916,007) Financial Services expenses (60,673) (59,611) (119,839) (114,581) Selling, general, and administrative expenses (382,965) (390,453) (763,298) (783,790) Equity income from unconsolidated entities, net 3,962 409 4,841 911 Other income (expense), net 3,921 (1,006) 10,666 5,355 Income before income taxes 622,439 807,156 1,071,835 1,488,294 Income tax expense (150,436) (198,673) (252,837) (357,012) Net income $ 472,003 $ 608,483 $ 818,998 $ 1,131,282 Per share Basic earnings $ 2.49 $ 3.05 $ 4.29 $ 5.64 Diluted earnings $ 2.48 $ 3.03 $ 4.27 $ 5.60 Cash dividends declared $ 0.26 $ 0.22 $ 0.52 $ 0.44 Number of shares used in calculation Basic 189,388 199,243 190,734 200,645 Effect of dilutive securities 1,195 1,438 1,256 1,520 Diluted 190,583 200,681 191,990 202,165 4PulteGroup, Inc.Condensed Consolidated Balance Sheets($000's omitted)(Unaudited) June 30,2026 December 31,2025 ASSETS Cash and equivalents $ 1,335,709 $ 1,980,869 Restricted cash 41,633 27,907 Total cash, cash equivalents, and restricted cash 1,377,342 2,008,776 House and land inventory 13,715,417 12,925,413 Residential mortgage loans available-for-sale 549,713 613,665 Investments in unconsolidated entities 202,796 167,342 Other assets 2,307,328 2,217,483 Goodwill 40,377 40,377 Other intangible assets 23,385 26,210 Deferred tax assets 46,832 49,157 $ 18,263,190 $ 18,048,423 LIABILITIES AND SHAREHOLDERS EQUITY Liabilities Accounts payable $ 717,891 $ 724,885 Customer deposits 512,255 387,837 Deferred tax liabilities 459,586 448,493 Accrued and other liabilities 1,261,546 1,338,330 Financial Services debt 477,904 532,338 Notes payable 1,820,277 1,631,098 5,249,459 5,062,981 Shareholders' equity 13,013,731 12,985,442 $ 18,263,190 $ 18,048,423 5PulteGroup, Inc.Consolidated Statements of Cash Flows($000's omitted)(Unaudited) Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net income $ 818,998 $ 1,131,282 Adjustments to reconcile net income to net cash provided by operating activities Deferred income tax expense 13,402 19,798 Land-related charges 27,561 42,184 Loss on debt retirement 2,637 Depreciation and amortization 49,935 49,714 Equity income from unconsolidated entities, net (4,841) (911) Distributions of income from unconsolidated entities 4,758 3,060 Share-based compensation expense 34,207 30,973 Other, net 569 (380) Increase (decrease) in cash due to Inventories (807,305) (533,041) Residential mortgage loans available-for-sale 63,933 47,986 Other assets (94,825) (175,258) Accounts payable, accrued and other liabilities 67,773 (193,674) Net cash provided by operating activities 176,802 421,733 Cash flows from investing activities Capital expenditures (55,297) (64,138) Investments in unconsolidated entities (40,875) (7,954) Distributions of capital from unconsolidated entities 5,508 39,419 Other investing activities, net 2,905 (6,509) Net cash used in investing activities (87,759) (39,182) Cash flows from financing activities Proceeds from debt issuance 794,784 Repayments of notes payable (600,681) (9,163) Financial Services borrowings (repayments), net (54,434) (28,549) Debt issuance costs (22,759) Proceeds from liabilities related to consolidated inventory not owned 18,303 16,633 Payments related to consolidated inventory not owned (23,155) (22,438) Share repurchases (681,167) (600,000) Excise tax on share repurchases (11,482) (11,550) Cash paid for shares withheld for taxes (38,062) (23,761) Dividends paid (101,824) (90,077) Net cash used in financing activities (720,477) (768,905) Net increase (decrease) in cash, cash equivalents, and restricted cash (631,434) (386,354) Cash, cash equivalents, and restricted cash at beginning of period 2,008,776 1,653,680 Cash, cash equivalents, and restricted cash at end of period $ 1,377,342 $ 1,267,326 Supplemental Cash Flow Information Interest paid (capitalized), net $ 5,879 $ 8,088 Income taxes paid (refunded), net $ 270,253 $ 392,286 6PulteGroup, Inc.Segment Data($000's omitted)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 HOMEBUILDING Home sale revenues $ 3,807,097 $ 4,267,975 $ 7,114,607 $ 8,017,244 Land sale and other revenues 78,921 34,622 108,235 87,176 Total Homebuilding revenues 3,886,018 4,302,597 7,222,842 8,104,420 Home sale cost of revenues (2,856,634) (3,115,450) (5,356,788) (5,834,564) Land sale and other cost of revenues (68,129) (30,488) (95,276) (81,443) Selling, general, and administrative expenses (382,965) (390,453) (763,298) (783,790) Equity income (loss) from unconsolidated entities, net 2,852 (841) 3,731 (339) Other income (expense), net 3,921 (1,006) 10,666 5,355 Income before income taxes $ 585,063 $ 764,359 $ 1,021,877 $ 1,409,639 FINANCIAL SERVICES Income before income taxes $ 37,376 $ 42,797 $ 49,958 $ 78,655 CONSOLIDATED Income before income taxes $ 622,439 $ 807,156 $ 1,071,835 $ 1,488,294 7PulteGroup, Inc.Segment Data, continued($000's omitted)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Home sale revenues $ 3,807,097 $ 4,267,975 $ 7,114,607 $ 8,017,244 Closings - units Northeast 331 451 592 790 Southeast 1,370 1,402 2,598 2,595 Florida 1,875 1,882 3,564 3,532 Midwest 1,173 1,272 2,150 2,362 Texas 1,121 1,218 1,987 2,257 West 1,127 1,414 2,208 2,686 6,997 7,639 13,099 14,222 Average selling price $ 544 $ 559 $ 543 $ 564 Net new orders - units Northeast 399 384 840 788 Southeast 1,442 1,405 2,865 2,761 Florida 2,115 1,773 4,321 3,642 Midwest 1,409 1,272 2,694 2,660 Texas 1,053 1,042 2,311 2,329 West 1,118 1,207 2,539 2,668 7,536 7,083 15,570 14,848 Net new orders - dollars $ 4,084,351 $ 3,887,938 $ 8,649,377 $ 8,365,765 Unit backlog Northeast 755 613 Southeast 2,018 2,078 Florida 3,178 2,905 Midwest 2,149 2,100 Texas 1,115 1,020 West 1,751 2,063 10,966 10,779 Dollars in backlog $ 6,804,881 $ 6,843,239 8 PulteGroup, Inc.Segment Data, continued($000's omitted)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 MORTGAGE ORIGINATIONS Origination volume 4,629 4,984 8,618 9,255 Origination principal $ 1,976,303 $ 2,164,755 $ 3,679,319 $ 4,030,773 Capture rate 85.2 % 84.8 % 85.0 % 85.5 % Supplemental Data($000's omitted)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Interest in inventory, beginning of period $ 125,265 $ 139,541 $ 122,327 $ 139,960 Interest capitalized 28,489 26,129 56,324 52,221 Interest expensed (28,455) (29,046) (53,352) (55,557) Interest in inventory, end of period $ 125,299 $ 136,624 $ 125,299 $ 136,624 9PulteGroup, Inc.Reconciliation of Non-GAAP Financial MeasuresThis report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial measures. We calculate total net debt by subtracting total cash, cash equivalents, and restricted cash from notes payable to present the amount of assets needed to satisfy the debt. We use the debt-to-capital and net debt-to-capital ratios as indicators of our overall leverage and believe they are useful financial measures in understanding the leverage employed in our operations. We believe that these measures provide investors relevant and useful information for evaluating the comparability of financial information presented and comparing our profitability and liquidity to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate these measures and any adjustments thereto before comparing our measures to those of such other companies.The following table sets forth a reconciliation of the debt-to-capital ratios ($000's omitted) Debt-to-Capital Ratios June 30,2026 December 31,2025 Notes payable $ 1,820,277 $ 1,631,098 Shareholders' equity 13,013,731 12,985,442 Total capital $ 14,834,008 $ 14,616,540 Debt-to-capital ratio 12.3 % 11.2 % Notes payable $ 1,820,277 $ 1,631,098 Less Total cash, cash equivalents, and restricted cash (1,377,342) (2,008,776) Total net debt $ 442,935 $ (377,678) Shareholders' equity 13,013,731 12,985,442 Total net capital $ 13,456,666 $ 12,607,764 Net debt-to-capital ratio 3.3 % (3.0) % 10