PHM earnings analysis
What we found in PHM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
PulteGroup delivered Q2 EPS of $2.48, above the $1.79 earned in Q1, as home-sale margin improved sequentially to 25.0% and orders rose 6% to 7,536 units. However, revenue declined 10% year over year to $3.983 billion, EPS fell 18% from $3.03, and all major homebuilding regions except Florida posted revenue declines, led by the West. Management's outlook remains cautious: affordability constraints should keep incentives elevated and pressure margins, while the company emphasizes liquidity, disciplined land spending and shareholder returns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sequential recovery, but year-over-year contraction
- Q2 revenue was $3.983 billion, up $574.4 million from Q1 revenue implied by six-month results of $7.392 billion, but down 10% from $4.404 billion in Q2 2025. Diluted EPS rose $0.69 sequentially from $1.79 to $2.48, while declining $0.55 from $3.03 a year ago.
- Gross margin improves sequentially
- Home-sale gross margin improved 60 bps sequentially from 24.4% in Q1 to 25.0% in Q2, ending a run of sequential declines. It remained 200 bps below the 27.0% reported in Q2 2025, as incentives, pricing actions and land costs weighed.
- Orders and cancellation trends improved
- Net new orders increased 6% to 7,536 homes, with order dollars up 5% to $4.084 billion; cancellation rate improved to 13% from 15%. Florida was the primary demand strength, with orders up 19% to 2,115 units and 24% to $1.232 billion.
- Florida resilient; West deteriorated sharply
- Florida was the only major homebuilding segment to grow revenue, rising 1% to $1.048 billion, while its pretax income was essentially flat at $189.8 million. West was the largest drag, with revenue down 20% to $780.1 million and pretax income down 56% to $54.0 million.
- Positive FCF despite inventory investment
- Six-month operating cash flow was $176.8 million and capital expenditures were $55.3 million, implying $121.5 million of free cash flow and capex equal to 0.7% of six-month revenue. Cash generation was restrained by an $807.3 million inventory increase.
- Capital returns remain substantial
- The company repurchased $681.2 million of shares in the first six months and raised its quarterly dividend 18%, from $0.22 to $0.26 per share. It retained $1.8 billion of repurchase authorization at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Incentives and affordability pressure sales economics
- Affordability headwinds remain acute: Q2 closings fell 8% to 6,997 and average selling price declined 3% to $544,000, producing an 11% decline in home-sale revenue to $3.807 billion. Management expects sales incentives to remain elevated.
- Land costs and incentives pressure margins
- Margins remain structurally pressured by land costs and pricing actions. Home-sale gross margin was 25.0%, down 200 bps from 27.0% a year ago, and management expects these factors to continue affecting margins over the near term.
- Working-capital and land-commitment exposure
- Inventory increased $807.3 million in the first six months, while six-month operating cash flow fell to $176.8 million from $421.7 million a year earlier. The company has $717.4 million of land-option deposits and $9.7 billion of remaining option purchase commitments.
- Near-term mortgage-funding refinancing risk
- Pulte Mortgage's $625.0 million repurchase agreement matures on August 12, 2026; $477.9 million was outstanding at a 5.42% weighted-average rate at June 30. Management intends to refinance, but states replacement on commercially reasonable terms is not assured.
- No formal risk-factor update
- Item 1A reports no material changes to the risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing identifies geopolitical volatility, elevated mortgage rates and higher housing costs as contributors to weaker consumer confidence during Q2 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.48
- Gross margin
- 25.0%
- Segment
- Northeast revenue: $234.246M, down 33% YoY
- Segment
- Southeast revenue: $696.473M, down 7% YoY
- Segment
- Florida revenue: $1.048B, up 1% YoY
- Segment
- Midwest revenue: $636.186M, down 8% YoY
- Segment
- Texas revenue: $410.576M, down 12% YoY
- Segment
- West revenue: $780.086M, down 20% YoY
- Segment
- Financial Services revenue: $96.939M, down 4% YoY
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance. Management expects elevated sales incentives and dynamic housing starts to persist amid affordability pressure, and expects pricing actions and land costs to continue affecting gross margins in the near term.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 23, 2026
- PulteGroup reported quarter revenues of $3,408,572,000 and diluted EPS of $1.79, roughly in line with consensus revenue (slight beat) but a $0.02 EPS miss. Order activity improved (net new orders +3% to 8,034 units /…
- 10-K · February 4, 2026
- PulteGroup reported FY2025 revenue of $17.31B and diluted EPS of $11.12, with home sale gross margin down to 26.3% from 28.9% in 2024. Management slowed starts, increased sales incentives and recognized $126.9M of…
- 10-K · February 6, 2025
- PulteGroup reported strong 2024 results driven by higher closings and mortgage-captive volume: Homebuilding revenues rose to $17.514B (+11% vs. 2023) and consolidated net income was $3.083B with diluted EPS of $14.69…
- 10-Q · July 23, 2024
- PulteGroup reported a strong quarter: total revenues of $4,599,655,000 and diluted EPS of $3.83, up from $4,058,930,000 and $3.21 a year earlier. Homebuilding revenues rose 10% YoY (home sale revenues $4,448,168,000)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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