PulteGroup (PHM) investor relations material

Executive summary

• Q3 home-sale revenue was $3.859B, down 9% YoY; 6,876 closings fell 9%, average selling price declined 1% to $561,000, and net income was $475.7M, or $2.53 per diluted share.

• Higher mortgage rates, inflation and affordability pressures weakened demand; move-up and active-adult buyers represented more than 60% of business and supported margins.

• Net new orders fell 6% to 6,208 homes, while backlog rose 4% to 10,298 homes and 3% in value to $6.444B.

Financial highlights

• Home-sale gross margin was 24.8%, down 140 bps YoY; $26M of land impairments equaled ~70 bps, while incentives were 10.4% of closings.

• SG&A was $397.2M, or 10.3% of home-sale revenue, versus $401M and 9.4% a year earlier.

• Nine-month revenue was $11.365B, net income was $1.295B and diluted EPS was $6.79; nine-month gross margin was 24.7%.

• Financial Services Q3 pretax income was $45.6M, up 3% YoY; revenue rose 4% to $107.0M.

Outlook and guidance

• Q4 guidance: 7,000–7,500 closings, average selling price of $550K–$560K and gross margin of 24.0%–24.5%.

• FY 2026 guidance: 27,000–27,500 closings, average selling price of $550K–$560K and gross margin of 24.5%–25.0%.

• FY SG&A guidance was 10.3%–10.5% of home-sale revenue; community-count growth was forecast at 3%–5%, land investment at $5.3B and operating cash flow at ~$1B.

• Elevated incentives and volatile demand may keep margins pressured; production and housing starts to be aligned with demand, with measured capital allocation and liquidity management.