PulteGroup, Inc. Q1 FY2026 earnings call

Ryan highlighted strong results despite complex market conditions, with $3.3 billion in home sale revenues, 24.4% gross margins, and $1.79 per share in earnings. The company invested $1.3 billion in land acquisition and development and returned $360 million to shareholders. Operationally, community count grew, and build-to-order homes increased to 43% of net new orders. Jim discussed net new orders, gross margin, backlog, community count growth expectations, and financial services performance.

Financially, Pulte Group had $3.3 billion in home sale revenues, 24.4% gross margins, and $1.79 per share in earnings. Net new orders increased 3% to 8,034 homes with a value of $4.6 billion. Land acquisition and development investment was $1.3 billion, and $360 million was returned to shareholders through share repurchases and dividends. Florida operations saw 18% order growth. Build-to-order homes accounted for 43% of net new orders in Q1.

Expects 6,700 to 7,100 closings in Q2 2026, full-year closings 28,500 to 29,000. Community count growth 3% to 5% in remaining quarters of 2026. Q2 ASP range $540,000 to $550,000, full-year ASP $550,000 to $560,000. Gross margin expected to be 24.1% to 24.4% in Q2, recovering in back half to 24.5% to 25.0% for full year.

Most significant risk factors affecting future results are summarized in the earnings release and accompanying presentation, detailed in RCC filings including annual and quarterly reports.

Q: Can you help with gross margin walk?

A: Higher incentives, mix shift, cleared spec inventory.

Q: Impact of Middle East conflict on spring selling season?

A: Demand held up, could improve with resolved conflict.

Q: Incentive trends across price points and BTO vs SPEC?

A: More incentive on SPEC, especially first-time spec.

Q: Land banking details?

A: About 8% of controlled lots with land bankers, structured with deposits and rates.

Q: Free cash flow guide?

A: $1 billion due to rebuilding BTO inventory.

Q: ASP and incentives?

A: ASP down mid-single digits, incentives steady but mix shift helps.

Q: Midwest performance?

A: Variable due to weather, but still strong.