PulteGroup (PHM) Q2 FY26 earnings call

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Jul 22, 2026

Source: earnings call transcript

PulteGroup delivered strong Q2 FY26 results, driven by a strategic shift towards build-to-order homes and disciplined inventory management, leading to robust order growth and impressive gross margins. The company continues to navigate a variable demand environment influenced by macro factors, while maintaining its capital allocation strategy and investing in land for future growth.

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PHM operating KPIs by quarter

PHM operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Net new orders	7,536 Second quarter net new orders increased 6% over the prior year to 7,536 homes as we realized higher net new orders across all 3 buyer groups. Source: earnings call transcript	6,208 Our net new orders in the third quarter totaled 6,208 homes, which is a decrease of 6% from the third quarter of last year, reflective of Ryan's comments about lower consumer traffic. Source: earnings call transcript	-17.6%
Average community count	1,074 The year-over-year increase in second quarter orders reflects an 8% increase in average community count to 1,074, partially offset by a 1% decrease in absorption pace to 2.3 homes per month. Source: earnings call transcript	1,077 The decrease in Q3 net new orders was driven by a 13% decrease in absorption pace, partially offset by a 7% increase in average community count of 1,077 for the quarter. Source: earnings call transcript	+0.3%
Absorption pace	2.3 The year-over-year increase in second quarter orders reflects an 8% increase in average community count to 1,074, partially offset by a 1% decrease in absorption pace to 2.3 homes per month. Source: earnings call transcript	1.9 Our absorption pace for the third quarter was 1.9 homes per month, which compares with an absorption pace of 2.2 homes per month last year. Source: earnings call transcript	-17.4%
Cancellation rate	11% As a percentage of starting backlog, our cancellation rate in the second quarter was 11%, which is comparable to last year. Source: earnings call transcript	10% In the third quarter, our cancellation rate as a percentage of starting backlog was 10%, which is down from 12% last year and down 50 basis points from Q2 of this year. Source: earnings call transcript	-1 pt
Closings	6,997 The decrease in home sale revenues in the second quarter reflects an 8% decrease in closings to 6,997 homes, along with a 3% decrease in the average sales price to $544,000. Source: earnings call transcript	6,876 Lower revenues for the quarter were primarily the result of a 9% decrease in closing volumes to 6,876 homes. Source: earnings call transcript	-1.7%
Backlog	10.966K At the end of the second quarter, our backlog totaled 10,966 homes with a value of $6.8 billion. Source: earnings call transcript	10.298K We ended this year's third quarter with a backlog of 10,298 homes valued at $6.4 billion, compared with prior year backlog of 9,888 homes with a value of $6.2 billion. Source: earnings call transcript	-6.1%
Backlog value	$6.8B At the end of the second quarter, our backlog totaled 10,966 homes with a value of $6.8 billion. Source: earnings call transcript	$6.4B We ended this year's third quarter with a backlog of 10,298 homes valued at $6.4 billion, compared with prior year backlog of 9,888 homes with a value of $6.2 billion. Source: earnings call transcript	-5.9%
Homes in production	14.98K We ended Q2 with 14,980 homes in production, of which 44% or 6,638 homes repack. Source: earnings call transcript	14.599K At the end of the third quarter, we had 14,599 homes in production, of which 6,627 or 45% were spec homes. Source: earnings call transcript	-2.5%
Mortgage capture rate	85% Q2 mortgage capture rate was 85% and which is comparable to the second quarter of 2025. Source: earnings call transcript	85% Mortgage capture rate in this year's third quarter was 85% compared with 84% last year. Source: earnings call transcript	0 pt
Lots under control	228K We ended second quarter were 228,000 lots under control, which is down approximately 6,000 lots from the end of 2025 with 55% of our land pipeline and controlled via option. Source: earnings call transcript	~224K Inclusive of land transactions completed in the period, we ended Q3 with approximately 224,000 lots under control. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.