PHM PulteGroup (PHM) Q3 FY26 earnings call
PulteGroup navigated a challenging Q3 FY26 marked by a significant slowdown in homebuying demand, particularly from first-time buyers, due to surging interest rates and broader macroeconomic concerns. Despite these headwinds, the company maintained strong gross margins and continued its capital return program, while strategically managing its land pipeline and production pace. Management emphasized its diversified operating platform and strong balance sheet as key advantages for weathering the current environment and capitalizing on future opportunities, with a focus on long-term capital alloc
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PHM operating KPIs by quarter
| KPI | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|
| Net new orders | 7,536Second 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 | 6,208Our 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 | 1,074The 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 | 1,077The 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 | 2.3The 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 | 1.9Our 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 | 6,997The 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 | 6,876Lower 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 | 10.966KAt the end of the second quarter, our backlog totaled 10,966 homes with a value of $6.8 billion.Source: earnings call transcript | 10.298KWe 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 | $6.8BAt the end of the second quarter, our backlog totaled 10,966 homes with a value of $6.8 billion.Source: earnings call transcript | $6.4BWe 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 | 14.98KWe ended Q2 with 14,980 homes in production, of which 44% or 6,638 homes repack.Source: earnings call transcript | 14.599KAt 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 | 228KWe 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 | ~224KInclusive 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.