PulteGroup posts 33% profit drop in first-quarter 2026, reporting net income of $347 million, or $1.79 a share, down from $523 million, or $2.57 a share, a year earlier.
The company's first-quarter demand was affected by domestic and global dynamics, with consumers concerned about affordability and the economy while still seeking homeownership, and it is managing sales pace, incentives and production to respond to competitive conditions and reduce excess spec inventory.
Net new orders rose 3% to 8,034 homes valued at $4.6 billion. The company operated from an average of 1,043 communities, up 9% from a year earlier, and quarter-end backlog totaled 10,427 homes valued at $6.5 billion.
Home sale revenue fell 12% to $3.3 billion as closings declined 7% to 6,102 homes and the average selling price slipped 5% to $542,000. Home sale gross margin fell to 24.4% from 27.5%, reflecting higher incentives and efforts to reduce excess spec inventory.
SG&A expense was $380 million, or 11.5% of home sale revenues, compared with $393 million, or 10.5%, a year earlier.
In financial services, pretax income fell to $13 million from $36 million. The company reported an 84.8% capture rate, compared with 86.4% a year earlier, and mortgage origination principal of $1.7 billion on 3,989 originations, down from $1.9 billion on 4,271 originations.
PulteGroup said it invested $1.3 billion in land acquisition and development during the quarter and ended with $1.8 billion in cash and a 12.3% debt-to-capital ratio. It repurchased $308 million of shares and its board approved a $1.5 billion increase in share repurchase authorization, bringing remaining authorization to $2.1 billion.
