PulteGroup (NYSE:PHM), one of the nation's largest homebuilders, reported a contraction in profitability for the first quarter of 2026, navigating a housing market characterized by persistent affordability challenges.
The Atlanta-based company posted net income of $347 million, or $1.79 per share, representing a significant decrease from the $523 million, or $2.57 per share, recorded in the same period last year.
Home sale revenues fell 12% to $3.3 billion, driven by a 7% drop in closing volumes to 6,102 homes.
The average selling price also retreated 5% to $542,000, as the company adjusted its pricing mix to maintain competitiveness amid high borrowing costs.
Despite the year-over-year decline in top-line results, home sale gross margins remained healthy at 24.4%, reflecting disciplined construction cost management and a strategic focus on high-return markets.
While backward-looking metrics showed cooling, leading indicators suggested a potential stabilization in buyer demand.
Net new orders for the quarter increased 3% to 8,034 homes, with a total value of $4.6 billion.
This growth in demand, particularly among first-time and active-adult buyers, pushed the company’s unit backlog to 10,427 homes, valued at approximately $6.5 billion.