PulteGroup Q1 sales, profit drop on lower home prices

Pultegroup

23/04/2026 11:39

Overview

U.S. homebuilder's Q1 home sale revenue fell 12% yr/yr as closings and prices declined

Q1 EPS dropped yr/yr as gross margin declined due to higher incentives

Company repurchased $308 mln in shares, board approved $1.5 bln increase to buyback authorization

Outlook

Company says consumer concerns about affordability and economy are impacting demand environment

PulteGroup says it continues to manage sales, incentives and production amid current market dynamics

Result Drivers

LOWER CLOSINGS AND PRICES - Revenue decline driven by 7% decrease in closing volumes and 5% lower average sales price

HIGHER INCENTIVES - Gross margin fell due to increased incentives to address competitive market dynamics and reduce excess spec inventory

ORDER GROWTH - Net new orders rose 3% as consumer demand for homeownership persisted despite affordability concerns

Company press release: ID:nBw2cTdg4a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Home Sale Revenues
$3.31 bln
Q1 EPS
$1.79
Q1 Home Sale Gross Margin
24.40%
Q1 Orders
$4.60 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "buy."

Wall Street's median 12-month price target for Pultegroup Inc is $140.00, about 9.8% above its April 22 closing price of $127.56

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)