PHM Final: Finding The Right Mix

Research evidence excerpt

PHM Final: Finding The Right Mix

Homebuilders & Building Products

Homebuilders - Market Weight

PULTEGROUP, INC. (PHM) July 22, 2026

PHM Final: Finding The Right Mix Rating:

Peer Perform

The Wolfe Byte Price: $126.75

PHM’s BTO mix shift is progressing as planned and management deserves credit Price Target:

for strong execution. While market conditions remain challenging, PHM should NA

see idiosyncratic tailwinds as we enter 2027. View PHM Model

View Comp Table

PHM’s equity (+2.0%) outperformed the group by +70 bps today following Company Information

solid 2Q results and a reiterated 2026 guide. We are surprised the equity’s 52-Week Range $110 - $143

Market Cap. (MM) $24,144

outperformance wasn’t larger as 2Q Gross Margin outperformed guidance by 75 Enterprise Value (MM) $25,076

bps, leading us to raise our full year GM estimate by 40 bps, while the company Shares Out. (MM) 190.5

maintained its full year volume outlook. Appreciating mortgage rates are at their Avg. Value Traded (MM) $373.21 Adj. Debt to Cap 3.6%

YTD highs, better profitability and similar volumes is undoubtedly a win in our SI% of Float 4.3%

book. While the implied sequential ramp in 4Q Closings is larger than we have seen Price to Earnings 13x

Price/ Tangible Value 1.8x

the last few years at ~17% above 3Q’s guided Closings, the ramp is not all that

different from pre-COVID levels when the company was more of a BTO builder with Price Performance

4Q Closings increasing double digits sequentially versus 3Q in every year between YTD LTM

PHM 8% 17%

2014 and 2019 (+20% on average). PHM management deserves credit for clearly S&P 500 10% 19%

articulating a plan to migrate the company’s mix toward historical BTO/Spec splits

and executing on that plan without meaningful volume headwinds as 2Q Orders 150145