PHM First Look: Healthy Gross Margin and In-Line Orders. Solid Results

Research evidence excerpt

PHM First Look: Healthy Gross Margin and In-Line Orders. Solid Results

Homebuilders & Building Products

FLASH

FLASH: PULTEGROUP, INC. (PHM) July 22, 2026

PHM First Look: Healthy Gross Margin and In-Line Orders. Rating:

Solid Results Peer Perform

Price:

PHM turned in solid 2Q results with $2.48 in EPS 9% above our $2.27 estimate $124.26

and 5% above the $2.36 Consensus estimate. Gross Margin was the highlight, Price Target:

NAcoming in at 25.0% versus our 24.2% estimate and the Consensus 24.2% estimate

(guidance 24.1% to 24.4%). Appreciating PHM had previously indicated 2Q Gross Source: FactSet, Wolfe Research

Margin would likely represent the low point for 2026, the performance clearly Priced as of 07/21/26

has positive implications for 2H26 Gross Margins. Orders increased +6% YoY and

were in-line with Consensus, which we view favorably considering DHI’s ~4.5 PPT

miss relative to the street yesterday. PHM indicated market conditions remain

challenging, but we find it notable that all buyer groups are seeing YoY Order

growth, supported by Community Count tailwinds (+8% YoY). While Order ASPs Trevor Allinson, CFA

stepped down sequentially, we believe mix is likely the primary driver, particularly as tallinson@wolferesearch.com

West Orders declined -21% QoQ versus consolidated Orders -6% QoQ. PHM remains (636) 338-1466 View Trevor’s Research

active with share repo, buying back $373M in the quarter following $308M in 1Q. All View PHM Model

in, we view the results as solid in the current environment and will be focused on View Comp Table

full year guidance updates on the 8:30am ET conference call. Paul Przybylski

pprzybylski@wolferesearch.com

(636) 338-1465

EPS of $2.48 exceeded our $2.27 estimate by ~9%. The Consensus projection was

$2.36.