PulteGroup earnings fall to $2.53 a share as rising mortgage rates squeeze buyers

PulteGroup's third-quarter profit fell as higher mortgage rates pushed more would-be buyers to the sidelines and the homebuilder's closings fell 9%.

Net income was $476 million, or $2.53 a share, down from $586 million, or $2.96, a year earlier, according to the earnings release PulteGroup filed with an 8-K on Thursday. Home sale revenue fell 9% to $3.9 billion on 6,876 closings, and the average sales price slipped 1% to $561,000.

"The rapid increase in interest rates has stretched affordability even further, made selling an existing home even harder, and has pushed even more consumers to the sidelines," President and CEO Ryan Marshall said in the release.

Margins and orders

Home sale gross margin was 24.8%, down from 26.2%, and included $26 million, or about 70 basis points, of land impairments. SG&A expenses were $397 million, or 10.3% of home sale revenue, compared with 9.4% a year earlier.

Net new orders totaled 6,208 homes valued at $3.5 billion. Unit backlog rose 4% to 10,298 homes, with a value of $6.4 billion, up 3%.

Marshall said more than 60% of the business now comes from move-up and active-adult buyers, which he said are more profitable.

Buybacks continue

PulteGroup repurchased 2.8 million shares for $350 million in the quarter, at an average of $124.70 a share. Through nine months it has bought back 8.4 million shares, or 4% of shares outstanding, for $1.0 billion. It ended September with $1.4 billion of cash and a debt-to-capital ratio of 12%.

By the numbers

• EPS: $2.53, versus $2.96
• Closings: 6,876 homes, down 9%
• Home sale gross margin: 24.8%
• Net new orders: 6,208 homes, $3.5 billion
• Backlog: 10,298 homes, $6.4 billion
• Q3 buybacks: $350 million

Sources

1. PulteGroup, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0000822416-26-000041

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