After third-quarter closings fell 9% year over year, PulteGroup lowered its 2026 home-closing forecast and planned land investment while keeping its full-year gross-margin and average-selling-price ranges unchanged.
In its Oct. 22 earnings presentation, PulteGroup projected 27,000 to 27,500 closings for 2026, below the July range of 28,500 to 29,000. Each endpoint fell by 1,500 homes. The company also reduced its planned land acquisition and development budget by $100 million, to about $5.3 billion.
At Sept. 30, its controlled land base totaled about 224,000 lots; 55% were secured through options. PulteGroup spent $1.3 billion on land acquisition and development in the third quarter, directing 51% toward land it already controlled.
For the quarter through Sept. 30, PulteGroup recorded 6,876 home closings, 9% fewer than in the same period last year. Home-sale revenue reached $3.9 billion, 9% lower, while net income was $476 million, down from $586 million. EconoTimes previously covered the third-quarter profit and sales results.
Average selling price eased 1% to $561,000, and the quarterly home-sale gross margin was 24.8%, compared with 26.2% in the prior-year period. Its annual outlook still places gross margin in a 24.5% to 25.0% band and average selling price between $550,000 and $560,000. PulteGroup now estimates selling, general and administrative costs at 10.3% to 10.5% of home-sale revenue, up from a 9.5% to 9.7% range.
New orders were down 6% to 6,208 homes. The company ended the quarter with a 10,298-home backlog valued at $6.4 billion, up 4% in volume from the previous year.
President and CEO Ryan Marshall said mortgage rates, inflation and global unrest were weighing on homebuying demand. The company's earnings presentation also pointed to higher rates and reduced traffic as constraints on spec-home sales and closings.
For the fourth quarter, the company projects 7,000 to 7,500 closings and a 24.0% to 24.5% gross margin.
