stockrowSnapshot
PulteGroup generated revenue of $17.3 billion in FY2025, down from $17.9 billion in FY2024, and reported net income of $2.2 billion in FY2025, down from $3.1 billion in FY2024. Diluted EPS was $11.12 in FY2025, compared with $14.69 in FY2024. Market capitalisation was $22.5 billion as of October 22, 2026.
In Q2 FY2026, revenue was $4.0 billion, gross profit was $997.5 million, operating income was $618.5 million, and net income was $472.0 million. Diluted EPS was $2.48 in Q2 FY2026. On a trailing-twelve-month basis, revenue was $16.4 billion in TTM to Q2 FY2026 and net income was $1.9 billion in TTM to Q2 FY2026.
Growth
Revenue declined by −3.54% in FY2025 against FY2024 to $17.3 billion in FY2025. Revenue compound annual growth was 2.66% in FY2022–FY2025 and 9.42% in FY2020–FY2025. Diluted EPS declined by −24.3% in FY2025 against FY2024 to $11.12 in FY2025, while its compound annual growth was 0.33% in FY2022–FY2025 and 16.5% in FY2020–FY2025.
Free cash flow increased by 11.9% in FY2025 against FY2024 to $1.7 billion in FY2025. Free cash flow compound annual growth was 46.5% in FY2022–FY2025 and 0.26% in FY2020–FY2025. In Q2 FY2026, revenue rose by 16.9% against Q1 FY2026 to $4.0 billion, while diluted EPS rose by 38.5% against Q1 FY2026 to $2.48. Revenue declined by −9.56% and diluted EPS declined by −18.2% in Q2 FY2026 against Q2 FY2025.
Profitability
Gross margin was 26.4% in FY2025, with a change of −2.7 percentage points in FY2024–FY2025 and 1.2 percentage points in FY2020–FY2025. Operating margin was 16.8% in FY2025, with a change of −5.3 percentage points in FY2024–FY2025 and 1.1 percentage points in FY2020–FY2025. Net margin was 12.8% in FY2025, with a change of −4.4 percentage points in FY2024–FY2025 and 0.1 percentage points in FY2020–FY2025.
Return on equity was 17.7% in FY2025, compared with 27.4% in FY2024. Return on assets was 12.5% in FY2025, compared with 18.4% in FY2024. Return on invested capital was 13.8% in FY2025, compared with 19.6% in FY2024. In Q2 FY2026, gross margin was 25.0% and operating margin was 15.5%.
Balance sheet
Total debt was $2.2 billion in FY2025, compared with $2.1 billion in FY2024. Cash and short-term investments were $2.0 billion in FY2025, compared with $1.7 billion in FY2024. Net debt was $154.7 million in FY2025, compared with $491.8 million in FY2024, before increasing to $920.8 million in Q2 FY2026.
Shareholders’ equity was $13.0 billion in FY2025, compared with $12.1 billion in FY2024, and book value per share was $65.59 in FY2025. Working capital was $26.9 million in FY2025, following −$383.8 million in FY2024. The current ratio was 0.8× in Q2 FY2026, and debt to equity was 0.2× in Q2 FY2026.
Cash flow & capital return
Operating cash flow was $1.9 billion in FY2025, increasing by 11.3% in FY2025 against FY2024. Capital expenditure was $122.7 million in FY2025, and free cash flow was $1.7 billion in FY2025, increasing by 11.9% in FY2025 against FY2024. Free cash flow represented 78.8% of net income in FY2025.
Dividends paid were $176.7 million in FY2025, while net share repurchases were $1.2 billion in FY2025. Capital returned to shareholders was $1.4 billion in FY2025 and $6.2 billion in FY2021–FY2025. Weighted average shares were 198.0 million shares in FY2025, and the share count changed by −26.3% in FY2020–FY2025. Free cash flow was −$12.9 million in Q2 FY2026, after $134.4 million in Q1 FY2026.
Valuation
As of October 22, 2026, PulteGroup’s P/E was 11.5×, above its five-year median of 7.6× and ten-year median of 8.4×, while below the industry median P/E of 13.2×. Its P/S was 1.3× as of October 22, 2026, equal to its five-year median of 1.3×, above its ten-year median of 1.1×, and above the industry median P/S of 0.9×.
P/B was 1.6× as of October 22, 2026, below its five-year median of 1.9× and ten-year median of 1.8×, while above the industry median P/B of 1.0×. EV/Sales was 1.4× as of October 22, 2026, above its five-year median of 1.3×, ten-year median of 1.2×, and industry median of 1.2×. EV/Cash flow was 14.8× as of October 22, 2026, equal to its five-year median of 14.8× and above its ten-year median of 14.1×.
What changed since last quarter
Revenue increased by 16.9% in Q2 FY2026 against Q1 FY2026 to $4.0 billion, and diluted EPS increased by 38.5% in Q2 FY2026 against Q1 FY2026 to $2.48. Gross margin increased by 0.9 percentage points and operating margin increased by 2.4 percentage points in Q2 FY2026 against Q1 FY2026. Free cash flow changed by −109.6% in Q2 FY2026 against Q1 FY2026 to −$12.9 million, while net debt increased by $488.4 million in Q2 FY2026 against Q1 FY2026 to $920.8 million.
Against Q2 FY2025, revenue declined by −9.56%, diluted EPS declined by −18.2%, gross margin changed by −2.2 percentage points, and operating margin changed by −2.8 percentage points in Q2 FY2026. Management subsequently attributed weaker demand conditions to elevated mortgage rates, higher housing costs, broader economic uncertainty, and geopolitical volatility, and cited sales incentives and land acquisition and development costs as pressures on gross margins during Q3 FY2026.
Open questions
- How will affordability conditions and mortgage-rate movements affect demand and order volumes?
- How long will sales incentives and land acquisition and development costs continue to affect gross margins?
- How will changes in inventory investment affect operating cash flow and free cash flow?
- How will the company balance liquidity management with dividends and share repurchases?
Sources
- Form 10-Q filed October 22, 2026 — management’s discussion and analysis