PULTEGROUP INC/MI/

Previous wording

Demand conditions to start 2026 remained challenging as the result of elevated mortgage interest rates, higher housing costs, and general economic uncertainty. As volatility in geopolitical conditions increased in March, it negatively impacted inflation and interest rates, further weakening consumer confidence. We have continued responding to these conditions by adjusting production cadence and sales prices where necessary and focusing sales incentives on discounts on spec inventory (houses without customer orders), closing cost incentives, and mortgage interest rate buydowns. These pricing actions contributed to a 3% increase in net new orders in units, but lower average selling prices and gross margins during the first quarter of 2026 compared to 2025. Closings decreased 7% in the first quarter of 2026 compared to 2025 primarily due to a lower order backlog entering 2026 compared to 2025.

Current wording

Demand conditions remained challenging through the second quarter of 2026 as the result of elevated mortgage interest rates, higher housing costs, and general economic uncertainty. Volatility in geopolitical conditions, in part due to tensions in the Middle East, has also negatively impacted inflation and interest rates, further weakening consumer confidence. We have continued responding to these conditions by adjusting production cadence and sales prices where necessary and focusing sales incentives on discounts on spec inventory (houses without customer orders), closing cost incentives, and mortgage interest rate buydowns. These pricing actions contributed to a 6% increase in net new orders in units, but lower average selling prices and gross margins, during the second quarter of 2026 compared to the prior year period. Closings decreased 8% in the second quarter of 2026 compared to the prior year period primarily due to a lower order backlog entering 2026 compared to 2025.

Previous wording

We expect that many homebuyers will continue to face affordability challenges. In response, we expect our sales incentives to remain elevated and for our pace of house starts to remain dynamic in response to market conditions. We have successfully lowered our mix of spec home inventory and are increasing our backlog of build-to-order production. However, we continue to face pressure in the cost of land acquisition and development. Due to the length of our land development and construction cycle times, there is a lag between when such cost changes occur and when they impact our operating results. Our gross margin from home sales decreased to 24.4% in the first quarter of 2026 versus 27.5% in the first quarter of 2025, and gross margin from home sales decreased each quarter in 2025, ending the year at 24.7% in the fourth quarter of 2025. These decreases are primarily due to the aforementioned higher land costs, pricing actions, and elevated sales incentives in response to buyer affordability challenges and reducing our mix of spec inventory.

Current wording

We expect that many homebuyers will continue to face affordability challenges. In response, we expect our sales incentives to remain elevated and for our pace of house starts to remain dynamic in response to market conditions. We have successfully lowered our mix of spec home inventory. However, we continue to face pressure in the cost of land acquisition and development. Due to the length of our land development and construction cycle times, there is a lag between when such cost changes occur and when they impact our operating results. Our gross margin from home sales decreased to 25.0% in the second quarter of 2026 versus 27.0% in the second quarter of 2025, but increased from 24.4% in the first quarter of 2026 after sequential quarterly declines since the beginning of 2025. These decreases since 2025 are primarily due to the aforementioned higher land costs, pricing actions, and elevated sales incentives in response to buyer affordability challenges and reducing our mix of spec inventory.

Previous wording

–Updating the underwriting for our land option contracts prior to buying additional land, and we have made decisions to walk away from a limited number of land option agreements;

Current wording

–Updating the underwriting for our land option contracts prior to buying additional land, and we have made decisions to walk away from a number of land option agreements;

Previous wording

–Maintaining a focus on shareholder return through share buybacks and dividends, including $308.2 million of share repurchases in the first three months of 2026 and an 18% increase in our quarterly dividends from $0.22 to $0.26 per share effective with our January 2026 dividend payment;

Current wording

–Maintaining a focus on shareholder return through share buybacks and dividends, including $681.2 million of share repurchases in the first six months of 2026 and an 18% increase in our quarterly dividends from $0.22 to $0.26 per share effective with our January 2026 dividend payment;

Previous wording

We believe our strategic approach with respect to balancing sales price with sales pace, including actions taken related to sales incentives and our production cadence, will enable us to meet consumer demand at the selling prices necessary to turn our inventory, maintain market share, and generate healthy returns. We remain confident in our ability to navigate the future environment and to position the Company to take advantage of opportunities as they arise and support future growth and continued profitability and financial strength.

Current wording

We believe our strategic approach with respect to balancing sales price with sales pace, including actions taken related to sales incentives and our production cadence, will enable us to meet consumer demand at the selling prices necessary to turn our inventory, maintain market share, and generate healthy returns. We remain confident in our ability to navigate the future environment and to position the Company to take advantage of opportunities as they arise and support future growth while maintaining profitability and financial strength.

Previous wording

Home sale revenues in the three months ended March 31, 2026 were lower than the prior year period by $441.8 million. The 12% decrease resulted primarily from a 7% decrease in closings from the prior year period combined with a 5% decrease in average selling price. The decrease in closings was primarily attributable to a lower order backlog entering the year, partially offset by a higher community count and improved production cycle times. Average selling price during the three months ended March 31, 2026 decreased primarily due to increased incentives in our efforts to reduce spec inventory.

Current wording

Home sale revenues in the three and six months ended June 30, 2026 were lower than the prior year periods by $460.9 million and $902.6 million, respectively. In the three months ended June 30, 2026, the 11% decrease resulted primarily from an 8% decrease in closings from the prior year period, combined with a 3% decrease in average selling price. In the six months ended June 30, 2026 the 11% decrease resulted primarily from an 8% decrease in closings, combined with a 4% decrease in average selling price. The decreases in closings were primarily attributable to a weaker order backlog entering the year, partially offset by a higher community count and improved production cycle times. Average selling price during the three and six months ended June 30, 2026 decreased primarily due to product and geographic mix, combined with efforts to reduce our level of spec inventory during 2026.

Previous wording

Home sale gross margins were 24.4% in the three months ended March 31, 2026, compared with 27.5% in the three months ended March 31, 2025. The lower home sale gross margins were primarily attributable to the aforementioned pricing actions we took in 2025 and 2026, elevated sales incentives, and higher land acquisition and development costs. We expect these factors to continue to impact our gross margins over the near term. Gross margins in the first three months of 2026 were also unfavorably impacted by our efforts to reduce completed spec inventory to more appropriate levels.

Current wording

Home sale gross margins were 25.0% and 24.7% in the three and six months ended June 30, 2026, respectively, compared with 27.0% and 27.2% in the three and six months ended June 30, 2025, respectively. The decreases in home sale gross margins were primarily attributable to the aforementioned pricing actions, including elevated sales incentives, and increased land acquisition and development costs. We expect these factors to continue to impact our gross margins over the near term. Gross margins for the first six months of 2026 were also unfavorably impacted by our efforts to reduce completed spec inventory to more appropriate levels.

Previous wording

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sales and other revenues contributed income of $2.2 million and $1.6 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

We periodically elect to sell parcels of land to third parties in the event such assets no longer fit into our strategic operating plans or are zoned for commercial or other development. Land sale and other revenues and their related gains or losses vary between periods, depending on the timing of land sales and our strategic operating decisions. Land sale and other revenues contributed income of $10.8 million and $13.0 million for the three and six months ended June 30, 2026, respectively, compared with income of $4.1 million and $5.7 million for the three and six months ended June 30, 2025, respectively.

Previous wording

SG&A as a percentage of home sale revenues was 11.5% in the three months ended March 31, 2026, compared with 10.5% for the three months ended March 31, 2025. The gross dollar amount of our SG&A decreased $13.0 million, or 3%, for the three months ended March 31, 2026 compared with the prior year period. The decrease in gross dollars for the three months ended March 31, 2026 is primarily attributable to lower commissions associated with the decrease in closings. We expect to continue managing and balancing our overhead costs consistent with expected changes in the demand environment.

Current wording

SG&A as a percentage of home sale revenues was 10.1% and 10.7% in the three and six months ended June 30, 2026, respectively, compared with 9.1% and 9.8% for the three and six months ended June 30, 2025, respectively. The gross dollar amount of our SG&A decreased $7.5 million, or 2%, for the three months ended June 30, 2026 compared with the prior year period, and decreased $20.5 million, or 3%, for the six months ended June 30, 2026 compared with the prior year period. The decrease in gross dollars for the three and six months ended June 30, 2026 was primarily attributable to lower variable costs associated with the decrease in closings along with lower liability insurance costs. We expect to continue managing and balancing our overhead costs consistent with expected changes in the demand environment.

Previous wording

Other income, net includes the following ($000’s omitted):

Current wording

Other income (expense), net includes the following ($000’s omitted):

Previous wording

Net new orders in units increased 3% while net new orders in dollars increased 2% in the three months ended March 31, 2026, as compared with the prior year period. The increased net new order volume and dollars in the three months ended March 31, 2026 over the comparable prior year period was primarily attributable to higher order volumes in our Florida segment. Cancellation rates (canceled orders for the period divided by gross new orders for the period) were 12% for the three months ended March 31, 2026, and 13% for the three months ended March 31, 2025. Ending backlog dollars, which represent orders for homes that have not yet closed, decreased 10% at March 31, 2026 compared with March 31, 2025.

Current wording

Net new orders in units increased 6% while net new orders in dollars increased 5% in the three months ended June 30, 2026, as compared with the prior year period. Net new orders in units increased 5% while net new orders in dollars increased 3% in the six months ended June 30, 2026, as compared with the prior year period. The increased net new order volume and dollars in the three and six months ended June 30, 2026 over the comparable prior year periods was primarily attributable to higher order volumes in our Florida and Midwest segments, partially offset by lower volumes in our West segment. Cancellation rates (canceled orders for the period divided by gross new orders for the period) were 13% for both the three and six months ended June 30, 2026, and 15% and 14% for the three and six months ended June 30, 2025, respectively. Ending backlog dollars, which represent orders for homes that have not yet closed, decreased 1% at June 30, 2026 compared with June 30, 2025.

Previous wording

The number of homes in production at March 31, 2026 was 13% lower than at March 31, 2025. This decrease was primarily due to lower order volumes, a focused reduction of spec homes, and improved production cycle times, which reduces the length of time a home remains under construction.

Current wording

The number of homes in production at June 30, 2026 was 6% lower than at June 30, 2025. This decrease was primarily due to our focus on reducing the number of spec homes and improved production cycle times, which reduces the length of time a home remains under construction.

Previous wording

For the three months ended March 31, 2026, Northeast home sale revenues decreased by 29% when compared with the prior year period due to a 23% decrease in closings combined with an 8% decrease in average selling price. The decrease in closings was due to the timing of projects in our Northeast Corridor and New England operations, while the decrease in average selling price occurred across all markets. Income before income taxes decreased 59% primarily due to lower revenues across all markets and lower gross margins across the majority of markets. Net new orders increased across all markets.

Current wording

For the six months ended June 30, 2026, Northeast home sale revenues decreased 31% when compared with the prior year period due to a 25% decrease in closings combined with an 8% decrease in average selling price. The decrease in closings and average selling price occurred across the majority of markets. Income before income taxes decreased 54% primarily due to lower revenues and gross margins across the majority of markets. Net new orders increased across all markets.

Previous wording

For the three months ended March 31, 2026, Florida home sale revenues decreased 6% when compared with the prior year period due to an 8% decrease in the average selling price partially offset by a 2% increase in closings. The decrease in average selling price and increase in closings occurred across the majority of markets. Income before income taxes decreased 27% primarily due to lower revenues across the majority of markets and lower gross margins across all markets. Net new orders increased across all markets.

Current wording

For the six months ended June 30, 2026, Southeast home sale revenues decreased 5% when compared with the prior year period due to a 5% decrease in average selling price partially offset by a slight increase in closings. The decrease in average selling price and increase in closings was mixed among markets. Income before income taxes decreased 26% primarily due to lower revenues across the majority of markets and lower gross margins across all. The increase in net new orders was mixed among markets.

Previous wording

For the three months ended March 31, 2026, Southeast home sale revenues decreased 2% when compared with the prior year period due to a 5% decrease in average selling price partially offset by a 3% increase in closings. The decrease in average selling price and the increase in closings occurred across the majority of markets. Income before income taxes decreased 28% primarily due to lower gross margins across all markets combined with lower revenues across the majority of markets. The increase in net new orders was mixed among markets.

Current wording

For the six months ended June 30, 2026, Florida home sale revenues decreased 2% when compared with the prior year period due to a 3% decrease in the average selling price partially offset by a 1% increase in closings. The decrease in average selling price and increase in closings occurred across the majority of markets. Income before income taxes decreased 14% primarily due to lower gross margins across the majority of markets. The increase in net new orders occurred across all markets.

Previous wording

For the three months ended March 31, 2026, Midwest home sale revenues decreased 9% when compared with the prior year period due to a 10% decrease in closings partially offset by a 1% increase in average selling price. The decrease in closings and increase in average selling price occurred across the majority of markets. Income before income taxes decreased 15% primarily due to lower revenues across the majority of markets. Net new orders decreased across the majority of markets.

Current wording

For the six months ended June 30, 2026, Midwest home sale revenues decreased 9% when compared with the prior year period due to a 9% decrease in closings partially offset by a slight increase in average selling price. The decrease in closings and the increase in average selling price occurred across the majority of markets. Income before income taxes decreased 15% primarily due to lower revenues across the majority of markets. The increase in net new orders was mixed among markets.

Previous wording

For the three months ended March 31, 2026, West home sale revenues decreased 17% when compared with the prior year period due to a 15% decrease in closings combined with a 2% decrease in average selling price. The decrease in closings occurred across the majority of markets while the decrease in average selling price was mixed among markets. Income before income taxes decreased 49% primarily due to lower revenues and gross margins across the majority of markets. Net new orders decreased across the majority of markets.

Current wording

For the six months ended June 30, 2026, Texas home sale revenues decreased 17% when compared with the prior year period due to a 12% decrease in closings combined with a 6% decrease in average selling price. The decrease in closings occurred across all markets while the decrease in average selling price occurred across the majority of markets. Income before income taxes decreased 39% primarily due to lower revenues and gross margins across all markets. The decrease in net new orders was mixed among markets.

Previous wording

Our effective tax rate for the three months ended March 31, 2026 was 22.8% compared with 23.2% for same period in 2025. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and benefits from stock-based compensation and federal tax credits.

Current wording

Our effective tax rate for the three and six months ended June 30, 2026 was 24.2% and 23.6%, respectively, compared with 24.6% and 24.0% for the comparable prior year periods. Our effective tax rate for each of these periods differs from the federal statutory rate primarily due to state income tax expense and federal tax credits. Our effective tax rate for the six months ended June 30, 2026 and 2025 also includes benefits from stock-based compensation.

Previous wording

At March 31, 2026, we had unrestricted cash and equivalents of $1.8 billion, restricted cash balances of $36.4 million, and$1.4 billion available under our Revolving Credit Facility. Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 12.3% at March 31, 2026, compared with 11.2% at December 31, 2025. We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term deposits and investments, which helps mitigate banking concentration risk.

Current wording

At June 30, 2026, we had unrestricted cash and equivalents of $1.3 billion, restricted cash balances of $41.6 million, and$1.4 billion available under our Revolving Credit Facility. Our ratio of debt-to-total capitalization, excluding our Financial Services debt, was 12.3% at June 30, 2026, compared with 11.2% at December 31, 2025. We follow a diversified investment approach for our cash and equivalents by maintaining such funds with a portfolio of banks within our group of relationship banks in high quality, highly liquid, short-term deposits and investments, which helps mitigate banking concentration risk.

Previous wording

Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $38.4 million and $47.2 million at March 31, 2026 and December 31, 2025, respectively. These notes have maturities ranging up to four years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 9%.

Current wording

Other notes payable include non-recourse and limited recourse secured notes with third parties that totaled $37.4 million and $47.2 million at June 30, 2026 and December 31, 2025, respectively. These notes have maturities ranging up to four years, are secured by the applicable land positions to which they relate, and generally have no recourse to other assets. The stated interest rates on these notes range up to 9%.

Previous wording

At March 31, 2026, we had no borrowings outstanding, $348.1 million of letters of credit issued, and $1.4 billion of remaining capacity under the Revolving Credit Facility. At December 31, 2025, we had no borrowings outstanding, $357.1 million of letters of credit issued, and $892.9 million of remaining capacity under the Original Revolving Credit Facility.

Current wording

At June 30, 2026, we had no borrowings outstanding, $343.2 million of letters of credit issued, and $1.4 billion of remaining capacity under the Revolving Credit Facility. At December 31, 2025, we had no borrowings outstanding, $357.1 million of letters of credit issued, and $892.9 million of remaining capacity under the Original Revolving Credit Facility.

Previous wording

At March 31, 2026, aggregate outstanding debt of unconsolidated joint ventures was $44.4 million.

Current wording

At June 30, 2026, aggregate outstanding debt of unconsolidated joint ventures was $45.1 million.

Previous wording

Pulte Mortgage maintains a master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") that matures on August 12, 2026. The maximum aggregate commitment under the Repurchase Agreement was $625.0 million at March 31, 2026, which continues until maturity. The Repurchase Agreement also contains an accordion feature that could increase the commitment by $50.0 million above its active commitment level. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. At March 31, 2026, Pulte Mortgage had $455.1 million outstanding at a weighted-average interest rate of 5.43% and $169.9 million of remaining capacity under the Repurchase Agreement. At December 31, 2025, Pulte Mortgage had $532.3 million outstanding at a weighted-average interest rate of 5.51% and $92.7 million of remaining capacity under the Repurchase Agreement. Pulte Mortgage was in compliance with all covenants and requirements as of such dates.

Current wording

Pulte Mortgage maintains a master repurchase agreement with third-party lenders (as amended, the "Repurchase Agreement") that matures on August 12, 2026. The maximum aggregate commitment under the Repurchase Agreement was $625.0 million at June 30, 2026, which continues until maturity. The Repurchase Agreement also contains an accordion feature that could increase the commitment by $50.0 million above its active commitment level. Borrowings under the Repurchase Agreement are secured by residential mortgage loans available-for-sale. The Repurchase Agreement contains various affirmative and negative covenants applicable to Pulte Mortgage, including quantitative thresholds related to net worth, net income, and liquidity. At June 30, 2026, Pulte Mortgage had $477.9 million outstanding at a weighted-average interest rate of 5.42% and $147.1 million of remaining capacity under the Repurchase Agreement. At December 31, 2025, Pulte Mortgage had $532.3 million outstanding at a weighted-average interest rate of 5.51% and $92.7 million of remaining capacity under the Repurchase Agreement. Pulte Mortgage was in compliance with all covenants and requirements as of such dates.

Previous wording

In the three months ended March 31, 2026, we declared cash dividends totaling $50.2 million and repurchased 2.4 million shares under our share repurchase authorization for $308.2 million. In the three months ended March 31, 2025, we declared cash dividends totaling $44.7 million and repurchased 2.8 million shares under our share repurchase authorization for $300.0 million. On January 29, 2025, the Board of Directors increased our share repurchase authorization by $1.5 billion, which was publicly announced on January 30, 2025. At March 31, 2026, we had remaining authorization to repurchase $674.7 million of common shares. On April 22, 2026, the Board of Directors approved an additional increase to our share repurchase authorization of $1.5 billion, which was publicly announced on April 23, 2026.

Current wording

In the six months ended June 30, 2026, we declared cash dividends totaling $99.5 million and repurchased 5.5 million shares under our share repurchase authorization for $681.2 million. In the six months ended June 30, 2025, we declared cash dividends totaling $88.7 million and repurchased 5.8 million shares under our share repurchase authorization for $600.0 million. On January 29, 2025, the Board of Directors increased our share repurchase authorization by $1.5 billion, which was publicly announced on January 30, 2025. On April 22, 2026, the Board of Directors approved an additional increase to our share repurchase authorization of $1.5 billion, which was publicly announced on April 23, 2026. At June 30, 2026, we had remaining authorization to repurchase $1.8 billion of common shares.

Previous wording

We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of March 31, 2026, while others are considered future commitments. Our contractual obligations primarily consist of long-term debt and related interest payments, purchase obligations related to expected acquisitions and development of land, house construction costs, operating leases, and obligations under our various compensation and benefit plans.

Current wording

We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Condensed Consolidated Balance Sheet as of June 30, 2026, while others are considered future commitments. Our contractual obligations primarily consist of long-term debt and related interest payments, purchase obligations related to expected acquisitions and development of land, house construction costs, operating leases, and obligations under our various compensation and benefit plans.

Previous wording

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects and insurance programs. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects and insurance programs. If the obligations related to a project or program are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At March 31, 2026, we had outstanding letters of credit totaling $348.1 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $3.0 billion at March 31, 2026, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Current wording

We use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the development of our homebuilding projects and insurance programs. The expiration dates of the letter of credit contracts coincide with the expected completion date of the related homebuilding projects and insurance programs. If the obligations related to a project or program are ongoing, annual extensions of the letters of credit are typically granted on a year-to-year basis. At June 30, 2026, we had outstanding letters of credit totaling $343.2 million. Our surety bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. These bonds, which approximated $3.1 billion at June 30, 2026, are typically outstanding over a period of approximately three to five years. Because significant construction and development work has been performed related to projects that have not yet received final acceptance by the respective counterparties, the aggregate amount of surety bonds outstanding is in excess of the projected cost of the remaining work to be performed.

Previous wording

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At March 31, 2026, these agreements had an aggregate remaining purchase price of $9.7 billion. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At March 31, 2026, outstanding deposits totaled $735.2 million, of which $19.0 million is refundable.

Current wording

In the ordinary course of business, we enter into land option agreements in order to procure land for the construction of houses in the future. At June 30, 2026, these agreements had an aggregate remaining purchase price of $9.7 billion. Pursuant to these land option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. At June 30, 2026, outstanding deposits totaled $717.4 million, of which $15.8 million is refundable.

Previous wording

For further information regarding our primary obligations, refer to Note 4 and Note 8 to the Consolidated Financial Statements included elsewhere in this Quarterly Report on 10-Q for amounts outstanding as of March 31, 2026 related to debt and commitments and contingencies, respectively.

Current wording

For further information regarding our primary obligations, refer to Note 4 and Note 8 to the Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on 10-Q for amounts outstanding as of June 30, 2026 related to debt and commitments and contingencies, respectively.

Previous wording

Net cash provided by operating activities in the three months ended March 31, 2026 was $159.8 million. Generally, the primary drivers of our cash flow from operations are profitability and changes in the levels of inventory and residential mortgage loans available-for-sale, each of which experience seasonal fluctuations. The cash inflows from our operations for the three months ended March 31, 2026 were primarily due to net income of $347.0 million and a net decrease in residential mortgage loans available-for-sale of $104.4 million, partially offset by a net increase in inventories of $376.4 million, which was primarily attributable to land acquisition, development, and house spend to support ongoing operations.

Current wording

Net cash provided by operating activities in the six months ended June 30, 2026 was $176.8 million. Generally, the primary drivers of our cash flow from operations are profitability and changes in the levels of inventory and residential mortgage loans available-for-sale, each of which experience seasonal fluctuations. The cash inflows from our operations for the six months ended June 30, 2026 were primarily due to net income of $819.0 million and a net decrease in residential mortgage loans available-for-sale of $63.9 million, partially offset by a net increase in inventories of $807.3 million, which was primarily attributable to land acquisition, development, and house spend to support ongoing operations.

Previous wording

Net cash provided by operating activities in the three months ended March 31, 2025 was $134.2 million. The cash inflows from our operations for the three months ended March 31, 2025 were primarily due to net income of $522.8 million, partially offset by a net increase in inventories of $270.6 million, which was primarily attributable to land acquisition, development, and house spend to support expected future growth.

Current wording

Net cash provided by operating activities in the six months ended June 30, 2025 was $421.7 million. The cash inflows from our operations for the six months ended June 30, 2025 were primarily due to net income of $1.1 billion, partially offset by a net increase in inventories of $533.0 million, which was primarily attributable to land acquisition, development, and house spend to support expected future growth.

Previous wording

Net cash used in investing activities in the three months ended March 31, 2026 was $24.9 million. These cash outflows primarily resulted from capital expenditures of $25.4 million related to our ongoing investments in new communities, facilities, and information technology applications.

Current wording

Net cash used in investing activities in the six months ended June 30, 2026 was $87.8 million. These cash outflows primarily resulted from capital expenditures of $55.3 million related to our ongoing investments in new communities, facilities, and information technology applications, along with $40.9 million of investments in unconsolidated entities.

Previous wording

Net cash used in investing activities in the three months ended March 31, 2025 was $39.7 million. These cash outflows primarily resulted from capital expenditures of $29.6 million related to our ongoing investments in new communities, facilities, and information technology applications.

Current wording

Net cash used in investing activities in the six months ended June 30, 2025 was $39.2 million. These cash outflows primarily resulted from capital expenditures of $64.1 million related to our ongoing investments in new communities, facilities, and information technology applications, partially offset by distributions of capital from unconsolidated entities of $39.4 million.

Previous wording

Net cash used in financing activities in the three months ended March 31, 2026 totaled $300.2 million. These cash outflows resulted primarily from repayments and redemptions of notes payable of $599.7 million, repurchases of 2.4 million common shares for $308.2 million under our share repurchase authorization, payments of $52.0 million in cash dividends, and net repayments of $77.3 million under the Repurchase Agreement, partially offset by $794.8 million of proceeds from debt issuance.

Current wording

Net cash used in financing activities in the six months ended June 30, 2026 totaled $720.5 million. These cash outflows resulted primarily from repayments and redemptions of notes payable of $600.7 million, repurchases of 5.5 million common shares for $681.2 million under our share repurchase authorization, payments of $101.8 million in cash dividends, and net repayments of $54.4 million under the Repurchase Agreement, partially offset by $794.8 million of proceeds from debt issuance.

Previous wording

Net cash used in financing activities in the three months ended March 31, 2025 totaled $472.3 million. These cash outflows resulted primarily from the repurchase of 2.8 million common shares for $300.0 million under our share repurchase authorization, payments of $45.8 million in cash dividends, payments of $11.4 million related to consolidated inventory not owned, and net repayments of $100.1 million under the Repurchase Agreement.

Current wording

Net cash used in financing activities in the six months ended June 30, 2025 totaled $768.9 million. These cash outflows resulted primarily from repurchases of 5.8 million common shares for $600.0 million under our share repurchase authorization, payments of $90.1 million in cash dividends, payments of $22.4 million related to consolidated inventory not owned, and net repayments of $28.5 million under the Repurchase Agreement.

Previous wording

As of March 31, 2026, PulteGroup, Inc. had outstanding $1.8 billion principal amount of unsecured senior notes due at dates from March 2031 through March 2036 and no borrowings outstanding, $348.1 million of letters of credit issued, and $1.4 billion of remaining capacity under its Revolving Credit Facility.

Current wording

As of June 30, 2026, PulteGroup, Inc. had outstanding $1.8 billion principal amount of unsecured senior notes due at dates from March 2031 through March 2036 and no borrowings outstanding, $343.2 million of letters of credit issued, and $1.4 billion of remaining capacity under its Revolving Credit Facility.

Previous wording

There have been no significant changes to our critical accounting estimates in the three months ended March 31, 2026 compared with those contained in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

There have been no significant changes to our critical accounting estimates in the six months ended June 30, 2026 compared with those contained in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.