By Nicholas G. Miller

PulteGroup reported lower first-quarter profit as a stagnant housing market forced it to offer elevated sales incentives.

The home builder posted net income of $347 million, or $1.79 a share, down from $522.8 million, or $2.57 a share, the year prior. Analysts expected $1.81 a share.

Total revenue fell to $3.41 billion from $3.89 billion. Closing volumes fell 7% to 6,102 homes, while average sales price declined 5% to $542,000.

Homebuilder gross margin fell to 24.4% from 27.5% the year before. Wall Street expected 24.7%.

"First quarter gross margins reflect the impact of higher incentives as the company responded to competitive market dynamics and successfully worked to reduce excess spec inventory," PulteGroup said.

Net new orders increased 3% to 8,034 homes.

"Within a demand environment impacted by domestic and global dynamics, we see a consumer with concerns about affordability and the economy, but still desirous of homeownership," said Chief Executive Ryan Marshall.

The board approved a $1.5 billion increase to its share repurchase authorization, it said.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

April 23, 2026 06:45 ET (10:45 GMT)

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