Home builder Pulte Homes Inc. (PHM) said Monday after the markets closed that its second quarter loss widens from last year, as revenue dropped because of fewer home closings and lower average selling prices.
The Bloomfield Hills, Michigan-based company reported a net loss for the second quarter of $189.5 million or $0.74 per share, compared to a net loss of $158.4 million or $0.63 per share for the year-ago quarter.
On average, 15 analysts polled by Thomson Reuters expected the company to report a loss of $0.57 per share for the second quarter.
The latest quarter net loss includes pre-tax charges of $119.3 million, related to inventory impairments and other land-related charges, compared to charges of $220.1 million in the year-ago quarter. The year-ago quarter results also reflect a tax benefit of $56.8 million, mainly due to an adjustment in the Company's deferred income tax assets.
Total revenue for the second quarter fell 58% to $678.58 million from $1.62 billion in the same quarter last year. Eleven analysts had a consensus revenue estimate of $647.07 million for the second quarter.
Homebuilding revenue for the quarter fell 58% to 657.9 million from $1.6 billion a year ago, reflecting a 54% drop in closings to 2,500 homes, combined with a 9% decrease in average selling price to $261,000.
Net new home orders for the second quarter were 3,367 homes, valued at $862 million, compared to 5,133 homes, valued at $1.4 billion in the second quarter of last year.
Pulte Homes ended the second quarter with a backlog of 3,916 homes, valued at $1.1 billion, compared to 8,254 homes, valued at $2.4 billion a year ago.
The company's inventory of unsold homes was 1,815 units at the end of the second quarter, down 42% from a year earlier and down 24% from the first quarter.
"Pulte's second quarter results reflect an industry under pressure as a weak economy, rising unemployment and soft consumer confidence continue to depress homebuying demand," said Richard Dugas, Jr., President and CEO of Pulte Homes.
However, Dugas added that sequentially, the company has seen some positive signs as net new orders increased 11 percent on 9% fewer communities, cancellation rates were stable and its unit backlog increased by 28%, or almost 900 homes.
The U.S. Commerce Department said on July 27 that new home sales jumped 11% to an annual rate of 384,000 in June from the revised May rate of 346,000. Economists had expected sales to rise to 352,000 from the 342,000 originally reported for the previous month.
For the first six months, the company reported a net loss was $704.3 million or $2.77 per share, compared to a net loss of $854.6 million or $3.37 per share for the same period last year.
Total revenues for the first-half fell 59% to $1.26 billion from $3.06 billion in the prior year period.
In April, Pulte Homes agreed to buy rival Centex Corp. (CTX) in a stock-for-stock deal valued at $3.1 billion, including $1.8 billion of net debt, which could create America's largest homebuilding company. Under the deal, Centex shareholders will receive 0.975 shares of Pulte common stock for each Centex share they own. The deal is on track to close in the third quarter.
Pulte and Centex shareholders are scheduled to vote on the proposed merger on August 18. The deal has already cleared U.S. antitrust hurdle.
Centex after the markets closed reported a profit for the first quarter, helped by a tax benefit. The Dallas, Texas-based company reported net income for the first quarter of $85 million or $0.68 per share, compared to a net loss of $150.1 million or $1.21 per share for the year-ago quarter.
Income from continuing operations was $85.1 million or $0.68 per share, compared to a loss of $169.1 million or $1.36 per share in the year-ago quarter. Result for the latest quarter included a $410 million tax benefit resulting from certain tax developments.
First quarter revenues fell 49% to $574.0 million from $1.1 billion in the same quarter of last year.
D.R. Horton, Inc. (DHI), the largest U.S. homebuilder, will report third quarter earnings tomorrow. Analysts currently expect the company to report a loss of $0.23 per share on revenue of $792.06 million for the third quarter.
Pulte Homes shares, which have traded in a range of $6.49 to $17.32 over the past year, closed Monday's regular trading session at $11.76, up 39 cents or 3.43% but lost 40 cents or 3.40% in after hours trading.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.