Financial Performance: PulteGroup reported strong second quarter results with net income of $608 million ($3.03 per share), although this reflects a significant decline from $809 million ($3.83 per share) in the previous year due to one-time benefits last year. Revenues were down 4% year-over-year to $4.3 billion, driven by a 6% decrease in home closings to 7,639 homes.

Gross Margins: The company achieved a gross margin of 27.0%, at the top end of guidance, aided by a favorable mix of homes and the management of incentives, which increased to 8.7% of the gross sales price from 6.3% last year. Despite an increase in incentives, Pulte expects to maintain gross margins of 26.0% to 26.5% for Q3 and Q4.

Market Conditions and Demand: Demand remains volatile, with net new orders declining 7% year-over-year to 7,083 homes, reflecting a challenging market, especially in certain regions like Texas and California. However, the active adult segment showed a 9% increase in orders, indicating strong buyer engagement while overall absorptions were nearly in line with pre-COVID levels.