Building Products: PulteGroup (PHM-US) - Read through from 3Q26 result

PulteGroup's 3Q26 result highlighted slowing demand in September 2026 as mortgage rates moved toward 7.5%, with management citing that weakness has continued into October 2026. Orders fell 6% yoy to 6,208 homes on a 13% decline in absorption, and closings of 6,876 (-9% yoy) came in below guidance on weaker spec conversion. FY26 closings guidance was trimmed to 27,000-27,500 from 28,500-29,000. Incentives were flat sequentially at 10.4%, with management citing limited price elasticity and indicating it will hold price rather than chase volume. Unsold spec inventory totaled 6,627 units (-10% yoy, 45% of homes in production), which management described as right-sized, while starts remain tightly controlled toward a 60% dirt-sale / 40% spec mix by end-2027. Regional performance remained uneven, with Florida and the Midwest outperforming, the West still weak on affordability, and continued weakness in Texas. For Reece Group (REH) and Reliance Worldwide Corp (RWC), the read is incrementally