Tri Pointe Homes, Inc. Reports 2026 First Quarter Results

InvestorsNewsroomDivisionsAbout UsSustainability Investors OverviewFinancial InfoInvestor NewsGovernance Management TeamGovernance DocumentsAnonymous Reporting Resources Information RequestEmail AlertsRSS NewsroomDivisionsAbout UsSustainability Tri Pointe Homes, Inc. Reports 2026 First Quarter Results April 29, 2026 INCLINE VILLAGE, Nev., April 29, 2026 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the first quarter ended March 31, 2026. As previously announced on February 13, 2026, the Company entered into the Agreement and Plan of Merger, dated February 13, 2026 (the “Merger Agreement”), with Sumitomo Forestry Co., Ltd., a Japanese corporation (kabushiki kaisha) (“Sumitomo Forestry”), and Teton NewCo, Inc., a Delaware corporation and an indirect wholly owned subsidiary of Sumitomo Forestry (“Merger Sub”), pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and an indirect wholly owned subsidiary of Sumitomo Forestry (the “Merger”). As of the date hereof, the portions of the conditions to the Merger relating to stockholder approval of the Merger and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, have been satisfied. The Merger continues to be subject to the remaining conditions set forth in the Merger Agreement. Results and Operational Data for First Quarter 2026 and Comparisons to First Quarter 2025 Net income available to common stockholders was $6.8 million, or $0.08 per diluted share, compared to $64.0 million, or $0.70 per diluted shareHome sales revenue of $506.5 million compared to $720.8 million New home deliveries of 736 homes compared to 1,040 homesAverage sales price of homes delivered of $688,000 compared to $693,000 Homebuilding gross margin percentage of 18.8% compared to 23.9% Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 22.3%* SG&A expense as a percentage of home sales revenue of 17.9% compared to 14.0%Net new home orders of 1,234 compared to 1,238Active selling communities averaged 158.0 compared to 145.5 Net new home orders per average selling community were 7.8 orders (2.6 monthly) compared to 8.5 orders (2.8 monthly)Cancellation rate of 9% compared to 10% Backlog units at quarter end of 1,360 homes compared to 1,715 Dollar value of backlog at quarter end of $989.9 million compared to $1.3 billionAverage sales price of homes in backlog at quarter end of $728,000 compared to $763,000 Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.0% and 7.2%*, respectively, as of March 31, 2026Ended the first quarter of 2026 with total liquidity of $1.7 billion, including cash and cash equivalents of $847.9 million and $827.5 million of availability under our revolving credit facility.*See “Reconciliation of Non-GAAP Financial Measures” About Tri Pointe Homes, Inc. One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards and was named 2024 Developer of the Year. The company is one of the 2026 Fortune World’s Most Admired Companies, 2023 and 2025 Fortune 100 Best Companies to Work For® and was designated as one of the PEOPLE Companies That Care® for three consecutive years (2023 through 2025). The company was also named as a Great Place To Work-Certified™ company for five years in a row (2021 through 2025) and was named on several Great Place To Work® Best Workplaces list (2022 through 2025). For more information, please visit TriPointeHomes.com. Forward-Looking Statements Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending, as well as the expected timetable for completing the proposed transactions contemplated by the Merger Agreement, future opportunities for the combined businesses and the expected benefits of the Merger. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “assuming,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “projection,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious diseases, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; risks related to the failure to consummate the Merger and the transactions contemplated thereby; risks related to any litigation arising out of or as a result of the Merger and the transactions contemplated thereby; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. Investor Relations Contact: [email protected], 949-478-8696 KEY OPERATIONS AND FINANCIAL DATA (dollars in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Change % ChangeOperating Data:(unaudited)Home sales revenue$506,496 $720,786 $(214,290) (29.7)%Homebuilding gross margin$95,430 $172,513 $(77,083) (44.7)%Homebuilding gross margin % 18.8% 23.9% (5.1)% Adjusted homebuilding gross margin %* 22.3% 27.3% (5.0)% SG&A expense$90,846 $100,617 $(9,771) (9.7)%SG&A expense as a % of home sales revenue 17.9% 14.0% 3.9% Net income available to common stockholders$6,786 $64,036 $(57,250) (89.4)%Adjusted EBITDA*$39,857 $125,698 $(85,841) (68.3)%Interest incurred$18,585 $21,319 $(2,734) (12.8)%Interest in cost of home sales$16,470 $23,035 $(6,565) (28.5)% Other Data: Net new home orders 1,234 1,238 (4) (0.3)%New homes delivered 736 1,040 (304) (29.2)%Cancellation rate 9% 10% (1)% Average selling price of homes delivered$688 $693 $(5) (0.7)%Average selling communities 158.0 145.5 12.5 8.6%Selling communities at end of period 161 147 14 9.5%Backlog (estimated dollar value)$989,906 $1,307,786 $(317,880) (24.3)%Backlog (homes) 1,360 1,715 (355) (20.7)%Average selling price in backlog$728 $763 $(35) (4.6)% March 31, December 31, 2026 2025 Change % ChangeBalance Sheet Data:(unaudited) Cash and cash equivalents$847,903 $982,814 $(134,911) (13.7)%Real estate inventories$3,302,319 $3,178,248 $124,071 3.9%Lots owned or controlled 32,937 32,219 718 2.2%Homes under construction(1) 1,855 1,392 463 33.3%Homes completed, unsold 469 681 (212) (31.1)%Total homebuilding debt$1,104,326 $1,104,054 $272 0.0%Stockholders’ equity$3,307,043 $3,315,834 $(8,791) (0.3)%Book capitalization$4,411,369 $4,419,888 $(8,519) (0.2)%Ratio of homebuilding debt-to-capital 25.0% 25.0% 0.0% Ratio of net homebuilding debt-to-net capital* 7.2% 3.5% 3.7% __________ (1)Homes under construction included 56 and 48 models as of March 31, 2026 and December 31, 2025, respectively.*See “Reconciliation of Non-GAAP Financial Measures” CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) March 31, December 31, 2026 2025Assets(unaudited) Cash and cash equivalents$847,903 $982,814Receivables 144,641 147,250Real estate inventories 3,302,319 3,178,248Investments in unconsolidated entities 217,019 183,075Mortgage loans held for sale 66,152 98,514Goodwill and other intangible assets, net 156,603 156,603Deferred tax assets, net 43,132 43,132Other assets 184,555 187,899Total assets$4,962,324 $4,977,535 Liabilities Accounts payable$63,155 $41,693Accrued expenses and other liabilities 428,366 425,289Loans payable 456,468 456,468Senior notes 647,858 647,586Mortgage repurchase facilities 59,315 90,570Total liabilities 1,655,162 1,661,606 Commitments and contingencies Equity Stockholders’ equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively — —Common stock, $0.01 par value, 500,000,000 shares authorized; 85,135,803 and 84,478,836 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 851 844Additional paid-in capital — —Retained earnings 3,306,192 3,314,990Total stockholders’ equity 3,307,043 3,315,834Noncontrolling interests 119 95Total equity 3,307,162 3,315,929Total liabilities and equity$4,962,324 $4,977,535 CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2026 2025 Homebuilding: Home sales revenue $506,496 $720,786 Land and lot sales revenue 575 1,821 Other operations revenue 825 820 Total revenues 507,896 723,427 Cost of home sales 411,066 548,273 Cost of land and lot sales 979 1,741 Other operations expense 813 794 Sales and marketing 37,887 42,942 General and administrative 52,959 57,675 Homebuilding income from operations 4,192 72,002 Equity in (loss) income of unconsolidated entities (88) 495 Transaction expense (5,877) — Other income, net 7,236 9,129 Homebuilding income before income taxes 5,463 81,626 Financial Services: Revenues 13,493 17,501 Expenses 12,065 12,617 Financial services income before income taxes 1,428 4,884 Income before income taxes 6,891 86,510 Provision for income taxes (81) (22,493)Net income 6,810 64,017 Net (income) loss attributable to noncontrolling interests (24) 19 Net income available to common stockholders $6,786 $64,036 Earnings per share Basic $0.08 $0.70 Diluted $0.08 $0.70 Weighted average shares outstanding Basic 84,796,116 91,638,960 Diluted 85,176,744 92,077,680 MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY (dollars in thousands) (unaudited) Three Months Ended March 31, 2026 2025 New Homes Delivered Average Sales Price New Homes Delivered Average Sales PriceWest342 $778 521 $769Central274 563 377 558East120 719 142 773Total736 $688 1,040 $693 Three Months Ended March 31, 2026 2025 Net New Home Orders Average Selling Communities Net New Home Orders Average Selling CommunitiesWest605 72.3 644 66.3Central436 61.7 413 60.5East193 24.0 181 18.7Total1,234 158.0 1,238 145.5 As of March 31, 2026 As of March 31, 2025 Backlog Units Backlog Dollar Value Average Sales Price Backlog Units Backlog Dollar Value Average Sales PriceWest687 $564,180 $821 930 $757,952 $815Central422 251,486 596 508 296,636 584East251 174,240 694 277 253,198 914Total1,360 $989,906 $728 1,715 $1,307,786 $763 As of March 31, 2026 As of December 31, 2025 Lots Owned Lots Controlled (1) Lots Owned or Controlled Lots Owned Lots Controlled (1) Lots Owned or ControlledWest8,690 4,010 12,700 8,629 3,864 12,493Central5,157 8,576 13,733 5,188 8,017 13,205East2,055 4,449 6,504 2,137 4,384 6,521Total15,902 17,035 32,937 15,954 16,265 32,219(1)As of March 31, 2026 and December 31, 2025, lots controlled included lots that were under land option contracts or purchase contracts. As of March 31, 2026 and December 31, 2025, lots controlled for Central include 5,709 and 5,356 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. The following table reconciles the homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion. Three Months Ended March 31, 2026 % 2025 % (dollars in thousands)Home sales revenue$506,496 100.0% $720,786 100.0%Cost of home sales 411,066 81.2% 548,273 76.1%Homebuilding gross margin 95,430 18.8% 172,513 23.9%Add: interest in cost of home sales 16,470 3.3% 23,035 3.2%Add: impairments and lot option abandonments 1,068 0.2% 1,073 0.1%Adjusted homebuilding gross margin$112,968 22.3% $196,621 27.3%Homebuilding gross margin percentage 18.8% 23.9% Adjusted homebuilding gross margin percentage 22.3% 27.3%  RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing. March 31, 2026 December 31, 2025Loans payable$456,468 $456,468 Senior notes 647,858 647,586 Mortgage repurchase facilities 59,315 90,570 Total debt 1,163,641 1,194,624 Less: mortgage repurchase facilities (59,315) (90,570)Total homebuilding debt 1,104,326 1,104,054 Stockholders’ equity 3,307,043 3,315,834 Total capital$4,411,369 $4,419,888 Ratio of homebuilding debt-to-capital(1) 25.0% 25.0% Total homebuilding debt$1,104,326 $1,104,054 Less: Cash and cash equivalents (847,903) (982,814)Net homebuilding debt 256,423 121,240 Stockholders’ equity 3,307,043 3,315,834 Net capital$3,563,466 $3,437,074 Ratio of net homebuilding debt-to-net capital(2) 7.2% 3.5%__________ (1)The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity.(2)The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding debt plus stockholders’ equity. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) impairments and lot option abandonments. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing. Three Months Ended March 31, 2026 2025 (in thousands)Net income available to common stockholders $6,786 $64,036 Interest expense: Interest incurred 18,585 21,319 Interest capitalized (18,585) (21,319)Amortization of interest in cost of sales 16,470 23,153 Provision for income taxes 81 22,493 Depreciation and amortization 7,618 7,387 EBITDA 30,955 117,069 Amortization of stock-based compensation 1,957 7,556 Impairments and lot option abandonments 1,068 1,073 Transaction expense 5,877 — Adjusted EBITDA $39,857 $125,698 Source: Tri Pointe Homes, Inc.