Tri Pointe Homes, Inc. Reports 2025 Fourth Quarter and Full Year Results

InvestorsNewsroomDivisionsAbout UsSustainability Investors OverviewFinancial InfoInvestor NewsGovernance Management TeamGovernance DocumentsAnonymous Reporting Resources Information RequestEmail AlertsRSS NewsroomDivisionsAbout UsSustainability Tri Pointe Homes, Inc. Reports 2025 Fourth Quarter and Full Year Results February 25, 2026 INCLINE VILLAGE, Nev., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2025 and full year 2025. As previously announced on February 13, 2026, Tri Pointe has entered into a definitive agreement to be acquired by Sumitomo Forestry Co., Ltd., a Japanese corporation (kabushiki kaisha) (“Parent”), and Teton NewCo, Inc., a Delaware corporation and an indirect wholly owned Subsidiary of Parent (“Merger Sub”), providing for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). Consummation of the Merger is subject to stockholder approval, regulatory approval and completion of other customary closing conditions. Results and Operational Data for Fourth Quarter 2025 and Comparisons to Fourth Quarter 2024 Net income available to common stockholders was $60.2 million, or $0.70 per diluted share, compared to $129.2 million, or $1.37 per diluted share. Excluding inventory-related charges of $11.8 million, our net income available to common stockholders was $68.4 million*, or $0.80* per diluted share.Home sales revenue for the quarter was $945.9 million compared to $1.2 billion New home deliveries of 1,364 homes compared to 1,748 homesAverage sales price of homes delivered of $693,000 compared to $699,000 Homebuilding gross margin percentage of 19.3% compared to 23.3%. Excluding inventory-related charges of $11.8 million, our homebuilding gross margin percentage was 20.6%*. Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.1%* Selling, general and administrative (“SG&A”) expense as a percentage of home sales revenue of 11.3% compared to 10.3%Net new home orders of 928 compared to 940Active selling communities averaged 155.3 compared to 146.8 Net new home orders per average selling community decreased by 5% to 6.0 orders (2.0 monthly) compared to 6.4 orders (2.1 monthly)Cancellation rate of 11% compared to 14% Backlog units at quarter end of 862 homes compared to 1,517 Dollar value of backlog at quarter end of $670.1 million compared to $1.2 billionAverage sales price in backlog at quarter end of $777,000 compared to $768,000 Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.0% and 3.5%*, respectively, as of December 31, 2025Ended fourth quarter of 2025 with total liquidity of $1.8 billion, including cash of $982.8 million and $798.1 million of availability under the Company’s unsecured revolving credit facility * See “Reconciliation of Non-GAAP Financial Measures” Results and Operational Data for Full Year 2025 and Comparisons to Full Year 2024 Net income available to common stockholders was $241.1 million, or $2.72 per diluted share, compared to $458.0 million, or $4.83 per diluted share. Excluding inventory-related charges of $31.1 million, our net income available to common stockholders was $263.5 million*, or $2.97* per diluted share.Home sales revenue of $3.4 billion compared to $4.4 billion New home deliveries of 4,947 homes compared to 6,460 homesAverage sales price of homes delivered of $680,000 compared to $679,000 Homebuilding gross margin percentage of 21.0% compared to 23.3%. Excluding inventory-related charges of $31.1 million, our homebuilding gross margin percentage was 21.9%*. Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 25.2%* SG&A expense as a percentage of home sales revenue of 12.6% compared to 10.8%Net new home orders of 4,292 compared to 5,657Active selling communities averaged 150.5 compared to 150.4 Net new home orders per average selling community decreased by 23% to 28.5 orders (2.4 monthly) compared to 37.6 orders (3.1 monthly)Cancellation rate of 12% compared to 10% * See “Reconciliation of Non-GAAP Financial Measures” About Tri Pointe Homes® 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. 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, 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, particularly within California; 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 and labor; 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 California; 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. KEY OPERATIONS AND FINANCIAL DATA (dollars in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 Change % Change 2025 2024 Change % ChangeOperating Data: Home sales revenue$945,898 $1,221,405 $(275,507) (23)% $3,363,814 $4,386,447 $(1,022,633) (23)%Homebuilding gross margin$182,645 $285,008 $(102,363) (36)% $706,463 $1,022,566 $(316,103) (31)%Homebuilding gross margin % 19.3% 23.3% (4.0)% 21.0% 23.3% (2.3)% Adjusted homebuilding gross margin %* 24.1% 26.8% (2.7)% 25.2% 26.8% (1.6)% SG&A expense$107,070 $125,975 $(18,905) (15)% $423,854 $472,556 $(48,702) (10)%SG&A expense as a % of home sales revenue 11.3% 10.3% 1.0% 12.6% 10.8% 1.8% Net income available to common stockholders$60,160 $129,213 $(69,053) (53)% $241,088 $458,029 $(216,941) (47)% Other Data: Net new home orders 928 940 (12) (1)% 4,292 5,657 (1,365) (24)%New homes delivered 1,364 1,748 (384) (22)% 4,947 6,460 (1,513) (23)%Average sales price of homes delivered$693 $699 $(6) (1)% $680 $679 $1 0%Cancellation rate 11% 14% (3.0)% 12% 10% 2% Average selling communities 155.3 146.8 8.5 6% 150.5 150.4 0.1 0%Selling communities at end of period 156 145 11 8% Backlog (estimated dollar value)$670,138 $1,164,602 $(494,464) (42)% Backlog (homes) 862 1,517 (655) (43)% Average sales price in backlog$777 $768 $9 1% December 31, 2025 December 31, 2024 Change Balance Sheet Data: Cash and cash equivalents$982,814 $970,045 $12,769 Real estate inventories$3,178,248 $3,153,459 $24,789 Lots owned or controlled 32,219 36,490 (4,271) Homes under construction(1) 1,392 2,386 (994) Homes completed, unsold 681 464 217 Total homebuilding debt$1,104,054 $917,504 $186,550 Stockholders' equity$3,315,834 $3,335,710 $(19,876) Book capitalization$4,419,888 $4,253,214 $166,674 Ratio of homebuilding debt-to-capital 25.0% 21.6% 3.4% Ratio of net homebuilding debt-to-capital* 3.5% (1.6)% 5.1%  ______________________ (1)Homes under construction included 48 and 43 models at December 31, 2025 and December 31, 2024, respectively. *See “Reconciliation of Non-GAAP Financial Measures” CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) December 31, 2025 December 31, 2024Assets(unaudited) Cash and cash equivalents$982,814 $970,045Receivables 147,250 111,613Real estate inventories 3,178,248 3,153,459Investments in unconsolidated entities 183,075 173,924Mortgage loans held for sale 98,514 115,001Goodwill and other intangible assets, net 156,603 156,603Deferred tax assets, net 43,132 45,975Other assets 187,899 164,495Total assets$4,977,535 $4,891,115 Liabilities Accounts payable$41,693 $68,228Accrued expenses and other liabilities 425,289 465,563Loans payable 456,468 270,970Senior notes, net 647,586 646,534Mortgage repurchase facilities 90,570 104,098Total liabilities 1,661,606 1,555,393 Commitments and contingencies Equity Stockholders' Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively — —Common stock, $0.01 par value, 500,000,000 shares authorized; 84,478,836 and 92,451,729 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively 844 925Additional paid-in capital — —Retained earnings 3,314,990 3,334,785Total stockholders' equity 3,315,834 3,335,710Noncontrolling interests 95 12Total equity 3,315,929 3,335,722Total liabilities and equity$4,977,535 $4,891,115 CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024Homebuilding: Home sales revenue$945,898 $1,221,405 $3,363,814 $4,386,447 Land and lot sales revenue 7,891 9,284 31,844 33,064 Other operations revenue 805 803 3,244 3,162 Total revenues 954,594 1,231,492 3,398,902 4,422,673 Cost of home sales 763,253 936,397 2,657,351 3,363,881 Cost of land and lot sales 8,052 9,007 29,890 30,591 Other operations expense 793 766 3,174 3,061 Sales and marketing 52,181 55,746 193,784 216,518 General and administrative 54,889 70,229 230,070 256,038 Homebuilding income from operations 75,426 159,347 284,633 552,584 Equity in income (loss) of unconsolidated entities 251 (22) 2,526 361 Other income, net 6,555 7,822 29,439 39,640 Homebuilding income before income taxes 82,232 167,147 316,598 592,585 Financial Services: Revenues 18,040 22,379 71,802 70,197 Expenses 14,217 14,014 54,622 45,914 Financial services income before income taxes 3,823 8,365 17,180 24,283 Income before income taxes 86,055 175,512 333,778 616,868 Provision for income taxes (25,899) (46,299) (92,785) (158,898)Net income 60,156 129,213 240,993 457,970 Net (income) loss attributable to noncontrolling interests 4 — 95 59 Net income available to common stockholders$60,160 $129,213 $241,088 $458,029 Earnings per share Basic$0.71 $1.39 $2.73 $4.87 Diluted$0.70 $1.37 $2.72 $4.83 Weighted average shares outstanding Basic 85,294,958 93,064,520 88,172,175 93,985,551 Diluted 85,996,817 94,413,552 88,695,831 94,912,589 MARKET DATA BY REPORTING SEGMENT & STATE (dollars in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 New Homes Delivered Average Sales Price New Homes Delivered Average Sales Price New Homes Delivered Average Sales Price New Homes Delivered Average Sales PriceWest724 $752 972 $757 2,506 $753 3,511 $752Central421 570 524 571 1,673 552 1,989 567East219 739 252 739 768 720 960 643Total1,364 $693 1,748 $699 4,947 $680 6,460 $679 Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Net New Home Orders Average Selling Communities Net New Home Orders Average Selling Communities Net New Home Orders Average Selling Communities Net New Home Orders Average Selling CommunitiesWest468 70.5 490 70.0 2,123 69.0 3,140 71.6Central303 61.0 307 59.5 1,461 60.4 1,707 61.6East157 23.8 143 17.3 708 21.1 810 17.2Total928 155.3 940 146.8 4,292 150.5 5,657 150.4 As of December 31, 2025 As of December 31, 2024 Backlog Units Backlog Dollar Value Average Sales Price Backlog Units Backlog Dollar Value Average Sales Price West424 $360,647 $851 807 $653,064 $809 Central260 161,398 621 472 281,377 596 East178 148,093 832 238 230,161 967 Total862 $670,138 $777 1,517 $1,164,602 $768 As of December 31, 2025 As of December 31, 2024 Lots Owned Lots Controlled (1) Lots Owned or Controlled Lots Owned Lots Controlled (1) Lots Owned or Controlled West8,629 3,864 12,493 9,475 4,949 14,424 Central5,188 8,017 13,205 5,437 9,841 15,278 East2,137 4,384 6,521 1,697 5,091 6,788 Total15,954 16,265 32,219 16,609 19,881 36,490  ______________________ (1)As of December 31, 2025 and 2024, lots controlled included lots that were under land option contracts or purchase contracts. As of December 31, 2025 and 2024, lots controlled for Central include 5,356 and 5,816 lots, respectively, and lots controlled for East include 0 and 14 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 tables reconcile homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP financial measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage and non-cash impairments and lot option abandonments, as applicable, have on homebuilding gross margin and permits investors to make better comparisons with our competitors, who may adjust gross margins in a similar fashion. Three Months Ended December 31, 2025 % 2024 % (dollars in thousands)Home sales revenue$945,898 100.0% $1,221,405 100.0%Cost of home sales 763,253 80.7% 936,397 76.7%Homebuilding gross margin 182,645 19.3% 285,008 23.3%Add: interest in cost of home sales 32,264 3.4% 41,217 3.4%Add: impairments and lot option abandonments 12,986 1.4% 1,713 0.1%Adjusted homebuilding gross margin$227,895 24.1% $327,938 26.8%Homebuilding gross margin percentage 19.3% 23.3% Adjusted homebuilding gross margin percentage 24.1% 26.8% Year Ended December 31, 2025 % 2024 % (dollars in thousands)Home sales revenue$3,363,814 100.0% $4,386,447 100.0%Cost of home sales 2,657,351 79.0% 3,363,881 76.7%Homebuilding gross margin 706,463 21.0% 1,022,566 23.3%Add: interest in cost of home sales 105,376 3.1% 148,547 3.4%Add: impairments and lot option abandonments 36,399 1.1% 4,157 0.1%Adjusted homebuilding gross margin$848,238 25.2% $1,175,270 26.8%Homebuilding gross margin percentage 21.0% 23.3% Adjusted homebuilding gross margin percentage 25.2% 26.8%  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. December 31, 2025 December 31, 2024Loans payable$456,468 $270,970 Senior notes 647,586 646,534 Mortgage repurchase facilities 90,570 104,098 Total debt 1,194,624 1,021,602 Less: mortgage repurchase facilities (90,570) (104,098)Total homebuilding debt 1,104,054 917,504 Stockholders’ equity 3,315,834 3,335,710 Total capital$4,419,888 $4,253,214 Ratio of homebuilding debt-to-capital(1) 25.0% 21.6% Total homebuilding debt$1,104,054 $917,504 Less: Cash and cash equivalents (982,814) (970,045)Net homebuilding debt 121,240 (52,541)Stockholders’ equity 3,315,834 3,335,710 Net capital$3,437,074 $3,283,169 Ratio of net homebuilding debt-to-net capital(2) 3.5% (1.6)% ______________________ (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) real estate inventory 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 December 31, Year Ended December 31, 2025 2024 2025 2024 (in thousands)Net income available to common stockholders$60,160 $129,213 $241,088 $458,029 Interest expense: Interest incurred 19,850 23,162 81,496 114,949 Interest capitalized (19,850) (23,162) (81,496) (114,949)Amortization of interest in cost of sales 32,996 41,454 106,566 150,226 Provision for income taxes 25,899 46,299 92,785 158,898 Depreciation and amortization 7,717 7,446 30,269 31,018 EBITDA 126,772 224,412 470,708 798,171 Amortization of stock-based compensation 7,362 9,182 30,829 33,509 Real estate inventory impairments and lot option abandonments 12,986 1,713 36,399 4,157 Adjusted EBITDA$147,120 $235,307 $537,936 $835,837  RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) The following table contains information about our operating results reflecting certain adjustments to homebuilding gross margin, income before income taxes, provision for income taxes, net income, net income available to common stockholders and earnings per share (diluted). We believe reflecting these adjustments is useful to investors in understanding our recurring operations by eliminating the effects of certain non-routine events, and may be helpful in comparing the Company to other homebuilders to the extent they provide similar information. Three Months Ended December 31, 2025 Year Ended December 31, 2025 As Reported Adjustments Adjusted As Reported Adjustments AdjustedGross Margin Reconciliation(in thousands, except share and per share amounts)Home sales revenue$945,898 $— $945,898 $3,363,814 $— $3,363,814 Cost of home sales 763,253 (11,791)(1) 751,462 2,657,351 (31,097)(1) 2,626,254 Homebuilding gross margin$182,645 $11,791 $194,436 $706,463 $31,097 $737,560 Homebuilding gross margin percentage 19.3% 1.3% 20.6% 21.0% 0.9% 21.9% Income Reconciliation Income before income taxes$86,055 $11,791 (1)$97,846 $333,778 $31,097 (1)$364,875 Provision for income taxes (25,899) (3,549)(2) (29,448) (92,785) (8,644)(2) (101,429)Net income 60,156 8,242 68,398 240,993 22,453 263,446 Net income attributable to noncontrolling interests 4 — 4 95 — 95 Net income available to common stockholders$60,160 $8,242 $68,402 $241,088 $22,453 $263,541 Earnings per share Diluted$0.70 $0.10 $0.80 $2.72 $0.25 $2.97 Weighted average shares outstanding Diluted 85,996,817 85,996,817 88,695,831 88,695,831 Effective tax rate 30.1% 30.1% 27.8% 27.8% ______________________ (1)Comprises inventory impairment charges.(2)Comprises the impact on provision for income taxes related to the inventory impairment charge described in footnote(1).  Source: Tri Pointe Homes, Inc.