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

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 homes
  • Average 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 940
• Active 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 billion
  • Average 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, 2025
• Ended 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 homes
  • Average 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 5,657
• Active 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.

Investor Relations Contact:

[email protected], 949-478-8696

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				% Change
Operating 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, 2024
Assets	(unaudited)
Cash and cash equivalents	$	982,814		$	970,045
Receivables		147,250			111,613
Real estate inventories		3,178,248			3,153,459
Investments in unconsolidated entities		183,075			173,924
Mortgage loans held for sale		98,514			115,001
Goodwill and other intangible assets, net		156,603			156,603
Deferred tax assets, net		43,132			45,975
Other assets		187,899			164,495
Total assets	$	4,977,535		$	4,891,115
Liabilities
Accounts payable	$	41,693		$	68,228
Accrued expenses and other liabilities		425,289			465,563
Loans payable		456,468			270,970
Senior notes, net		647,586			646,534
Mortgage repurchase facilities		90,570			104,098
Total 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			925
Additional paid-in capital		—			—
Retained earnings		3,314,990			3,334,785
Total stockholders' equity		3,315,834			3,335,710
Noncontrolling interests		95			12
Total equity		3,315,929			3,335,722
Total 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				2024
Homebuilding:
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 Price
West	724		$	752			972		$	757			2,506		$	753		3,511		$	752
Central	421			570			524			571			1,673			552		1,989			567
East	219			739			252			739			768			720		960			643
Total	1,364		$	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 Communities
West	468			70.5			490			70.0			2,123			69.0		3,140			71.6
Central	303			61.0			307			59.5			1,461			60.4		1,707			61.6
East	157			23.8			143			17.3			708			21.1		810			17.2
Total	928			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
West	424		$	360,647		$	851			807		$	653,064		$	809
Central	260			161,398			621			472			281,377			596
East	178			148,093			832			238			230,161			967
Total	862		$	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
West	8,629			3,864			12,493			9,475			4,949			14,424
Central	5,188			8,017			13,205			5,437			9,841			15,278
East	2,137			4,384			6,521			1,697			5,091			6,788
Total	15,954			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, 2024
Loans 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					Adjusted
Gross 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).