Core Insights - Tri Pointe Homes is set to begin sales on September 27 at its new McCormick Trails community in Port Orchard [1] - The community will feature 30 single-family homes designed with a focus on innovative design and customer experience [1] - McCormick Trails is located in a neighborhood surrounded by 21 acres of protected natural space, enhancing the appeal of the homes [1]

Core Points - Tri Pointe Homes, Inc. will release its financial results for Q3 2025 on October 23, 2025, before market opens [1] - A conference call to discuss the results will be held at 7:00 AM Pacific (10:00 AM Eastern) on the same day, hosted by key executives [1] - The company is recognized as one of the largest homebuilders in the U.S., operating in 12 states and the District of Columbia [4] Company Overview - Tri Pointe Homes is a publicly traded company known for its customer experience, innovative design, and environmentally responsible practices [4] - The company has received multiple awards, including Builder of the Year and Developer of the Year for 2024 [4] - It has been listed among the Fortune 100 Best Companies to Work For® in 2023 and 2025, and recognized as a Great Place To Work-Certified™ for five consecutive years [4]

Core Insights - Tri Pointe Homes has been recognized for the fourth consecutive year on the 2025 Fortune Best Workplaces in Construction™ List, highlighting its commitment to a supportive and innovative workplace culture [1][4][17] Company Overview - Tri Pointe Homes is one of the largest homebuilders in the U.S., operating in 12 states and the District of Columbia, and is known for its customer experience, innovative design, and environmentally responsible practices [7] - The company has received multiple accolades, including being named 2024 Developer of the Year and appearing on the Fortune 100 Best Companies to Work For list in both 2023 and 2025 [7] Award Criteria - The Best Workplaces in Construction award is based on survey responses from nearly 54,000 employees at Great Place To Work Certified™ companies, focusing on employee feedback and experiences [2][8] - The selection process emphasizes positive outcomes for team members across various demographics, ensuring a fair assessment of workplace culture [2][4] Employee Development Initiatives - In 2025, Tri Pointe Homes launched the Cornerstone Club, which consists of internal ambassadors aimed at enhancing recruitment and mentoring efforts [3] - The company provides job-specific onboarding and a Blueprint Learning System to help new hires integrate and succeed within the organization [3] Workplace Culture - Tri Pointe Homes emphasizes a people-first culture that prioritizes the well-being, development, and empowerment of all team members [5][17] - The company fosters an environment where employees feel supported and valued, contributing to high levels of trust and loyalty among the workforce [4][5]

Core Viewpoint - Tri Pointe Homes has been recognized for the third consecutive year on the 2025 PEOPLE Companies that Care list, highlighting its commitment to a people-first workplace culture [1][2][3] Company Recognition - The PEOPLE Companies that Care list honors companies for their ability to care for employees, families, and communities, with Tri Pointe meeting rigorous benchmarks in employee well-being, inclusive practices, and social responsibility [2][10] - The recognition is based on over 1.3 million confidential employee survey responses, representing more than 8.4 million employees [3][10] Employee-Centric Initiatives - Tri Pointe Homes has implemented new initiatives based on team member feedback, including an additional PPO medical plan and expanded wellness benefits [4] - A comprehensive Career Development Program has been launched to support professional growth, featuring resources and workshops for team members [4] Community and Cultural Impact - The company promotes community engagement through volunteer-led Compass Clubs and the Tri Pointe C.A.R.E.S. initiative, which offers paid volunteer time [5] - Tri Pointe's LivingSmart® program emphasizes sustainable building practices and environmental stewardship [5] Company Values and Culture - Tri Pointe Homes operates on H.E.A.R.T. values: Humility, Empowerment, Authenticity, Results, and Team, fostering an environment for growth and meaningful impact [6] - The company has been recognized as one of the 2023 and 2025 Fortune 100 Best Companies to Work For and has received multiple awards for its workplace culture [9]

Company Overview - Tri Pointe Homes is one of the largest homebuilders in the U.S., operating in 12 states and the District of Columbia, recognized for customer experience, innovative design, and environmentally responsible practices [6] - The company builds premium homes and communities with strong ties to the communities it serves, having won multiple Builder of the Year awards and named 2024 Developer of the Year [6] Leadership Appointment - Robert Norton has been appointed as the division president of Tri Pointe's Coastal Carolinas division, bringing over two decades of homebuilding and financial leadership experience [1][11] - Norton will oversee operations, sales, land acquisitions, and community development across the division's growing footprint [1][11] Strategic Focus - In his new role, Norton will focus on advancing the division's pipeline of single-family and townhome communities in Bluffton, Beaufort, and other Lowcountry locations [2] - He aims to strengthen community connections, expand trade partnerships, and enhance the division's mission to create thoughtfully designed, amenity-rich neighborhoods [2] Market Insights - South Carolina is experiencing significant population growth, with an estimated 1.7% increase from July 2023 to July 2024, adding approximately 91,000 residents [5] - Bluffton is one of the fastest-growing towns in the state, with an annual growth rate of 6.13% and a 40% increase since 2020, reaching an estimated 39,856 residents in 2025 [5] - Beaufort County has seen a population increase of over 20% from 2010 to 2022, with an estimated population of 204,643 in 2025 [5] Leadership Background - Norton previously served as division president for Ashton Woods Homes, where he led the Charleston operation to over 700 annual closings and secured a top-three market share position [3] - His background in finance and accounting, along with experience in launching homebuilding brands and innovative community concepts, positions him for success in Tri Pointe's strategic expansion [3]

Group 1 - The housing sector is currently experiencing a downturn, and this trend is expected to persist in the foreseeable future [2] - Tri Pointe Homes, Inc. (NYSE: TPH) is highlighted as a home builder that has shown significant insider buying activity [2] - The Insiders Forum focuses on small and mid-cap stocks with recent insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Group 1 - Tri Pointe Homes (TPH) experienced a significant decline in share price, closing down 9.8% on July 24th following the announcement of its second-quarter financial results [1] - The company is part of the homebuilding sector, which is currently facing challenges reflected in the stock performance [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth potential [1] - The service includes a stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2]

Financial Performance - Tri Pointe Homes reported non-GAAP EPS of $0.77, exceeding the analyst consensus estimate of $0.68, while GAAP revenue was $879.8 million, surpassing the expected $806.7 million [1][5] - Year-over-year comparisons showed a decline in non-GAAP EPS by 38.4% from $1.25 and a 22.3% decrease in GAAP revenue from $1.13 billion [2][5] - Net income available to common stockholders was $60.7 million, down from $118.0 million a year earlier, impacted by an $11.0 million inventory-related charge [5] Market Trends - New home orders fell significantly, with 1,131 net new home orders in Q2 2025, a 31.5% decrease from the previous year [6] - The cancellation rate increased to 13%, up from 9%, indicating pressure on future sales [6] - Backlog units declined by 43.5% to 1,520, with backlog dollar value dropping to $1.2 billion, down 41% [6] Operational Insights - Gross margin for Q2 FY2025 was 22.1%, down from 23.6% in the prior year, attributed to sales incentives and community mix [7] - SG&A expenses as a percentage of revenue rose to 12.6%, influenced by inflation and investments in new markets [7] - The company delivered 1,326 homes, a 22% year-over-year drop, with an average selling price of $664,000 [8] Business Strategy - Tri Pointe operates in 17 markets across twelve states and the District of Columbia, focusing on acquiring land and developing residential communities [3] - Recent expansion efforts target fast-growing regions like Utah, Florida, and the Carolinas, while maintaining disciplined capital allocation [4] - The company owned or controlled 34,025 lots as of June 30, 2025, reflecting a 6.8% downturn since December 2024 [9] Financial Position - Tri Pointe's liquidity position remains strong with $1.4 billion available, including $623 million in cash [10] - Homebuilding debt as a share of capital was 21.7%, with a net homebuilding debt-to-net capital ratio of 8.0% [10] - The company repurchased $100 million of its own shares, reducing the outstanding share count by approximately 5.4% [10] Future Outlook - Management provided guidance for Q3 FY2025, targeting deliveries of 1,000 to 1,100 homes and an average sales price between $675,000 and $685,000 [11] - For FY2025, the expected home deliveries range from 4,800 to 5,200, with gross margins projected between 20.5% and 22.0% [11] - Investors are advised to monitor trends in new home orders, cancellation rates, and margin pressures as the company navigates a cooling housing market [12]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements show a decline in assets, revenue, and net income for the period [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $4.80 billion, driven by a significant reduction in cash and cash equivalents Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $622,642 | $970,045 | | Real estate inventories | $3,301,302 | $3,153,459 | | Total assets | $4,797,842 | $4,891,115 | | **Liabilities & Equity** | | | | Total liabilities | $1,507,748 | $1,555,393 | | Total stockholders' equity | $3,289,961 | $3,335,710 | | Total liabilities and equity | $4,797,842 | $4,891,115 | - Cash and cash equivalents decreased by approximately **36%** from **$970.0 million** at the end of 2024 to **$622.6 million** as of June 30, 2025[13](index=13&type=chunk) - Real estate inventories increased from **$3.15 billion** to **$3.30 billion** during the first six months of 2025[13](index=13&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a significant year-over-year decline in revenue and net income for Q2 and YTD 2025 Operations Summary | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Home sales revenue | $879,832 | $1,133,008 | $1,600,618 | $2,051,361 | | Total revenues | $884,010 | $1,137,950 | $1,607,437 | $2,064,158 | | Income before income taxes | $84,350 | $159,229 | $170,860 | $289,809 | | Net income available to common stockholders | $60,748 | $118,002 | $124,784 | $217,057 | | Diluted EPS | $0.68 | $1.25 | $1.38 | $2.28 | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity) Stockholders' equity decreased to $3.29 billion, impacted by net income and significant share repurchases - For the six months ended June 30, 2025, the company recorded net income of **$124.7 million** and repurchased shares for a total cost of **$176.7 million**[18](index=18&type=chunk) - The number of common shares outstanding decreased from **92,451,729** at December 31, 2024, to **87,506,511** at June 30, 2025, primarily due to share repurchases[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations was $105.4 million, a reversal from cash provided in the prior-year period Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(105,416) | $167,894 | | Net cash used in investing activities | $(39,549) | $(15,410) | | Net cash used in financing activities | $(202,438) | $(528,497) | | **Net decrease in cash and cash equivalents** | **$(347,403)** | **$(376,013)** | - Share repurchases (excluding excise tax) amounted to **$175.1 million** in the first six months of 2025, compared to **$86.7 million** in the prior-year period[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment information, inventory impairments, debt structure, and stock compensation plans - The company operates in two principal businesses: **homebuilding** and **financial services**, with homebuilding further divided into West, Central, and East segments[41](index=41&type=chunk)[42](index=42&type=chunk) - A real estate inventory impairment charge of **$11.0 million** was recorded in Q2 2025 related to one active community in the West reporting segment[54](index=54&type=chunk) - As of June 30, 2025, the company had **$647.1 million** in senior notes and **$262.9 million** in loans payable outstanding[75](index=75&type=chunk)[79](index=79&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses challenging market conditions, declining operational results, and long-term positive fundamentals [Overview and Outlook](index=31&type=section&id=Overview%20and%20Outlook) Q2 2025 market softness led to a 22% revenue decline, though long-term demand drivers remain intact - The U.S. housing market in Q2 2025 was challenged by **policy uncertainty**, leading to greater price sensitivity and a more measured approach from homebuyers[136](index=136&type=chunk) - Long-term housing demand fundamentals remain strong, supported by **Millennial and Gen Z demographics** and a persistent undersupply of housing[137](index=137&type=chunk) Q2 2025 Key Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Home Sales Revenue | $879.8 million | -22% | | Net Income | $60.7 million | -49% | | Diluted EPS | $0.68 | -46% | | New Home Deliveries | 1,326 | - | | Net New Home Orders | 1,131 | - | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Operational metrics, including new orders, backlog, and gross margins, declined year-over-year - Net new home orders for Q2 2025 decreased **31% YoY** to 1,131, driven by a **30%** decrease in monthly absorption rates[142](index=142&type=chunk) - Backlog as of June 30, 2025, was down **44%** in units to 1,520 and **41%** in dollar value to **$1.2 billion** compared to the prior year[146](index=146&type=chunk) - Q2 2025 homebuilding gross margin percentage fell to **20.8%** from 23.6% in Q2 2024, primarily due to an **$11.0 million** land impairment charge and higher incentives[151](index=151&type=chunk) - For the six months ended June 30, 2025, home sales revenue decreased **22%** to **$1.6 billion**, and homebuilding gross margin percentage decreased to **22.2%** from 23.3% YoY[163](index=163&type=chunk)[167](index=167&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity of $1.4 billion while actively repurchasing shares - Total liquidity as of June 30, 2025, was **$1.4 billion**, consisting of **$622.6 million** in cash and **$785.7 million** of availability under the Credit Facility[178](index=178&type=chunk) - In April 2025, the company amended its credit agreement, increasing the revolving facility from $750 million to **$850 million** and extending its maturity to April 2030[185](index=185&type=chunk) - During the six months ended June 30, 2025, the company repurchased **5,458,694 shares** of common stock for **$175.0 million**[191](index=191&type=chunk) Leverage Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Ratio of homebuilding debt-to-capital | 21.7% | 21.6% | | Ratio of net homebuilding debt-to-net capital | 8.0% | (1.6)% | [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its debt, with no derivatives used for hedging - The primary market risk exposure is related to **interest rate fluctuations** on outstanding debt[206](index=206&type=chunk) - The company did not utilize any **derivative financial instruments** for hedging or speculative purposes during the six months ended June 30, 2025[206](index=206&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material internal control changes - The Principal Executive Officer and Principal Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[207](index=207&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's **internal control over financial reporting**[208](index=208&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course lawsuits and claims but held zero legal reserves as of June 30, 2025 - Details on legal matters are referenced in **Note 13, Commitments and Contingencies**[210](index=210&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the company's 2024 Annual Report on Form 10-K - No material changes to risk factors were reported since the last **Annual Report on Form 10-K** and subsequent quarterly report[211](index=211&type=chunk) [Issuer Purchases of Equity Securities](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased $100.0 million of shares in Q2 2025 and increased its repurchase authorization in July - In Q2 2025, the company repurchased **3,187,982 shares** of its common stock for **$100.0 million** at an average price of **$31.37** per share[212](index=212&type=chunk)[213](index=213&type=chunk) - On July 23, 2025, the board of directors increased the total share repurchase authorization from $250 million to **$300 million**[213](index=213&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated **Rule 10b5-1 trading plans** during the second quarter of 2025[214](index=214&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including a credit facility modification and required CEO/CFO certifications - Key exhibits filed include the **Fifth Modification Agreement** to the company's credit facility and **CEO/CFO certifications** under Sarbanes-Oxley Sections 302 and 906[215](index=215&type=chunk)

Core Viewpoint - Tri Pointe Homes, Inc. reported its financial results for the second quarter of 2025 during an earnings conference call, highlighting key performance metrics and future outlook [3]. Financial Results - The company released its financial results for Q2 2025, which are detailed in documents available on its website [3]. - The earnings call included discussions on future financial and operational performance, which are considered forward-looking statements [3]. Participants - The earnings call featured various company participants, including the CEO, CFO, and other executives, as well as analysts from different research firms [1].