Tri Pointe Homes(TPH) - 2025 Q2 - Quarterly Results

Home Deliveries and Sales - New home deliveries totaled 1,326 homes, a decrease from 1,700 homes in the same quarter last year[2] - Home sales revenue was $879.8 million, down from $1.1 billion year-over-year[2] - Home sales revenue decreased by 22.3% to $879,832 thousand for the three months ended June 30, 2025, compared to $1,133,008 thousand in the same period of 2024[15] - Total home sales revenue for Q2 2025 was $879.8 million, a decrease of 22.3% from $1.133 billion in Q2 2024[27] Financial Performance - Net income available to common stockholders was $60.7 million, or $0.68 per diluted share, compared to $118.0 million, or $1.25 per diluted share in the prior year[2] - Net income available to common stockholders fell by 48.5% to $60,748 thousand for the three months ended June 30, 2025, down from $118,002 thousand in 2024[15] - Adjusted EBITDA declined by 35.5% to $139,322 thousand for the three months ended June 30, 2025, compared to $215,998 thousand in 2024[15] - Adjusted EBITDA for the six months ended June 30, 2025, was $265.020 million, compared to $391.891 million for the same period in 2024[35] Orders and Cancellations - Net new home orders were 1,131, down from 1,651, with a cancellation rate of 13% compared to 9%[2] - The cancellation rate increased to 13% in Q2 2025, up from 9% in Q2 2024[15] - Net new home orders decreased by 31.5% to 1,131 homes in Q2 2025, compared to 1,651 homes in Q2 2024[15] - Net new home orders in Q2 2025 totaled 1,131 units, a decrease of 31.4% compared to 1,651 units in Q2 2024[27] Backlog and Inventory - Backlog (estimated dollar value) dropped by 41.0% to $1,179,715 thousand as of June 30, 2025, from $1,999,852 thousand in the previous year[15] - The backlog of homes as of June 30, 2025, was 1,520 units with a total backlog value of $1.18 billion, compared to 2,692 units valued at $2 billion as of June 30, 2024[24] Margins and Costs - Homebuilding gross margin percentage was 20.8%, down from 23.6%, but adjusted gross margin was 22.1% excluding an inventory-related charge[2] - Homebuilding gross margin for Q2 2025 was $183.2 million, representing 20.8% of sales, down from 23.6% in Q2 2024[27] - Adjusted homebuilding gross margin for Q2 2025 was $221.9 million, or 25.2% of sales, compared to 27.1% in Q2 2024[27] - The total cost of home sales for the three months ended June 30, 2025, was $685.630 million after adjustments[32] Liquidity and Capital - The company ended the quarter with total liquidity of $1.4 billion, including cash and cash equivalents of $622.6 million[4] - Cash and cash equivalents decreased by 35.8% to $622,642 thousand as of June 30, 2025, compared to $970,045 thousand at the end of 2024[17] - Total liabilities decreased to $1,507,748 thousand as of June 30, 2025, from $1,555,393 thousand at the end of 2024[17] - The company reported a net homebuilding debt-to-net capital ratio of 8.0% as of June 30, 2025, compared to -1.6% at the end of 2024[29] Future Outlook - For Q3 2025, the company anticipates delivering between 1,000 and 1,100 homes at an average sales price between $675,000 and $685,000[5] - For the full year, the company expects to deliver between 4,800 and 5,200 homes at an average sales price between $665,000 and $675,000[6] Tax and Interest - Income before income taxes for the three months ended June 30, 2025, was $95.350 million, with a provision for income taxes of $26.723 million[32] - The effective tax rate for the three months ended June 30, 2025, was 28.0%[32] - The company incurred an interest expense of $41.693 million for the six months ended June 30, 2025[35] Shareholder Returns - The company announced a $50 million increase to its stock repurchase program, raising the total authorization to $300 million[1]