Tri Pointe Homes(US:TPH)2025-10-23 12:43Home Deliveries and Sales - New home deliveries totaled 1,217 homes with an average sales price of $672,000, generating home sales revenue of $817.3 million for Q3 2025[3] - Home sales revenue for Q3 2025 was $817,298, a decrease of $296,383 or 26.6% compared to Q3 2024's $1,113,681[14] - The company delivered 1,217 new homes in Q3 2025, compared to 1,619 homes in Q3 2024, representing a decline of approximately 25%[25] - For Q4 2025, the company anticipates delivering between 1,200 and 1,400 homes at an average sales price between $690,000 and $700,000[6] - For the full year 2025, the company expects to deliver between 4,800 and 5,000 homes at an average sales price of approximately $680,000[7] Financial Performance - Net income available to common stockholders was $56.1 million, or $0.64 per diluted share, compared to $111.8 million, or $1.18 per diluted share in Q3 2024[3] - Net income available to common stockholders decreased by 49.8% to $56,144 in Q3 2025 from $111,759 in Q3 2024[14] - Adjusted EBITDA for Q3 2025 was $125,796, reflecting a decline of 39.7% from $208,639 in Q3 2024[14] - Diluted earnings per share for Q3 2025 was $0.64, increasing to $0.71 after adjustments[30] - The effective tax rate remained consistent at 27.0% for both Q3 2025 and the nine-month period[30] Margins and Costs - Homebuilding gross margin percentage was 20.6%, down from 23.3% in the previous year, with an adjusted gross margin of 21.6% excluding inventory-related charges[3] - Homebuilding gross margin for Q3 2025 was $168,103, down 35.1% from $259,182 in Q3 2024, with a gross margin percentage of 20.6%[14] - The adjusted homebuilding gross margin for Q3 2025 was 24.7%, down from 26.8% in Q3 2024, indicating a decline of 7.8%[25] - Homebuilding gross margin for the nine-month period was $543,124, with a margin percentage of 22.5%[30] Orders and Backlog - Net new home orders decreased to 995 from 1,252, with a cancellation rate of 12% compared to 10% in the prior year[3] - Net new home orders fell to 995 in Q3 2025, a decrease of 20.5% from 1,252 in Q3 2024[14] - Backlog units at the end of the quarter were 1,298 homes, with a dollar value of $1.0 billion, down from 2,325 homes valued at $1.7 billion a year earlier[3] - The backlog of homes as of September 30, 2025, was 1,298 units valued at $1.01 billion, compared to 2,325 units valued at $1.73 billion as of September 30, 2024, reflecting a decrease of about 44% in backlog value[22] Liquidity and Debt - The company ended Q3 2025 with total liquidity of $1.6 billion, including $792 million in cash and cash equivalents[3] - Cash and cash equivalents decreased by 18.4% to $791,961 as of September 30, 2025, down from $970,045 at the end of 2024[16] - Total homebuilding debt increased by 20.6% to $1,106,754 as of September 30, 2025, compared to $917,504 at the end of 2024[16] - The total homebuilding debt as of September 30, 2025, was $1.11 billion, an increase from $917.5 million as of December 31, 2024, representing a rise of approximately 20.9%[27] - The ratio of homebuilding debt-to-capital increased to 25.1% as of September 30, 2025, compared to 21.6% at the end of 2024, indicating higher leverage[27] - The company reported a net homebuilding debt-to-net capital ratio of 8.7% as of September 30, 2025, compared to a negative ratio of -1.6% at the end of 2024, indicating a significant shift in leverage[27] Stock Repurchase - The company repurchased $51 million of common stock during the quarter, acquiring 1,516,766 shares at an average price of $33.58[1] Other Financial Metrics - Interest expense incurred in Q3 2025 was $19,953, with a total of $61,646 for the nine months[34] - The company reported a net income before income taxes of $76,863 for Q3 2025, adjusted to $85,169[30] - EBITDA for Q3 2025 was $109,244, with adjusted EBITDA reaching $125,796[34] - The company experienced inventory impairment charges impacting both income and tax provisions[30]