Tri Pointe Homes, Inc. Reports 2025 First Quarter Results

Core Insights - Tri Pointe Homes, Inc. reported solid first quarter results for 2025, delivering 1,040 homes and generating home sales revenue of $720.8 million, with an average sales price of$693,000, reflecting a 5.2% increase from the previous year [3][4][11] - The company achieved a homebuilding gross margin percentage of 23.9%, up from 23.0% in the prior year, indicating improved operational efficiency [4][11] - Net income available to common stockholders was $64 million, or$0.70 per diluted share, down from $99.1 million, or$1.03 per diluted share in the same quarter last year [4][11] Financial Performance - Home sales revenue decreased by 21.5% from $918.4 million to$720.8 million [4][11] - New home deliveries fell by 25.3% from 1,393 homes to 1,040 homes [4][11] - The average sales price of homes delivered increased from $659,000 to$693,000, a rise of 5.2% [4][11] Operational Metrics - The company reported a cancellation rate of 10%, up from 7% in the previous year [4][11] - Net new home orders decreased by 31.8% from 1,814 to 1,238 [4][11] - Backlog units at the end of the quarter were 1,715 homes, down 37.4% from 2,741 homes, with a dollar value of backlog at $1.3 billion compared to$2.0 billion [4][11] Debt and Liquidity - The homebuilding debt-to-capital ratio stood at 21.6%, while the net homebuilding debt-to-net capital ratio was 3.0% [4][11] - The company ended the quarter with total liquidity of $1.5 billion, including cash and cash equivalents of$812.9 million [4][11] Future Outlook - For the second quarter of 2025, the company anticipates delivering between 1,100 and 1,200 homes at an average sales price between $680,000 and$690,000 [5][6] - The expected homebuilding gross margin percentage for the second quarter is projected to be in the range of 21.5% to 22.5% [5][6] - For the full year, the company expects to deliver between 5,000 and 5,500 homes at an average sales price between $665,000 and$675,000 [6]