Tri Pointe Homes, Inc. Reports 2025 Second Quarter Results and Announces $50 Million Increase to Its Stock Repurchase Program

Core Insights - Tri Pointe Homes, Inc. reported solid financial results for Q2 2025, achieving home sales revenue of $879.8 million and delivering 1,326 homes despite macroeconomic challenges [1][3][4]. Financial Performance - Home sales revenue decreased by 22.3% compared to Q2 2024, down from $1.1 billion to $879.8 million [4][14]. - New home deliveries fell to 1,326 homes from 1,700 homes year-over-year, a decline of 22% [4][25]. - The average sales price of homes delivered was $664,000, slightly down from $666,000 in the previous year [4][25]. - 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 Q2 2024 [4][22]. - Adjusted net income, excluding an inventory-related charge, was $68.7 million, or $0.77 per diluted share [4][22]. Operational Metrics - Homebuilding gross margin percentage was 20.8%, down from 23.6% in Q2 2024; adjusted gross margin was 22.1% when excluding the inventory-related charge [4][15]. - The cancellation rate increased to 13% from 9% year-over-year [4][25]. - The backlog at the end of the quarter consisted of 1,520 homes valued at $1.2 billion, down from 2,692 homes valued at $2.0 billion in the previous year [4][25]. Capital Management - The company repurchased $100 million of common stock during the quarter and increased its stock repurchase program authorization to $300 million [1][8]. - Tri Pointe Homes ended the quarter with total liquidity of $1.4 billion, including cash and cash equivalents of $622.6 million [4][18]. 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 [6]. - The full-year guidance includes delivering between 4,800 and 5,200 homes at an average sales price between $665,000 and $675,000 [7].