Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a decrease of 6% year-over-year, primarily due to a 12% reduction in home deliveries [6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecast [6][7] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][19] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly, with January showing a 40% year-over-year increase, indicating improved buyer engagement [11] - Contracts in February 2026 were up 13% compared to the prior year, suggesting a positive trend in sales activity [12] Company Strategy and Development Direction - The company is focused on maintaining a steady sales pace and efficiently turning over existing inventory while preparing for new land opportunities that promise improved margins [10][20] - The strategy includes prioritizing the acquisition of land for move-up homes in prime locations and expanding active adult communities, moving away from lower-margin developments [20][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market but expressed confidence in meeting homebuyer demand and improving profitability in the latter half of 2026 [36][39] - The company expects adjusted pre-tax income to improve in the second half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] Other Important Information - The company ended the quarter with $471 million in liquidity, which is above target, and has significantly reduced net debt while increasing equity [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while built-to-order sales have increased, reflecting market demand rather than a strategic shift [44]

Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a 6% decrease compared to the previous year, primarily due to a 12% reduction in home deliveries [5][6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecasted ranges [6][7] - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] Business Line Data and Key Metrics Changes - The company delivered 12% fewer homes year-over-year, impacting total revenues, but a land sale helped offset some of the decline [6][7] - Incentives accounted for 12.6% of the average sales price, with a significant increase in mortgage rate buydowns contributing to affordability challenges [8][15] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][17] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly in five of the six months shown, with January showing a 40% increase year-over-year [11] - Contracts in February 2026 were up 13% compared to the prior year, indicating a positive trend in buyer engagement [12] - The company experienced fluctuations in contracts over the past 12 months, with January showing an 11% year-over-year gain [11][12] Company Strategy and Development Direction - The company is focused on efficiently turning over existing inventory and advancing sales of Quick Move-in homes while preparing for new land opportunities that promise improved margins [10][20] - A shift in land acquisition strategy is underway, moving away from lower-margin entry-level homes to more move-up homes in prime locations and active adult communities [20][27] - The company aims to maintain a disciplined approach to land management, walking away from less attractive opportunities and focusing on higher-margin developments [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market, including affordability pressures and economic uncertainties, but expressed confidence in meeting homebuyer demand [36][39] - The expectation for adjusted pre-tax income is to improve in the latter half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] - The company remains committed to sustainable growth and value for shareholders, with a focus on inventory efficiency and land-light operations [39][40] Other Important Information - The company ended the quarter with $471 million in liquidity, above target, and has seen a significant reduction in net debt [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] - The company is only providing financial guidance for the next quarter due to current market volatility and challenges in predicting margins [31] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while demand for built-to-order homes has been increasing, which is beneficial due to higher profit margins [44]

After remaining below 4% for several years, mortgage rates began rising in 2022 and have remained uncomfortably high -- in the 6% to 7% range -- for several years. That's created multiple problems for the ailing U.S. housing market. It's made a home purchase unaffordable for many Americans. It has also caused many homeowners to avoid selling their homes out of fear that they wouldn't be able to replicate the low rate they've enjoyed for years -- essentially locking them, and the wider housing market, in p ...

Century Complete Announces New Townhomes Coming Soon to Spartanburg, SC Community [Accessibility Statement] Skip NavigationNew community expands Spartanburg-area offerings from online homebuying leaderSPARTANBURG, S.C., Feb. 25, 2026 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS)—a top national homebuilder, industry leader in online home sales, and featured on America's Most Trustworthy Companies and World's Most Trustworthy Companies by Newsweek—revealed that its Century Complete brand will soon be ...

Core Viewpoint - Tri Pointe Homes, Inc. is experiencing a positive shift in analyst sentiment, reflected in the increase of its consensus price target from $39 to $47 over the last quarter, indicating expectations of growth and strong performance in the near term [2][6]. Company Overview - Tri Pointe Homes operates in the U.S. homebuilding industry, focusing on designing, constructing, and selling single-family homes, while also providing financial services to enhance its real estate offerings [1]. Price Target Analysis - The average price target for Tri Pointe Homes has risen significantly from $39.2 a year ago to $47 recently, showing a notable increase in analyst confidence [2][3]. - The increase in the price target over the last month is attributed to strong financial performance, favorable market conditions, and strategic initiatives [3][6]. Contributing Factors - Strong financial performance, such as better-than-expected earnings or revenue growth, has positively influenced analysts' outlook [3]. - Favorable market conditions, including low interest rates and increased housing demand, have contributed to the optimistic sentiment surrounding the company [4]. - A strategic initiative, specifically the acquisition agreement with Sumitomo Forestry Co., Ltd. valued at approximately $4.5 billion, marks a significant milestone for Tri Pointe Homes [4][6]. Industry Trends - Broader industry trends, such as sustainable building practices and increased urbanization, may further bolster confidence in the company's future performance [5].

Review of Financial Results First Quarter Fiscal 2026 Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. The reconciliation for historical periods of homebuilding gross margin, before cost of sales interest exp ...

Geopolitical risks are a negative for stocks. Tuesday evening, President Trump said Iranian officials are "again pursuing their sinister nuclear ambitions," boosting speculation that the US may be preparing a military strike on Iran in the coming days. US-Iran nuclear talks are scheduled to resume on Thursday in Geneva, and Iranian Foreign Minister Araghchi said he saw a “good chance” of a diplomatic solution to the standoff over his country’s nuclear program. Last Friday, President Trump said that he’s con ...

Core Insights - Hovnanian Enterprises, Inc. reported a 5% year-over-year increase in domestic consolidated communities and met or exceeded all guidance metrics for the fiscal first quarter ended January 31, 2026 [1][9] Financial Performance - Total revenues for the first quarter of fiscal 2026 were $632.0 million, down from $673.6 million in the same quarter of the previous year [2] - Homebuilding gross margin percentage after cost of sales interest expense and land charges was 10.1%, compared to 15.2% in the first quarter of the prior year [2] - Net income was $20.9 million, or $2.62 per diluted common share, compared to $28.2 million, or $3.58 per diluted common share, in the same period last year [2] - Adjusted EBITDA for the quarter was $63.1 million, exceeding the high end of the guidance range, compared to $72.1 million in the first quarter of the prior fiscal year [2][10] Sales and Contracts - Consolidated domestic contracts increased 3.1% to 1,242 homes valued at $664.8 million compared to 1,205 homes valued at $643.3 million in the same quarter last year [2] - The gross domestic contract cancellation rate for consolidated contracts was 14%, down from 16% in the fiscal 2025 first quarter [3] Liquidity and Inventory - Total liquidity as of January 31, 2026, was $471.4 million, significantly above the target liquidity range of $170 million to $245 million [10][20] - Total domestic controlled consolidated lots were 35,560, down from 43,254 lots at the end of the previous fiscal year's first quarter [10] Guidance and Outlook - For the second quarter of fiscal 2026, total revenues are expected to be between $625 million and $725 million, with adjusted homebuilding gross margin anticipated between 13.0% and 14.0% [7] - The company anticipates an increase in adjusted income before income taxes in the second half of fiscal 2026, supported by better contract activity observed in January and February [11]

INCLINE VILLAGE, Nev., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2025 and full year 2025. As previously announced on February 13, 2026, Tri Pointe has entered into a definitive agreement to be acquired by Sumitomo Forestry Co., Ltd., a Japanese corporation (kabushiki kaisha) (“Parent”), and Teton NewCo, Inc., a Delaware corporation and an indirect wholly owned Subsidiary of Parent (“Merger Sub”), pro ...

According to ResiClub's analysis, once the Tri Pointe Homes and United Homes Group acquisitions are completed, Daiwa House, Sekisui House, and Sumitomo Forestry will have a combined market share of at least 5.5% of U.S. single-family home construction. The United States, by contrast, continues to experience population growth and household formation—particularly in the Sun Belt markets where many big U.S. homebuilders operate. For Japanese firms seeking stable, long-duration growth, U.S. homebuilding offers ...