Tri Pointe Homes, Inc. Reports 2025 First Quarter Results
Tri Pointe Homes (NYSE:TPH) reported its Q1 2025 financial results with home sales revenue of $720.8 million and delivered 1,040 new homes. The company achieved a homebuilding gross margin of 23.9% and diluted earnings per share of $0.70, with net income of $64 million.
Key metrics include an average sales price of $693,000 for delivered homes, a backlog of 1,715 units valued at $1.3 billion, and a low homebuilding debt-to-capital ratio of 21.6%. The company maintained strong liquidity of $1.5 billion, including $812.9 million in cash.
For Q2 2025, TPH expects to deliver 1,100-1,200 homes at an average price of $680,000-$690,000. Full-year 2025 guidance projects 5,000-5,500 home deliveries at an average price of $665,000-$675,000, with gross margins between 20.5-22.0%.
Tri Pointe Homes (NYSE:TPH) ha comunicato i risultati finanziari del primo trimestre 2025 con ricavi da vendite di case pari a 720,8 milioni di dollari e la consegna di 1.040 nuove abitazioni. L'azienda ha raggiunto un margine lordo nella costruzione di case del 23,9% e un utile diluito per azione di 0,70 dollari, con un utile netto di 64 milioni di dollari.
I principali indicatori includono un prezzo medio di vendita di 693.000 dollari per le case consegnate, un portafoglio ordini di 1.715 unità del valore di 1,3 miliardi di dollari e un basso rapporto debito/capitale nella costruzione di case del 21,6%. L'azienda ha mantenuto una solida liquidità di 1,5 miliardi di dollari, inclusi 812,9 milioni in contanti.
Per il secondo trimestre 2025, TPH prevede di consegnare tra 1.100 e 1.200 case a un prezzo medio compreso tra 680.000 e 690.000 dollari. Le previsioni per l'intero anno 2025 indicano tra 5.000 e 5.500 consegne di case a un prezzo medio tra 665.000 e 675.000 dollari, con margini lordi tra il 20,5% e il 22,0%.
Tri Pointe Homes (NYSE:TPH) informó sus resultados financieros del primer trimestre de 2025 con ingresos por ventas de viviendas de 720,8 millones de dólares y entregó 1.040 nuevas casas. La compañía logró un margen bruto en construcción de viviendas del 23,9% y ganancias diluidas por acción de 0,70 dólares, con un ingreso neto de 64 millones de dólares.
Las métricas clave incluyen un precio promedio de venta de 693.000 dólares para las casas entregadas, una cartera de pedidos de 1.715 unidades valorada en 1.300 millones de dólares y una baja relación deuda-capital en construcción de viviendas del 21,6%. La empresa mantuvo una sólida liquidez de 1.500 millones de dólares, incluyendo 812,9 millones en efectivo.
Para el segundo trimestre de 2025, TPH espera entregar entre 1.100 y 1.200 casas a un precio promedio de 680.000 a 690.000 dólares. La guía para todo el año 2025 proyecta entre 5.000 y 5.500 entregas de viviendas a un precio promedio de 665.000 a 675.000 dólares, con márgenes brutos entre el 20,5% y el 22,0%.
Tri Pointe Homes (NYSE:TPH)는 2025년 1분기 재무 실적을 발표하며 주택 판매 수익 7억 2,080만 달러와 1,040채의 신규 주택을 인도했습니다. 회사는 주택 건설 총이익률 23.9%와 희석 주당순이익 0.70달러, 순이익 6,400만 달러를 기록했습니다.
주요 지표로는 인도된 주택의 평균 판매 가격 69만 3,000달러, 17억 달러 가치의 1,715채 잔고, 21.6%의 낮은 주택 건설 부채비율이 포함됩니다. 회사는 현금 8억 1,290만 달러를 포함해 15억 달러의 강력한 유동성을 유지했습니다.
2025년 2분기에는 TPH가 1,100~1,200채의 주택을 평균 가격 68만~69만 달러에 인도할 것으로 예상합니다. 2025년 연간 전망은 5,000~5,500채 주택 인도, 평균 가격 66만 5,000~67만 5,000달러, 총이익률은 20.5~22.0% 사이로 예상됩니다.
Tri Pointe Homes (NYSE:TPH) a publié ses résultats financiers du premier trimestre 2025 avec des revenus de ventes de maisons de 720,8 millions de dollars et la livraison de 1 040 nouvelles maisons. La société a réalisé une marge brute en construction de maisons de 23,9% et un bénéfice dilué par action de 0,70 dollar, avec un bénéfice net de 64 millions de dollars.
Les indicateurs clés comprennent un prix de vente moyen de 693 000 dollars pour les maisons livrées, un carnet de commandes de 1 715 unités d'une valeur de 1,3 milliard de dollars, et un faible ratio d'endettement dans la construction de maisons de 21,6%. La société a maintenu une forte liquidité de 1,5 milliard de dollars, dont 812,9 millions en liquidités.
Pour le deuxième trimestre 2025, TPH prévoit de livrer entre 1 100 et 1 200 maisons à un prix moyen de 680 000 à 690 000 dollars. Les prévisions pour l'année complète 2025 projettent entre 5 000 et 5 500 livraisons de maisons à un prix moyen de 665 000 à 675 000 dollars, avec des marges brutes comprises entre 20,5 % et 22,0 %.
Tri Pointe Homes (NYSE:TPH) meldete seine Finanzergebnisse für das erste Quartal 2025 mit Umsätzen aus Hausverkäufen in Höhe von 720,8 Millionen US-Dollar und lieferte 1.040 neue Häuser aus. Das Unternehmen erzielte eine Bruttomarge im Hausbau von 23,9% und einen verwässerten Gewinn je Aktie von 0,70 US-Dollar bei einem Nettogewinn von 64 Millionen US-Dollar.
Wichtige Kennzahlen umfassen einen durchschnittlichen Verkaufspreis von 693.000 US-Dollar für ausgelieferte Häuser, einen Auftragsbestand von 1.715 Einheiten im Wert von 1,3 Milliarden US-Dollar sowie ein niedriges Verschuldungsgrad-Verhältnis im Hausbau von 21,6%. Das Unternehmen hielt eine starke Liquidität von 1,5 Milliarden US-Dollar, darunter 812,9 Millionen US-Dollar in bar.
Für das zweite Quartal 2025 erwartet TPH die Lieferung von 1.100 bis 1.200 Häusern zu einem durchschnittlichen Preis von 680.000 bis 690.000 US-Dollar. Die Prognose für das Gesamtjahr 2025 sieht 5.000 bis 5.500 Hauslieferungen zu einem durchschnittlichen Preis von 665.000 bis 675.000 US-Dollar mit Bruttomargen zwischen 20,5% und 22,0% vor.
- Homebuilding gross margin improved to 23.9% from 23.0% year-over-year
- Strong liquidity position of $1.5 billion including $812.9 million cash
- Low net homebuilding debt-to-net capital ratio of 3.0%
- Average sales price increased to $693,000 from $659,000 year-over-year
- Active $75 million share repurchase program executed in Q1
- Net income declined to $64.0 million from $99.1 million year-over-year
- Home sales revenue decreased 21.5% to $720.8M from $918.4M
- New home deliveries dropped 25.3% to 1,040 from 1,393
- SG&A expense ratio increased to 14.0% from 11.1%
- Cancellation rate increased to 10% from 7%
- Backlog units decreased 37.4% to 1,715 from 2,741
Insights
TPH reported mixed Q1 results with declining volumes but improved margins amid market challenges; strong balance sheet provides flexibility.
Tri Pointe Homes delivered $720.8 million in home sales revenue for Q1 2025, down from $918.4 million in Q1 2024, reflecting a 21.5% year-over-year decline. This revenue drop stemmed primarily from fewer deliveries (1,040 homes vs 1,393 previously), though partially offset by higher average selling prices of $693,000 (up 5.2% year-over-year).
Despite volume challenges, TPH improved its gross margin to 23.9% from 23.0% last year, demonstrating effective price optimization and cost management. However, net income decreased to $64.0 million ($0.70 EPS), compared to $99.1 million ($1.03 EPS) in Q1 2024, a 35.4% decline. The company's SG&A expense ratio increased to 14.0% from 11.1%, reflecting reduced operating leverage from lower volumes.
Forward indicators show cooling demand with net new orders down 31.8% to 1,238 homes and a backlog value decline of 35% to $1.3 billion. The cancellation rate increased to 10% from 7% previously.
TPH maintains exceptional financial strength with a 3.0% net homebuilding debt-to-net capital ratio and $1.5 billion in total liquidity ($812.9 million in cash). This robust balance sheet supported $75 million in share repurchases during Q1 (2.27 million shares at an average price of $33.03). Q2 guidance projects deliveries of 1,100-1,200 homes with gross margins of 21.5%-22.5%, suggesting sequential margin compression.
TPH navigates housing slowdown with premium pricing strategy while maintaining strong margins; ongoing supply shortage supports long-term outlook.
Tri Pointe's quarterly performance reveals the current housing market dynamics at play. The company's 5.2% increase in average selling price to $693,000 demonstrates successful execution of their premium positioning strategy despite market headwinds. This price growth reflects both the company's focus on higher-end communities and the persistent nationwide housing supply constraints.
The 31.8% decline in new orders signals buyer hesitation in the current economic climate, with TPH specifically citing "trade tensions and evolving tariff dynamics" dampening consumer confidence. The elevated 10% cancellation rate (versus 7% last year) further evidences buyer uncertainty. However, TPH's average monthly sales pace of 2.8 homes per community still represents reasonably healthy absorption in a challenging environment.
Management's decision to "thoughtfully adjust pace and price in pursuit of margin and return objectives" reveals their strategic focus on maintaining profitability over volume growth in the current market. This disciplined approach has yielded results with gross margins improving to 23.9% despite lower volume leverage.
Looking ahead, TPH's guidance suggests continued caution with projected annual deliveries of 5,000-5,500 homes at slightly lower average prices ($665,000-$675,000), indicating potential price moderation to stimulate demand. The company's emphasis on "the continuing shortage of homes and favorable demographics" as long-term tailwinds aligns with fundamental housing market analysis, though near-term economic uncertainty remains a significant counterbalance.
–New Home Deliveries of 1,040–
–Home Sales Revenue of
–Homebuilding Gross Margin Percentage of
–Diluted Earnings Per Share of
–Homebuilding Debt-to-Capital Ratio of
INCLINE VILLAGE, Nev., April 24, 2025 (GLOBE NEWSWIRE) -- Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the first quarter ended March 31, 2025.
“Tri Pointe delivered solid first quarter financial results, either meeting or exceeding all our stated guidance,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “Our teams executed at a high level, demonstrating our ability to navigate the current political and economic volatility. For the first quarter, we delivered 1,040 homes and generated
Mr. Bauer continued, “While the longer-term outlook for housing remains favorable with the continuing shortage of homes and favorable demographics, current trade tensions and evolving tariff dynamics have created uncertainty surrounding the economy and dampened buyer confidence. However, our teams are experienced in navigating market challenges and we are driving progress in operational efficiency, customer satisfaction, and product innovation, all of which support sustainable growth in revenue, earnings, and returns. With a strong balance sheet and a net homebuilding debt-to-net capital ratio of
“We remain confident in the outlook for housing and in our business strategy with its relentless focus on meeting the long-term demand for innovative homes in well-located communities,” said Tom Mitchell, Tri Pointe Homes President and Chief Operating Officer. “Our strategy remains centered on driving revenue and returns through our premium lifestyle brand positioning, enhanced operational efficiency, prudent capital deployment, and an unwavering commitment to customer satisfaction. With this foundational focus in place, we are well-positioned to navigate today’s market and continue to deliver strong results.”
Results and Operational Data for First Quarter 2025 and Comparisons to First Quarter 2024
- Net income available to common stockholders was
$64.0 million , or$0.70 per diluted share, compared to$99.1 million , or$1.03 per diluted share - Home sales revenue of
$720.8 million compared to$918.4 million - New home deliveries of 1,040 homes compared to 1,393 homes
- Average sales price of homes delivered of
$693,000 compared to$659,000
- Homebuilding gross margin percentage of
23.9% compared to23.0% - Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was
27.3% *
- Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was
- SG&A expense as a percentage of home sales revenue of
14.0% compared to11.1% - Net new home orders of 1,238 compared to 1,814
- Active selling communities averaged 145.5 compared to 153.8
- Net new home orders per average selling community were 8.5 orders (2.8 monthly) compared to 11.8 orders (3.9 monthly)
- Cancellation rate of
10% compared to7%
- Backlog units at quarter end of 1,715 homes compared to 2,741
- Dollar value of backlog at quarter end of
$1.3 billion compared to$2.0 billion - Average sales price of homes in backlog at quarter end of
$763,000 compared to$712,000
- Dollar value of backlog at quarter end of
- Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of
21.6% and3.0% *, respectively, as of March 31, 2025 - Repurchased 2,270,712 shares of common stock at a weighted average price per share of
$33.03 for an aggregate dollar amount of$75.0 million in the three months ended March 31, 2025 - Ended the first quarter of 2025 with total liquidity of
$1.5 billion , including cash and cash equivalents of$812.9 million and$678.0 million of availability under our revolving credit facility
* See “Reconciliation of Non-GAAP Financial Measures”
Outlook
For the second quarter, the Company anticipates delivering between 1,100 and 1,200 homes at an average sales price between
For the full year, the Company anticipates delivering between 5,000 and 5,500 homes at an average sales price between
Earnings Conference Call
The Company will host a conference call via live webcast for investors and other interested parties beginning at 10:00 a.m. Eastern Time on Thursday, April 24, 2025. The call will be hosted by Doug Bauer, Chief Executive Officer, Tom Mitchell, President and Chief Operating Officer, Glenn Keeler, Chief Financial Officer, and Linda Mamet, Executive Vice President and Chief Marketing Officer. Interested parties can listen to the call live and view the related slides on the Internet under the Events & Presentations heading in the Investors section of the Company’s website at www.TriPointeHomes.com. Listeners should go to the website at least fifteen minutes prior to the call to download and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or (201) 493-6780 for international participants. Participants should ask for the Tri Pointe Homes First Quarter 2025 Earnings Conference Call. Those dialing in should do so at least ten minutes prior to the start of the call. A replay of the call will be available for two weeks following the call toll free at (844) 512-2921, or (412) 317-6671 for international participants, using the reference number 13752806. An archive of the webcast will also be available on the Company’s website for a limited time.
About Tri Pointe Homes, Inc.
One of the largest homebuilders in the U.S., Tri Pointe Homes, Inc. (NYSE: TPH) is a publicly traded company operating in 12 states and the District of Columbia, and is a recognized leader in customer experience, innovative design, and environmentally responsible business practices. The company builds premium homes and communities with deep ties to the communities it serves—some for as long as a century. Tri Pointe Homes combines the financial resources, technology platforms and proven leadership of a national organization with the regional insights, longstanding community connections and agility of empowered local teams. Tri Pointe has won multiple Builder of the Year awards and was named 2024 Developer of the Year. The company was also named to the 2024 Fortune World’s Most Admired Companies™ list, is one of the 2023 and 2025 Fortune 100 Best Companies to Work For® and was designated as one of the PEOPLE Companies That Care® in 2023 and 2024. The company was also named as a Great Place To Work-Certified™ company for four consecutive years, and was named on several Great Place To Work® Best Workplaces list (2022 through 2024). For more information, please visit TriPointeHomes.com.
Forward-Looking Statements
Various statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey future events or outcomes. The forward-looking statements in this press release speak only as of the date of this press release, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; and additional factors discussed under the sections captioned “Risk Factors” included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business.
Investor Relations Contact:
InvestorRelations@TriPointeHomes.com, 949-478-8696
Media Contact:
Carol Ruiz, cruiz@newgroundco.com, 310-437-0045
| KEY OPERATIONS AND FINANCIAL DATA | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | Change | % Change | ||||||||||||
| Operating Data: | (unaudited) | ||||||||||||||
| Home sales revenue | $ | 720,786 | $ | 918,353 | $ | (197,567 | ) | (21.5 | )% | ||||||
| Homebuilding gross margin | $ | 172,513 | $ | 211,049 | $ | (38,536 | ) | (18.3 | )% | ||||||
| Homebuilding gross margin % | 23.9 | % | 23.0 | % | 0.9 | % | |||||||||
| Adjusted homebuilding gross margin %* | 27.3 | % | 26.4 | % | 0.9 | % | |||||||||
| SG&A expense | $ | 100,617 | $ | 101,552 | $ | (935 | ) | (0.9 | )% | ||||||
| SG&A expense as a % of home sales revenue | 14.0 | % | 11.1 | % | 2.9 | % | |||||||||
| Net income available to common stockholders | $ | 64,036 | $ | 99,055 | $ | (35,019 | ) | (35.4 | )% | ||||||
| Adjusted EBITDA* | $ | 125,698 | $ | 175,893 | $ | (50,195 | ) | (28.5 | )% | ||||||
| Interest incurred | $ | 21,319 | $ | 36,156 | $ | (14,837 | ) | (41.0 | )% | ||||||
| Interest in cost of home sales | $ | 23,035 | $ | 30,649 | $ | (7,614 | ) | (24.8 | )% | ||||||
| Other Data: | |||||||||||||||
| Net new home orders | 1,238 | 1,814 | (576 | ) | (31.8 | )% | |||||||||
| New homes delivered | 1,040 | 1,393 | (353 | ) | (25.3 | )% | |||||||||
| Average sales price of homes delivered | $ | 693 | $ | 659 | $ | 34 | 5.2 | % | |||||||
| Cancellation rate | 10 | % | 7 | % | 3 | % | |||||||||
| Average selling communities | 145.5 | 153.8 | (8.3 | ) | (5.4 | )% | |||||||||
| Selling communities at end of period | 147 | 156 | (9 | ) | (5.8 | )% | |||||||||
| Backlog (estimated dollar value) | $ | 1,307,786 | $ | 1,950,590 | $ | (642,804 | ) | (33.0 | )% | ||||||
| Backlog (homes) | 1,715 | 2,741 | (1,026 | ) | (37.4 | )% | |||||||||
| Average sales price in backlog | $ | 763 | $ | 712 | $ | 51 | 7.2 | % | |||||||
| March 31, | December 31, | ||||||||||||||
| 2025 | 2024 | Change | % Change | ||||||||||||
| Balance Sheet Data: | (unaudited) | ||||||||||||||
| Cash and cash equivalents | $ | 812,937 | $ | 970,045 | $ | (157,108 | ) | (16.2 | )% | ||||||
| Real estate inventories | $ | 3,265,334 | $ | 3,153,459 | $ | 111,875 | 3.5 | % | |||||||
| Lots owned or controlled | 35,201 | 36,490 | (1,289 | ) | (3.5 | )% | |||||||||
| Homes under construction(1) | 2,556 | 2,386 | 170 | 7.1 | % | ||||||||||
| Homes completed, unsold | 395 | 464 | (69 | ) | (14.9 | )% | |||||||||
| Total homebuilding debt | $ | 914,565 | $ | 917,504 | $ | (2,939 | ) | (0.3 | )% | ||||||
| Stockholders’ equity | $ | 3,321,699 | $ | 3,335,710 | $ | (14,011 | ) | (0.4 | )% | ||||||
| Book capitalization | $ | 4,236,264 | $ | 4,253,214 | $ | (16,950 | ) | (0.4 | )% | ||||||
| Ratio of homebuilding debt-to-capital | 21.6 | % | 21.6 | % | 0.0 | % | |||||||||
| Ratio of net homebuilding debt-to-net capital* | 3.0 | % | (1.6 | )% | 4.6 | % | |||||||||
| __________ | |||||||||||||||
| (1) Homes under construction included 39 and 43 models as of March 31, 2025 and December 31, 2024, respectively. | |||||||||||||||
| * See “Reconciliation of Non-GAAP Financial Measures” | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | (unaudited) | |||||||
| Cash and cash equivalents | $ | 812,937 | $ | 970,045 | ||||
| Receivables | 131,855 | 111,613 | ||||||
| Real estate inventories | 3,265,334 | 3,153,459 | ||||||
| Investments in unconsolidated entities | 170,379 | 173,924 | ||||||
| Mortgage loans held for sale | 79,443 | 115,001 | ||||||
| Goodwill and other intangible assets, net | 156,603 | 156,603 | ||||||
| Deferred tax assets, net | 45,975 | 45,975 | ||||||
| Other assets | 162,713 | 164,495 | ||||||
| Total assets | $ | 4,825,239 | $ | 4,891,115 | ||||
| Liabilities | ||||||||
| Accounts payable | $ | 75,798 | $ | 68,228 | ||||
| Accrued expenses and other liabilities | 443,566 | 465,563 | ||||||
| Loans payable | 267,774 | 270,970 | ||||||
| Senior notes | 646,791 | 646,534 | ||||||
| Mortgage repurchase facilities | 69,586 | 104,098 | ||||||
| Total liabilities | 1,503,515 | 1,555,393 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 907 | 925 | ||||||
| Additional paid-in capital | — | — | ||||||
| Retained earnings | 3,320,792 | 3,334,785 | ||||||
| Total stockholders’ equity | 3,321,699 | 3,335,710 | ||||||
| Noncontrolling interests | 25 | 12 | ||||||
| Total equity | 3,321,724 | 3,335,722 | ||||||
| Total liabilities and equity | $ | 4,825,239 | $ | 4,891,115 | ||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Homebuilding: | ||||||||
| Home sales revenue | $ | 720,786 | $ | 918,353 | ||||
| Land and lot sales revenue | 1,821 | 7,068 | ||||||
| Other operations revenue | 820 | 787 | ||||||
| Total revenues | 723,427 | 926,208 | ||||||
| Cost of home sales | 548,273 | 707,304 | ||||||
| Cost of land and lot sales | 1,741 | 5,757 | ||||||
| Other operations expense | 794 | 765 | ||||||
| Sales and marketing | 42,942 | 50,224 | ||||||
| General and administrative | 57,675 | 51,328 | ||||||
| Homebuilding income from operations | 72,002 | 110,830 | ||||||
| Equity in income of unconsolidated entities | 495 | 57 | ||||||
| Other income, net | 9,129 | 15,226 | ||||||
| Homebuilding income before income taxes | 81,626 | 126,113 | ||||||
| Financial Services: | ||||||||
| Revenues | 17,501 | 13,194 | ||||||
| Expenses | 12,617 | 8,727 | ||||||
| Financial services income before income taxes | 4,884 | 4,467 | ||||||
| Income before income taxes | 86,510 | 130,580 | ||||||
| Provision for income taxes | (22,493 | ) | (31,584 | ) | ||||
| Net income | 64,017 | 98,996 | ||||||
| Net (income) loss attributable to noncontrolling interests | 19 | 59 | ||||||
| Net income available to common stockholders | $ | 64,036 | $ | 99,055 | ||||
| Earnings per share | ||||||||
| Basic | $ | 0.70 | $ | 1.04 | ||||
| Diluted | $ | 0.70 | $ | 1.03 | ||||
| Weighted average shares outstanding | ||||||||
| Basic | 91,638,960 | 95,232,315 | ||||||
| Diluted | 92,077,680 | 95,846,756 | ||||||
MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
| Three Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | |||||||||||
| Arizona | 139 | $ | 773 | 137 | $ | 736 | ||||||||
| California | 288 | 749 | 417 | 771 | ||||||||||
| Nevada | 42 | 573 | 113 | 684 | ||||||||||
| Washington | 52 | 1,023 | 53 | 901 | ||||||||||
| West total | 521 | 769 | 720 | 760 | ||||||||||
| Colorado | 18 | 683 | 42 | 738 | ||||||||||
| Texas | 359 | 552 | 440 | 549 | ||||||||||
| Central total | 377 | 558 | 482 | 565 | ||||||||||
| Carolinas(1) | 85 | 520 | 174 | 462 | ||||||||||
| Washington D.C. Area(2) | 57 | 1,150 | 17 | 1,056 | ||||||||||
| East total | 142 | 773 | 191 | 515 | ||||||||||
| Total | 1,040 | $ | 693 | 1,393 | $ | 659 | ||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | |||||||||||
| Arizona | 123 | 14.8 | 156 | 12.2 | ||||||||||
| California | 353 | 37.2 | 613 | 46.0 | ||||||||||
| Nevada | 100 | 9.5 | 154 | 9.5 | ||||||||||
| Washington | 68 | 4.8 | 107 | 5.8 | ||||||||||
| West total | 644 | 66.3 | 1,030 | 73.5 | ||||||||||
| Colorado | 32 | 10.3 | 47 | 11.0 | ||||||||||
| Texas | 381 | 50.2 | 483 | 52.5 | ||||||||||
| Central total | 413 | 60.5 | 530 | 63.5 | ||||||||||
| Carolinas(1) | 106 | 10.7 | 179 | 11.5 | ||||||||||
| Washington D.C. Area(2) | 75 | 8.0 | 75 | 5.3 | ||||||||||
| East total | 181 | 18.7 | 254 | 16.8 | ||||||||||
| Total | 1,238 | 145.5 | 1,814 | 153.8 | ||||||||||
| (1) Carolinas comprises North Carolina and South Carolina. | ||||||||||||||
| (2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia. | ||||||||||||||
| MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| As of March 31, 2025 | As of March 31, 2024 | |||||||||||||||||||||
| Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | |||||||||||||||||
| Arizona | 289 | $ | 233,442 | $ | 808 | 278 | $ | 205,547 | $ | 739 | ||||||||||||
| California | 406 | 295,867 | 729 | 894 | 713,036 | 798 | ||||||||||||||||
| Nevada | 119 | 74,792 | 629 | 172 | 105,211 | 612 | ||||||||||||||||
| Washington | 116 | 153,851 | 1,326 | 144 | 130,336 | 905 | ||||||||||||||||
| West total | 930 | 757,952 | 815 | 1,488 | 1,154,130 | 776 | ||||||||||||||||
| Colorado | 29 | 20,483 | 706 | 53 | 36,840 | 695 | ||||||||||||||||
| Texas | 479 | 276,153 | 577 | 749 | 442,134 | 590 | ||||||||||||||||
| Central total | 508 | 296,636 | 584 | 802 | 478,974 | 597 | ||||||||||||||||
| Carolinas(1) | 108 | 61,422 | 569 | 287 | 148,286 | 517 | ||||||||||||||||
| Washington D.C. Area(2) | 169 | 191,776 | 1,135 | 164 | 169,200 | 1,032 | ||||||||||||||||
| East total | 277 | 253,198 | 914 | 451 | 317,486 | 704 | ||||||||||||||||
| Total | 1,715 | $ | 1,307,786 | $ | 763 | 2,741 | $ | 1,950,590 | $ | 712 | ||||||||||||
| March 31, | December 31, | |||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||
| Lots Owned or Controlled: | ||||||||||||||||||||||
| Arizona | 1,962 | 2,099 | ||||||||||||||||||||
| California | 10,193 | 10,291 | ||||||||||||||||||||
| Nevada | 1,200 | 1,437 | ||||||||||||||||||||
| Washington | 545 | 597 | ||||||||||||||||||||
| West total | 13,900 | 14,424 | ||||||||||||||||||||
| Colorado | 1,519 | 1,561 | ||||||||||||||||||||
| Texas | 12,726 | 12,711 | ||||||||||||||||||||
| Utah | 506 | 1,006 | ||||||||||||||||||||
| Central total | 14,751 | 15,278 | ||||||||||||||||||||
| Carolinas(1) | 4,841 | 5,004 | ||||||||||||||||||||
| Florida | 252 | 252 | ||||||||||||||||||||
| Washington D.C. Area(2) | 1,457 | 1,532 | ||||||||||||||||||||
| East total | 6,550 | 6,788 | ||||||||||||||||||||
| Total | 35,201 | 36,490 | ||||||||||||||||||||
| March 31, | December 31, | |||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||
| Lots by Ownership Type: | ||||||||||||||||||||||
| Lots owned | 16,860 | 16,609 | ||||||||||||||||||||
| Lots controlled (3) | 18,341 | 19,881 | ||||||||||||||||||||
| Total | 35,201 | 36,490 | ||||||||||||||||||||
| (1) Carolinas comprises North Carolina and South Carolina. | ||||||||||||||||||||||
| (2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia. | ||||||||||||||||||||||
| (3) As of March 31, 2025 and December 31, 2024, lots controlled included lots that were under land option contracts or purchase contracts. As of March 31, 2025 and December 31, 2024, lots controlled for Central include 5,711 and 5,816 lots, respectively, and lots controlled for East include zero and 14 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures. | ||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(unaudited)
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
The following table reconciles the homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage has on homebuilding gross margin and permits investors to make better comparisons with our competitors, who adjust gross margins in a similar fashion.
| Three Months Ended March 31, | ||||||||||||||
| 2025 | % | 2024 | % | |||||||||||
| (dollars in thousands) | ||||||||||||||
| Home sales revenue | $ | 720,786 | 100.0 | % | $ | 918,353 | 100.0 | % | ||||||
| Cost of home sales | 548,273 | 76.1 | % | 707,304 | 77.0 | % | ||||||||
| Homebuilding gross margin | 172,513 | 23.9 | % | 211,049 | 23.0 | % | ||||||||
| Add: interest in cost of home sales | 23,035 | 3.2 | % | 30,649 | 3.3 | % | ||||||||
| Add: impairments and lot option abandonments | 1,073 | 0.1 | % | 402 | 0.0 | % | ||||||||
| Adjusted homebuilding gross margin | $ | 196,621 | 27.3 | % | $ | 242,100 | 26.4 | % | ||||||
| Homebuilding gross margin percentage | 23.9 | % | 23.0 | % | ||||||||||
| Adjusted homebuilding gross margin percentage | 27.3 | % | 26.4 | % | ||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table reconciles the Company’s ratio of homebuilding debt-to-capital to the non-GAAP ratio of net homebuilding debt-to-net capital. We believe that the ratio of net homebuilding debt-to-net capital is a relevant financial measure for management and investors to understand the leverage employed in our operations and as an indicator of the Company’s ability to obtain financing.
| March 31, 2025 | December 31, 2024 | |||||||
| Loans payable | $ | 267,774 | $ | 270,970 | ||||
| Senior notes | 646,791 | 646,534 | ||||||
| Mortgage repurchase facilities | 69,586 | 104,098 | ||||||
| Total debt | 984,151 | 1,021,602 | ||||||
| Less: mortgage repurchase facilities | (69,586 | ) | (104,098 | ) | ||||
| Total homebuilding debt | 914,565 | 917,504 | ||||||
| Stockholders’ equity | 3,321,699 | 3,335,710 | ||||||
| Total capital | $ | 4,236,264 | $ | 4,253,214 | ||||
| Ratio of homebuilding debt-to-capital(1) | 21.6 | % | 21.6 | % | ||||
| Total homebuilding debt | $ | 914,565 | $ | 917,504 | ||||
| Less: Cash and cash equivalents | (812,937 | ) | (970,045 | ) | ||||
| Net homebuilding debt | 101,628 | (52,541 | ) | |||||
| Stockholders’ equity | 3,321,699 | 3,335,710 | ||||||
| Net capital | $ | 3,423,327 | $ | 3,283,169 | ||||
| Ratio of net homebuilding debt-to-net capital(2) | 3.0 | % | (1.6 | )% | ||||
| __________ | ||||||||
| (1) The ratio of homebuilding debt-to-capital is computed as the quotient obtained by dividing total homebuilding debt by the sum of total homebuilding debt plus stockholders’ equity. | ||||||||
| (2) The ratio of net homebuilding debt-to-net capital is computed as the quotient obtained by dividing net homebuilding debt (which is total homebuilding debt less cash and cash equivalents) by the sum of net homebuilding debt plus stockholders’ equity. | ||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table calculates the non-GAAP financial measures of EBITDA and Adjusted EBITDA and reconciles those amounts to net income available to common stockholders, as reported and prepared in accordance with GAAP. EBITDA means net income available to common stockholders before (a) interest expense, (b) expensing of previously capitalized interest included in costs of home sales, (c) income taxes and (d) depreciation and amortization. Adjusted EBITDA means EBITDA before (e) amortization of stock-based compensation and (f) impairments and lot option abandonments. Other companies may calculate EBITDA and Adjusted EBITDA (or similarly titled measures) differently. We believe EBITDA and Adjusted EBITDA are useful measures of the Company’s ability to service debt and obtain financing.
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Net income available to common stockholders | $ | 64,036 | $ | 99,055 | ||||
| Interest expense: | ||||||||
| Interest incurred | 21,319 | 36,156 | ||||||
| Interest capitalized | (21,319 | ) | (36,156 | ) | ||||
| Amortization of interest in cost of sales | 23,153 | 30,846 | ||||||
| Provision for income taxes | 22,493 | 31,584 | ||||||
| Depreciation and amortization | 7,387 | 7,327 | ||||||
| EBITDA | 117,069 | 168,812 | ||||||
| Amortization of stock-based compensation | 7,556 | 6,679 | ||||||
| Impairments and lot option abandonments | 1,073 | 402 | ||||||
| Adjusted EBITDA | $ | 125,698 | $ | 175,893 | ||||
FAQ
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