Tri Pointe Homes (NYSE: TPH) Q1 earnings drop as Sumitomo merger advances
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Tri Pointe Homes, Inc. reported much weaker results for the first quarter ended March 31, 2026, while its planned merger with Sumitomo Forestry advanced on key approvals. Net income available to common stockholders fell to $6.8 million, or $0.08 per diluted share, from $64.0 million or $0.70 a year earlier.
Home sales revenue declined to $506.5 million from $720.8 million, driven by fewer new home deliveries, which fell to 736 from 1,040, while average selling price was essentially flat at $688,000. Homebuilding gross margin compressed to 18.8% from 23.9%, and adjusted homebuilding gross margin decreased to 22.3% from 27.3%, reflecting higher relative costs.
Adjusted EBITDA dropped to $39.9 million from $125.7 million, and SG&A expense rose as a percentage of home sales revenue to 17.9% from 14.0%, indicating reduced operating leverage on the lower volume. Orders and backlog also softened, with backlog units at 1,360 versus 1,715 and backlog dollar value at $989.9 million versus $1.3 billion, while the average sales price in backlog declined to $728,000 from $763,000.
The company ended the quarter with strong liquidity of $1.7 billion, including $847.9 million of cash and cash equivalents and $827.5 million of availability under its revolving credit facility. The ratio of homebuilding debt-to-capital was 25.0%, and the net homebuilding debt-to-net capital ratio increased to 7.2% from 3.5%. The press release also notes that stockholder approval and Hart-Scott-Rodino waiting period conditions for the Merger with Sumitomo Forestry have been satisfied, while other conditions in the Merger Agreement remain outstanding.
Positive
- Strong liquidity and moderate leverage: Tri Pointe ended Q1 2026 with total liquidity of $1.7 billion, including $847.9 million of cash and $827.5 million of revolver availability, while maintaining a homebuilding debt-to-capital ratio of 25.0% and net homebuilding debt-to-net capital of 7.2%.
- Merger conditions progress: Conditions related to stockholder approval and expiration or termination of the Hart-Scott-Rodino waiting period for the planned merger with Sumitomo Forestry have been satisfied, moving the transaction further along, subject to remaining conditions in the Merger Agreement.
Negative
- Sharp earnings decline: Net income available to common stockholders fell to $6.8 million from $64.0 million year over year, and adjusted EBITDA dropped to $39.9 million from $125.7 million, reflecting substantially weaker profitability.
- Margin compression and weaker operating leverage: Homebuilding gross margin decreased from 23.9% to 18.8%, adjusted homebuilding gross margin fell to 22.3% from 27.3%, and SG&A rose to 17.9% of home sales revenue from 14.0%, indicating reduced margin and cost leverage.
- Lower volume and backlog: New home deliveries declined 29.2% to 736, backlog units decreased to 1,360 from 1,715, and backlog dollar value dropped to $989.9 million from $1.3 billion, pointing to reduced near-term revenue visibility.
Insights
Q1 2026 shows sharp profit compression on lower volume as Tri Pointe progresses toward its merger.
Tri Pointe Homes’ Q1 2026 performance reflects a significantly softer earnings profile. Home sales revenue declined 29.7% to $506.5 million, with new home deliveries down 29.2%. Net income available to common stockholders dropped to $6.8 million, and EPS fell to $0.08 from $0.70.
Profitability metrics weakened across the board. Homebuilding gross margin compressed from 23.9% to 18.8%, while adjusted homebuilding gross margin fell to 22.3%. Adjusted EBITDA declined to $39.9 million, down 68.3%. SG&A leverage deteriorated, rising to 17.9% of home sales revenue from 14.0%.
Operationally, demand indicators were more stable than earnings. Net new home orders were essentially flat at 1,234, and the cancellation rate improved slightly to 9%. However, backlog units and dollar value declined, and the average sales price in backlog decreased. Balance sheet metrics remain solid, with $1.7 billion of liquidity and homebuilding debt-to-capital at 25.0%. The filing also confirms progress on the Sumitomo Forestry merger, with stockholder approval and Hart-Scott-Rodino conditions satisfied as of April 29, 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Home sales revenue: $506.5 million
Net income to common: $6.8 million
Diluted EPS: $0.08 per share
+5 more
8 metrics
Home sales revenue
$506.5 million
Three months ended March 31, 2026; down from $720.8 million in 2025
Net income to common
$6.8 million
Q1 2026; down from $64.0 million in Q1 2025
Diluted EPS
$0.08 per share
Q1 2026; versus $0.70 per share in Q1 2025
Homebuilding gross margin
18.8%
Q1 2026; down from 23.9% in Q1 2025
Adjusted EBITDA
$39.9 million
Three months ended March 31, 2026; down from $125.7 million
Backlog dollar value
$989.9 million
At March 31, 2026; down from $1.3 billion at March 31, 2025
Total liquidity
$1.7 billion
End of Q1 2026, including $847.9 million cash and $827.5 million revolver
Net homebuilding debt-to-net capital
7.2%
At March 31, 2026; up from 3.5% at December 31, 2025
Key Terms
Merger Agreement, Hart-Scott-Rodino Antitrust Improvements Act of 1976, homebuilding gross margin, Adjusted EBITDA, +2 more
6 terms
Merger Agreement regulatory
"entered into the Agreement and Plan of Merger, dated February 13, 2026 (the “Merger Agreement”)"
A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.
Hart-Scott-Rodino Antitrust Improvements Act of 1976 regulatory
"the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended"
homebuilding gross margin financial
"Homebuilding gross margin percentage of 18.8% compared to 23.9%"
Homebuilding gross margin is the percentage of sales a builder keeps after covering the direct costs to build houses—materials, labor and subcontractors—but before paying for overhead like marketing, administration or interest. Think of it as the profit made on each house before the company’s other bills; higher margins mean the builder is more efficient or has stronger pricing power, which helps investors judge profitability and resilience to rising costs.
Adjusted EBITDA financial
"Adjusted EBITDA* was $39,857 compared to $125,698"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
net homebuilding debt-to-net capital financial
"Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.0% and 7.2%*, respectively"
Net homebuilding debt-to-net capital is a leverage ratio that compares the homebuilding segment’s debt after subtracting cash (net debt) to the total capital supporting that business (net capital). It shows how much of the homebuilding operation is funded by borrowed money versus owned funds; like comparing the mortgage balance on a property to the homeowner’s equity, a higher ratio means greater reliance on borrowing and greater sensitivity to interest rates and sales slowdowns, which matters to investors assessing risk and financial flexibility.
cancellation rate financial
"Cancellation rate of 9% compared to 10%"
The cancellation rate is the share of orders, bookings, subscriptions or appointments that are cancelled before they are completed, expressed as a percentage of total commitments. Investors care because a rising cancellation rate is like many diners calling off reservations: it can signal weaker demand, lower predictable revenue, higher costs to replace lost business, and risks to future growth and cash flow forecasts.
Earnings Snapshot
Home sales revenue: $506.5 million
Q1 2026
Home sales revenue
$506.5 million
-29.7% YoY
Net income available to common stockholders
$6.8 million
-89.4% YoY
Diluted EPS
$0.08
down from $0.70 YoY
Homebuilding gross margin
18.8%
down from 23.9% YoY
Adjusted EBITDA
$39.9 million
-68.3% YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________________
FORM 8-K
_______________________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 29, 2026
_______________________________________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (775 ) 413-1030
Not Applicable
(Former name or former address, if changed since last report.)
_______________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On April 29, 2026, Tri Pointe Homes, Inc., a Delaware corporation (the “Company”), announced in a press release its financial results for the quarter ended March 31, 2026. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including the exhibits attached hereto, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth in such filing. In addition, the press release furnished as an exhibit to this report includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
99.1 Press Release dated April 29, 2026
104 Cover Page Interactive Data File, formatted in Inline XBRL
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Tri Pointe Homes, Inc. | ||||||||
| Date: April 29, 2026 | By: | /s/ Glenn J. Keeler | ||||||
| Glenn J. Keeler, Chief Financial Officer | ||||||||
3
Exhibit 99.1
TRI POINTE HOMES, INC. REPORTS 2026 FIRST QUARTER RESULTS
INCLINE VILLAGE, Nev., April 29, 2026 / Tri Pointe Homes, Inc. (the “Company”) (NYSE:TPH) today announced results for the first quarter ended March 31, 2026. As previously announced on February 13, 2026, the Company entered into the Agreement and Plan of Merger, dated February 13, 2026 (the “Merger Agreement”), with Sumitomo Forestry Co., Ltd., a Japanese corporation (kabushiki kaisha) (“Sumitomo Forestry”), and Teton NewCo, Inc., a Delaware corporation and an indirect wholly owned subsidiary of Sumitomo Forestry (“Merger Sub”), pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and an indirect wholly owned subsidiary of Sumitomo Forestry (the “Merger”). As of the date hereof, the portions of the conditions to the Merger relating to stockholder approval of the Merger and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, have been satisfied. The Merger continues to be subject to the remaining conditions set forth in the Merger Agreement.
Results and Operational Data for First Quarter 2026 and Comparisons to First Quarter 2025
•Net income available to common stockholders was $6.8 million, or $0.08 per diluted share, compared to $64.0 million, or $0.70 per diluted share
•Home sales revenue of $506.5 million compared to $720.8 million
◦New home deliveries of 736 homes compared to 1,040 homes
◦Average sales price of homes delivered of $688,000 compared to $693,000
•Homebuilding gross margin percentage of 18.8% compared to 23.9%
◦Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 22.3%*
•SG&A expense as a percentage of home sales revenue of 17.9% compared to 14.0%
•Net new home orders of 1,234 compared to 1,238
•Active selling communities averaged 158.0 compared to 145.5
◦Net new home orders per average selling community were 7.8 orders (2.6 monthly) compared to 8.5 orders (2.8 monthly)
◦Cancellation rate of 9% compared to 10%
•Backlog units at quarter end of 1,360 homes compared to 1,715
◦Dollar value of backlog at quarter end of $989.9 million compared to $1.3 billion
◦Average sales price of homes in backlog at quarter end of $728,000 compared to $763,000
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.0% and 7.2%*, respectively, as of March 31, 2026
•Ended the first quarter of 2026 with total liquidity of $1.7 billion, including cash and cash equivalents of $847.9 million and $827.5 million of availability under our revolving credit facility.
| * | See “Reconciliation of Non-GAAP Financial Measures” | ||||
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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 is one of the 2026 Fortune World’s Most Admired Companies, 2023 and 2025 Fortune 100 Best Companies to Work For® and was designated as one of the PEOPLE Companies That Care® for three consecutive years (2023 through 2025). The company was also named as a Great Place To Work-Certified™ company for five years in a row (2021 through 2025) and was named on several Great Place To Work® Best Workplaces list (2022 through 2025). 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, as well as the expected timetable for completing the proposed transactions contemplated by the Merger
Agreement, future opportunities for the combined businesses and the expected benefits of the Merger. Forward-looking statements that are included in this press release are generally accompanied by words such as “anticipate,” “assuming,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “projection,” “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 diseases, 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; risks related to the failure
Page 2
to consummate the Merger and the transactions contemplated thereby; risks related to any litigation arising out of or as a result of the Merger and the transactions contemplated thereby; 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
Page 3
KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| Operating Data: | (unaudited) | ||||||||||||||||||||||
| Home sales revenue | $ | 506,496 | $ | 720,786 | $ | (214,290) | (29.7) | % | |||||||||||||||
| Homebuilding gross margin | $ | 95,430 | $ | 172,513 | $ | (77,083) | (44.7) | % | |||||||||||||||
| Homebuilding gross margin % | 18.8 | % | 23.9 | % | (5.1) | % | |||||||||||||||||
| Adjusted homebuilding gross margin %* | 22.3 | % | 27.3 | % | (5.0) | % | |||||||||||||||||
| SG&A expense | $ | 90,846 | $ | 100,617 | $ | (9,771) | (9.7) | % | |||||||||||||||
| SG&A expense as a % of home sales revenue | 17.9 | % | 14.0 | % | 3.9 | % | |||||||||||||||||
| Net income available to common stockholders | $ | 6,786 | $ | 64,036 | $ | (57,250) | (89.4) | % | |||||||||||||||
| Adjusted EBITDA* | $ | 39,857 | $ | 125,698 | $ | (85,841) | (68.3) | % | |||||||||||||||
| Interest incurred | $ | 18,585 | $ | 21,319 | $ | (2,734) | (12.8) | % | |||||||||||||||
| Interest in cost of home sales | $ | 16,470 | $ | 23,035 | $ | (6,565) | (28.5) | % | |||||||||||||||
| Other Data: | |||||||||||||||||||||||
| Net new home orders | 1,234 | 1,238 | (4) | (0.3) | % | ||||||||||||||||||
| New homes delivered | 736 | 1,040 | (304) | (29.2) | % | ||||||||||||||||||
| Cancellation rate | 9 | % | 10 | % | (1) | % | |||||||||||||||||
| Average selling price of homes delivered | $ | 688 | $ | 693 | $ | (5) | (0.7) | % | |||||||||||||||
| Average selling communities | 158.0 | 145.5 | 12.5 | 8.6 | % | ||||||||||||||||||
| Selling communities at end of period | 161 | 147 | 14 | 9.5 | % | ||||||||||||||||||
| Backlog (estimated dollar value) | $ | 989,906 | $ | 1,307,786 | $ | (317,880) | (24.3) | % | |||||||||||||||
| Backlog (homes) | 1,360 | 1,715 | (355) | (20.7) | % | ||||||||||||||||||
| Average selling price in backlog | $ | 728 | $ | 763 | $ | (35) | (4.6) | % | |||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| Balance Sheet Data: | (unaudited) | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 847,903 | $ | 982,814 | $ | (134,911) | (13.7) | % | |||||||||||||||
| Real estate inventories | $ | 3,302,319 | $ | 3,178,248 | $ | 124,071 | 3.9 | % | |||||||||||||||
| Lots owned or controlled | 32,937 | 32,219 | 718 | 2.2 | % | ||||||||||||||||||
Homes under construction (1) | 1,855 | 1,392 | 463 | 33.3 | % | ||||||||||||||||||
| Homes completed, unsold | 469 | 681 | (212) | (31.1) | % | ||||||||||||||||||
| Total homebuilding debt | $ | 1,104,326 | $ | 1,104,054 | $ | 272 | 0.0 | % | |||||||||||||||
| Stockholders’ equity | $ | 3,307,043 | $ | 3,315,834 | $ | (8,791) | (0.3) | % | |||||||||||||||
| Book capitalization | $ | 4,411,369 | $ | 4,419,888 | $ | (8,519) | (0.2) | % | |||||||||||||||
| Ratio of homebuilding debt-to-capital | 25.0 | % | 25.0 | % | 0.0 | % | |||||||||||||||||
| Ratio of net homebuilding debt-to-net capital* | 7.2 | % | 3.5 | % | 3.7 | % | |||||||||||||||||
__________
(1) Homes under construction included 56 and 48 models as of March 31, 2026 and December 31, 2025, respectively.
* See “Reconciliation of Non-GAAP Financial Measures”
Page 4
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | (unaudited) | ||||||||||
| Cash and cash equivalents | $ | 847,903 | $ | 982,814 | |||||||
| Receivables | 144,641 | 147,250 | |||||||||
| Real estate inventories | 3,302,319 | 3,178,248 | |||||||||
| Investments in unconsolidated entities | 217,019 | 183,075 | |||||||||
| Mortgage loans held for sale | 66,152 | 98,514 | |||||||||
| Goodwill and other intangible assets, net | 156,603 | 156,603 | |||||||||
| Deferred tax assets, net | 43,132 | 43,132 | |||||||||
| Other assets | 184,555 | 187,899 | |||||||||
| Total assets | $ | 4,962,324 | $ | 4,977,535 | |||||||
| Liabilities | |||||||||||
| Accounts payable | $ | 63,155 | $ | 41,693 | |||||||
| Accrued expenses and other liabilities | 428,366 | 425,289 | |||||||||
| Loans payable | 456,468 | 456,468 | |||||||||
| Senior notes | 647,858 | 647,586 | |||||||||
| Mortgage repurchase facilities | 59,315 | 90,570 | |||||||||
| Total liabilities | 1,655,162 | 1,661,606 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity | |||||||||||
Stockholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | — | — | |||||||||
| Common stock, $0.01 par value, 500,000,000 shares authorized; 85,135,803 and 84,478,836 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 851 | 844 | |||||||||
| Additional paid-in capital | — | — | |||||||||
| Retained earnings | 3,306,192 | 3,314,990 | |||||||||
Total stockholders’ equity | 3,307,043 | 3,315,834 | |||||||||
| Noncontrolling interests | 119 | 95 | |||||||||
| Total equity | 3,307,162 | 3,315,929 | |||||||||
| Total liabilities and equity | $ | 4,962,324 | $ | 4,977,535 | |||||||
Page 5
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Homebuilding: | ||||||||||||||
| Home sales revenue | $ | 506,496 | $ | 720,786 | ||||||||||
| Land and lot sales revenue | 575 | 1,821 | ||||||||||||
| Other operations revenue | 825 | 820 | ||||||||||||
| Total revenues | 507,896 | 723,427 | ||||||||||||
| Cost of home sales | 411,066 | 548,273 | ||||||||||||
| Cost of land and lot sales | 979 | 1,741 | ||||||||||||
| Other operations expense | 813 | 794 | ||||||||||||
| Sales and marketing | 37,887 | 42,942 | ||||||||||||
| General and administrative | 52,959 | 57,675 | ||||||||||||
| Homebuilding income from operations | 4,192 | 72,002 | ||||||||||||
| Equity in (loss) income of unconsolidated entities | (88) | 495 | ||||||||||||
| Transaction expense | (5,877) | — | ||||||||||||
| Other income, net | 7,236 | 9,129 | ||||||||||||
| Homebuilding income before income taxes | 5,463 | 81,626 | ||||||||||||
| Financial Services: | ||||||||||||||
| Revenues | 13,493 | 17,501 | ||||||||||||
| Expenses | 12,065 | 12,617 | ||||||||||||
| Financial services income before income taxes | 1,428 | 4,884 | ||||||||||||
| Income before income taxes | 6,891 | 86,510 | ||||||||||||
| Provision for income taxes | (81) | (22,493) | ||||||||||||
| Net income | 6,810 | 64,017 | ||||||||||||
| Net (income) loss attributable to noncontrolling interests | (24) | 19 | ||||||||||||
| Net income available to common stockholders | $ | 6,786 | $ | 64,036 | ||||||||||
| Earnings per share | ||||||||||||||
| Basic | $ | 0.08 | $ | 0.70 | ||||||||||
| Diluted | $ | 0.08 | $ | 0.70 | ||||||||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 84,796,116 | 91,638,960 | ||||||||||||
| Diluted | 85,176,744 | 92,077,680 | ||||||||||||
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MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY
(dollars in thousands)
(unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| New Homes Delivered | Average Sales Price | New Homes Delivered | Average Sales Price | ||||||||||||||||||||
| West | 342 | $ | 778 | 521 | $ | 769 | |||||||||||||||||
| Central | 274 | 563 | 377 | 558 | |||||||||||||||||||
| East | 120 | 719 | 142 | 773 | |||||||||||||||||||
| Total | 736 | $ | 688 | 1,040 | $ | 693 | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net New Home Orders | Average Selling Communities | Net New Home Orders | Average Selling Communities | ||||||||||||||||||||
| West | 605 | 72.3 | 644 | 66.3 | |||||||||||||||||||
| Central | 436 | 61.7 | 413 | 60.5 | |||||||||||||||||||
| East | 193 | 24.0 | 181 | 18.7 | |||||||||||||||||||
| Total | 1,234 | 158.0 | 1,238 | 145.5 | |||||||||||||||||||
| As of March 31, 2026 | As of March 31, 2025 | ||||||||||||||||||||||||||||||||||
| Backlog Units | Backlog Dollar Value | Average Sales Price | Backlog Units | Backlog Dollar Value | Average Sales Price | ||||||||||||||||||||||||||||||
| West | 687 | $ | 564,180 | $ | 821 | 930 | $ | 757,952 | $ | 815 | |||||||||||||||||||||||||
| Central | 422 | 251,486 | 596 | 508 | 296,636 | 584 | |||||||||||||||||||||||||||||
| East | 251 | 174,240 | 694 | 277 | 253,198 | 914 | |||||||||||||||||||||||||||||
| Total | 1,360 | $ | 989,906 | $ | 728 | 1,715 | $ | 1,307,786 | $ | 763 | |||||||||||||||||||||||||
| As of March 31, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Lots Owned | Lots Controlled (1) | Lots Owned or Controlled | Lots Owned | Lots Controlled (1) | Lots Owned or Controlled | ||||||||||||||||||||||||||||||
| West | 8,690 | 4,010 | 12,700 | 8,629 | 3,864 | 12,493 | |||||||||||||||||||||||||||||
| Central | 5,157 | 8,576 | 13,733 | 5,188 | 8,017 | 13,205 | |||||||||||||||||||||||||||||
| East | 2,055 | 4,449 | 6,504 | 2,137 | 4,384 | 6,521 | |||||||||||||||||||||||||||||
| Total | 15,902 | 17,035 | 32,937 | 15,954 | 16,265 | 32,219 | |||||||||||||||||||||||||||||
(1) As of March 31, 2026 and December 31, 2025, lots controlled included lots that were under land option contracts or purchase contracts. As of March 31, 2026 and December 31, 2025, lots controlled for Central include 5,709 and 5,356 lots, respectively, which represent our expected share of lots owned by our investments in unconsolidated land development joint ventures.
Page 7
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, | |||||||||||||||||||||||
| 2026 | % | 2025 | % | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Home sales revenue | $ | 506,496 | 100.0 | % | $ | 720,786 | 100.0 | % | |||||||||||||||
| Cost of home sales | 411,066 | 81.2 | % | 548,273 | 76.1 | % | |||||||||||||||||
| Homebuilding gross margin | 95,430 | 18.8 | % | 172,513 | 23.9 | % | |||||||||||||||||
| Add: interest in cost of home sales | 16,470 | 3.3 | % | 23,035 | 3.2 | % | |||||||||||||||||
| Add: impairments and lot option abandonments | 1,068 | 0.2 | % | 1,073 | 0.1 | % | |||||||||||||||||
| Adjusted homebuilding gross margin | $ | 112,968 | 22.3 | % | $ | 196,621 | 27.3 | % | |||||||||||||||
| Homebuilding gross margin percentage | 18.8 | % | 23.9 | % | |||||||||||||||||||
| Adjusted homebuilding gross margin percentage | 22.3 | % | 27.3 | % | |||||||||||||||||||
Page 8
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, 2026 | December 31, 2025 | ||||||||||
| Loans payable | $ | 456,468 | $ | 456,468 | |||||||
| Senior notes | 647,858 | 647,586 | |||||||||
| Mortgage repurchase facilities | 59,315 | 90,570 | |||||||||
| Total debt | 1,163,641 | 1,194,624 | |||||||||
| Less: mortgage repurchase facilities | (59,315) | (90,570) | |||||||||
| Total homebuilding debt | 1,104,326 | 1,104,054 | |||||||||
| Stockholders’ equity | 3,307,043 | 3,315,834 | |||||||||
| Total capital | $ | 4,411,369 | $ | 4,419,888 | |||||||
| Ratio of homebuilding debt-to-capital(1) | 25.0 | % | 25.0 | % | |||||||
| Total homebuilding debt | $ | 1,104,326 | $ | 1,104,054 | |||||||
| Less: Cash and cash equivalents | (847,903) | (982,814) | |||||||||
| Net homebuilding debt | 256,423 | 121,240 | |||||||||
| Stockholders’ equity | 3,307,043 | 3,315,834 | |||||||||
| Net capital | $ | 3,563,466 | $ | 3,437,074 | |||||||
| Ratio of net homebuilding debt-to-net capital(2) | 7.2 | % | 3.5 | % | |||||||
__________
(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.
Page 9
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, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Net income available to common stockholders | $ | 6,786 | $ | 64,036 | ||||||||||
| Interest expense: | ||||||||||||||
| Interest incurred | 18,585 | 21,319 | ||||||||||||
| Interest capitalized | (18,585) | (21,319) | ||||||||||||
| Amortization of interest in cost of sales | 16,470 | 23,153 | ||||||||||||
| Provision for income taxes | 81 | 22,493 | ||||||||||||
| Depreciation and amortization | 7,618 | 7,387 | ||||||||||||
| EBITDA | 30,955 | 117,069 | ||||||||||||
| Amortization of stock-based compensation | 1,957 | 7,556 | ||||||||||||
| Impairments and lot option abandonments | 1,068 | 1,073 | ||||||||||||
| Transaction expense | 5,877 | — | ||||||||||||
| Adjusted EBITDA | $ | 39,857 | $ | 125,698 | ||||||||||
Page 10
FAQ
How did Tri Pointe Homes (TPH) perform financially in Q1 2026?
Tri Pointe Homes reported net income available to common stockholders of $6.8 million in Q1 2026, down from $64.0 million a year earlier. Home sales revenue declined to $506.5 million from $720.8 million as deliveries fell and margins compressed across the homebuilding business.
What happened to Tri Pointe Homes (TPH) margins in Q1 2026?
Homebuilding gross margin fell to 18.8% in Q1 2026 from 23.9% in Q1 2025. Adjusted homebuilding gross margin also declined to 22.3% from 27.3%, reflecting higher relative costs and lower operating leverage on decreased home sales revenue and deliveries.
How strong is Tri Pointe Homes (TPH) liquidity and leverage after Q1 2026?
Tri Pointe ended Q1 2026 with total liquidity of $1.7 billion, including $847.9 million of cash and $827.5 million of revolver availability. Its homebuilding debt-to-capital ratio was 25.0%, and net homebuilding debt-to-net capital stood at 7.2%, indicating moderate leverage.
What are Tri Pointe Homes (TPH) Q1 2026 order and backlog trends?
Net new home orders were 1,234 in Q1 2026, nearly flat year over year, with a 9% cancellation rate versus 10% previously. Backlog declined to 1,360 homes valued at $989.9 million, compared with 1,715 homes valued at $1.3 billion in the prior-year period.
How did operating expenses affect Tri Pointe Homes (TPH) results in Q1 2026?
SG&A expense totaled $90.8 million and rose to 17.9% of home sales revenue in Q1 2026, up from 14.0% a year earlier. This higher expense ratio, combined with lower revenue, contributed to weaker operating leverage and significantly reduced profitability.
What progress was made on the Tri Pointe Homes (TPH) merger with Sumitomo Forestry?
Tri Pointe reported that stockholder approval of the Merger and expiration or termination of the Hart-Scott-Rodino waiting period have been satisfied. The Merger, under the February 13, 2026 Merger Agreement with Sumitomo Forestry, remains subject to other specified closing conditions.