Tri Pointe Homes : First Quarter 2025 Earnings Release

Published: 2025-04-24 06:05:07 ET TPH

Exhibit 99.1

TRI POINTE HOMES, INC. REPORTS 2025 FIRST QUARTER RESULTS

-New Home Deliveries of 1,040-

-Home Sales Revenue of $720.8 Million-

-Homebuilding Gross Margin Percentage of 23.9%-

-Diluted Earnings Per Share of $0.70-

-Homebuilding Debt-to-Capital Ratio of 21.6%-

INCLINE VILLAGE, Nev., April 24, 2025 / 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 $721 million in homes sales revenue, as our average sales price of homes delivered increased to $693,000. While demand followed a seasonally slower trajectory, our team's execution allowed us to thoughtfully adjust pace and price in pursuit of our margin and return objectives. Strong operational discipline contributed to a homebuilding gross margin of 23.9%, net income of $64 million and diluted earnings per share of $0.70."

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 3.0%*, we are advancing market expansions and executing on our growth initiatives, positioning us to deliver lasting value to our shareholders."

"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

Page 1

* 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 $680,000 and $690,000. The Company expects homebuilding gross margin percentage to be in the range of 21.5% to 22.5% for the second quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 12.5% to 13.5%. Finally, the Company expects its effective tax rate for the second quarter to be approximately 27.0%.

For the full year, the Company anticipates delivering between 5,000 and 5,500 homes at an average sales price between $665,000 and $675,000. The Company expects homebuilding gross margin percentage to be in the range of 20.5% and 22.0% for the full year and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.5% and 12.5%. Finally, the Company expects its effective tax rate for the full year to be approximately 27.0%.

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 todownload and install any necessary audio software. The call can also be accessed toll free at (877) 407-3982, or

Page 2

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

Page 3

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:

[email protected], 949-478-8696

Media Contact:

Carol Ruiz, [email protected], 310-437-0045

Page 4

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

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

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 %

0.0 %

Ratio of net homebuilding debt-to-net capital*

3.0

(1.6)%

4.6 %

__________

Page 5

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

Deferred tax assets, net

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, $0.01 par value, 50,000,000 shares authorized; no shares issued and

outstanding as of March 31, 2025 and December 31, 2024, respectively

Comm

on stock, $0.01 par value, 500,000,000 shares authorized; 90,669,862 and

92,451,729

shares issued and outstanding at March 31, 2025 and December 31,

907

925

2024, respectively

Additional paid-in capital

Retained earnings

3,320,792

3,334,785

Total stockholders' equity

3,321,699

3,335,710

Noncontrolling interests

Total equity

3,321,724

3,335,722

Total liabilities and equity

4,825,239

4,891,115

Page 6

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended March 31,

20252024

Homebuilding:

Home sales revenue

Land and lot sales revenue Other operations revenue Total revenues

Cost of home sales

Cost of land and lot sales Other operations expense Sales and marketing General and administrative Homebuilding income from operations Equity in income of unconsolidated entities Other income, net

Homebuilding income before income taxes

Financial Services:

720,786

918,353

1,821

7,068

820

787

723,427

926,208

548,273

707,304

1,741

5,757

794

765

42,942

50,224

57,675

51,328

72,002

110,830

495

9,129

15,226

81,626

126,113

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

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

Page 7

MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY

(dollars in thousands)

(unaudited)

Three Months Ended March 31,

2025

2024

New

Average

New

Average

Homes

Sales

Homes

Sales

Delivered

Price

Delivered

Price

Arizona

139

773

137

736

California

288

749

417

771

Nevada

573

113

684

Washington

1,023

901

West total

521

769

720

760

Colorado

683

738

Texas

359

552

440

549

Central total

377

558

482

565

Carolinas(1)

520

174

462

Washington D.C. Area(2)

1,150

1,056

East total

142

773

191

515

Total

1,040

693

1,393

659

Three Months Ended March 31,

2025

2024

Net New

Average

Net New

Average

Home

Selling

Home

Selling

Orders

Communities

Orders

Communities

Arizona

123

14.8

156

12.2

California

353

37.2

613

46.0

Nevada

100

9.5

154

9.5

Washington

4.8

107

5.8

West total

644

66.3

1,030

73.5

Colorado

10.3

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)

8.0

5.3

East total

181

18.7

254

16.8

Total

1,238

145.5

1,814

153.8

Page 8

MARKET DATA BY REPORTING SEGMENT & GEOGRAPHY, continued

(dollars in thousands)

(unaudited)

As of March 31, 2025

As of March 31, 2024

Backlog

Average

Backlog

Average

Dollar

Sales

Dollar

Sales

Units

Value

Price

Units

Value

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

20,483

706

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

Washington D.C. Area(2)

1,457

1,532

East total

6,550

6,788

Total

35,201

36,490

March 31,

2025

December 31,

2024

Lots by Ownership Type:

Lots owned

16,860

16,609

Lots controlled (3)

18,341

19,881

Total

35,201

36,490

Page 9

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 %

Page 10

Disclaimer

TRI Pointe Homes Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 10:04 UTC.