- Tri Pointe Homes (TPH, Financial) reported a 21.5% year-over-year decline in home sales revenue for Q1 2025, totaling $720.8 million.
- The company delivered 1,040 homes, showing a notable reduction from the previous year's 1,393 homes.
- Despite reduced sales volume, TPH achieved a homebuilding gross margin of 23.9%, marking an increase from 23.0% in Q1 2024.
Tri Pointe Homes, Inc. (TPH) announced its financial results for the first quarter of 2025, highlighting several key metrics amidst a challenging market environment. The company reported total home sales revenue of $720.8 million, a notable decrease from the $918.4 million recorded in the same quarter of the previous year. This 21.5% decline in revenue was primarily driven by a reduction in home deliveries, which fell to 1,040 units from 1,393 in Q1 2024.
Amidst the declining sales volume, TPH managed to improve its homebuilding gross margin to 23.9% from 23.0% the prior year, indicating successful cost management and pricing strategies. Net income for the quarter amounted to $64 million, with diluted earnings per share of $0.70, compared to $99.1 million and $1.03 EPS in the previous year's first quarter.
Average selling prices increased by 5.2%, reaching $693,000, reflecting a strategic focus on more premium market segments. Meanwhile, the company's backlog at the end of the quarter consisted of 1,715 homes valued at $1.3 billion, with an average sales price of $763,000 per home.
Looking forward, TPH has set guidance for the second quarter of 2025, expecting to deliver between 1,100 and 1,200 homes at an average price between $680,000 and $690,000. For the full year, the company anticipates delivering 5,000 to 5,500 homes with average prices ranging from $665,000 to $675,000, and maintains a gross margin target of 20.5% to 22.0%.
TPH also reported a robust liquidity position, with $1.5 billion in total liquidity, including $812.9 million in cash. Their financial stability is further supported by a low homebuilding debt-to-capital ratio of 21.6% and net homebuilding debt-to-net capital ratio at 3.0%. This has enabled the company to execute $75 million in share repurchases during the quarter.
