Tri Pointe Homes has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company is engaged in the design, construction, and sale of single-family attached and detached homes in the United States, operating through six regional home building brands. These include Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado, and the Carolinas, and Winchester Homes in Maryland and Northern Virginia. Tri Pointe Homes also provides financial services such as mortgage financing, title and escrow, and property and casualty insurance agency services. The company was formerly known as TRI Pointe Group, Inc. and changed its name to Tri Pointe Homes, Inc. in January 2021. Tri Pointe Homes, Inc. was founded in 2009 and is based in Incline Village, Nevada.
In the 2024 fiscal year, Tri Pointe Homes achieved a 20% increase in home sales revenue, reaching $4.4 billion, with 6,460 new home deliveries. The homebuilding gross margin percentage improved to 23.3%, while total sales and general and administrative expense as a percentage of home sales revenue decreased to 10.8%, contributing to a 33% increase in net income available to common stockholders to $458.0 million. Diluted earnings per share rose 40% to $4.83, supported by the ongoing stock repurchase program and strong earnings. In 2024, the company repurchased 3,964,537 shares of common stock at an average price of $36.97 for an aggregate dollar amount of $146.6 million. Tri Pointe Homes ended 2024 with $1.7 billion in total liquidity, including cash of $970.0 million and $694.4 million of availability under its unsecured revolving credit facility. The company generated $696.1 million in net cash provided by operating activities, a $500.8 million increase from the prior year.
Despite challenges such as higher mortgage rates impacting demand and creating affordability challenges, the company remains focused on operational efficiency, sustainable growth, and strategic expansion. Easing supply chain disruptions have helped reduce production costs and improve cycle times. Tri Pointe Homes aims to optimize short-term performance while laying the foundation for sustained growth and stability in the long term.
In 2024, the company's West segment reported an 11% decrease in net new home orders, the Central segment reported flat net new home orders, and the East segment reported a 9% decrease in net new home orders. Tri Pointe Homes also experienced a decrease in backlog units and dollar value, attributed to higher mortgage rates negatively impacting backlog units. However, the company's home sales revenue increased by 20% in 2024, driven by a 22% increase in new homes delivered, partially offset by a 2% decrease in the average sales price of new homes delivered.
The homebuilding gross margin percentage increased to 23.3% for the year ended December 31, 2024, compared to 22.3% for the year ended December 31, 2023. This increase was driven by a favorable product mix and reduced utilization of incentives in 2024. Excluding interest and impairments and lot option abandonments in cost of home sales, the adjusted homebuilding gross margin percentage was 26.8% for the year ended December 31, 2024, compared to 25.9% for the prior year.
Tri Pointe Homes' 10-K report provides a detailed insight into the company's financial performance and strategic initiatives as it navigates the challenges and opportunities in the housing industry. Following these announcements, the company's shares moved 2.6%, and are now trading at a price of $31.58. For the full picture, make sure to review Tri Pointe Homes's 10-K report.
