Tri Pointe Homes Reports Decreased Net Income and Home Sales Revenue

By Chris Stiles • Wednesday, February 25 14:41 • Permanent Link

Tri Pointe Homes, Inc. (NYSE: TPH) has reported its financial results for the fourth quarter and full year of 2025. The company’s net income available to common stockholders for the fourth quarter was $60.2 million, or $0.70 per diluted share, compared to $129.2 million, or $1.37 per diluted share in the same period of 2024. Excluding inventory-related charges of $11.8 million, net income available to common stockholders was $68.4 million, or $0.80 per diluted share.

Home sales revenue for the quarter was $945.9 million, down from $1.2 billion in the fourth quarter of 2024. The number of new home deliveries also decreased to 1,364 homes from 1,748 homes, and the average sales price of homes delivered was $693,000, compared to $699,000 in the same period of the previous year.

The homebuilding gross margin percentage for the fourth quarter of 2025 was 19.3%, a decrease from 23.3% in the fourth quarter of 2024. Excluding inventory-related charges, the homebuilding gross margin percentage was 20.6%. The selling, general and administrative (“SG&A”) expense as a percentage of home sales revenue was 11.3%, up from 10.3% in the fourth quarter of 2024.

Furthermore, the net new home orders for the quarter were 928, lower than the 940 orders in the same period of the previous year. The company's backlog units at the end of the quarter were 862 homes, a decrease from 1,517 homes in the fourth quarter of 2024. The dollar value of backlog at the end of the quarter was $670.1 million, down from $1.2 billion in the same period of the previous year.

For the full year 2025, Tri Pointe Homes reported net income available to common stockholders of $241.1 million, or $2.72 per diluted share, compared to $458.0 million, or $4.83 per diluted share in the full year of 2024. Excluding inventory-related charges of $31.1 million, net income available to common stockholders was $263.5 million, or $2.97 per diluted share.

The home sales revenue for the full year 2025 was $3.4 billion, down from $4.4 billion in the full year of 2024. The number of new home deliveries decreased to 4,947 homes from 6,460 homes, and the average sales price of homes delivered was $680,000, compared to $679,000 in the full year of 2024.

The homebuilding gross margin percentage for the full year 2025 was 21.0%, a decrease from 23.3% in the full year of 2024. Excluding inventory-related charges, the homebuilding gross margin percentage was 21.9%. The SG&A expense as a percentage of home sales revenue was 12.6%, up from 10.8% in the full year of 2024.

The market has reacted to these announcements by moving the company's shares -0.87% to a price of $35.19. For the full picture, make sure to review Tri Pointe Homes's 8-K report.

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