TRI POINTE HOMES, INC. REPORTS 2025 FOURTH QUARTER AND FULL YEAR RESULTS
INCLINE VILLAGE, Nev., February 25, 2026 / Business Wire / – Tri Pointe Homes, Inc. (the “Company”) (NYSE: TPH) today announced results for the fourth quarter ended December 31, 2025 and full year 2025. As previously announced on February 13, 2026, Tri Pointe has entered into a definitive agreement to be acquired by Sumitomo Forestry Co., Ltd., a Japanese corporation (kabushiki kaisha) (“Parent”), and Teton NewCo, Inc., a Delaware corporation and an indirect wholly owned Subsidiary of Parent (“Merger Sub”), providing for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”). Consummation of the Merger is subject to stockholder approval, regulatory approval and completion of other customary closing conditions.
Results and Operational Data for Fourth Quarter 2025 and Comparisons to Fourth Quarter 2024
•Net income available to common stockholders was $60.2 million, or $0.70 per diluted share, compared to $129.2 million, or $1.37 per diluted share. Excluding inventory-related charges of $11.8 million, our 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 compared to $1.2 billion
◦New home deliveries of 1,364 homes compared to 1,748 homes
◦Average sales price of homes delivered of $693,000 compared to $699,000
•Homebuilding gross margin percentage of 19.3% compared to 23.3%. Excluding inventory-related charges of $11.8 million, our homebuilding gross margin percentage was 20.6%*.
◦Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.1%*
•Selling, general and administrative (“SG&A”) expense as a percentage of home sales revenue of 11.3% compared to 10.3%
•Net new home orders of 928 compared to 940
•Active selling communities averaged 155.3 compared to 146.8
◦Net new home orders per average selling community decreased by 5% to 6.0 orders (2.0 monthly) compared to 6.4 orders (2.1 monthly)
◦Cancellation rate of 11% compared to 14%
•Backlog units at quarter end of 862 homes compared to 1,517
◦Dollar value of backlog at quarter end of $670.1 million compared to $1.2 billion
◦Average sales price in backlog at quarter end of $777,000 compared to $768,000
•Ratios of homebuilding debt-to-capital and net homebuilding debt-to-net capital of 25.0% and 3.5%*, respectively, as of December 31, 2025
•Ended fourth quarter of 2025 with total liquidity of $1.8 billion, including cash of $982.8 million and $798.1 million of availability under the Company’s unsecured revolving credit facility
* See “Reconciliation of Non-GAAP Financial Measures”
Results and Operational Data for Full Year 2025 and Comparisons to Full Year 2024
•Net income available to common stockholders was $241.1 million, or $2.72 per diluted share, compared to $458.0 million, or $4.83 per diluted share. Excluding inventory-related charges of $31.1 million, our net income available to common stockholders was $263.5 million*, or $2.97* per diluted share.
•Home sales revenue of $3.4 billion compared to $4.4 billion
◦New home deliveries of 4,947 homes compared to 6,460 homes
◦Average sales price of homes delivered of $680,000 compared to $679,000
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•Homebuilding gross margin percentage of 21.0% compared to 23.3%. Excluding inventory-related charges of $31.1 million, our homebuilding gross margin percentage was 21.9%*.
◦Excluding interest, impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 25.2%*
•SG&A expense as a percentage of home sales revenue of 12.6% compared to 10.8%
•Net new home orders of 4,292 compared to 5,657
•Active selling communities averaged 150.5 compared to 150.4
◦Net new home orders per average selling community decreased by 23% to 28.5 orders (2.4 monthly) compared to 37.6 orders (3.1 monthly)
◦Cancellation rate of 12% compared to 10%
* See “Reconciliation of Non-GAAP Financial Measures”
About Tri Pointe Homes®
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. 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, 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, particularly within California; 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 and labor; 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 California; the risk of loss from earthquakes, volcanoes, fires,
Page 2
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 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.
(1) Homes under construction included 48 and 43 models at December 31, 2025 and December 31, 2024, respectively.
* See “Reconciliation of Non-GAAP Financial Measures”
Page 4
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, 2025
December 31, 2024
Assets
(unaudited)
Cash and cash equivalents
$
982,814
$
970,045
Receivables
147,250
111,613
Real estate inventories
3,178,248
3,153,459
Investments in unconsolidated entities
183,075
173,924
Mortgage loans held for sale
98,514
115,001
Goodwill and other intangible assets, net
156,603
156,603
Deferred tax assets, net
43,132
45,975
Other assets
187,899
164,495
Total assets
$
4,977,535
$
4,891,115
Liabilities
Accounts payable
$
41,693
$
68,228
Accrued expenses and other liabilities
425,289
465,563
Loans payable
456,468
270,970
Senior notes, net
647,586
646,534
Mortgage repurchase facilities
90,570
104,098
Total liabilities
1,661,606
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 December 31, 2025 and December 31, 2024, respectively
—
—
Common stock, $0.01 par value, 500,000,000 shares authorized; 84,478,836 and 92,451,729 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively
844
925
Additional paid-in capital
—
—
Retained earnings
3,314,990
3,334,785
Total stockholders' equity
3,315,834
3,335,710
Noncontrolling interests
95
12
Total equity
3,315,929
3,335,722
Total liabilities and equity
$
4,977,535
$
4,891,115
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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Homebuilding:
Home sales revenue
$
945,898
$
1,221,405
$
3,363,814
$
4,386,447
Land and lot sales revenue
7,891
9,284
31,844
33,064
Other operations revenue
805
803
3,244
3,162
Total revenues
954,594
1,231,492
3,398,902
4,422,673
Cost of home sales
763,253
936,397
2,657,351
3,363,881
Cost of land and lot sales
8,052
9,007
29,890
30,591
Other operations expense
793
766
3,174
3,061
Sales and marketing
52,181
55,746
193,784
216,518
General and administrative
54,889
70,229
230,070
256,038
Homebuilding income from operations
75,426
159,347
284,633
552,584
Equity in income (loss) of unconsolidated entities
251
(22)
2,526
361
Other income, net
6,555
7,822
29,439
39,640
Homebuilding income before income taxes
82,232
167,147
316,598
592,585
Financial Services:
Revenues
18,040
22,379
71,802
70,197
Expenses
14,217
14,014
54,622
45,914
Financial services income before income taxes
3,823
8,365
17,180
24,283
Income before income taxes
86,055
175,512
333,778
616,868
Provision for income taxes
(25,899)
(46,299)
(92,785)
(158,898)
Net income
60,156
129,213
240,993
457,970
Net (income) loss attributable to noncontrolling interests
4
—
95
59
Net income available to common stockholders
$
60,160
$
129,213
$
241,088
$
458,029
Earnings per share
Basic
$
0.71
$
1.39
$
2.73
$
4.87
Diluted
$
0.70
$
1.37
$
2.72
$
4.83
Weighted average shares outstanding
Basic
85,294,958
93,064,520
88,172,175
93,985,551
Diluted
85,996,817
94,413,552
88,695,831
94,912,589
Page 6
MARKET DATA BY REPORTING SEGMENT & STATE
(dollars in thousands)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
New Homes Delivered
Average Sales Price
New Homes Delivered
Average Sales Price
New Homes Delivered
Average Sales Price
New Homes Delivered
Average Sales Price
West
724
$
752
972
$
757
2,506
$
753
3,511
$
752
Central
421
570
524
571
1,673
552
1,989
567
East
219
739
252
739
768
720
960
643
Total
1,364
$
693
1,748
$
699
4,947
$
680
6,460
$
679
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net New Home Orders
Average Selling Communities
Net New Home Orders
Average Selling Communities
Net New Home Orders
Average Selling Communities
Net New Home Orders
Average Selling Communities
West
468
70.5
490
70.0
2,123
69.0
3,140
71.6
Central
303
61.0
307
59.5
1,461
60.4
1,707
61.6
East
157
23.8
143
17.3
708
21.1
810
17.2
Total
928
155.3
940
146.8
4,292
150.5
5,657
150.4
As of December 31, 2025
As of December 31, 2024
Backlog Units
Backlog Dollar Value
Average Sales Price
Backlog Units
Backlog Dollar Value
Average Sales Price
West
424
$
360,647
$
851
807
$
653,064
$
809
Central
260
161,398
621
472
281,377
596
East
178
148,093
832
238
230,161
967
Total
862
$
670,138
$
777
1,517
$
1,164,602
$
768
As of December 31, 2025
As of December 31, 2024
Lots Owned
Lots Controlled (1)
Lots Owned or Controlled
Lots Owned
Lots Controlled (1)
Lots Owned or Controlled
West
8,629
3,864
12,493
9,475
4,949
14,424
Central
5,188
8,017
13,205
5,437
9,841
15,278
East
2,137
4,384
6,521
1,697
5,091
6,788
Total
15,954
16,265
32,219
16,609
19,881
36,490
__________
(1) As of December 31, 2025 and 2024, lots controlled included lots that were under land option contracts or purchase contracts. As of December 31, 2025 and 2024, lots controlled for Central include 5,356 and 5,816 lots, respectively, and lots controlled for East include 0 and 14 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 tables reconcile homebuilding gross margin percentage, as reported and prepared in accordance with GAAP, to the non-GAAP financial measure adjusted homebuilding gross margin percentage. We believe this information is meaningful as it isolates the impact that leverage and non-cash impairments and lot option abandonments, as applicable, have on homebuilding gross margin and permits investors to make better comparisons with our competitors, who may adjust gross margins in a similar fashion.
Three Months Ended December 31,
2025
%
2024
%
(dollars in thousands)
Home sales revenue
$
945,898
100.0
%
$
1,221,405
100.0
%
Cost of home sales
763,253
80.7
%
936,397
76.7
%
Homebuilding gross margin
182,645
19.3
%
285,008
23.3
%
Add: interest in cost of home sales
32,264
3.4
%
41,217
3.4
%
Add: impairments and lot option abandonments
12,986
1.4
%
1,713
0.1
%
Adjusted homebuilding gross margin
$
227,895
24.1
%
$
327,938
26.8
%
Homebuilding gross margin percentage
19.3
%
23.3
%
Adjusted homebuilding gross margin percentage
24.1
%
26.8
%
Year Ended December 31,
2025
%
2024
%
(dollars in thousands)
Home sales revenue
$
3,363,814
100.0
%
$
4,386,447
100.0
%
Cost of home sales
2,657,351
79.0
%
3,363,881
76.7
%
Homebuilding gross margin
706,463
21.0
%
1,022,566
23.3
%
Add: interest in cost of home sales
105,376
3.1
%
148,547
3.4
%
Add: impairments and lot option abandonments
36,399
1.1
%
4,157
0.1
%
Adjusted homebuilding gross margin
$
848,238
25.2
%
$
1,175,270
26.8
%
Homebuilding gross margin percentage
21.0
%
23.3
%
Adjusted homebuilding gross margin percentage
25.2
%
26.8
%
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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.
December 31, 2025
December 31, 2024
Loans payable
$
456,468
$
270,970
Senior notes
647,586
646,534
Mortgage repurchase facilities
90,570
104,098
Total debt
1,194,624
1,021,602
Less: mortgage repurchase facilities
(90,570)
(104,098)
Total homebuilding debt
1,104,054
917,504
Stockholders’ equity
3,315,834
3,335,710
Total capital
$
4,419,888
$
4,253,214
Ratio of homebuilding debt-to-capital(1)
25.0
%
21.6
%
Total homebuilding debt
$
1,104,054
$
917,504
Less: Cash and cash equivalents
(982,814)
(970,045)
Net homebuilding debt
121,240
(52,541)
Stockholders’ equity
3,315,834
3,335,710
Net capital
$
3,437,074
$
3,283,169
Ratio of net homebuilding debt-to-net capital(2)
3.5
%
(1.6)
%
__________
(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) real estate inventory 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 December 31,
Year Ended December 31,
2025
2024
2025
2024
(in thousands)
Net income available to common stockholders
$
60,160
$
129,213
$
241,088
$
458,029
Interest expense:
Interest incurred
19,850
23,162
81,496
114,949
Interest capitalized
(19,850)
(23,162)
(81,496)
(114,949)
Amortization of interest in cost of sales
32,996
41,454
106,566
150,226
Provision for income taxes
25,899
46,299
92,785
158,898
Depreciation and amortization
7,717
7,446
30,269
31,018
EBITDA
126,772
224,412
470,708
798,171
Amortization of stock-based compensation
7,362
9,182
30,829
33,509
Real estate inventory impairments and lot option abandonments
12,986
1,713
36,399
4,157
Adjusted EBITDA
$
147,120
$
235,307
$
537,936
$
835,837
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued)
(unaudited)
The following table contains information about our operating results reflecting certain adjustments to homebuilding gross margin, income before income taxes, provision for income taxes, net income, net income available to common stockholders and earnings per share (diluted). We believe reflecting these adjustments is useful to investors in understanding our recurring operations by eliminating the effects of certain non-routine events, and may be helpful in comparing the Company to other homebuilders to the extent they provide similar information.
Three Months Ended December 31, 2025
Year Ended December 31, 2025
As Reported
Adjustments
Adjusted
As Reported
Adjustments
Adjusted
Gross Margin Reconciliation
(in thousands, except share and per share amounts)
Home sales revenue
$
945,898
$
—
$
945,898
$
3,363,814
$
—
$
3,363,814
Cost of home sales
763,253
(11,791)
(1)
751,462
2,657,351
(31,097)
(1)
2,626,254
Homebuilding gross margin
$
182,645
$
11,791
$
194,436
$
706,463
$
31,097
$
737,560
Homebuilding gross margin percentage
19.3
%
1.3
%
20.6
%
21.0
%
0.9
%
21.9
%
Income Reconciliation
Income before income taxes
$
86,055
$
11,791
(1)
$
97,846
$
333,778
$
31,097
(1)
$
364,875
Provision for income taxes
(25,899)
(3,549)
(2)
(29,448)
(92,785)
(8,644)
(2)
(101,429)
Net income
60,156
8,242
68,398
240,993
22,453
263,446
Net income attributable to noncontrolling interests
4
—
4
95
—
95
Net income available to common stockholders
$
60,160
$
8,242
$
68,402
$
241,088
$
22,453
$
263,541
Earnings per share
Diluted
$
0.70
$
0.10
$
0.80
$
2.72
$
0.25
$
2.97
Weighted average shares outstanding
Diluted
85,996,817
85,996,817
88,695,831
88,695,831
Effective tax rate
30.1
%
30.1
%
27.8
%
27.8
%
__________
(1) Comprises inventory impairment charges.
(2) Comprises the impact on provision for income taxes related to the inventory impairment charge described in footnote (1).
