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Sep 30
Tri Pointe Q3 2025 Earnings Report
Tri Pointe Homes reported a significant decrease in net income and home sales revenue for the third quarter of 2025, alongside a reduction in new home deliveries and orders.
Key Takeaways
Tri Pointe Homes experienced a challenging third quarter in 2025, with net income available to common stockholders falling by nearly 50% to $56.1 million and home sales revenue decreasing by 26.6% to $817.3 million. New home deliveries were down by 24.8%, and net new home orders declined by 20.5%, reflecting continued softness in housing demand. Despite these headwinds, the company maintained a strong liquidity position of $1.6 billion and an adjusted homebuilding gross margin of 21.6%.
Net income available to common stockholders decreased by 49.8% to $56.1 million, or $0.64 per diluted share, compared to $111.8 million, or $1.18 per diluted share, in Q3 2024.
Home sales revenue declined by 26.6% to $817.3 million from $1.1 billion in the prior year's quarter.
New home deliveries fell by 24.8% to 1,217 homes, and net new home orders decreased by 20.5% to 995.
The company maintained strong liquidity of $1.6 billion, including $792.0 million in cash and cash equivalents, and a net homebuilding debt-to-net capital ratio of 8.7%.
Tri Pointe
Tri Pointe
Tri Pointe Revenue by Segment
Tri Pointe Revenue by Geographic Location
Revenue by Segment
Home Sales Revenue
CapyFin.comLand and Lot Sales Revenue
CapyFin.comOther Operations Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comRevenue by Geographic Location
Arizona Revenue
CapyFin.comCalifornia Revenue
CapyFin.comNevada Revenue
CapyFin.comWashington Revenue
CapyFin.comColorado Revenue
CapyFin.comTexas Revenue
CapyFin.comCarolinas Revenue
CapyFin.comWashington D.C. Area Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2025, Tri Pointe Homes anticipates delivering between 1,200 and 1,400 homes at an average sales price of $690,000 to $700,000. The company expects homebuilding gross margin percentage to be in the range of 19.5% to 20.5% and SG&A expense as a percentage of home sales revenue to be between 10.5% and 11.5%. The effective tax rate is projected to be approximately 27.0%. For the full year, deliveries are expected to be between 4,800 and 5,000 homes at an average sales price of approximately $680,000, with an adjusted homebuilding gross margin of approximately 21.8% and SG&A expense as a percentage of home sales revenue of approximately 12.5%.
Positive Outlook
- Anticipated Q4 2025 new home deliveries of 1,200 to 1,400 homes, indicating continued activity.
- Expected average sales price for Q4 2025 homes delivered to be between $690,000 and $700,000, a slight increase from Q3.
- Full-year 2025 new home deliveries projected between 4,800 and 5,000 homes.
- Full-year 2025 average sales price expected to be approximately $680,000.
- Adjusted homebuilding gross margin for the full year 2025 is anticipated to be approximately 21.8%.
Challenges Ahead
- Expected Q4 2025 homebuilding gross margin percentage to be lower, in the range of 19.5% to 20.5%, compared to Q3's 20.6%.
- SG&A expense as a percentage of home sales revenue for Q4 2025 is anticipated to be 10.5% to 11.5%, which is still elevated compared to previous years.
- The full-year SG&A expense as a percentage of home sales revenue is expected to be approximately 12.5%, higher than previous periods.
- The outlook for Q4 deliveries and gross margin suggests ongoing market challenges.
- The full-year adjusted homebuilding gross margin of 21.8% is lower than the previous year's reported 23.3%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income