Tri Pointe
🇺🇸 NYSE:TPH
•
Dec 31, 2024
Tri Pointe Q4 2024 Earnings Report
Tri Pointe Homes reported a slight decline in revenue and net income for Q4 2024, but maintained a strong homebuilding gross margin.
Key Takeaways
Tri Pointe Homes reported Q4 2024 revenue of $1.22 billion, a 2% YoY decline. Net income decreased by 3% to $129.2 million, while diluted EPS remained steady at $1.37. The company maintained a solid homebuilding gross margin of 23.3% and ended the quarter with $970 million in cash.
Revenue declined by 2% YoY to $1.22 billion due to softer seasonal demand.
Net income fell 3% YoY to $129.2 million.
Homebuilding gross margin improved by 40 basis points to 23.3%.
The company ended Q4 with $970 million in cash and strong liquidity.
Tri Pointe Revenue
Tri Pointe EPS
Tri Pointe Revenue by Segment
Forward Guidance
Tri Pointe Homes expects solid demand in 2025, supported by favorable demographics and a strong lot supply.
Positive Outlook
- Projected Q1 2025 home deliveries between 900 and 1,100 units.
- Average sales price expected between $685,000 and $695,000.
- FY 2025 anticipated deliveries between 5,500 and 6,100 homes.
- Homebuilding gross margin projected at 20.5% to 22.0% for FY 2025.
- Company expects continued strong liquidity and capital allocation.
Challenges Ahead
- High mortgage rates could continue to impact short-term demand.
- Seasonal softness may persist into early 2025.
- Cancellation rate increased YoY from 12% to 14%.
- SG&A expenses increased to 10.3% of revenue in Q4 2024.
- Backlog units decreased by 35% YoY, signaling potential lower future sales.