Tri Pointe Homes (TPH) investor relations material

Executive summary

• Q2 2025 home sales revenue was $880 million, down 22% year-over-year, with 1,326 homes delivered at an average price of $664,000; net income available to common stockholders was $61 million ($0.68 per diluted share), and adjusted net income was $69 million ($0.77 per share), reflecting an $11 million inventory impairment charge.

• Net new home orders fell 31–32% year-over-year to 1,131, with a monthly absorption rate of 2.5 per community; backlog units dropped 44% to 1,520 homes, and backlog dollar value declined 41% to $1.18–$1.2 billion.

• Market conditions remain choppy due to policy uncertainty, geopolitical tensions, and affordability concerns, impacting buyer confidence and leading to higher inventory and softer pricing in some markets.

• Liquidity remains strong with $1.4 billion at quarter end, including $623 million in cash and an upsized $850 million revolving credit facility maturing in 2030.

• Returned $100 million to shareholders via share repurchases in Q2, with the board authorizing an additional $50 million, raising the total program to $300 million.

Financial highlights

• Homebuilding gross margin for Q2 was 20.8% (down from 23.6% year-over-year); adjusted gross margin was 22.1%–25.2% (excluding inventory charge and certain items).

• SG&A expense as a percentage of home sales revenue was 12.6%, up from 11.0% year-over-year.

• Adjusted EBITDA for Q2 was $139.3 million, down from $215.9 million year-over-year.

• Backlog at quarter end was 1,520 homes ($1.2 billion), down from 2,692 homes ($2.0 billion) year-over-year; average sales price in backlog increased to $776,000.

• Net new home orders were 1,131, down 31–32% year-over-year; cancellation rate increased to 13% from 9%.

Outlook and guidance

• Q3 2025 guidance: 1,000–2,100 home deliveries at an average sales price of $675,000–$685,000; gross margin 20–21%; SG&A 13–14%; tax rate ~27%.

• Full-year 2025 guidance: 4,800–9,200 deliveries, average sales price $665,000–$675,000; gross margin 20.5–22% (excluding inventory charge); SG&A 12–13%; tax rate ~27%.

• Incentives on revenue were 7.1% in Q2 and expected to trend up slightly in the back half of the year.

• Community count expected to end 2025 in the 150–160 range, with low double-digit growth in 2026.

• Management expects near-term market conditions to remain uneven, but long-term demand is supported by demographics and housing undersupply.