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Tri Pointe Homes, Inc.
Feb 25, 2026 at 11:00 AM UTC
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ELI5

Tri Pointe Homes, Inc. Reports 2025 Fourth Quarter and Full Year Results

INCLINE VILLAGE, Nev., Feb. 25, 2026 (GLOBE NEWSWIRE) -- 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

  • 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, 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.

Investor Relations Contact:

 

[email protected], 949-478-8696

 


KEY OPERATIONS AND FINANCIAL DATA
(dollars in thousands)
(unaudited)

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2025

 

2024

 

Change

 

% Change

 

2025

 

2024

 

Change

 

% Change

Operating Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenue

$

945,898

 

 

$

1,221,405

 

 

$

(275,507

)

 

(23

)%

 

$

3,363,814

 

 

$

4,386,447

 

 

$

(1,022,633

)

 

(23

)%

Homebuilding gross margin

$

182,645

 

 

$

285,008

 

 

$

(102,363

)

 

(36

)%

 

$

706,463

 

 

$

1,022,566

 

 

$

(316,103

)

 

(31

)%

Homebuilding gross margin %

 

19.3

%

 

 

23.3

%

 

(4.0

)%

 

 

 

 

21.0

%

 

 

23.3

%

 

(2.3

)%

 

 

Adjusted homebuilding gross margin %*

 

24.1

%

 

 

26.8

%

 

(2.7

)%

 

 

 

 

25.2

%

 

 

26.8

%

 

(1.6

)%

 

 

SG&A expense

$

107,070

 

 

$

125,975

 

 

$

(18,905

)

 

(15

)%

 

$

423,854

 

 

$

472,556

 

 

$

(48,702

)

 

(10

)%

SG&A expense as a % of home sales revenue

 

11.3

%

 

 

10.3

%

 

 

1.0

%

 

 

 

 

12.6

%

 

 

10.8

%

 

 

1.8

%

 

 

Net income available to common stockholders

$

60,160

 

 

$

129,213

 

 

$

(69,053

)

 

(53

)%

 

$

241,088

 

 

$

458,029

 

 

$

(216,941

)

 

(47

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new home orders

 

928

 

 

 

940

 

 

 

(12

)

 

(1

)%

 

 

4,292

 

 

 

5,657

 

 

 

(1,365

)

 

(24

)%

New homes delivered

 

1,364

 

 

 

1,748

 

 

 

(384

)

 

(22

)%

 

 

4,947

 

 

 

6,460

 

 

 

(1,513

)

 

(23

)%

Average sales price of homes delivered

$

693

 

 

$

699

 

 

$

(6

)

 

(1

)%

 

$

680

 

 

$

679

 

 

$

1

 

 

0

%

Cancellation rate

 

11

%

 

 

14

%

 

(3.0

)%

 

 

 

 

12

%

 

 

10

%

 

 

2

%

 

 

Average selling communities

 

155.3

 

 

 

146.8

 

 

 

8.5

 

 

6

%

 

 

150.5

 

 

 

150.4

 

 

 

0.1

 

 

0

%

Selling communities at end of period

 

156

 

 

 

145

 

 

 

11

 

 

8

%

 

 

 

 

 

 

 

 

Backlog (estimated dollar value)

$

670,138

 

 

$

1,164,602

 

 

$

(494,464

)

 

(42

)%

 

 

 

 

 

 

 

 

Backlog (homes)

 

862

 

 

 

1,517

 

 

 

(655

)

 

(43

)%

 

 

 

 

 

 

 

 

Average sales price in backlog

$

777

 

 

$

768

 

 

$

9

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2025

 

December 31,
2024

 

Change

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

982,814

 

 

$

970,045

 

 

$

12,769

 

 

 

 

 

 

 

 

 

 

 

Real estate inventories

$

3,178,248

 

 

$

3,153,459

 

 

$

24,789

 

 

 

 

 

 

 

 

 

 

 

Lots owned or controlled

 

32,219

 

 

 

36,490

 

 

 

(4,271

)

 

 

 

 

 

 

 

 

 

 

Homes under construction (1)

 

1,392

 

 

 

2,386

 

 

 

(994

)

 

 

 

 

 

 

 

 

 

 

Homes completed, unsold

 

681

 

 

 

464

 

 

 

217

 

 

 

 

 

 

 

 

 

 

 

Total homebuilding debt

$

1,104,054

 

 

$

917,504

 

 

$

186,550

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

$

3,315,834

 

 

$

3,335,710

 

 

$

(19,876

)

 

 

 

 

 

 

 

 

 

 

Book capitalization

$

4,419,888

 

 

$

4,253,214

 

 

$

166,674

 

 

 

 

 

 

 

 

 

 

 

Ratio of homebuilding debt-to-capital

 

25.0

%

 

 

21.6

%

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

Ratio of net homebuilding debt-to-capital*

 

3.5

%

 

(1.6

)%

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

______________________

(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”

 

 


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

 

 

 

 

 

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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.

 

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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).