Tri Pointe Homes, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Home sales revenue for the quarter ended September 30, 2026, was $706.8 million, a 13.5% decrease from $817.3 million in the same period in 2025; for the nine months ended September 30, 2026, revenue was $1.90 billion, down 21.5% from $2.42 billion in 2025.
• New home deliveries totaled 1,084 homes in the third quarter, down 10.9% from 1,217 homes in 2025; deliveries for the first nine months were 2,833, down 20.9% from 3,583 in 2025.
• Average sales price of homes delivered was $652,000 in the third quarter, down 3.0% from $672,000 in 2025; the nine-month average was $670,000, down 0.7% from $675,000 in 2025.
• Homebuilding gross margin percentage was 17.6% in the third quarter compared to 20.6% in 2025; excluding inventory-related charges of $21.1 million, the margin was 20.6%.
• Adjusted homebuilding gross margin percentage was 23.7% for the third quarter, down from 24.7% in 2025; for the nine months, the adjusted margin was 23.4%, down from 25.7% in 2025.
• SG&A expense as a percentage of home sales revenue was 14.2% in the third quarter, up from 12.9% in 2025; for the nine months, SG&A was 21.8% of revenue, up from 13.1% in 2025.
• Income before income taxes was $35.6 million in the third quarter, down 53.6% from $76.9 million in 2025; results included $21.1 million of inventory-related impairment charges and immaterial transaction-related expenses.
• Adjusted income before income taxes was $56.8 million for the third quarter.
• Net income available to common stockholders was $23.6 million for the third quarter, down from $56.1 million in 2025; for the nine months, the company reported a net loss of $127.3 million compared to net income of $180.9 million in 2025.
• Adjusted EBITDA was $86.2 million for the third quarter, down 31.4% from $125.8 million in 2025; for the nine months, adjusted EBITDA was $209.2 million, down 46.5% from $390.8 million in 2025.
• Total liquidity at the end of the third quarter was approximately $1.1 billion, consisting of $325.9 million in cash and cash equivalents and $822.8 million in availability under the revolving credit facility.
• Cash and cash equivalents decreased 66.8% to $325.9 million from $982.8 million as of December 31, 2025.
• Real estate inventories increased 14.5% to $3.64 billion from $3.18 billion as of December 31, 2025.
• Total homebuilding debt was $1.10 billion, essentially flat from $1.10 billion as of December 31, 2025.
• The ratio of homebuilding debt-to-capital was 25.9% as of September 30, 2026, up from 25.0% as of December 31, 2025.
• The ratio of net homebuilding debt-to-net capital was 19.7% as of September 30, 2026, up from 3.5% as of December 31, 2025.

Business Segments and Product Lines

• The company operates in three geographic segments: West, Central, and East.
• In the West segment, new home deliveries were 516 (down from 621 in 2025) with an average sales price of $747,000 (down from $760,000); backlog units were 621 with an average sales price of $813,000.
• In the Central segment, new home deliveries were 368 (down from 394 in 2025) with an average sales price of $543,000 (up from $536,000); backlog units were 430 with an average sales price of $609,000.
• In the East segment, new home deliveries were 200 (down from 202 in 2025) with an average sales price of $607,000 (down from $665,000); backlog units were 153 with an average sales price of $680,000.
• Net new home orders totaled 794 for the quarter, down 20.2% from 995 in 2025; for the nine months, orders were 3,175, down 5.6% from 3,364 in 2025.
• Active selling communities averaged 168.5 for the quarter, up from 152.0 in 2025; net new home orders per average selling community were 4.7 (1.6 per month), down from 6.5 (2.2 per month) in 2025.
• Cancellation rate was 16% for the quarter, up from 12% in 2025; for the nine months, the cancellation rate was 11%, down from 12% in 2025.
• Backlog units at quarter end were 1,204, down from 1,298 in 2025; the dollar value of backlog was $871.2 million, down from $1.0 billion in 2025.
• Average sales price of homes in backlog was $724,000 at quarter end, down from $781,000 in 2025.
• Lots owned or controlled totaled 32,444 as of September 30, 2026, up 0.7% from 32,219 as of December 31, 2025.
• Homes under construction were 2,165 as of September 30, 2026, up 55.5% from 1,392 as of December 31, 2025.

Risks and Challenges

• The press release notes that actual results may differ from forward-looking statements due to factors including general economic conditions, interest rate levels, home affordability, inflation, and consumer sentiment.
• Risks include the availability of desirable and reasonably priced land, access to adequate capital, geographic concentration of operations, and competition levels.
• Supply chain risks involve prices and availability of inputs, including raw materials, labor, and home components, as well as oil and energy prices.
• Regulatory and legal risks include U.S. trade policies, tariffs, land use laws, and environmental regulations.
• Natural disaster risks include earthquakes, fires, floods, droughts, and other events that could cause delays, reduced demand, or shortages.
• The company faces risks related to the integration into the Sumitomo Forestry Group, including purchase accounting, financing, systems, controls, and realizing anticipated benefits.
• Cybersecurity risks include unauthorized access to computer systems and theft of homebuyer confidential information.

Other Key Points

• The company incurred $21.1 million in inventory-related impairment charges and immaterial transaction-related expenses in the third quarter.
• Transaction-related expenses for the nine months ended September 30, 2026, included $122.2 million in G&A (comprising accelerated RSU vestings and other compensation costs) and $79.7 million in transaction expenses (investment banking, legal, advisory fees) related to the Sumitomo Forestry transaction.
• Tri Pointe Homes is recognized as a 2026 Fortune World's Most Admired Company, a 2026 Fortune 100 Best Companies to Work For, and a PEOPLE Companies That Care organization.
• The company has a presence in 13 states and the District of Columbia.
• As of September 30, 2026, the company had 100,000,000 shares of common stock authorized and 100,000,000 shares issued and outstanding.