Tri Pointe Homes, Inc. (NYSE:TPH) reported third-quarter results on Thursday that beat Wall Street estimates for both earnings and revenue, despite continued weakness in the U.S. housing market. The company’s shares rose 3.53% in premarket trading following the announcement.
Adjusted earnings came in at $0.71 per share, well above the analyst consensus of $0.52. Revenue totaled $817.3 million, exceeding the projected $736.2 million. However, both figures were down compared to a year earlier, with revenue dropping 26.6% from $1.1 billion in the third quarter of 2024.
Tri Pointe closed 1,217 homes during the quarter at an average price of $672,000, compared to 1,619 homes at $688,000 a year ago. Its adjusted homebuilding gross margin stood at 21.6%, excluding $8.3 million in inventory-related charges, down from 23.3% in the prior year period.
“Tri Pointe once again exceeded the high end of our delivery range, closing 1,217 homes at an average sales price of $672,000, and generating $817.3 million in home sales revenue for the third quarter,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer. “Our team delivered these results through disciplined execution and focus amid continued softness in housing demand.”
Net new home orders fell 20.5% year over year to 995 units, while the company’s backlog decreased to 1,298 homes valued at $1.01 billion from 2,325 homes valued at $1.73 billion in the prior-year quarter. Liquidity remained strong at $1.6 billion, with a homebuilding debt-to-capital ratio of 25.1%.
Looking ahead, Tri Pointe expects to deliver between 1,200 and 1,400 homes in the fourth quarter, with an average sales price of $690,000 to $700,000. The company anticipates a homebuilding gross margin of 19.5% to 20.5%.