Tri Pointe Homes, Inc. Celebrates Major Growth in 2024
Tri Pointe Homes, Inc. Reports 2024 Fourth Quarter and Full Year Results
Fourth Quarter Highlights
-New Home Deliveries of 1,748 for Home Sales Revenue of $1.2 Billion-
-Homebuilding Gross Margin Percentage of 23.3%-
-Selling, General and Administrative Expense as a Percentage of Home Sales Revenue of 10.3%-
-Diluted Earnings Per Share of $1.37-
Tri Pointe Homes, Inc. (NYSE: TPH) recently announced remarkable financial results for the fourth quarter of 2024. The company successfully delivered 1,748 new homes, generating an impressive $1.2 billion in home sales revenue. Chief Executive Officer Doug Bauer expressed his pride in the strong results, which showcase the company's commitment to delivering high-quality homes and maximizing operational efficiency.
Throughout 2024, the company achieved significant milestones with total new home deliveries reaching a record high of 6,460. This surge in delivery translated to net income of $458 million, which equates to $4.83 per diluted share, showcasing a 40% year-over-year increase. Bauer highlighted the company's focus on disciplined capital allocation and strategic share repurchases which contributed to an impressive 14.5% increase in year-over-year book value per share.
Although there was a slight dip in demand due to elevated mortgage rates impacting buyer participation in the fourth quarter, Tri Pointe Homes is seeing positive trends as demand begins to pick up at the start of 2025, along with reduced incentives for buyers. As the spring selling season approaches, the company's long-term outlook is reassuring, with favorable demographic trends and a supply-demand imbalance in the housing market fueling optimism for continued success.
Financial Performance Overview
Results and Operational Data for Fourth Quarter 2024 and Comparisons to Fourth Quarter 2023
- Net income available to common stockholders reached $129.2 million, or $1.37 per diluted share, highlighting a consistent profit margin.
- Home sales revenue for the quarter totaled $1.2 billion, reflecting a slight decrease of 2% year-over-year.
- The company delivered 1,748 new homes, compared to 1,813 homes the previous year, marking a decrease of 4%.
- The average sales price of homes delivered increased by 2%, with a current pricing of $699,000.
- Homebuilding gross margin percentage improved to 23.3%, which is a growth of 40 basis points compared to last year.
- The company's SG&A expense as a percentage of home sales revenue was reported at 10.3%, up from 9.3%.
- Net new home orders totaled 940, a decrease of 13% from the previous year.
- The average number of active selling communities was approximately 146.8, down from 159.3 last year.
- The cancellation rate saw an uptick to 14% as compared to 12% in the fourth quarter of 2023.
Outlook for 2025
Looking ahead, Tri Pointe Homes anticipates delivering between 900 and 1,100 homes in the first quarter of 2025 with an average sales price projected to be between $685,000 and $695,000. The company expects to maintain a healthy homebuilding gross margin percentage between 22.0% and 23.0% while steadily managing its SG&A expenses.
For the entire year of 2025, Tri Pointe Homes aims to deliver between 5,500 and 6,100 homes at an average sales price expected to range from $660,000 to $670,000, maintaining confidence in the strength of their operational strategies.
Future Investor Engagements
Tri Pointe Homes is committed to maintaining strong communication with its investors. The company will host a live conference call to discuss these results and forecast future performance, welcoming inquiries from investors and interested parties.
Frequently Asked Questions
What were the home sales revenue figures for Tri Pointe Homes in 2024?
Tri Pointe Homes reported home sales revenue of $4.4 billion for the full 2024 calendar year.
How many homes did Tri Pointe Homes deliver in 2024?
The company delivered a total of 6,460 new homes during the year 2024.
What is Tri Pointe Homes' outlook for 2025?
For 2025, the company anticipates delivering between 5,500 and 6,100 homes, with an average sales price projected between $660,000 and $670,000.
What are the company’s growth strategies?
Tri Pointe Homes focuses on disciplined capital allocation, effective market strategies, and delivering premium products to meet buyer demand.
How does Tri Pointe Homes compare to its competitors?
Tri Pointe Homes is recognized as a leading builder with a strong financial position, which positions it well among national competitors.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.