Tri Pointe Homes Reports 20% Revenue Growth to $4.4 Billion for Fiscal Year 2024

Tri Pointe Homes, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total revenues reaching approximately $4.4 billion, a 20% increase from $3.7 billion in 2023. The company delivered 6,460 homes during the year, up from 5,274 in the previous year. The average sales price of homes delivered decreased slightly to $679,000 from $693,000, reflecting a shift in product mix as more homes were sold in lower-priced segments. Net income available to common stockholders rose to $458 million, a 33% increase compared to $349 million in 2023, resulting in diluted earnings per share of $4.83, up 40% from the prior year.

The company experienced a decrease in net new home orders, which fell by 8% to 5,657 compared to 6,122 in 2023. This decline was attributed to a reduction in monthly absorption rates, which decreased by 11%, despite a 2% increase in average selling communities. The backlog of homes also decreased significantly, with the dollar value of backlog dropping to approximately $1.2 billion from $1.6 billion in the previous year. The cancellation rate remained stable at 10% for both years, indicating consistent buyer behavior despite market fluctuations.

Strategically, Tri Pointe expanded its operations into new markets, including the greater Salt Lake City region in late 2023 and the Orlando and Coastal Carolinas regions in early 2024. As of December 31, 2024, the company owned or controlled 36,490 lots, a 14% increase from the previous year, driven by a 50% increase in controlled lots. The company’s focus on high-growth core markets, characterized by favorable demographics and job growth, remains central to its growth strategy.

Operationally, Tri Pointe emphasized maintaining a strong balance sheet, ending the year with $970 million in cash and cash equivalents and $694 million available under its credit facility. The company generated $696 million in net cash from operating activities, a substantial increase from the prior year. The financial services segment, which includes Tri Pointe Connect, reported income before taxes of $24.3 million, up from $14.7 million in 2023, reflecting higher home sales revenue and increased service capture.

Looking ahead, Tri Pointe remains optimistic about the housing market, citing a structural supply-demand imbalance and favorable demographics as key drivers for future growth. The company plans to navigate the current environment by managing speculative inventory and aligning it with demand while mitigating risks at the market level. Despite challenges posed by rising mortgage rates and affordability issues, Tri Pointe aims to optimize capital returns and sustain long-term performance through operational efficiency and strategic expansion.