Tri Pointe Homes delivered a record-high 6,460 homes in the full fiscal year of 2024, representing a 22% increase compared to the 2023 fiscal year.
The strong full-year results came despite a softer fourth quarter for the home builder. Deliveries decreased 4% year-over-year in the fourth quarter to 1,748 homes, largely due to mortgage rate sensitivity from prospective buyers.
“We are seeing a weekly increase in demand and reduced incentives in the early part of 2025 and are optimistic for the spring selling season,” said Tom Mitchell, president and chief operating officer of Tri Pointe Homes. “We are confident that strong long-term fundamentals, including both favorable demographics and the ongoing supply and demand imbalance, position Tri Pointe Homes and our industry for ongoing success.”
In the fourth quarter, Tri Pointe Homes generated profit of $129.2 million, or $1.37 per share, down from $132.8 million, or $1.36 per share, in the fourth quarter of 2023. The builder reported home sales revenue of $1.2 billion and an average selling price of homes delivered of $699,000. In the quarter, Tri Pointe experienced a 13% decline in net new home orders to 940 from 1,078.
For the full fiscal year, the company grew profit to $458.0 million, or $4.83 per share, from $343.7 million, or $3.45 per share, in fiscal 2023. Home sales revenue in the full-year period increased 20% to $4.4 billion while net new home orders declined 8% to 5,657.
“As a company, we continue to invest in our core market strategy, focusing on A locations, a differentiated premium product offering, and an elevated customer experience,” Mitchell said. “This commitment enables us to attract a well-qualified and resilient buyer profile who desires our product, reinforcing our long-term value proposition.”
Tri Pointe Homes ended the 2024 fiscal year with a backlog of 1,517 homes, down from 2,320 at the end of 2023. The dollar value of backlog at the end of the fiscal year was $1.2 billion, 28% lower than a year ago.
The company ended the fiscal year with an average of 150.4 active selling communities and net new home orders per average selling community of 37.6, or 3.1 per month, down 11% from 41.5 orders, or 3.5 per month, in fiscal 2023. The builder’s full-year cancellation rate was 10%, unchanged from a year ago.
“With a robust supply of over 36,000 total lots, we believe we are well-positioned to capitalize on the housing shortage and continue to grow our business, delivering strong cash flows and returns to stockholders,” said CEO Doug Bauer. “Our diverse product offerings, combined with the flexibility of our 54% optioned lot supply, enable us to adapt to changing market conditions and efficiently allocated capital to maximize earnings.”
Looking ahead to 2025, Tri Pointe Homes is guiding home deliveries between 5,550 and 6,100 homes at an average sales price between $660,000 and $670,000. Both the low and high end of the full-year guidance are above 2023 deliveries (5,274) but below the record level of deliveries in 2024 (6,460).
