Earnings call transcript: TRI Pointe Homes beats Q3 2025 earnings expectations

TRI Pointe Homes (TPH) reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.71 compared to the forecasted $0.52, marking a 36.54% surprise. The company also exceeded revenue forecasts, reporting $817.3 million against an expected $736.2 million, an 11.02% surprise. Following the release, TRI Pointe Homes’ stock price rose 4.05% in pre-market trading, reaching $34.18, up from the previous close of $32.85. According to InvestingPro analysis, TPH appears undervalued at current levels, with the stock trading at an attractive P/E ratio of 8.2x.

Key Takeaways

• TRI Pointe Homes exceeded both EPS and revenue forecasts for Q3 2025.
• Pre-market stock price increased by 4.05% following the earnings announcement.
• The company closed 1,217 homes with an average sales price of $672,000.
• TRI Pointe Homes plans to expand into new markets, including Utah, Florida, and the Coastal Carolinas.
• The company anticipates a 10-15% growth in community count by the end of 2026.

Company Performance

TRI Pointe Homes demonstrated strong performance in Q3 2025, closing 1,217 homes with an average sales price of $672,000. The company reported a home sales revenue of $817 million and an adjusted net income of $62 million. With a robust current ratio of 11.95 and operating with moderate debt levels, TPH maintains a strong financial position according to InvestingPro data. The company continues to focus on premium move-up buyers, expanding its market presence with new communities in Utah. The company’s strategic initiatives include reducing speculative inventory and increasing its term loan by $200 million to strengthen its financial position.

Financial Highlights

• Revenue: $817.3 million (11.02% above forecast)
• Earnings per share: $0.71 (36.54% above forecast)
• Adjusted homebuilding gross margin: 21.6%
• Total liquidity: $1.6 billion
• Cash position: $792 million
• Debt-to-capital ratio: 25.1%

Earnings vs. Forecast

TRI Pointe Homes delivered an EPS of $0.71, significantly beating the forecasted $0.52. This 36.54% surprise was complemented by a revenue beat, with actual revenue of $817.3 million versus the expected $736.2 million. This performance marks a substantial improvement compared to previous quarters, indicating strong operational execution and market positioning.

Market Reaction

The company’s stock price reacted positively to the earnings announcement, rising 4.05% in pre-market trading. The stock’s movement reflects investor confidence in TRI Pointe Homes’ ability to exceed expectations and manage market challenges. InvestingPro analysis reveals two key insights: management has been actively buying back shares, and the company maintains a healthy return on equity of 11%. For deeper insights, InvestingPro offers 8 additional exclusive tips and a comprehensive Pro Research Report covering TPH’s complete financial picture.

Outlook & Guidance

Looking ahead, TRI Pointe Homes expects to deliver between 1,200 and 1,400 homes in Q4 2025, with an average sales price ranging from $690,000 to $700,000. The company aims to achieve a full-year delivery target of 4,800 to 5,000 homes, maintaining a focus on price over pace. TRI Pointe Homes anticipates ending 2025 with approximately 155 communities, with a projected 10-15% growth in community count by the end of 2026.

Executive Commentary

CEO Doug Bauer emphasized the company’s strategic focus, stating, "We’re focused on price over pace as we go into the new year." He also highlighted the industry’s historical underbuilding, noting, "The industry has been underbuilt and been doing this for 35 years." Bauer expressed the company’s commitment to stakeholder collaboration: "We welcome working with the relevant stakeholders at the federal, state, and local levels."

Risks and Challenges

• Soft market conditions and muted homebuyer confidence due to slow job growth.
• Potential challenges in inventory management and cost control as the company expands into new markets.
• The need to maintain premium brand positioning amidst competitive pressures.

Q&A

During the earnings call, analysts inquired about TRI Pointe Homes’ strategy for new community starts and inventory management. The company addressed potential affordable housing initiatives and clarified its consistent monthly order cadence, reinforcing its strategic focus on disciplined growth and market expansion.

Full transcript - TRI Pointe Homes Inc (TPH) Q3 2025:

Conference Operator: Greetings and welcome to the Tri Pointe Homes third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce David Lee, General Counsel at Tri Pointe Homes. You may proceed.

David Lee, General Counsel, Tri Pointe Homes: Good morning and welcome to Tri Pointe Homes earnings conference call. Earlier this morning, the company released its financial results for the third quarter of 2025. Documents detailing these results, including a slide deck, are available at www.tripointehomes.com through the investors link and under the events and presentations tab. Before the call begins, I would like to remind everyone that certain statements made on this call, which are not historical facts, including statements concerning future financial and operating performance, are forward-looking statements that involve risks and uncertainties. The discussion of risks and uncertainties and other factors that could cause actual results to differ materially are detailed in the company’s SEC filings. Except as required by law, the company undertakes no duty to update these forward-looking statements.

Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most comparable GAAP measures can be accessed through Tri Pointe Homes’ website and in its SEC filings. Hosting the call today are Doug Bauer, the company’s Chief Executive Officer, Glenn Keeler, the company’s Chief Financial Officer, Tom Mitchell, the company’s President and Chief Operating Officer, and Linda Mamet, the company’s Executive Vice President and Chief Marketing Officer. With that, I will now turn the call over to Doug.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Good morning and thank you for joining us today as we review Tri Pointe Homes’ results for the third quarter of 2025. I want to begin by recognizing our entire Tri Pointe Homes team. Their dedication and focus allowed us to deliver strong results in a period that continues to present challenges to the housing industry. In the third quarter, we exceeded the high end of our delivery guidance, closing 1,217 homes at an average sales price of $672,000, generating $817 million in home sales revenue. Our adjusted homebuilding gross margin, excluding $8 million of inventory-related charges, was 21.6%, while adjusted net income was $62 million or $0.71 per diluted share. We remain focused on creating long-term shareholder value. During the quarter, we spent $51 million repurchasing 1.5 million shares, bringing our year-to-date total spend to $226 million, representing a total of 7 million shares.

This activity has reduced our share count by 7% year to date and by 47% since we initiated the program in 2016, underscoring our disciplined approach to enhancing shareholder returns. Additionally, we also strengthened our liquidity by increasing our term loan by $200 million, with optionality to extend the maturity into 2029. We believe this incremental leverage is prudent, supporting capital efficiency, funding for our community count growth, and continued flexibility to return capital to our shareholders. We ended the quarter with $1.6 billion in total liquidity, including $792 million in cash, and a debt-to-capital ratio of 25.1%, and a net debt-to-net-capital ratio of 8.7%. Market conditions remained soft throughout the third quarter. Homebuyer interest remained somewhat muted, with lower confidence driven by slow job growth and broader economic uncertainty. However, we continue to see underlying demand for home ownership among needs-based buyers.

We anticipate that home shoppers are preparing to re-engage when conditions stabilize, leading to more normalized absorptions. Our management team has successfully navigated multiple housing cycles, and we remain focused on near-term execution while staying aligned with our long-term growth strategy. In the short term, we are prioritizing inventory management, disciplined cost control, and the sale of move-in-ready homes while steadily increasing the mix of to-be-built homes over time. For long-term success, we continue to invest in both our core and expansion markets, with a goal of scaling our operations, consistently growing community count, and increasing book value per share to drive sustained shareholder returns. We are encouraged by the progress of our new market expansions in Utah, Florida, and Coastal Carolinas. Development activity is well underway, and strong local leadership teams are in place.

While initial contributions will be modest, we expect these divisions to generate meaningful growth beginning in 2027 and beyond as they gain scale. During the quarter, we are pleased to open our first two communities in Utah, a key milestone for that region. A cornerstone of our strategy is to invest in well-located, core land positions close to employment centers, high-performing schools, and key amenities. We currently own or control over 32,000 lots, positioning us well for community count growth in the years ahead. We expect to end 2025 with approximately 155 communities, and we anticipate growing our ending community count by 10 to 15% by the end of 2026. The majority of this growth will be driven by expansion in our central and east regions.

This disciplined growth strategy enhances our operating scale, increases geographic diversification, and positions Tri Pointe Homes for sustainable, profitable growth as demand improves and our expansion divisions mature. At Tri Pointe Homes, our product is primarily targeted to premium, move-up buyers with financial strength, seeking better locations, larger homes, curated finishes, and elevated lifestyles. This segment has demonstrated resilience even amid shifting market conditions, supported by strong income profiles, sound credit, and larger down payments, and our backlog reflects this strength. Home buyers financing through Tri Pointe Connect, our affiliated mortgage company, have an average household income of $220,000, FICO score of 752, 78% loan-to-value ratio, and an average debt-to-income level of 41%, consistent with recent quarters. These strong characteristics have reinforced the financial stability and quality of our customer base and the durability of our future deliveries.

As consumer confidence improves, we expect pent-up demand to grow the pool of move-up buyers attracted to our premium communities and design-driven offerings that align with their lifestyle aspirations. Our premium brand, community locations, and innovative product design continue to differentiate Tri Pointe Homes in the marketplace. We have the financial strength and operational discipline to invest through the cycle while returning capital to shareholders. Together, these strengths, along with an experienced management team, position Tri Pointe Homes to drive long-term performance and value creation. With that, I’ll turn the call over to Glenn to provide additional detail on our financial results. Glenn?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Thanks, Doug, and good morning. I’d like to highlight key results for the third quarter and then finish my remarks with our expectations and outlook for the fourth quarter and full year. The third quarter produced strong financial results for the company. We delivered 1,217 homes, exceeding the high end of our guidance. Home sales revenue was $817 million for the quarter, with an average sales price of $672,000. Gross margin, adjusted to exclude an $8 million impairment charge, was 21.6% for the quarter. SG&A expenses, as a percentage of home sales revenue, was 12.9%, which was at the lower end of our guidance, benefiting from savings in G&A and better top-line revenue leverage as a result of exceeding our delivery guidance. Finally, net income for the year was $62 million or $0.71 per diluted share, also adjusted for the same inventory-related charge.

Net new home orders in the third quarter were 995, with an absorption pace of 2.2 homes per community per month. Regionally, our absorption pace in the West was 2.3, with the Southern California markets outperforming and the Bay Area experiencing softer market conditions. The Central region averaged 1.8 absorption pace for the quarter, with increased supply of both new and resale homes in Austin, Dallas, and Denver impacted pace during the quarter, while Houston continued to outperform in the region. In the East, absorption pace was 2.8, led by strong results in our DC Metro and Raleigh divisions, while Charlotte was consistent with the company average. We invested approximately $260 million in land and land development during the quarter and ended with over 32,000 total lots, 51% of which are controlled via option.

Looking at the balance sheet, we ended the quarter with $1.6 billion in liquidity, consisting of $792 million of cash and $791 million available under our unsecured revolving credit facility. As of the end of the quarter, our homebuilding debt-to-capital ratio was 25.1%, and our homebuilding net debt-to-net-capital ratio was 8.7%. As Doug mentioned, we increased our term loan by $200 million to a total outstanding amount of $450 million and added extension rights that, if exercised, could extend the due date to 2029. The term loan is an effective source of additional liquidity to help fuel our future community count growth and other capital needs. Now I’d like to summarize our outlook for the fourth quarter and full year of 2025. For the fourth quarter, we expect to deliver between 1,200 and 1,400 homes at an average sales price of between $690,000 and $700,000.

We anticipate homebuilding gross margin percentage to be in the range of 19.5% to 20.5%. We expect our SG&A expense ratio to be in the range of 10.5% to 11.5%, and we estimate our effective tax rate for the fourth quarter to be approximately 27%. For the full year, we expect to deliver between 4,800 and 5,000 homes with an average sales price of approximately $680,000. We anticipate our full-year homebuilding gross margin to be approximately 21.8%, which excludes the inventory-related charges recorded year to date. Finally, we anticipate our SG&A expense ratio to be approximately 12.5%, and we estimate our effective tax rate for the full year to be approximately 27%. With that, I will now turn the call back over to Doug for closing remarks.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Thanks, Glenn. In closing, I want to thank our team members, customers, trade partners, and shareholders for their ongoing trust and support. We’re proud to have been recognized once again as one of Fortune 100 Best Companies to Work For in 2025, a reflection of the culture and values that drive our performance. While the near-term environment remains uncertain, our long-term outlook is very positive, and we are confident that our strategy, our people, and our financial and operating discipline position Tri Pointe Homes to deliver sustainable growth and long-term shareholder value. With that, I’ll turn the call over to the operator for any questions. Thank you.

Conference Operator: We’ll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. In the interest of time, we ask that participants limit themselves to one question and one follow-up. One moment, please, while we poll for questions. Thank you. Our first question is from Paul Prisbilski with Wolfe Research.

Thank you. Good morning. I guess, first off, could you provide some color on the monthly cadence of your orders and incentives through the quarter?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Sure, Paul. Hey, this is Glenn. The monthly cadence was pretty consistent, actually, through the quarter. If you look at absorption, it was roughly the same each month, with September being a little bit better than August. Incentives were also consistent throughout the quarter. Incentives on deliveries were 8.2% for the quarter.

Okay. Thank you very much. I guess you know your absorptions are getting down close to the two level. Is there a, you know, an absolute floor that you want to maintain on your sales pace, i.e., increase incentives to keep a level?

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Hey, Paul. It’s Doug. It’s a good question. The industry’s kind of working through a big, it’s like trudging through mud right now. Somewhere between two and two and a half is kind of where everybody seems to be landing. If you’re looking at, we’re really looking at very strong community count growth in 2026. As we look forward to that, and even under similar market conditions, we’ve got some pretty, pretty nice growth in orders going forward.

Thank you. Appreciate it.

Thanks, Paul.

Conference Operator: Our next question is from Stephen Kim with Evercore ISI.

Stephen Kim, Analyst, Evercore ISI: Hey, thanks, guys. I appreciate the color so far. If I could just follow up on Paul’s question here on the incentives, you said 8.2% of revenues or home sales. How much of those were financial incentives if you sort of include closing costs and, you know, rate buydowns for purchase commitments and that sort of thing?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Hey, Stephen. It’s Glenn. You’re correct. It was 8.2% of revenue in the quarter, and about a third of those were financing related, including closing costs.

Stephen Kim, Analyst, Evercore ISI: Okay. What do you, how about forward purchase commitments specifically? Do you use them very much?

Linda Mamet, Executive Vice President and Chief Marketing Officer, Tri Pointe Homes: Stephen, this is Linda. Yes, we do. We primarily use forward commitments for advertising purposes, and they do have good value in driving additional interest in traffic. Ultimately, as Glenn said, most of our customers really don’t need to have a significantly lower interest rate to qualify for the home, so they prefer to use more of their incentive dollars in design studio personalization.

Stephen Kim, Analyst, Evercore ISI: Yeah. If you think of the third, let’s say the 35% or whatever that are financial incentives, how much of that third would you say is forward purchase commitments?

Linda Mamet, Executive Vice President and Chief Marketing Officer, Tri Pointe Homes: Oh, it’s very small, under 1%.

Stephen Kim, Analyst, Evercore ISI: Yeah, very small number. Okay. Awesome. Yeah, that’s great. Your average order ASP, not your closings ASP, but your order ASP has come down to, you know, call it, what is it, $654,000, I think, this quarter. Last quarter was like about $665,000. Is it reasonable to think that eventually your closings ASP is going to be at roughly that kind of level, you know, $650,000, $660,000?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: It is, Stephen. I mean, it’s the mix within the quarter does play a part. When you look at, you know, our growth next year of a lot of Central and East regions, those do carry a little bit lower of an ASP versus the West. It’s really just mix for us more than anything else.

Stephen Kim, Analyst, Evercore ISI: Gotcha. Appreciate the color, guys. Thanks.

Conference Operator: Our next question is from Jay McCanless with Wedbush Securities.

Jay McCanless, Analyst, Wedbush Securities: Hey, thanks for taking my questions. First one, the SG&A guide for the fourth quarter, it looks like you guys are getting much better leverage than what the top line would suggest. Are there some one-times in there? Can you talk about how you’re able to potentially get this very good SG&A to sales number?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: No real specific one-times there, Jay. It is just a little bit more, you know, more revenue in the quarter with a higher delivery number, and that’s what’s really driving it.

Jay McCanless, Analyst, Wedbush Securities: Okay. That was actually going to be my next question. The gross margin guide is better than we were expecting. Is there some mix in there, more move-up? Anything you can give us on that?

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: A little bit of mix. I think some of the divisions that continue to outperform are, you know, strong margin divisions, like when you look at like a Houston, Inland Empire in Southern California, you know, things like that have driven the mix of margin, you know, to our benefit. That plays a little part into it, Jay.

Jay McCanless, Analyst, Wedbush Securities: Okay. One more if I could, just kind of thinking about the newer markets y’all have discussed and just wondering what y’all think ASP might look like this next year, just given some of the smaller median price markets that you’re going to be expanding into.

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: We’ll give that guidance next time, Jay, as we kind of roll up the plan and see what that looks like. I don’t think you’re going to be too different than where we’re at this year.

Jay McCanless, Analyst, Wedbush Securities: No, we’re not getting significant contributions out of our new expansion divisions yet next year. It should have a minimal impact. Okay. Great. Appreciate it.

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Thanks.

Conference Operator: Our next question is from Alan Ratner with Zelman & Associates.

Alan Ratner, Analyst, Zelman & Associates: Hey, guys. Good morning. Thanks for all the details so far. Can you just update us on your spec position and strategy and how you’re thinking about spec just in terms of the contribution to the business? I guess just thinking forward to 2026, you’re going to enter the year with a backlog that’s down quite a bit. You know, are you going to lean heavily on spec next year to kind of bridge that gap, or is that kind of a TBD based on what happens in the spring?

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: It’s Doug, Alan. We’ve got about three-quarters of our orders running as specs as we go into the end of the year. All the builders have a little bit more inventory than what they anticipated. We’ll burn through that inventory going into the first quarter of next year and then get to a more balanced approach. Demand is very inelastic, and we’re going to continue to focus on price over pace as we go into the new year. We’re just assuming similar market conditions. What we’re really focused on is that strong community count growth. Even in similar market conditions, as I mentioned earlier, we’ll have really good order growth going into 2026 and then 2027. We’re really looking to the future while we’ve been dealing with some of the challenges the market has posed to the entire industry. That’s kind of how we’re looking at our approach.

Linda Mamet, Executive Vice President and Chief Marketing Officer, Tri Pointe Homes: To add to that, Alan, we did reduce our total spec inventory by 17% quarter over quarter.

Alan Ratner, Analyst, Zelman & Associates: Got it. Linda, is that total specs under construction or completed homes specifically?

Linda Mamet, Executive Vice President and Chief Marketing Officer, Tri Pointe Homes: Both together, 17%.

Alan Ratner, Analyst, Zelman & Associates: Got it. The total number. Perfect. Doug, you mentioned community count growth next year several times. I’m just curious, when you think about the pricing strategy there, obviously, you guys have been very steadfast in your approach. When you open up communities, how do you think about pricing on those? Is the intention to kind of maybe come out of the gate with more attractive pricing and build up a backlog as you and then raise prices through the lifecycle of the project, or are you kind of maintaining a similar strategy to your active communities? Like you have an idea of what the value is, and you’re going to come to market with that price, and you know whatever the absorption is, that’s what it’s going to be for the time being.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Yeah. No, Tri Pointe, you know, as you know, Alan, is more of a premium brand proposition. You know, we look at our value proposition as it enters the market. Sure, you love to start with some momentum, but there’s not any sort of material pricing thought process there because we’re building, you know, along Main and Main, great locations, close to employment, and great amenities. The value proposition is what we’re looking at. Frankly, as you said, I’m really, my lens is to the future. We’ve been dealing with choppy marketing conditions in my mind for about 18 months. If it’s more of the same next year, so be it, but we’re going to have a strong community count, and we’ll price the product appropriately to the marketplace to have the right value proposition that we propose.

Alan Ratner, Analyst, Zelman & Associates: Understood. Appreciate it. Thanks a lot.

Conference Operator: Our next question is from Michael Dahl with RBC Capital Markets.

Hi. This is Chris Hahn from Mike. Can you just talk through your initial thoughts around the administration’s affordable housing push? What conversations have you had to date, and how are you thinking about the opportunities and risks to your operating and capital allocation strategy?

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Yeah. No, obviously, several builders have already made comments on that, and we’re kind of the tail wagging the dog here, so to speak. We share the administration’s goal of providing more housing in the U.S. As Julie noted, the industry has been underbuilt and been doing this for 35 years. It kind of started after the great financial crisis. That makes me very old. We welcome working with the relevant stakeholders at the federal, state, and local levels. It’s a very complicated, interrelated discussion. Most of it happens at the local and state level, but we look forward to working with the administration wherever Tri Pointe Homes can help. We will build, we’ve got 32,000 lots that we own and control. We’re opening a very strong community count growth of up to 15% next year.

We’ll be doing our share of bringing in more communities that will be attainable for our buyer profile.

Makes sense. Yeah, the community count growth is definitely encouraging. Just shifting to the fourth-quarter gross margin guide, could you help bracket some of the big moving pieces or the moving pieces around the sequential step down in gross margin? How much of that is incremental incentives, mix, stick and brick? Just help frame that for us. Thank you.

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Yeah. This is Glenn. Good question. It’s not really sticks and bricks or anything like that. I think it’s a little bit of a mix, but also just, you know, we’ve increased incentives as we’ve gotten through the year. We have, you know, spec homes to sell and close within the quarter, and those generally carry a little bit higher of an incentive. All that kind of goes into that margin guide.

Got it. I appreciate the color. Thanks.

Conference Operator: Our next question is from Kenneth Zener with Seaport Research Partners.

Kenneth Zener, Analyst, Seaport Research Partners: Good morning, everybody.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Morning.

Kenneth Zener, Analyst, Seaport Research Partners: I am hoping you can walk us through kind of the logic, not giving guidance or anything, but just kind of understand the cadence. Looking at starts and orders, it looks like you guys did about 500 starts this quarter in the third quarter versus orders that were higher than that. As we exit the year, how are you thinking about starts versus orders? Your inventory is down, units are down about 30% year over year. I’m just trying to understand, since you’re talking about opening communities. Doug, I think you just said upwards of 15%, or is that what you had said as well, community count growth next year?

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: We indicated that.

Kenneth Zener, Analyst, Seaport Research Partners: Potentially.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: We indicated that community count growth will be 10% to 15%.

Kenneth Zener, Analyst, Seaport Research Partners: I’m just trying to see how we actually get these, right, the units in the ground, which could portend future closings. That’s why I’m focusing on the starts versus the order and how you’re thinking about that. Thank you.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Yeah, Ken. This is Tom. It’s a great place to focus on, as we’ve been focused on it as well. As Doug mentioned earlier in the Q&A, we’re focused on getting our business back to a more balanced approach of spec to-be-built. You’re right on with our starts for Q3 was about 577, and that’s down significantly from where we were in Q1 and Q2. Again, it’s relative to that balanced approach. I think you’ll see Q4 starts more comparable with what Q3 was just because of the amount of in-process, under-construction homes that we have available. That’s our number one goal, to move through that inventory. After that, we’ll move to a more normalized strategy, which takes into account absorption on a community-by-community basis.

Kenneth Zener, Analyst, Seaport Research Partners: Appreciate it, Tom. I just, what I heard you say, four-Q starts is going to be similar to three-Q. Is that right? I mean, that means you’re ending inventory. I’m just trying to imagine the growth you’re having community count with the actual contraction in your, you know, inventory units. I guess I’m trying to think if there’s some greater inflection that I don’t understand.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: No, I don’t think you’re missing anything there. I mean, as you look at it on a community-by-community basis, obviously, when we’re moving into new communities, we’re making the necessary starts relative to our anticipated demand. Right. Where we have existing communities, obviously, we have excess inventory that we’re going to be working through before we move to a more normalized, balanced start strategy.

Kenneth Zener, Analyst, Seaport Research Partners: Great. Appreciate it. On the community count growth, is most of that G&A, the fixed G&A, already kind of loaded in there? Is there any big lift we should expect there? Thank you.

Glenn Keeler, Chief Financial Officer, Tri Pointe Homes: Not too much of a lift on the G&A side. Maybe some incremental, that’s more field and sales that will be needed to open those communities, but yeah.

Kenneth Zener, Analyst, Seaport Research Partners: Thank you, guys. Bye-bye.

Conference Operator: Thank you. There are no further questions at this time. I’d like to turn the floor back over to Doug Bauer for closing remarks.

Doug Bauer, Chief Executive Officer, Tri Pointe Homes: Thank you, everybody, for joining us today. We’re looking forward to sharing our growth plan and strategy for 2026 and beyond with you at our next quarter’s call. As we go into 2026, we’re very excited and bullish about the future for housing. Thank you and talk to you next quarter.

Conference Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this point.

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