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Core Insights - Taylor Morrison Home Corporation emphasizes its competitive advantage through a strong consumer focus, which has led to recognition as America's most trusted builder for eleven consecutive years and inclusion in Fortune's most admired companies list [1] - The company has effectively navigated a challenging market characterized by lower consumer confidence and increased competition by leveraging its diverse operating model and broad consumer reach [2] Financial Performance - In 2025, the company reported a net income of $783 million, or $7.77 per diluted share, with an adjusted net income of $830 million, or $8.24 per diluted share [23] - The fourth-quarter results included a net income of $174 million, or $1.76 per diluted share, and an adjusted net income of $188 million, or $1.91 per diluted share [23] - The company achieved a 13% return on equity and a 14% growth in book value per share, supported by $381 million in share repurchases [3] Sales and Orders - In the fourth quarter, net orders totaled 2,499 homes, down 5% year-over-year, with a monthly absorption pace of 2.4 homes per community [24] - The company delivered 12,997 homes in 2025, generating approximately $7.8 billion in home closings revenue, with an average closing price of $597,000 [26] - The sales mix included 31% entry-level, 49% move-up, and 20% resort lifestyle buyers, with strong sales in Florida, California, and Phoenix [7] Market Conditions and Strategy - The company anticipates a solid year in 2026, focusing on new community openings, with over 100 new outlets planned, including more than 20 Esplanade communities [9][10] - Inventory management remains a priority, with a 24% reduction in spec home inventory since 2025, although nearly 3,000 unsold homes remain [11] - The company is shifting focus away from non-core submarkets to concentrate on move-up and resort lifestyle segments, which are expected to yield higher returns [13][14] Operational Efficiency - The company has improved construction cycle times, allowing for greater production flexibility and the ability to start homes later in the year while still closing by year-end [10] - The SG&A ratio was 9.5% for the full year, reflecting a 40 basis-point improvement compared to 2024, driven by lower payroll-related costs and efficiencies from digital tools [30] Future Outlook - The company expects to deliver around 11,000 homes in 2026, with an average closing price projected between $580,000 and $590,000 [27] - Gross margins are expected to improve gradually throughout the year, driven by an increase in the share of to-be-built home deliveries [29] - The company maintains a strong liquidity position of approximately $1.8 billion, including $850 million in unrestricted cash [32]

Financial Data and Key Metrics Changes - In Q4 2025, reported net income was $174 million or $1.76 per diluted share, while adjusted net income was $188 million or $1.91 per diluted share [24] - For the full year 2025, reported net income was $783 million or $7.77 per diluted share, with adjusted net income at $830 million or $8.24 per diluted share [24] - The company achieved a 13% return on equity and a 14% growth in book value per share [5] Business Line Data and Key Metrics Changes - In Q4 2025, net orders totaled 2,499 homes, down 5% year-over-year, with a monthly absorption pace of 2.4 homes per community [24][25] - Home closings revenue for Q4 was approximately $2 billion, with an average closing price of $596,000 [25][26] - The home closings gross margin was 21.8%, slightly above prior guidance, but down from 24.8% in Q4 2024 [29] Market Data and Key Metrics Changes - Sales were strongest in the east and west areas, particularly in Florida, California, and Phoenix, while the central region, especially Texas, showed slower performance [11] - The company entered 2026 with a backlog of just over 2,800 homes, lower than normal due to slower sales of to-be-built homes in 2025 [11] Company Strategy and Development Direction - The company plans to accelerate the number of new community openings in 2026, with over 100 new outlets planned, including more than 20 new Esplanade outlets [12] - The focus will be on move-up and resort lifestyle segments, with a strategic shift away from non-core submarkets that cater to price-sensitive buyers [14][15] - The company aims to reach 20,000 closings in the long term, emphasizing attractive returns on invested capital [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales success in Q4 2025 and early momentum in 2026, despite elevated inventory levels and competitive pricing dynamics [9][10] - Consumer confidence in the economic outlook is deemed critical for demand recovery, with management noting improvements in affordability and wage growth [9] Other Important Information - The company repurchased 1.2 million shares for $71 million in Q4 2025, totaling 6.5 million shares for approximately $381 million for the full year [32] - The company maintains strong liquidity of approximately $1.8 billion, including $850 million in unrestricted cash [32] Q&A Session Summary Question: Long-term view on business mix and geographies - Management expects a slight decrease in entry-level mix but will continue to focus on professional first-time buyers, particularly millennials [39][40] Question: Spec versus to-be-built mix - Management is encouraged by the shift towards to-be-built sales but does not expect a 50/50 mix in 2026 [43][44] Question: Esplanade community growth and absorption rates - Absorption rates in Esplanade communities are consistent with the overall business, with no significant change expected [51] Question: Construction cost outlook - Management anticipates stable construction costs but is monitoring lumber prices and other potential cost increases [53][54] Question: Land investment strategy - The company is shifting focus back to core markets for land investments, finding better opportunities in move-up and resort lifestyle segments [82]

Financial Data and Key Metrics Changes - In Q4 2025, reported net income was $174 million or $1.76 per diluted share, while adjusted net income was $188 million or $1.91 per diluted share, reflecting a solid performance despite market challenges [25][26] - For the full year 2025, reported net income was $783 million or $7.77 per diluted share, with adjusted net income at $830 million or $8.24 per diluted share [25][26] - The company achieved a 13% return on equity and a 14% growth in book value per share [5] Business Line Data and Key Metrics Changes - The company delivered nearly 13,000 homes in 2025 with an adjusted home closings gross margin of 23% [5] - In Q4, net orders totaled 2,499 homes, down 5% YoY, driven by a moderation in monthly absorption pace [25][26] - The average price of homes delivered in Q4 was $596,000, generating approximately $2 billion in home closings revenue [26] Market Data and Key Metrics Changes - Sales were strongest in the east and west regions, particularly in Florida, California, and Phoenix, while the central region, especially Texas, showed slower performance [11] - The company experienced a 7% YoY net order growth in its Esplanade resort lifestyle communities, while move-up sales saw a low single-digit decline [10] Company Strategy and Development Direction - The company plans to accelerate new community openings in 2026, with over 100 new outlets expected, including more than 20 new Esplanade outlets [12][13] - A focus on the move-up and resort lifestyle segments is emphasized, with a strategic shift away from non-core submarkets that cater to price-sensitive buyers [15][16] - The company aims to maintain a controlled ratio of at least 65% for home-building lots to optimize capital efficiency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales success in Q4 2025 and early momentum in 2026, despite ongoing affordability constraints and elevated inventory levels [9][11] - The company anticipates that consumer confidence in the economic and political outlook will be critical for demand recovery [9] - Management highlighted the importance of understanding consumer needs and preferences, which has contributed to the company's reputation as a trusted builder [8] Other Important Information - The company repurchased 1.2 million shares for $71 million in Q4 2025, totaling 6.5 million shares for approximately $381 million for the full year [33] - The company ended Q4 with strong liquidity of approximately $1.8 billion, including $850 million in unrestricted cash [32] Q&A Session Summary Question: Long-term view on business mix and geographies - Management expects a slight decrease in the entry-level mix, focusing on core markets and avoiding fringe locations that attract different buyers [40][41] Question: Spec versus to-be-built mix - Management aims for a more balanced mix, potentially reaching a 50/50 split between spec and to-be-built homes over time, though achieving this in 2026 may be challenging [44][46] Question: Absorption rates in new communities - New communities are performing well, with strong interest and sales, indicating positive absorption trends compared to legacy communities [63] Question: Construction cost outlook - Management anticipates stable construction costs but is monitoring potential increases in lumber prices and other cost factors [54][56] Question: Incentives and gross margin guidance - Incentives were relatively flat from Q4 to Q1, with expectations for gross margins to improve gradually as the mix shifts towards to-be-built homes [60][62]

Financial Data and Key Metrics Changes - In Q4 2025, reported net income was $174 million or $1.76 per diluted share, while adjusted net income was $188 million or $1.91 per diluted share, reflecting a solid performance despite market challenges [25][26] - For the full year 2025, reported net income was $783 million or $7.77 per diluted share, with adjusted net income at $830 million or $8.24 per diluted share, indicating strong overall financial health [25][26] - The company achieved a return on equity of 13% and a 14% growth in book value per share [5] Business Line Data and Key Metrics Changes - The company delivered nearly 13,000 homes in 2025 with an adjusted home closings gross margin of 23% [5] - In Q4 2025, net orders totaled 2,499 homes, down 5% year-over-year, driven by a moderation in monthly absorption pace [25][26] - The average price of homes delivered in Q4 was $596,000, generating approximately $2 billion in home closings revenue [26] Market Data and Key Metrics Changes - Sales were strongest in the east and west areas, particularly in Florida, California, and Phoenix, while the central region, especially Texas, showed slower performance [10] - The company experienced a 7% year-over-year net order growth in its Esplanade resort lifestyle communities, contrasting with declines in other segments [10] Company Strategy and Development Direction - The company plans to accelerate new community openings in 2026, with over 100 new outlets planned, including more than 20 new Esplanade outlets [12] - The focus will shift towards serving more discerning entry-level demand and enhancing the build-to-rent platform, Yardly, to meet affordable housing needs [15][22] - The company aims to concentrate efforts on core markets and limit investments in non-core submarkets to optimize capital efficiency [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales momentum in early 2026, despite ongoing market challenges such as elevated inventory levels and consumer confidence issues [8][9] - The company anticipates that the spring selling season will be critical for home closing deliveries and margins, with expectations for gradual margin improvement throughout the year [30][31] Other Important Information - The company repurchased 1.2 million shares for $71 million in Q4 2025, totaling 6.5 million shares for approximately $381 million for the full year [33] - The board approved an increase in the share repurchase authorization to $1 billion, reflecting a commitment to return excess capital to shareholders [33] Q&A Session Summary Question: Long-term view on business mix and geographies - Management expects a slight decrease in entry-level buyer mix, focusing on core markets like Florida and Texas while pulling back from California due to underwriting constraints [40][42] Question: Spec versus to-be-built mix - The intention is to gradually shift back towards a more balanced mix, with a target of 50/50 over time, though achieving this in 2026 may be challenging [43][46] Question: Absorption rates in new communities - New communities are performing well, with strong interest and sales activity, indicating positive momentum as the spring selling season approaches [64] Question: Construction cost outlook - While construction costs are expected to remain stable, there are concerns about potential increases in lumber prices and other materials [56] Question: Incentives and gross margin guidance - Incentives were relatively flat from Q4 to Q1, with expectations for gross margins to improve as the mix shifts towards to-be-built homes [78][80]

Investor Presentation Fourth Quarter 2025 About Taylor Morrison (NYSE: TMHC) We are backed by a reputation for an exceptional customer experience and a commitment to our teams and communities Our portfolio of brands offers for-sale and for-rent housing in distinctive communities, complemented by financial services Headquartered in Scottsdale, AZ Leading builder with operations across 12 states Diverse product offerings in prime locations Experienced leadership team Balanced operating model delivers strong f ...

分组1 - Taylor Morrison Home (TMHC) reported quarterly earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, but down from $2.64 per share a year ago, representing an earnings surprise of +10.56% [1] - The company achieved revenues of $2.1 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.63%, compared to year-ago revenues of $2.36 billion [2] - Taylor Morrison shares have increased approximately 12.8% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $1.58 billion, and for the current fiscal year, it is $6.74 on revenues of $7.45 billion [7] - The Zacks Industry Rank indicates that the Building Products - Home Builders sector is currently in the bottom 2% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

CONTACT: Mackenzie Aron Vice President, Investor Relations (407) 906-6262 investor@taylormorrison.com Taylor Morrison Reports Fourth Quarter and Full Year 2025 Results SCOTTSDALE, Ariz., February 11, 2026—Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the fourth quarter and full year ended December 31, 2025. For the fourth quarter, reported net income was $174 million, or $1.76 per diluted share, while adjusted net income was $188 mill ...

Core Insights - Taylor Morrison Home Corporation reported strong financial results for Q4 and full year 2025, with net income of $174 million for Q4 and $783 million for the full year, reflecting resilience in challenging market conditions [1][2][3] Financial Performance - Q4 2025 net income was $174 million, or $1.76 per diluted share; adjusted net income was $188 million, or $1.91 per diluted share [1] - Full year 2025 reported net income was $783 million, or $7.77 per diluted share; adjusted net income was $830 million, or $8.24 per diluted share [1] - Home closings revenue for Q4 was $1.96 billion, a 10% decrease from the previous year, driven by an 8% decline in closings volume [2][4] - For the full year, home closings revenue was $7.76 billion, essentially flat compared to 2024 [2][4] Operational Highlights - In Q4 2025, the company achieved 3,285 closings at an average sales price of $596,000, while for the full year, there were 12,997 closings at an average sales price of $597,000 [1][4] - The backlog at the end of Q4 was 2,819 homes with a sales value of $1.9 billion, with cancellations at 9.9% of beginning backlog [2][4] - The company maintained a total liquidity of $1.8 billion, including $928 million available on its revolving credit facility [2][3] Strategic Initiatives - The company plans to limit future investments in non-core submarkets and refocus on its core first-and-second move-up segment [1][2] - Taylor Morrison's Board of Directors has increased the stock repurchase program to $1 billion, set to expire on December 31, 2027 [2][3] Market Outlook - The company anticipates approximately 2,200 home closings in Q1 2026 and around 11,000 for the full year, with an average closing price expected between $580,000 to $590,000 [1][2] - The effective tax rate for 2026 is projected to be approximately 25.0% [1][2]

Core Viewpoint - Taylor Morrison Home Corporation (NYSE:TMHC) is recognized as one of the best affordable housing stocks, but recent downgrades and EPS estimates suggest potential challenges ahead [1][3]. Group 1: Company Performance and Strategy - In its 2025 third-quarter earnings call, Taylor Morrison reported solid results and introduced an AI-powered digital assistant aimed at improving the homebuying experience through data-driven guidance [3]. - The company currently owns or controls 84,564 homebuilding lots and plans to open over 100 new communities in the upcoming year, indicating ongoing portfolio expansion [3]. - Founded in July 2007 and headquartered in Scottsdale, Arizona, Taylor Morrison is one of the largest homebuilders in the U.S., focusing on single-family homes and master-planned communities [4]. Group 2: Market Position and Analyst Insights - Taylor Morrison has a forward P/E ratio of 9.97, ranking 4th among the best affordable housing stocks to buy [1]. - BofA downgraded Taylor Morrison from Buy to Neutral, raising the price target to $70 from $68, while lowering 2026 EPS estimates by 6%, now approximately 18% below consensus [1]. - Despite its attractive valuation, BofA highlighted downside risks related to potential lower deliveries compared to peers [1].