Financial Data and Key Metrics Changes - The company reported net income of $194 million or $1.92 per diluted share, up from $1.86 a year ago [21] - Adjusted net income was $204 million or $2.20 per diluted share, up from $1.97 a year ago [21] - Home closings revenue increased 2% to approximately $2 billion, with a 2% decline in average closing price to $589,000 [22] - The adjusted home closings gross margin was 23%, in line with prior guidance, while the overall gross margin was 22.3% [24][25] Business Line Data and Key Metrics Changes - The company delivered 3,340 homes, with 71% of sales coming from spec homes, an increase from 58% in the prior quarter [21][11] - The share of closings from specs increased from 59% a year ago [21] - The second quarter orders consisted of 33% entry-level, 50% move-up, and 17% resort lifestyle [11] Market Data and Key Metrics Changes - The overall cancellation rate was 14.6% of gross orders, up from 9.4% a year ago, reflecting a change in consumer confidence [26] - The average credit score among buyers using Taylor Morrison home funding was 751, with a down payment of 22% and household income of $188,000 [28] Company Strategy and Development Direction - The company emphasizes a balanced portfolio of to-be-built and spec homes, primarily in attractive core submarkets [10] - The strategy includes prioritizing capital efficiency and returns over volume in a competitive marketplace [13] - The company plans to continue expanding its Esplanade brand, which has shown resilience in sales [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the sales environment has been impacted by consumer confidence, with buyers prioritizing deals and incentives [66] - The company expects to maintain a higher concentration of spec homes in the near term due to consumer preferences [35] - Management believes the need for affordable new construction remains intact across markets, despite current headwinds [13] Other Important Information - The company has a liquidity of approximately $1.1 billion, including $130 million of unrestricted cash [28] - The company repurchased 1.7 million shares for $100 million during the quarter, with a remaining repurchase authorization of $675 million [29] Q&A Session Summary Question: Spec mix in the quarter - Management indicated that the increase in spec sales was driven by consumer preferences for inventory homes and the current market environment [35][36] Question: Gross margin expectations - Management expects Q3 gross margin to be around 22%, with Q4 expected to be approximately 22% as well [43] Question: $3 billion facility with Kennedy Lewis - The facility is intended to provide balance sheet relief and greater optionality for asset disposition, serving both existing and new acquisitions [48][51] Question: Absorption pace and market conditions - Management noted that the absorption pace is influenced by consumer confidence and market conditions, with expectations for a stable pace in the near term [66][82] Question: Cancellation rates - Cancellations were noted to be higher due to various factors, including buyers finding better deals elsewhere, but overall rates remain below industry averages [94][95]

Financial Performance & Key Metrics - Home closings revenue reached $2.0 billion[2] - The average home closing price was $589,000[2] - Total revenue was $2.03 billion, a 2% year-over-year increase[3] - Home closings increased by 4% year-over-year, totaling 3,340[3] - Adjusted home closings gross margin was 23.0%[2], a decrease of 90 bps year-over-year[3] - Net sales orders decreased by 12% year-over-year, totaling 2,733[3] Land Portfolio & Liquidity - Total homebuilding lots amounted to 85,051, with 60% controlled[2] - Total liquidity stood at $1.1 billion[2] - Net homebuilding debt-to-capital ratio was 22.9%[3] Future Outlook - The company anticipates repurchasing at least $350 million of common stock in 2025[5,14]

Company Performance - Taylor Morrison Home (TMHC) reported quarterly earnings of $2.02 per share, exceeding the Zacks Consensus Estimate of $1.94 per share, and showing an increase from $1.97 per share a year ago, resulting in an earnings surprise of +4.12% [1] - The company achieved revenues of $2.03 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.35%, and up from $1.99 billion year-over-year [2] - Over the last four quarters, Taylor Morrison has consistently surpassed consensus EPS estimates [2] Stock Performance - Taylor Morrison shares have increased approximately 9.2% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.05 on revenues of $2.05 billion, while for the current fiscal year, the estimate is $8.23 on revenues of $8.06 billion [7] - The outlook for the Building Products - Home Builders industry is currently in the bottom 21% of Zacks industries, which may negatively impact stock performance [8]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) The company delivered strong financial results in Q2 2025, meeting or exceeding expectations through a diversified product portfolio and strategic focus on profitability and capital efficiency [Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Taylor Morrison achieved **$194 million** in net income and **$1.92** diluted EPS in Q2 2025, with adjusted net income of **$204 million** and **$2.02** adjusted diluted EPS, meeting or exceeding expectations in the current market Q2 2025 Key Financial Metrics | Metric | Amount | | :--- | :--- | | Reported Net Income | $194 Million | | Diluted EPS | $1.92 | | Adjusted Net Income | $204 Million | | Adjusted Diluted EPS | $2.02 | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Sheryl Palmer highlighted the company's diversified product portfolio and balanced strategy, prioritizing price, profit, and returns in a competitive sales environment while creating value through attractive land positions and personalized incentives - The company's performance benefits from a diversified product portfolio, serving a broad and qualified consumer base with custom and ready-to-move-in options, concentrated in core areas to enhance financial resilience[4](index=4&type=chunk) - In the current sales environment, the company's strategy prioritizes **price, profit, and returns**, leveraging attractive land positions, desirable communities, and personalized incentives to create value[5](index=5&type=chunk) - Demand for affordable new homes persists, with the company prioritizing **capital efficiency and returns**, planning accelerated growth upon market stabilization, and returning capital to shareholders through a healthy land pipeline and balance sheet[7](index=7&type=chunk) [Key Metrics Overview](index=1&type=section&id=Key%20Metrics%20Overview) In Q2 2025, home closings revenue grew **2%** to **$2.0 billion** with **4%** volume growth, offset by a **2%** average price decrease, while net sales orders declined **12%** and SG&A leveraged **90 basis points** to **9.3%** of home closings revenue Q2 2025 Operational and Financial Metrics | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Home Closings Revenue | $2.0 Billion | +2% | | Closings Volume | 3,340 | +4% | | Average Closing Price | $589,000 | -2% | | Home Closings Gross Margin | 22.3% | - | | Adjusted Home Closings Gross Margin | 23.0% | - | | SG&A as % of Home Closings Revenue | 9.3% | Leveraged 90 bps | | Net Sales Orders | 2,733 | -12% | | Monthly Absorption Pace per Community | 2.6 | Down from 3.0 | | Ending Active Selling Communities | 345 | -1% | | Owned and Controlled Homebuilding Lots | 85,051 | - | | Off-Balance Sheet Control % | 60% | Up from 57% | | Total Homebuilding Land Spend | $612 Million | - | | Common Stock Repurchased | 1.7 Million Shares | - | | Total Liquidity | $1.1 Billion | - | [Second Quarter Business Highlights](index=2&type=section&id=Second%20Quarter%20Business%20Highlights) The second quarter saw growth in home closings revenue and strategic land investments, alongside a strong balance sheet and capital allocation efforts [Homebuilding Operations](index=2&type=section&id=Homebuilding%20Operations) In Q2 2025, home closings revenue increased **2%** to **$2.0 billion** driven by **4%** volume growth, partially offset by a **2%** decrease in average closing price, while net sales orders declined **12%** and cancellation rates significantly rose Homebuilding Operational Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Home Closings Revenue | $2.0 Billion | $1.92 Billion | +2% | | Closings Volume | 3,340 | 3,200 | +4% | | Average Closing Price | $589,000 | $600,000 | -2% | | Home Closings Gross Margin | 22.3% | 23.8% | -150 bps | | Adjusted Home Closings Gross Margin | 23.0% | 23.9% | -90 bps | | Net Sales Orders | 2,733 | 3,111 | -12% | | Monthly Absorption Pace | 2.6 | 3.0 | Down | | Ending Community Count | 345 | 347 | -1% | | Cancellation Rate (as % of Gross Orders) | 14.6% | 9.4% | Up | | Cancellation Rate (as % of Beginning Backlog) | 9.2% | 5.2% | Up | | SG&A as % of Home Closings Revenue | 9.3% | 10.2% | Leveraged 90 bps | | Homes in Backlog | 4,461 | 6,256 | -28.7% | | Backlog Sales Value | $2.9 Billion | $4.2 Billion | -30.0% | [Land Portfolio](index=2&type=section&id=Land%20Portfolio) The company invested **$612 million** in homebuilding land, with **43%** for development and **57%** for acquisitions, increasing total residential lots to **85,051**, **60%** of which are off-balance sheet controlled, representing a **6.4-year** total land supply Land Portfolio Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Homebuilding Land Investment | $612 Million | $611 Million | +0.2% | | Of which: Development-related | $264 Million (43%) | - | - | | Of which: Land Acquisitions | $348 Million (57%) | - | - | | Total Residential Lots | 85,051 | 80,677 | +5.4% | | Off-Balance Sheet Control % | 60% | 57% | +3 Percentage Points | | Total Land Supply (based on LTM closings) | 6.4 Years | - | - | | Owned Land Supply | 2.6 Years | - | - | [Financial Services](index=2&type=section&id=Financial%20Services) Mortgage capture rate slightly decreased to **87%** from **89%** year-over-year, with borrowers maintaining strong credit profiles, an average FICO score of **751**, and an average debt-to-income ratio of **40%** Financial Services Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Mortgage Capture Rate | 87% | 89% | -2 Percentage Points | | Average FICO Score | 751 | - | - | | Average Debt-to-Income Ratio | 40% | - | - | [Balance Sheet and Capital Allocation](index=3&type=section&id=Balance%20Sheet) At quarter-end, total liquidity was approximately **$1.1 billion**, including **$952 million** in revolving credit capacity, with a homebuilding gross debt-to-capital ratio of **24.2%** and net debt-to-capital ratio of **22.9%**, alongside **$100 million** in common stock repurchases Balance Sheet and Capital Allocation Highlights | Metric | Q2 2025 | | :--- | :--- | | Total Liquidity | $1.1 Billion | | Total Revolving Credit Facility Capacity | $952 Million | | Homebuilding Gross Debt-to-Capital Ratio | 24.2% | | Homebuilding Net Debt-to-Capital Ratio | 22.9% | | Common Stock Repurchased (this quarter) | 1.7 Million Shares | | Value of Stock Repurchased (this quarter) | $100 Million | | Remaining Stock Repurchase Authorization | $675 Million | [Business Outlook](index=3&type=section&id=Business%20Outlook) The company provides its outlook for Q3 and full-year 2025, projecting home closings, average prices, gross margins, and capital allocation plans [Third Quarter 2025 Outlook](index=3&type=section&id=Third%20Quarter%202025%20Outlook) Taylor Morrison anticipates Q3 2025 home closings between **3,200** and **3,300** units, an average closing price of approximately **$600,000**, GAAP home closings gross margin around **22%**, and ending active communities between **340** and **345** Q3 2025 Guidance | Metric | Q3 2025 Outlook | | :--- | :--- | | Home Closings Volume | 3,200 - 3,300 | | Average Closing Price | Approx. $600,000 | | GAAP Home Closings Gross Margin | Approx. 22% | | Ending Active Community Count | 340 - 345 | | Effective Tax Rate | Approx. 25% | | Diluted Share Count | Approx. 100 Million Shares | [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) For full-year 2025, the company projects home closings between **13,000** and **13,500** units, average closing prices from **$595,000** to **$600,000**, GAAP home closings gross margin around **22.5%**, and at least **$350 million** in stock repurchases Full Year 2025 Guidance | Metric | Full Year 2025 Outlook | | :--- | :--- | | Home Closings Volume | 13,000 - 13,500 | | Average Closing Price | $595,000 - $600,000 | | GAAP Home Closings Gross Margin | Approx. 22.5% | | Adjusted Home Closings Gross Margin | Approx. 23% | | Ending Active Community Count | Approx. 350 | | SG&A as % of Home Closings Revenue | Mid-to-High 9% Range | | Effective Tax Rate | 24.5% - 25.0% | | Diluted Share Count | Approx. 101 Million Shares | | Homebuilding Land Acquisition and Development Investment | Approx. $2.4 Billion | | Stock Repurchases | At least $350 Million | [Financial Statements & Corporate Information](index=4&type=section&id=Financial%20Tables%20%26%20Corporate%20Information) This section provides a quarterly financial comparison, details on the earnings conference call, an overview of Taylor Morrison, and important forward-looking statements [Quarterly Financial Comparison](index=4&type=section&id=Quarterly%20Financial%20Comparison) Q2 2025 total revenue increased **2.0%** year-over-year to **$2.03 billion**, with home closings gross margin decreasing **150 basis points** to **22.3%**, while SG&A as a percentage of home closings revenue improved **90 basis points** to **9.3%** Quarterly Income Statement Comparison | (in Thousands) | Q2 2025 | Q2 2024 | Q2 2025 vs. Q2 2024 | | :--- | :--- | :--- | :--- | | Total Revenue | $2,030,070 | $1,991,053 | 2.0% | | Home Closings Revenue, Net | $1,966,100 | $1,920,127 | 2.4% | | Home Closings Gross Margin | $439,200 (22.3%) | $457,421 (23.8%) | (4.0%) (Down 150 bps) | | Adjusted Home Closings Gross Margin | $452,822 (23.0%) | $459,746 (23.9%) | (1.5%) (Down 90 bps) | | Selling, General and Administrative Expenses | $183,044 | $196,735 | (7.0%) | | As % of Home Closings Revenue | 9.3% | 10.2% | Leveraged 90 bps | [Earnings Conference Call Webcast](index=4&type=section&id=Earnings%20Conference%20Call%20Webcast) Taylor Morrison will host an earnings conference call on July 23, 2025, at 8:30 AM ET to discuss its Q2 2025 results, offering a live audio webcast and requiring registration for dial-in access - The company will host a conference call on **July 23, 2025, at 8:30 AM ET** to discuss Q2 2025 results, providing a live audio webcast[16](index=16&type=chunk) - Participants must register to receive dial-in information, and a replay of the call will be available on the company's website[16](index=16&type=chunk) [About Taylor Morrison](index=4&type=section&id=About%20Taylor%20Morrison) Headquartered in Scottsdale, Arizona, Taylor Morrison is a leading U.S. homebuilder and developer serving diverse buyer segments, recognized as 'America's Most Trusted® Home Builder' for ten consecutive years, and committed to sustainable operations - Taylor Morrison is a leading U.S. homebuilder and developer, serving a broad consumer base including first-time, move-up, and resort lifestyle homebuyers and renters[17](index=17&type=chunk) - The company has been recognized by Lifestory Research as 'America's Most Trusted® Home Builder' for **ten consecutive years** from 2016 to 2025[17](index=17&type=chunk) - The company is committed to long-term sustainable operations, as highlighted in its annual Sustainability and Belonging Report[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This earnings summary contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially, including inflation, economic conditions, housing market downturns, and regulatory changes, with investors advised to consult SEC filings for detailed risk factors - This earnings summary contains forward-looking statements, identifiable by words like 'expect,' 'estimate,' or 'anticipate,' which are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[19](index=19&type=chunk) - Risk factors include inflation, economic conditions, housing market downturns, homebuyers' financing ability, rising interest rates, labor shortages, increased cancellation rates, industry competition, climate change impacts, changes in government regulations, and reliance on subcontractors[20](index=20&type=chunk)[21](index=21&type=chunk) - The company undertakes no obligation to update any forward-looking statements unless required by applicable law, advising investors to consult its latest 10-K annual report and subsequent quarterly reports filed with the SEC[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of operations and balance sheets, detailing the company's financial performance and position for the quarter and year-to-date [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, the company reported **$2.03 billion** in total revenue, **$467.5 million** in gross profit, **$193.6 million** in net income, and **$1.92** diluted EPS, with six-month totals of **$3.926 billion** revenue and **$407 million** net income Condensed Consolidated Statements of Operations | (in Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $2,030,070 | $1,991,053 | $3,926,089 | $3,690,805 | | Gross Profit | $467,488 | $472,288 | $930,762 | $889,133 | | Income Before Income Taxes | $263,263 | $267,217 | $541,832 | $516,097 | | Net Income | $193,577 | $199,460 | $407,043 | $389,730 | | Diluted Earnings Per Share | $1.92 | $1.86 | $3.99 | $3.61 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$9.451 billion**, with total real estate inventory at **$6.506 billion**, cash and equivalents at **$130.2 million**, total liabilities at **$3.393 billion**, and total stockholders' equity at **$6.058 billion** Condensed Consolidated Balance Sheets | (in Thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $9,450,644 | $9,297,131 | | Cash and Cash Equivalents | $130,174 | $487,151 | | Total Real Estate Inventory | $6,505,862 | $6,234,084 | | Total Liabilities | $3,392,782 | $3,418,951 | | Senior Notes, Net | $1,471,333 | $1,470,454 | | Total Stockholders' Equity | $6,057,862 | $5,878,180 | [Operational Data by Segment](index=8&type=section&id=Operational%20Data%20by%20Segment) This section provides a regional breakdown of key operational metrics, including home closings, net sales orders, sales order backlog, and active selling community counts [Homes Closed and Home Closings Revenue, Net](index=8&type=section&id=Homes%20Closed%20and%20Home%20Closings%20Revenue%2C%20Net) In Q2 2025, total home closings increased **4.4%** year-over-year to **3,340** units, generating **$1.966 billion** in net revenue, up **2.4%**, despite a **1.8%** decrease in average selling price to **$589,000**, with the West segment showing **5.4%** revenue growth Homes Closed and Revenue by Segment | Metric (Q2 2025) | Total | East | Central | West | | :--- | :--- | :--- | :--- | :--- | | Homes Closed | 3,340 (+4.4% YoY) | 1,325 (+7.1% YoY) | 925 (+7.1% YoY) | 1,090 (-0.8% YoY) | | Home Closings Revenue, Net | $1,966,100 (+2.4% YoY) | $695,198 (+0.6% YoY) | $481,786 (+0.3% YoY) | $789,116 (+5.4% YoY) | | Average Selling Price | $589 (-1.8% YoY) | $525 (-6.1% YoY) | $521 (-6.3% YoY) | $724 (+6.3% YoY) | [Net Sales Orders](index=8&type=section&id=Net%20Sales%20Orders) In Q2 2025, net sales orders decreased **12.2%** year-over-year to **2,733** units, with sales value down **17.5%** to **$1.543 billion**, reflecting significant declines in both Central and West segments Net Sales Orders by Segment | Metric (Q2 2025) | Total | East | Central | West | | :--- | :--- | :--- | :--- | :--- | | Net Sales Orders | 2,733 (-12.2% YoY) | 1,147 (-1.1% YoY) | 731 (-10.3% YoY) | 855 (-24.7% YoY) | | Sales Value | $1,543,238 (-17.5% YoY) | $588,529 (-4.6% YoY) | $355,673 (-26.7% YoY) | $599,036 (-22.0% YoY) | | Average Selling Price | $565 (-6.0% YoY) | $513 (-3.6% YoY) | $487 (-18.2% YoY) | $701 (+3.7% YoY) | [Sales Order Backlog](index=9&type=section&id=Sales%20Order%20Backlog) As of June 30, 2025, total sales order backlog decreased **28.7%** year-over-year to **4,461** units, with sales value down **30.0%** to **$2.939 billion**, reflecting significant declines across all regions Sales Order Backlog by Segment | Metric (as of June 30, 2025) | Total | East | Central | West | | :--- | :--- | :--- | :--- | :--- | | Homes in Backlog | 4,461 (-28.7% YoY) | 1,840 (-21.9% YoY) | 888 (-37.6% YoY) | 1,733 (-30.0% YoY) | | Sales Value | $2,938,512 (-30.0% YoY) | $1,179,529 (-28.1% YoY) | $514,330 (-41.2% YoY) | $1,244,653 (-26.0% YoY) | | Average Selling Price | $659 (-1.8% YoY) | $641 (-8.0% YoY) | $579 (-5.9% YoY) | $718 (+5.7% YoY) | [Ending Active Selling Communities](index=9&type=section&id=Ending%20Active%20Selling%20Communities) As of June 30, 2025, the total number of ending active selling communities slightly decreased **0.6%** year-over-year to **345**, with an increase in the East and slight declines in Central and West regions Ending Active Selling Communities by Region | Region | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | East | 135 | 122 | 10.7% | | Central | 95 | 106 | (10.4%) | | West | 115 | 119 | (3.4%) | | Total | 345 | 347 | (0.6%) | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for various non-GAAP financial measures, offering additional insights into the company's performance and financial leverage [Introduction to Non-GAAP Measures](index=9&type=section&id=Introduction%20to%20Non-GAAP%20Measures) Taylor Morrison provides supplemental non-GAAP financial measures, including adjusted net income, adjusted EPS, adjusted income before income taxes, adjusted home closings gross margin, EBITDA, adjusted EBITDA, and homebuilding net debt-to-capitalization ratio, which management uses to assess performance and compare with peers - The company provides various non-GAAP financial measures, including **adjusted net income**, **adjusted EPS**, **adjusted income before income taxes**, **adjusted home closings gross margin**, **EBITDA**, **adjusted EBITDA**, and **homebuilding net debt-to-capitalization ratio**[31](index=31&type=chunk) - Management utilizes these non-GAAP metrics to evaluate company and segment performance, set performance-based compensation targets, and as indicators of overall financial leverage and comparability with industry peers[33](index=33&type=chunk)[34](index=34&type=chunk) - These non-GAAP financial measures should be considered supplemental to, and not a substitute for, comparable U.S. GAAP financial measures[35](index=35&type=chunk) [Adjusted Net Income and Adjusted Earnings Per Common Share](index=10&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20Per%20Common%20Share) In Q2 2025, adjusted net income was **$203.7 million**, exceeding GAAP net income of **$193.6 million** due to real estate impairment and warranty adjustments, resulting in **$2.02** adjusted diluted EPS versus **$1.92** GAAP diluted EPS Adjusted Net Income and Adjusted Earnings Per Common Share Reconciliation | (in Thousands, except per share data) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $193,577 | $199,460 | | Real Estate Impairment Charges | 6,754 | 9,107 | | Warranty Charges | 6,868 | — | | Tax Impact of Non-GAAP Adjustments | (3,481) | (3,878) | | Adjusted Net Income | $203,718 | $210,979 | | Diluted Earnings Per Share | $1.92 | $1.86 | | Adjusted Diluted Earnings Per Share | $2.02 | $1.97 | [Adjusted Income Before Income Taxes and Related Margin](index=11&type=section&id=Adjusted%20Income%20Before%20Income%20Taxes%20and%20Related%20Margin) Q2 2025 adjusted income before income taxes was **$276.9 million**, exceeding GAAP income of **$263.3 million** due to real estate impairment and warranty adjustments, resulting in an adjusted pre-tax income margin of **13.6%** versus **13.0%** GAAP margin Adjusted Income Before Income Taxes Reconciliation | (in Thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income Before Income Taxes | $263,263 | $267,217 | | Real Estate Impairment Charges | 6,754 | 9,107 | | Warranty Charges | 6,868 | — | | Adjusted Income Before Income Taxes | $276,885 | $282,614 | | Income Before Income Taxes Margin | 13.0% | 13.4% | | Adjusted Income Before Income Taxes Margin | 13.6% | 14.2% | [Adjusted Home Closings Gross Margin](index=11&type=section&id=Adjusted%20Home%20Closings%20Gross%20Margin) Q2 2025 adjusted home closings gross margin was **23.0%**, exceeding GAAP gross margin of **22.3%** after excluding inventory impairment and warranty charges, representing a **90 basis point** decrease from Q2 2024's adjusted margin of **23.9%** Adjusted Home Closings Gross Margin Reconciliation | (in Thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Home Closings Gross Margin | $439,200 | $457,421 | | Inventory Impairment Charges | 6,754 | 2,325 | | Warranty Charges | 6,868 | — | | Adjusted Home Closings Gross Margin | $452,822 | $459,746 | | Home Closings Gross Margin as % of Home Closings Revenue | 22.3% | 23.8% | | Adjusted Home Closings Gross Margin as % of Home Closings Revenue | 23.0% | 23.9% | [EBITDA and Adjusted EBITDA Reconciliation](index=12&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) In Q2 2025, EBITDA was **$304.8 million**, and adjusted EBITDA was **$326.4 million**, representing a slight increase from Q2 2024's **$324.5 million** and **16.1%** of total revenue EBITDA and Adjusted EBITDA Reconciliation | (in Thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income Attributable to Noncontrolling Interests | $195,985 | $199,914 | | EBITDA | $304,760 | $303,057 | | Adjusted EBITDA | $326,397 | $324,526 | | Adjusted EBITDA as % of Total Revenue | 16.1% | 16.3% | [Debt to Capitalization Ratios Reconciliation](index=12&type=section&id=Debt%20to%20Capitalization%20Ratios%20Reconciliation) As of June 30, 2025, the homebuilding gross debt-to-capitalization ratio was **24.2%**, down from **25.4%** year-over-year, while the homebuilding net debt-to-capitalization ratio was **22.9%**, slightly above Q2 2024's **22.8%** Debt to Capitalization Ratios Reconciliation | (in Thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Homebuilding Total Debt | $1,933,795 | $1,881,312 | | Homebuilding Gross Debt-to-Capitalization Ratio | 24.2% | 25.4% | | Homebuilding Net Debt | $1,803,621 | $1,634,467 | | Homebuilding Net Debt-to-Capitalization Ratio | 22.9% | 22.8% |

Core Insights - Taylor Morrison Home Corporation reported a net income of $194 million, or $1.92 per diluted share, for Q2 2025, with adjusted net income at $204 million, or $2.02 per diluted share [1][2][3] - The company achieved a 2% increase in home closings revenue to $2.0 billion, driven by a 4% rise in closings to 3,340 homes, despite a 2% decline in average closing price to $589,000 [8][9][12] - The CEO emphasized the importance of a diversified product portfolio and a balanced strategy to navigate competitive pressures in the current sales environment [3][4][5] Financial Performance - Home closings gross margin was reported at 22.3%, with an adjusted gross margin of 23.0%, reflecting a decrease from the previous year [8][9][12] - SG&A expenses as a percentage of home closings revenue improved by 90 basis points to 9.3% [8][9][12] - The company repurchased 1.7 million shares for $100 million, maintaining a total liquidity of $1.1 billion [8][9][12] Market Dynamics - Net sales orders decreased by 12% to 2,733, influenced by a decline in monthly absorption pace and a slight reduction in active selling communities [8][9][12] - Cancellations as a percentage of gross orders rose to 14.6%, up from 9.4% a year ago, indicating increased market volatility [9][12] - The company holds a healthy land pipeline and aims to prioritize capital efficiency and returns over volume in the near term [5][8][9] Business Outlook - The company expects home closings to be between 3,200 to 3,300 in Q3 2025, with an average closing price around $600,000 [9][12] - The effective tax rate is anticipated to be approximately 25%, with diluted share count expected to be around 100 million [9][12] - Taylor Morrison's long-term strategy focuses on meeting the demand for affordable new construction amid evolving buyer preferences and demographic trends [5][8][9]

Core Insights - Wall Street analysts expect Taylor Morrison Home (TMHC) to report quarterly earnings of $1.94 per share, reflecting a year-over-year decline of 1.5% [1] - Revenue is anticipated to be $1.96 billion, down 1.3% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of projections by analysts [1] Revenue Estimates - Analysts project 'Revenue- Home closings' to reach $1.88 billion, indicating a year-over-year decrease of 2.1% [4] - 'Revenue- Financial services revenue' is expected to be $49.85 million, showing a year-over-year increase of 1.9% [4] - 'Revenue- Land closings' is forecasted to be $17.50 million, reflecting a significant year-over-year increase of 32.2% [4] Additional Revenue Metrics - 'Revenue- Amenity and other revenue' is likely to reach $35.00 million, representing a substantial year-over-year increase of 298.8% [5] - 'Ending Active Selling Communities' is estimated at 345, slightly down from 347 in the previous year [5] - 'Net sales orders' are projected to be 3,096, down from 3,111 year-over-year [5] Sales and Pricing Metrics - 'Homes Closed' is expected to be 3,193, compared to 3,200 in the previous year [6] - The 'Average sales price of homes closed' is anticipated to be $585.11 thousand, down from $600.00 thousand year-over-year [6] - The consensus for 'Average Selling Price - Sales Order Backlog' stands at $668.86 thousand, slightly lower than the $671.00 thousand reported in the same quarter last year [7] Market Performance - Over the past month, shares of Taylor Morrison have returned +2.2%, while the Zacks S&P 500 composite has changed by +5.9% [7] - TMHC currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the overall market in the near future [7]

Core Insights - Taylor Morrison published its seventh annual Sustainability and Belonging Report, emphasizing its commitment to sustainable business practices and corporate responsibility [1][2] - The report introduces an online edition for enhanced interactivity and navigation [3] - The company conducted its first materiality assessment to identify key sustainability issues and climate-related risks, which will guide future strategies [3] Sustainability Initiatives - Taylor Morrison's disclosures align with standards from SASB, GRI, UN SDGs, and TCFD, showcasing its commitment to sustainability [4] - The company has achieved a 47% lower average home energy consumption compared to the HERS® benchmark, with an average home score of 53 [5] - The partnership with the National Wildlife Federation has led to the establishment of over 150 Certified Natural Open Spaces™ and the protection of over 9,200 acres of Certified Wildlife Habitat® [5] Corporate Governance and Community Engagement - The report highlights the company's focus on construction quality and climate resiliency, resulting in lower average insurance premiums for homeowners [5] - Taylor Morrison emphasizes inclusion, belonging, and equal opportunity within its workforce, ensuring team members are equipped to serve a diverse consumer base [5] - The company has been recognized as America's Most Trusted® Builder from 2016-2025, reflecting its strong commitment to sustainability and community [6]

Core Viewpoint - Taylor Morrison Home Corporation will release its second quarter 2025 results on July 23, 2025, before the market opens, followed by a conference call at 8:30 a.m. ET to discuss the results [1]. Company Information - Taylor Morrison is headquartered in Scottsdale, Arizona, and is recognized as one of the leading homebuilders and developers in the United States, serving a diverse range of consumers including first-time, move-up, and resort lifestyle homebuyers and renters [3]. - The company operates under several brands, including Taylor Morrison, Esplanade, and Yardly, and has been recognized as America's Most Trusted® Builder by Lifestory Research from 2016 to 2025 [3]. Conference Call Details - A live audio webcast of the conference call will be available on Taylor Morrison's website, and participants are required to register to receive a unique passcode and dial-in information [2]. - The conference call will be recorded and made available for replay on the company's website [2]. Regulatory Filings - Taylor Morrison's filings will be accessible on the company's website or through the SEC at sec.gov [2].

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Core Insights - Taylor Morrison is expanding its Esplanade resort lifestyle brand to the Las Vegas market, specifically in the Summerlin master-planned community, with nearly 400 homes planned [1][3][5] Group 1: Project Details - The Esplanade at Red Rock will feature homes ranging from approximately 1,550 to 3,000 sq. ft., with configurations of 2-4 bedrooms and 2.5-4.5 baths, including up to 4 car garages [3][4] - Planned amenities include a 10,000 square-foot resort area with a restaurant, bar, spa, fitness center, pool, and golf simulator [3][4] Group 2: Market Positioning - The Esplanade brand has been successful since its launch in Florida over 13 years ago and has expanded to nearly 30 communities across the country, with recent launches in various markets [5] - Sales for the Esplanade at Red Rock are expected to begin in early 2026, with a VIP interest list currently being formed [5] Group 3: Community Features - Summerlin is noted for its extensive amenities, including access to restaurants, retail, entertainment, and cultural venues, as well as over 200 miles of trails in the surrounding natural area [4]