[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]

Part I [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Taylor Morrison Home Corporation, including balance sheets, statements of operations, cash flows, and accompanying notes, for the period ended March 31, 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased slightly to $9.38 billion from $9.30 billion at year-end 2024, driven by a rise in real estate inventory, while total liabilities remained stable and total stockholders' equity grew to $5.96 billion Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total cash | $378,103 | $487,166 | | Total real estate inventory | $6,351,434 | $6,234,084 | | **Total assets** | **$9,384,128** | **$9,297,131** | | **Liabilities & Equity** | | | | Total liabilities | $3,426,604 | $3,418,951 | | Total stockholders' equity | $5,957,524 | $5,878,180 | | **Total liabilities and stockholders' equity** | **$9,384,128** | **$9,297,131** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, the company reported an 11.5% year-over-year increase in total revenue to $1.90 billion, driven by higher home closings revenue, with net income rising to $213.5 million and diluted earnings per share increasing to $2.07 Q1 2025 vs. Q1 2024 Performance (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Home closings revenue, net | $1,830,068 | $1,636,255 | | **Total revenue** | **$1,896,019** | **$1,699,752** | | Gross margin | $463,274 | $416,845 | | Income before income taxes | $278,569 | $248,880 | | **Net income** | **$213,466** | **$190,270** | | **Diluted EPS** | **$2.07** | **$1.75** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $77.2 million, a significant improvement from the $130.7 million used in the same period of 2024, primarily due to higher net income and lower cash usage for real estate inventory Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $77,231 | $(130,737) | | Net cash used in investing activities | $(45,105) | $(33,047) | | Net cash used in financing activities | $(141,189) | $(85,923) | | **Net Decrease in Cash** | **$(109,063)** | **$(249,707)** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide crucial context to the financial statements, detailing the company's business operations, accounting policies, and specific financial items, including inventory impairment, lot details, debt, share repurchases, and legal proceedings - The company operates as a residential homebuilder and land developer across 12 states, with brands like Taylor Morrison, Darling Homes, Esplanade, Yardly (Build-to-Rent), and Urban Form (multi-use properties), also providing financial services through subsidiaries[20](index=20&type=chunk) - In Q1 2025, the company recorded a **$14.9 million inventory impairment charge** related to certain communities in the East segment due to recent price decreases, with no impairment recorded in Q1 2024[28](index=28&type=chunk) Owned and Controlled Lots Summary | Lot Type | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total owned lots | 35,089 | 36,718 | | Total controlled lots | 51,177 | 49,435 | | **Total owned and controlled lots** | **86,266** | **86,153** | - The company repurchased **2.24 million shares for $136.1 million** in Q1 2025. As of March 31, 2025, approximately **$775.0 million remained available** under the stock repurchase program[16](index=16&type=chunk)[72](index=72&type=chunk)[176](index=176&type=chunk) - Regarding the 'Solivita litigation', a court awarded plaintiffs **$22.5 million** for attorneys' fees and other costs in November 2024, which the company has appealed and accrued for its estimated liability[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a 12% increase in home closings revenue to $1.8 billion, stable gross margin, decreased net sales orders, and a strong liquidity position [First Quarter 2025 Highlights](index=23&type=section&id=First%20Quarter%202025%20Highlights) The first quarter of 2025 was marked by strong revenue growth and shareholder returns, with home closings revenue up 12% to $1.8 billion and significant share repurchases - Home closings revenue: **$1.8 billion** (up **12% YoY**)[100](index=100&type=chunk) - Home closings gross margin: **24.0%**[100](index=100&type=chunk) - Net sales orders: **3,374** (down **8.5% YoY**)[100](index=100&type=chunk) - Share repurchases: **2.2 million shares for $135 million**[100](index=100&type=chunk) - Total liquidity: **$1.3 billion**[100](index=100&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) In Q1 2025, net sales orders decreased by 8.5% while home closings increased by 11.6%, maintaining a consolidated gross margin of 24.0% and improving SG&A efficiency Net Sales Orders by Segment (Q1 2025 vs Q1 2024) | Segment | Net Sales Orders 2025 | Net Sales Orders 2024 | Change | | :--- | :--- | :--- | :--- | | East | 1,391 | 1,295 | 7.4% | | Central | 867 | 904 | (4.1%) | | West | 1,116 | 1,487 | (24.9%) | | **Total** | **3,374** | **3,686** | **(8.5%)** | - The total company cancellation rate increased to **11.0%** in Q1 2025 from **7.0%** in Q1 2024, returning to more historic normalized levels as interest rates stabilized[128](index=128&type=chunk)[130](index=130&type=chunk) - Sales order backlog decreased **18.8% in units** and **20.9% in value** year-over-year, primarily due to fewer net sales orders and improved construction cycle times allowing more homes to close within the quarter[131](index=131&type=chunk) - Consolidated home closings gross margin was **24.0%**, consistent with the prior year. The West segment's margin improved to **23.5%** from **19.9%**, while the East segment's margin fell to **24.3%** from **27.0%**, partly due to a **$14.9 million inventory impairment**[133](index=133&type=chunk)[135](index=135&type=chunk) [Non-GAAP Measures](index=25&type=section&id=Non-GAAP%20Measures) The company uses non-GAAP measures like adjusted net income and gross margin, with adjusted home closings gross margin at 24.8% and net homebuilding debt to capitalization at 20.5% for Q1 2025 Adjusted Home Closings Gross Margin Reconciliation (Q1 2025, in thousands) | Metric | Amount | | :--- | :--- | | Home closings gross margin (GAAP) | $438,708 | | Inventory impairment charges | $14,878 | | **Adjusted home closings gross margin (Non-GAAP)** | **$453,586** | | Home closings gross margin % (GAAP) | 24.0% | | **Adjusted home closings gross margin % (Non-GAAP)** | **24.8%** | Net Homebuilding Debt to Capitalization Ratio Reconciliation (as of March 31, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Total homebuilding debt | $1,914,035 | | Less: cash and cash equivalents | ($377,815) | | **Net homebuilding debt** | **$1,536,220** | | Total stockholders' equity | $5,957,524 | | **Total capitalization** | **$7,493,744** | | **Net homebuilding debt to capitalization ratio** | **20.5%** | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained strong liquidity of $1.31 billion, comprising cash and available credit, and generated $77.2 million in cash from operations Liquidity Summary (in thousands) | Component | As of March 31, 2025 | | :--- | :--- | | Total cash, excluding restricted cash | $377,815 | | Revolving Credit Facility availability | $934,269 | | **Total liquidity** | **$1,312,084** | - Net cash from operating activities improved to a **$77.2 million inflow** in Q1 2025 from a **$130.7 million outflow** in Q1 2024, mainly due to higher net income and changes in inventory spend[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's debt is primarily fixed-rate, with 92% fixed and 8% variable, limiting the impact of interest rate fluctuations on earnings - As of March 31, 2025, approximately **92%** of the company's debt was fixed-rate and **8%** was variable-rate[164](index=164&type=chunk) - A hypothetical **1% increase in interest rates** would increase annual interest expense by approximately **$1.8 million**, based on the variable rate debt outstanding at March 31, 2025[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[170](index=170&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[171](index=171&type=chunk) Part II [Item 1. Legal Proceedings](index=37&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal claims, with details on ongoing litigation and related accruals provided in Note 13 of the financial statements - This section incorporates by reference the legal proceedings information from Note 13 of the financial statements[173](index=173&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K were reported for the quarter - No material changes to the risk factors set forth in the company's Annual Report were reported for the quarter[174](index=174&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its stock repurchase program in Q1 2025, buying back 2.24 million shares for $137.2 million, with $775.0 million remaining available Share Repurchases for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 763,452 | $61.96 | | February 2025 | 898,725 | $61.09 | | March 2025 | 581,818 | $60.32 | | **Total** | **2,243,995** | **$61.19** | - As of March 31, 2025, approximately **$775.0 million remained available** under the company's stock repurchase program, which is authorized through December 31, 2026[176](index=176&type=chunk) [Item 5. Other Information](index=38&type=section&id=ITEM%205.%20Other%20Information) Chairman and CEO Sheryl Palmer adopted a Rule 10b5-1 trading plan for the potential sale of up to 100,000 shares of Common Stock - Chairman and CEO Sheryl Palmer adopted a Rule 10b5-1 trading plan for the sale of up to **100,000 shares** of Common Stock[181](index=181&type=chunk)

Financial Data and Key Metrics Changes - The company delivered 3,048 homes at an average price of $600,000, generating $1.8 billion in home closings revenue, up 12% year-over-year with an adjusted home closings gross margin of 24.8%, up 80 basis points year-over-year [7] - Adjusted earnings per diluted share increased by 25% while book value per share grew 16% to approximately $58 [7] - Reported net income was $213 million or $2.07 per diluted share, with adjusted net income at $225 million or $2.18 per diluted share, up 25% from the previous year [35][36] Business Line Data and Key Metrics Changes - The first quarter orders consisted of 32% entry level, 47% move up, and 21% resort lifestyle, with the resort lifestyle segment posting a 3% increase in net orders year-over-year [12] - The average closing price of deliveries was roughly flat from a year ago at $600,000, with expectations for the second quarter to moderate to approximately $585,000 [36][39] - Cancellations equaled 11% of gross orders, consistent with long-term norms [45] Market Data and Key Metrics Changes - The monthly absorption rate increased to 3.3% per community from 2.6% in the fourth quarter, but was down from 3.7% a year ago [9] - The company experienced strong year-over-year improvement in online home reservations, contributing to improved efficiency gains [11] - The total inventory of both existing and new homes has risen sharply across the country, particularly in non-core submarkets [17] Company Strategy and Development Direction - The company emphasizes a diversified consumer and product strategy to enhance volume and margin resiliency, especially in volatile market environments [8] - The strategic shift into higher pacing larger communities supports long-term return on equity targets [10] - The company aims to deliver between 13,000 to 13,500 homes this year, with a long-term goal of reaching 20,000 closings by 2028 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted significant macroeconomic and political uncertainty impacting buyer urgency, with consumers taking a wait-and-see approach [51] - Despite challenges, management expressed confidence in the company's strong organizational and financial position to weather potential market volatility [52] - The company expects to see a recovery in demand as consumers regain clarity on the macro outlook [16] Other Important Information - The company moderated its first quarter starts pace by 6% year-over-year and will remain selective in new starts moving forward [20] - The company plans to repurchase approximately $350 million of its shares outstanding this year, the high end of its prior target [22][49] - The liquidity at quarter end was approximately $1.3 billion, including $378 million of unrestricted cash [47] Q&A Session Summary Question: Can you walk us across the various Texas and Florida markets and provide any color on demand changes? - Management noted strong year-over-year sales growth in Florida, particularly in Orlando and Naples, while Texas markets like Austin and Dallas showed positive traction despite market turbulence [56][61] Question: Any thoughts on M&A in the current environment? - Management observed an increase in M&A activity, with smaller private builders becoming more rational in their pricing expectations [68][70] Question: Can you provide a better sense of order trends through the first quarter and April? - Management reported a consistent sales cadence in the first quarter, with a 10% increase in February and a 13% increase in March, but noted April has been choppy due to macro events [75][76] Question: What are the expected drivers of back half guidance versus Q2? - Management indicated that higher spec penetration and lot cost inflation would impact margins, with expectations to hover around 23% for the rest of the year [80][81] Question: Can you discuss the pricing environment and elasticity? - Management stated that price adjustments would be a last resort, with a focus on using finance incentives to attract buyers [92][94] Question: What are you seeing in the land market today? - Management noted opportunities to negotiate more favorable terms in the land market, with a focus on balancing patience and opportunism [103] Question: Can you elaborate on the gross margin expectations? - Management expects gross margins to remain around 23% for the second half of the year, influenced by spec home penetration and cost inflation [104][110]

For the quarter ended March 2025, Taylor Morrison Home (TMHC) reported revenue of $1.9 billion, up 11.6% over the same period last year. EPS came in at $2.18, compared to $1.75 in the year-ago quarter.The reported revenue represents a surprise of +4.75% over the Zacks Consensus Estimate of $1.81 billion. With the consensus EPS estimate being $1.85, the EPS surprise was +17.84%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...