Taylor Morrison Home (TMHC) Q1 2025 Earnings Call April 23, 2025 08:30 AM ET Company Participants Mackenzie Aron - VP, IRSheryl Palmer - Chairman & CEOErik Heuser - Chief Corporate Operations OfficerCurt VanHyfte - Executive VP & CFOMichael Rehaut - Executive DirectorAlan Ratner - Managing DirectorMike Dahl - Managing Director - Equity ResearchCarl Reichardt - Managing Director - Equity ResearchJay McCanless - SVP - Equity ResearchBuck Horne - Managing Director - Equity ResearchAlex Barron - President & Fou ...

Taylor Morrison Home (TMHC) came out with quarterly earnings of $2.18 per share, beating the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 17.84%. A quarter ago, it was expected that this home builder would post earnings of $2.40 per share when it actually produced earnings of $2.64, delivering a surprise of 10%. There are no easy answers to thi ...

Financial Performance - First quarter 2025 net income was $213 million, or $2.07 per diluted share, with adjusted net income at $225 million, or $2.18 per diluted share[3]. - Total revenue for Q1 2025 was $1,896,019,000, up from $1,699,752,000 in Q1 2024, reflecting a growth of 11.6%[23]. - Net income for Q1 2025 rose to $213,466,000, compared to $190,270,000 in Q1 2024, marking an increase of 12.2%[23]. - Adjusted net income for Q1 2025 was $224,881,000, up from $190,270,000 in Q1 2024, indicating a significant increase[37]. - Adjusted EBITDA rose to $336,200,000 in Q1 2025, compared to $281,083,000 in Q1 2024, marking a significant increase of 19.6%[43]. - The company reported a gross margin of $463,274,000 in Q1 2025, up from $416,845,000 in Q1 2024[23]. - EBITDA as a percentage of total revenue improved to 16.5% in Q1 2025 from 16.2% in Q1 2024[43]. Home Closings and Sales - Home closings revenue reached $1.8 billion, up 12% year over year, driven by 3,048 closings at an average price of $600,000[5][11]. - Home closings revenue increased to $1,830,068,000 in Q1 2025 from $1,636,255,000 in Q1 2024, representing an increase of 11.8%[23]. - For full year 2025, home closings are expected to be between 13,000 to 13,500, with a gross margin around 23%[14]. - Net sales orders decreased by 8% to 3,374, with a monthly absorption pace of 3.3, down from 3.7 a year ago[6][11]. - Net sales orders decreased by 8.5% to 3,374 homes in Q1 2025 from 3,686 homes in Q1 2024[27]. - The sales order backlog as of March 31, 2025, was 5,068 homes, down 18.8% from 6,244 homes in the same period last year[28]. Financial Position and Liquidity - Total liquidity stood at $1.3 billion, including $934 million available on the revolving credit facility[11]. - Total assets increased to $9,384,128,000 as of March 31, 2025, compared to $9,297,131,000 at the end of 2024[25]. - The total stockholders' equity increased to $5,957,524,000 as of March 31, 2025, from $5,878,180,000 at the end of 2024[25]. - The total stockholders' equity rose to $5,957,524,000 as of March 31, 2025, compared to $5,426,168,000 a year earlier, reflecting an increase of 9.8%[45]. - The company repurchased 2.2 million shares for $135 million, with remaining authorization of $775 million[11]. Debt and Interest - The total homebuilding debt to capitalization ratio improved to 24.3% as of March 31, 2025, down from 26.1% a year earlier[45]. - Net homebuilding debt increased to $1,536,220,000 as of March 31, 2025, compared to $1,363,973,000 a year prior, indicating a rise of 12.7%[45]. - The net homebuilding debt to capitalization ratio was 20.5% as of March 31, 2025, slightly up from 20.1% a year earlier[45]. - Interest expense increased to $8,499,000 in Q1 2025 from a net income of $(43,000) in Q1 2024, indicating a shift in interest costs[43]. Inventory and Impairment - Inventory impairment charges were recorded at $14,878,000 in Q1 2025, with no such charges in Q1 2024[43]. - Homebuilding land investment totaled $469 million, with 46% allocated to development[11]. Customer Metrics - The mortgage capture rate improved to 89%, up from 87% a year ago, indicating strong financing performance[11]. - The average selling price of homes closed in Q1 2025 was $600,000, slightly up from $599,000 in Q1 2024[26].

SCOTTSDALE, Ariz., April 23, 2025 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the first quarter ended March 31, 2025. Reported first quarter net income was $213 million, or $2.07 per diluted share, while adjusted net income was $225 million, or $2.18 per diluted share.First quarter 2025 highlights: Home closings revenue of $1.8 billion, up 12% year over year 3,048 closings, up 12% year over year, at an average pric ...

Core Points - Taylor Morrison Home Corporation will release its first quarter 2025 results on April 23, 2025, before the market opens [1] - A conference call to discuss the results will take place on the same day at 8:30 a.m. ET [1] - The conference call will be available via a live audio webcast on the company's website [2] Company Overview - Taylor Morrison is headquartered in Scottsdale, Arizona, and is recognized as one of the leading homebuilders and developers in the United States [3] - The company serves a diverse range of consumers, including first-time, move-up, and resort lifestyle homebuyers and renters under various brands such as Taylor Morrison, Esplanade, and Yardly [3] - From 2016 to 2025, Taylor Morrison has been acknowledged as America's Most Trusted® Builder by Lifestory Research [3]

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Core Points - Darrell Sherman, EVP, Chief Legal Officer and Secretary of Taylor Morrison, will retire on May 31, 2025, after nearly 16 years in the role [1][2] - Todd Merrill, currently VP and General Counsel of Operations, will succeed Sherman effective June 1, 2025 [1][2] - Sherman has been recognized for his contributions to corporate governance, finance, land acquisition, risk management, M&A, and strategic growth [2] - Merrill has over 20 years of experience with Taylor Morrison and has been part of the legal team since August 2004 [2][3] - Taylor Morrison is a leading homebuilder in the U.S., recognized as America's Most Trusted® Builder from 2016-2025 [3] Company Overview - Taylor Morrison is headquartered in Scottsdale, Arizona, and serves a diverse range of consumers, including first-time, move-up, luxury, and resort lifestyle homebuyers and renters [3] - The company operates under various brands, including Taylor Morrison, Esplanade, and Yardly [3] - Taylor Morrison emphasizes sustainable operations, as highlighted in its annual Sustainability and Belonging Report [3]

Core Insights - Taylor Morrison celebrates Women in Construction Week by highlighting the increasing number of women in its workforce and their significant career growth in the traditionally male-dominated homebuilding industry [1][2][9] Workforce Statistics - As of March 2025, Taylor Morrison has experienced an 887% increase in women holding construction roles over the past decade [9] - The company boasts a 45% female representation in its workforce, which is over four times the U.S. construction industry average of 11% [9] - The Board of Directors at Taylor Morrison has a female majority, the highest in the industry [9] Employee Experiences - Haley Hoffman, a Dallas Build-to-Rent Assistant Land Project Manager, emphasizes the importance of asking questions and seeking mentorship in the construction field [3] - Autumn Schmicker, an Indianapolis-based Superintendent, encourages women to build upon their skills and not underestimate themselves [4] - Tracey Michaels, a Jacksonville-based Superintendent, shares her rewarding experience of seeing completed homes and the joy of homeowners [6][7] Company Overview - Taylor Morrison is headquartered in Scottsdale, Arizona, and is recognized as one of the nation's leading homebuilders and developers [8] - The company serves a diverse range of consumers, including first-time, move-up, luxury, and resort lifestyle homebuyers and renters [8] - Taylor Morrison has been recognized as America's Most Trusted® Builder by Lifestory Research from 2016 to 2025 [8]

Core Insights - Taylor Morrison Home Corporation is hosting its first-ever Investor Day to present its long-term strategic vision and financial targets [1][2] - The company aims for approximately 20,000 home closings by 2028, with a focus on profitable growth and improved returns for shareholders [3][7] Company Overview - Taylor Morrison is a leading national developer and homebuilder, recognized as America's Most Trusted® Builder from 2016 to 2025 [4] - The company serves a diverse consumer base, including first-time, move-up, and resort lifestyle homebuyers and renters [4] Financial Targets - The company targets at least 10% annual growth in home closings [7] - It aims for a low-to-mid 20% gross margin on home closings and a high-teen range return on equity [7] - The company plans to maintain at least 65% control over homebuilding lots [7] Strategic Vision - Taylor Morrison emphasizes diversification, consumer centricity, and a well-defined strategy as competitive differentiators [3] - The company is committed to sustainable operations, as highlighted in its annual Sustainability and Belonging Report [4]

Core Insights - The 2025 CNBC Changemakers list recognizes 50 women leaders making significant impacts in the business world, highlighting the underrepresentation of women in leadership roles, particularly in Fortune 500 companies where only 10% of CEOs are women [2][5] - Sheryl Palmer, CEO of Taylor Morrison, has been acknowledged for her commitment to increasing opportunities for women in the homebuilding industry, emphasizing the importance of representation in leadership roles [3][4] Company Performance - Under Sheryl Palmer's leadership since 2013, Taylor Morrison has achieved strategic growth through seven acquisitions and has been recognized as America's Most Trusted® Home Builder for ten consecutive years [3] - The company reported over $8 billion in revenue across 20 markets in 2024, showcasing its significant market presence and consumer trust [3] Workforce Diversity - Taylor Morrison boasts a female workforce of 44%, significantly higher than the construction industry average of 11%, reflecting the company's commitment to inclusivity and diversity [4]