Taylor Morrison(US:TMHC)2025-10-22 13:00Financial Performance - Reported net income for Q3 2025 was $201 million, or $2.01 per diluted share, while adjusted net income was $211 million, or $2.11 per diluted share[2]. - Net income for Q3 2025 was $201,441, down 19.8% from $251,126 in Q3 2024[23]. - Adjusted net income for Q3 2025 was $210,873, a decrease of 17.3% from $254,841 in Q3 2024[36]. - Total revenue for Q3 2025 was $2,095,751, slightly down from $2,120,842 in Q3 2024, representing a decrease of 1.2%[37]. - Total revenue for the nine months ended September 30, 2025, increased to $6,021,840, up 3.6% from $5,811,647 in the same period of 2024[23]. - Adjusted EBITDA for Q3 2025 was $333,147, down 12.1% from $379,178 in Q3 2024[41]. Home Closings and Sales - Home closings revenue decreased 1% to $2.0 billion, with 3,324 closings at an average sales price of $602,000, slightly ahead of prior guidance[5][10]. - Home closings revenue for Q3 2025 was $2,000,909, a decrease of 1.4% compared to $2,029,134 in Q3 2024[23]. - Net sales orders declined 13% to 2,468, driven by a decrease in monthly absorption pace to 2.4 from 2.8 a year ago[10]. - Net sales orders for Q3 2025 totaled 2,468, a decrease of 12.8% from 2,830 in Q3 2024, with a sales value of $1,399,961, down 15.7%[27]. - The sales order backlog as of September 30, 2025, was 3,605 homes, a decrease of 36.7% from 5,692 homes in 2024, with a sales value of $2,337,564[28]. - For Q4 2025, home closings are expected to be between 3,100 to 3,300, with an average closing price of approximately $590,000[13]. Margins and Costs - Home closings gross margin was 22.1%, down from 24.8% a year ago, reflecting a 270 basis points decrease[15]. - Home closings gross margin as a percentage of home closings revenue was 22.1% in Q3 2025, down from 24.8% in Q3 2024[39]. - The company reported a gross margin of $476,621 for Q3 2025, down from $531,069 in Q3 2024[23]. - Income before income taxes margin decreased to 13.0% in Q3 2025 from 15.7% in Q3 2024[37]. Assets and Equity - Total assets increased to $9,627,560 as of September 30, 2025, compared to $9,297,131 at the end of 2024[25]. - Total stockholders' equity rose to $6,197,515 as of September 30, 2025, up from $5,878,180 at the end of 2024[25]. Debt and Liquidity - Total homebuilding debt was $2,045,883 as of September 30, 2025, an increase from $1,916,948 as of September 30, 2024[43]. - Net homebuilding debt to capitalization ratio improved to 21.3% as of September 30, 2025, compared to 22.5% as of September 30, 2024[43]. - Total liquidity at quarter end was approximately $1.3 billion, including $955 million of total capacity on the revolving credit facility[13]. Shareholder Actions - Share repurchases totaled 1.3 million shares for $75 million, with remaining authorization of $600 million[13]. - Basic weighted average number of shares decreased to 98,439 in Q3 2025 from 104,132 in Q3 2024[36]. Community and Development - The company ended Q3 2025 with 349 active selling communities, a 2.6% increase from 340 in Q3 2024[29]. - Homebuilding land investment totaled $533 million, with 50% allocated to development-related expenses[10]. - Homebuilding land acquisition and development investment is now expected to be approximately $2.3 billion for the full year[13].