Taylor Morrison(US:TMHC)2026-02-11 11:20Financial Performance - Reported net income for Q4 2025 was $174 million, or $1.76 per diluted share, while adjusted net income was $188 million, or $1.91 per diluted share[2]. - Net income for Q4 2025 was $174,016, down from $242,453 in Q4 2024, representing a decline of 28.3%[24]. - Adjusted net income for Q4 2025 was $188,187, compared to $278,230 in Q4 2024, reflecting a decrease of approximately 32.4%[38]. - Total revenue for Q4 2025 was $2,099,640, down from $2,356,489 in Q4 2024, representing a decline of about 10.9%[40]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $1,292,212, compared to $1,384,057 for the same period in 2024, indicating a decrease of approximately 6.6%[44]. - Income before income taxes for Q4 2025 was $227,816, compared to $307,330 in Q4 2024, a decrease of approximately 26.0%[40]. - Basic adjusted earnings per common share for Q4 2025 was $1.94, compared to $2.70 in Q4 2024, a decline of approximately 28.2%[38]. Home Closings and Revenue - Home closings revenue for Q4 2025 was $1.96 billion, a decrease of 10% year-over-year, driven by an 8% decline in closings volume to 3,285 homes[6][13]. - Full year 2025 home closings revenue was $7.76 billion, with 12,997 closings at an average sales price of $597,000[6][17]. - Home closings revenue for Q4 2025 was $1,958,357, a decrease of 9.7% compared to Q4 2024's $2,169,703[24]. - The average selling price of homes closed in Q4 2025 was $596, a decrease of 1.9% from $608 in Q4 2024[27]. - Net sales orders decreased 5% to 2,499 in Q4 2025, with a monthly absorption pace of 2.4 net orders per community[6][13]. - Net sales orders for Q4 2025 totaled 2,499, a decrease of 4.7% from 2,621 in Q4 2024, with a sales value of $1,477,391[28]. - The sales order backlog as of December 31, 2025, was 2,819 homes, down 40.6% from 4,742 homes in 2024, with a sales value of $1,856,599[29]. Liquidity and Investments - Total liquidity at the end of Q4 2025 was approximately $1.8 billion, including $928 million of available capacity on the revolving credit facility[13]. - The company plans to invest approximately $2 billion in homebuilding land for the full year 2026[8]. - The Board of Directors has increased the stock repurchase program to $1 billion, expiring on December 31, 2027[14]. - The company repurchased 6.5 million shares for $381 million in 2025, representing about 6% of its diluted share count at the beginning of the year[6][13]. Assets and Equity - Total assets increased to $9,837,797 as of December 31, 2025, compared to $9,297,131 in 2024[26]. - Total stockholders' equity rose to $6,309,289 in 2025, up from $5,878,180 in 2024[26]. - The company ended 2025 with 341 active selling communities, a slight increase of 0.6% from 339 in 2024[30]. Margins and Debt - Home closings gross margin for Q4 2025 was 21.8%, down 300 basis points from 24.8% in Q4 2024[16]. - The adjusted home closings gross margin for Q4 2025 was 21.8%, down from 24.9% in Q4 2024[42]. - The net homebuilding debt to capitalization ratio as of December 31, 2025, was 17.8%, an increase from 20.0% as of December 31, 2024[46]. - Total homebuilding debt as of December 31, 2025, was $2,220,169, an increase from $1,952,639 as of December 31, 2024[46]. Guidance - Guidance for Q1 2026 includes approximately 2,200 home closings and an average closing price of approximately $580,000[8].