Taylor Morrison Reports Second Quarter 2025 Results

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]