Taylor Morrison Home Corp
Q2 2025 Earnings
Market Reaction
Did TMHC Beat Earnings? Q2 2025 Results
Taylor Morrison posted a solid second quarter, beating Wall Street expectations on both the top and bottom lines even as softer demand conditions weighed on the broader homebuilding backdrop. The Scottsdale-based builder reported adjusted diluted earnings of $2.02 per share, ahead of the $1.96 consensus estimate by 3.31%, while revenue of $2.03 billion topped forecasts by 4.95% and edged 2.0% higher year-over-year. The headline beat was driven largely by a 4% increase in home closings to 3,340 units, though average closing prices dipped 2% to $589,000 and home closings gross margin contracted 150 basis points to 22.3% as competitive pressures in the spec segment intensified. The demand picture was more cautious, with net sales orders falling 12% and cancellations jumping to 14.6% from 9.4% a year ago, prompting CEO Sheryl Palmer to prioritize margin discipline over volume. Looking ahead, management guided full-year 2025 closings of 13,000 to 13,500 homes at average prices of $595,000 to $600,000, with GAAP gross margin of approximately 22.5%.
- 4% increase in home closings to 3,340 homes
- 90 basis points of SG&A leverage to 9.3% of home closings revenue
- West segment average closing price increased 6.3% to $724,000
- Diversified product portfolio serving first-time, move-up, and resort lifestyle buyers
- Personalized incentive strategy through Taylor Morrison Home Funding
“In the second quarter, we met or exceeded our guidance on substantially all key metrics despite the unique environment. Our performance reflects our diversified product portfolio that serves a broad and well-qualified consumer set with to-be-built and spec offerings, concentrated in core locations. Especially in volatile markets, this balanced strategy is a valuable differentiator that we believe contributes to greater financial resiliency.”
Taylor Morrison CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, management expects home closings of 3,200-3,300 at an average price of approximately $600,000, GAAP home closings gross margin of approximately 22%, ending active community count of 340-345, effective tax rate of approximately 25%, and diluted share count of approximately 100 million. For full year 2025, guidance calls for 13,000-13,500 home closings at an average price of $595,000-$600,000, GAAP home closings gross margin of approximately 22.5% (adjusted ~23%), ending active community count of approximately 350, SG&A in the mid-9% range as a percentage of home closings revenue, effective tax rate of 24.5%-25.0%, diluted share count of approximately 101 million, homebuilding land investment of approximately $2.4 billion, and share repurchases of at least $350 million. Management expects mid-to-high teens returns on equity through the cycle, including 2025, while prioritizing capital efficiency and returns over volume in the near term.
TMHC YoY Financials
TMHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.