Taylor Morrison Home Corp
Q4 2025 Earnings
Market Reaction
Did TMHC Beat Earnings? Q4 2025 Results
Taylor Morrison delivered a stronger-than-expected fourth quarter, posting adjusted EPS of $1.91 against the $1.74 consensus estimate, a beat of roughly 10%, while revenue of $2.10 billion cleared Wall Street's $1.95 billion forecast by nearly 8%, even as total revenue fell 10.9% year over year. The headline decline was rooted in softer homebuilding activity, with home closings volume dropping 8% to 3,285 homes and average closing prices slipping 2% to roughly $596,000, while home closings gross margin contracted 300 basis points to 21.8% amid persistent competitive pricing pressure. A $13.32 million loss on debt extinguishment added further weight to reported net income, which came in at $174.02 million versus $242.45 million a year earlier. RBC raised its price target on the stock to $68 following the results, maintaining an outperform rating. Looking ahead, management guided for approximately 11,000 full-year 2026 closings at an average price of $580,000 to $590,000, with the company refocusing on move-up and resort lifestyle segments to support margin recovery into 2027.
- Diversified geographic and consumer portfolio
- Disciplined balancing of pace and price across communities
- Strength in resort lifestyle segment supporting stable Q4 absorption pace
- SG&A expense leverage of 40 basis points full year on essentially flat revenue
- 88% mortgage capture rate in financial services
“We are pleased to report strong fourth quarter results that met or exceeded our expectations across nearly all key operational metrics, despite continued challenging market conditions. These results concluded a solid year of performance in 2025, during which we delivered nearly 13,000 homes at an adjusted home closings gross margin of 23.0% and generated 40 basis points of SG&A expense leverage on essentially flat home closings revenue. Coupled with $381 million of share repurchases, these results drove a 13% return on equity and 14% growth in our book value per share. Our resilient performance reflects the strength of our diversified geographic and consumer portfolio and our disciplined focus on strategically balancing pace and price across our portfolio of well-located communities.”
Taylor Morrison CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Taylor Morrison expects ending community count of around 360, approximately 2,200 home closings at an average closing price of approximately $580,000, home closings gross margin of approximately 20% (excluding inventory-related charges), an effective tax rate of 23.0% to 23.5%, and average diluted share count of approximately 98 million. For the full year 2026, guidance includes ending community count of 365 to 370, approximately 11,000 home closings at an average closing price of $580,000 to $590,000, SG&A at mid-10% range of home closings revenue, effective tax rate of approximately 25.0%, average diluted share count of approximately 95 million, homebuilding land investment of approximately $2 billion, and share repurchases of approximately $400 million.
TMHC YoY Financials
TMHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.