- Taylor Morrison (TMHC, Financial) reported Q1 2025 net income of $213 million, with earnings at $2.07 per diluted share.
- The company's home closings revenue rose 12% year-over-year to $1.8 billion, driven by 3,048 closings.
- TMHC updated its 2025 guidance, projecting 13,000-13,500 home closings with an expected gross margin of 23%.
Taylor Morrison Home Corporation (TMHC) reported robust financial results for the first quarter of 2025, ending March 31. The company announced a net income of $213 million, or $2.07 per diluted share, with adjusted net income standing at $225 million, or $2.18 per diluted share.
The home closings revenue for Q1 2025 increased significantly by 12% year-over-year, amounting to $1.8 billion. This growth was largely attributed to the closing of 3,048 homes at an average price of $600,000. The gross margin for home closings was reported at 24.0% on a reported basis and 24.8% on an adjusted basis, marking an improvement from the previous year.
However, the company experienced a decrease in net sales orders, which fell by 8% year-over-year to 3,374. The monthly absorption pace also dipped to 3.3 homes per community, down from 3.7 in the prior year, and the cancellation rate increased to 11% from 7% year-over-year. Despite these challenges, Taylor Morrison maintains a strong land position with 86,266 homebuilding lots, 59% of which are controlled off-balance sheet.
For the full year 2025, Taylor Morrison has adjusted its guidance, expecting to deliver between 13,000 to 13,500 homes, with a gross margin around 23%. CEO Sheryl Palmer referred to 2025 as a "speed bump" in its long-term growth strategy, but reiterated the company's commitment to achieving 20,000 home closings by 2028.
On the financial front, the company's liquidity remains strong at $1.3 billion, and it continues to prioritize shareholder returns. Taylor Morrison repurchased 2.2 million shares for $135 million during the first quarter, with plans to increase the full-year share repurchase target to $350 million.
