Q1 2025 Taylor Morrison Home Corp Earnings Call Transcript
Key Points
- Taylor Morrison Home Corp (TMHC) delivered 3,048 homes at an average price of $600,000, generating $1.8 billion in home closings revenue, up 12% year over year.
- The company's adjusted earnings per diluted share increased by 25%, and book value per share grew 16% to approximately $58.
- TMHC's diversified consumer and product strategy contributed to volume and margin resiliency, with a strong performance in the resort lifestyle segment.
- The company effectively used personalized finance incentives, with 42% of first-quarter closings utilizing a forward commitment, aiding first-time home buyers.
- TMHC maintained a strong balance sheet with over $1 billion in liquidity and a net homebuilding debt to capitalization ratio of 20.5%.
- The monthly absorption pace decreased to 3.3 per community from 3.7 a year ago, indicating a slowdown in sales velocity.
- Entry-level sales declined steeply by 21%, reflecting challenges in this consumer segment.
- Finished inventory at quarter-end was elevated, leading to a higher anticipated spec penetration in the second quarter.
- The company expects incentives to rise more meaningfully in the second quarter, impacting margins.
- TMHC revised its home closings gross margin forecast to around 23% for the year, down from previous expectations.
Good morning, and welcome to Taylor Morrison's first-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.
I'd now like to introduce Mackenzie Aron, Vice President of Investor Relations.
Thank you, and good morning, everyone. We appreciate you joining us today.
Before we begin, let me remind you that this call, including the question-and-answer session, will include forward-looking statements. These statements are subject to the safe harbor statement for forward-looking information that you can review in our earnings release on the Investor Relations portion of our website at taylormorrisson.com.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those factors identified in the release and in our filings with the SEC, and we do not undertake any
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