The Investor
24 Jul 2025, 09:18
Taylor Morrison Q2 2025 Results: Earnings Top $190 Million as Company Prioritizes Margin over Volume
Taylor Morrison Home Corporation (NYSE: TMHC) reported solid second-quarter results, focusing on margin protection and capital efficiency amid a more competitive housing environment.
Q2 2025 Financial Highlights (vs. Q2 2024):
• Net income: $194 million
• Adjusted net income: $204 million
• Diluted EPS: $1.92
• Adjusted diluted EPS: $2.02
• Home closings revenue: $2.0 billion (+2%)
• Closings: 3,340 homes (+4%)
• Average selling price: $589,000 (−2%)
• Home closings gross margin: 22.3%; adjusted gross margin: 23.0%
• SG&A expense: Improved to 9.3% of revenue (90 bps leverage)
Operational Metrics:
• Net sales orders: 2,733 (−12%)
• Absorption pace: 2.6 homes per community (down from 3.0)
• Active selling communities: 345 (−1%)
• Lots owned/controlled: 85,051 (60% off-balance sheet)
• Land investment: $612 million (43% development)
• Share repurchases: 1.7 million shares, $100 million
• Liquidity: $1.1 billion
CEO Commentary:
CEO Sheryl Palmer emphasized the company’s strategy of prioritizing price and margin over pace to preserve long-term returns amid market pressure, particularly for spec homes. She reaffirmed confidence in Taylor Morrison’s well-positioned land portfolio and long-term demand drivers, including demographics and migration trends.
While acknowledging near-term sales softness, Palmer noted the company’s readiness to restart growth when the market stabilizes, supported by a strong land pipeline and disciplined capital allocation strategy. Taylor Morrison continues targeting mid-to-high teens ROE across the cycle.
Taylor Morrison Home Corporation (NYSE: TMHC) reported solid second-quarter results, focusing on margin protection and capital efficiency amid a more competitive housing environment.
Q2 2025 Financial Highlights (vs. Q2 2024):
• Net income: $194 million
• Adjusted net income: $204 million
• Diluted EPS: $1.92
• Adjusted diluted EPS: $2.02
• Home closings revenue: $2.0 billion (+2%)
• Closings: 3,340 homes (+4%)
• Average selling price: $589,000 (−2%)
• Home closings gross margin: 22.3%; adjusted gross margin: 23.0%
• SG&A expense: Improved to 9.3% of revenue (90 bps leverage)
Operational Metrics:
• Net sales orders: 2,733 (−12%)
• Absorption pace: 2.6 homes per community (down from 3.0)
• Active selling communities: 345 (−1%)
• Lots owned/controlled: 85,051 (60% off-balance sheet)
• Land investment: $612 million (43% development)
• Share repurchases: 1.7 million shares, $100 million
• Liquidity: $1.1 billion
CEO Commentary:
CEO Sheryl Palmer emphasized the company’s strategy of prioritizing price and margin over pace to preserve long-term returns amid market pressure, particularly for spec homes. She reaffirmed confidence in Taylor Morrison’s well-positioned land portfolio and long-term demand drivers, including demographics and migration trends.
While acknowledging near-term sales softness, Palmer noted the company’s readiness to restart growth when the market stabilizes, supported by a strong land pipeline and disciplined capital allocation strategy. Taylor Morrison continues targeting mid-to-high teens ROE across the cycle.
