Taylor Morrison Home (TMHC) Investor Day 2025 summary

Strategic transformation and growth trajectory

• Set a new long-term target of 20,000 annual closings by 2028, representing a 12% CAGR, with nearly 90% of required land already controlled and a focus on organic growth over large-scale M&A.

• Expanded from 9 to 21 divisions and 5 to 12 states since 2015, doubling closings and lots controlled, and tripling market capitalization.

• Plan to invest approximately $12 billion in land through 2028, with over 600 new communities to be opened in the next three years, emphasizing deeper market concentration and selective geographic expansion.

• Reallocating capital from the West to higher-return East and Central regions due to entitlement delays and higher land costs in the West, while maintaining a significant presence in all regions.

• Strategic M&A and operational preparedness have positioned the company for nimble growth and market share gains.

Financial performance and guidance

• Home closings gross margin guidance remains in the low- to mid-20% range for 2025, maintaining a premium over mid-cap builder averages.

• Return on equity target raised to the mid- to high-teen range by 2028, supported by operational efficiencies and share repurchases.

• Controlled lot percentage target increased to at least 65%, with a shift toward capital-efficient land financing and higher asset turnover.

• Over $2.1B in operating cash flow generated in the last three years, with $6B invested in land and $852M in share repurchases.

• Net homebuilding debt to capitalization reduced to 20% by 2024, targeting 10%–20% by 2028, with significant cash flow generation after recent land investments.

Business model innovation and operational enhancements

• Yardly build-to-rent platform is the #1 national developer of planned BTR units, with $375M invested, 40 communities owned or controlled, and plans to scale deliveries significantly by 2028.

• Esplanade resort lifestyle brand delivers higher margins, option premiums, and sales prices, with significant growth forecasted as the 55+ population expands and plans to double deliveries.

• Digital transformation enables customers to fully design and reserve homes online, with 18% of 2024 sales originating through the digital platform, improving sales conversion rates, ASPs, and operational efficiency.

• Canvas curated design packages and product optimization have reduced floor plans and options, improving margins, cycle times, and customer experience.

• Strategic shifts in Texas and Phoenix have led to higher margins, faster sales paces, and improved capital efficiency through self-development and streamlined offerings.