Taylor Morrison Home (TMHC) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 3,048 home closings at an average price of $600,000, generating $1.8–$1.9 billion in revenue, up 12% year-over-year.

• Adjusted home closings gross margin rose to 24.8%, and adjusted EPS increased 25% year-over-year.

• Book value per share grew 16% to approximately $58.

• Net sales orders declined 8–8.5% year-over-year, with absorption pace down to 3.3 from 3.7.

• Liquidity remained strong at $1.3 billion, with $135 million spent on share repurchases in Q1.

Financial highlights

• Total revenue reached $1.9 billion, up 12% year-over-year; average closing price was $600,000.

• Adjusted net income was $225 million, or $2.18 per diluted share, up from $1.75 a year ago.

• SG&A as a percentage of revenue improved to 9.7%, down 70 basis points year-over-year.

• Mortgage capture rate improved to 89% in Q1 2025.

• Homebuilding debt-to-capitalization was 24.3% gross and 20.5% net of cash.

Outlook and guidance

• Full-year 2025 guidance: 13,000–13,500 home closings, average closing price $590,000–$600,000, and gross margin around 23%.

• Q2 2025: Home closings expected at ~3,200, average price ~$585,000, gross margin ~23%.

• SG&A as a percentage of revenue expected in mid-9% range; share repurchases projected at ~$350 million for 2025.

• Homebuilding land investment for 2025 expected at ~$2.4 billion.

• Ending active community count expected to be at least 355.