Taylor Morrison Home (TMHC) Q2 2025 earnings summary

Executive summary

• Delivered 3,340 homes in Q2 2025, up 4% year-over-year, generating $2.0–$2.03 billion in revenue at an average price of $589,000, with adjusted home closings gross margin of 23% and SG&A expense leverage of 90 basis points.

• Net income for Q2 2025 was $193.6–$194 million ($1.92 per diluted share), with adjusted net income of $204 million ($2.02 per diluted share); share repurchases totaled $100 million for 1.7 million shares.

• Spec sales reached a record 71% of total sales, driven by consumer preference for incentives and quick move-in options.

• Net sales orders declined 12% year-over-year, with a net absorption pace of 2.6 per community and a cancellation rate of 14.6%.

• Maintained a diversified product portfolio across entry-level, move-up, and resort lifestyle segments, with continued expansion in build-to-rent and digital sales channels.

Financial highlights

• Adjusted home closings gross margin was 23.0% (GAAP 22.3%), down 90 basis points year-over-year; SG&A as a percentage of home closings revenue improved to 9.3%.

• Total revenue for Q2 2025 was $2.0–$2.03 billion, with EBITDA of $304.8 million and adjusted EBITDA of $326.4 million (16.1% of revenue).

• Net homebuilding debt to capitalization ratio was 22.9%; gross homebuilding debt to capital ratio was 24.2%.

• Liquidity at quarter end was $1.1 billion, including $130 million in cash and $952 million available on the revolving credit facility.

• Financial services revenue was $52.9–$53 million with a gross margin of 51.1% and a capture rate of 87–89%.

Outlook and guidance

• Full-year 2025 home closings expected between 13,000–13,500, with an average closing price of $595,000–$600,000 and adjusted gross margin of ~23%.

• Q3 2025 home closings expected at 3,200–3,300, average closing price around $600,000, and GAAP gross margin near 22%.

• SG&A as a percentage of home closings revenue projected in the mid-9% range; share repurchases planned at least $350 million for 2025.

• Ending outlet count expected to be 340–345 in Q3 and ~350 by year-end.

• Sufficient liquidity and capital resources are anticipated to meet operational and investment needs for the next twelve months.