Taylor Morrison Home (TMHC) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income rose to $251 million ($2.37 per diluted share), up 54% year-over-year, driven by higher home closings and improved gross margin.

• Delivered 3,394 homes at an average price of $598,000, generating over $2 billion in revenue; net sales orders increased 9% to 2,830 units.

• Achieved record profitability and operational efficiency, supported by a diversified consumer base and strong demand across all segments.

• Continued focus on balanced capital allocation, digital sales innovation, and disciplined land investment in prime locations.

• Board authorized a new $1 billion share repurchase program through 2026; $258 million repurchased year-to-date.

Financial highlights

• Q3 2024 total revenue rose 27% year-over-year to $2.12 billion; home closings revenue up 26% to $2.03 billion.

• Home closings gross margin improved to 24.8% from 23.1% year-over-year; adjusted EPS grew 54% to $2.37.

• Net income for Q3 2024 was $251 million, up from $171 million a year ago.

• SG&A as a percentage of home closings revenue decreased to 9.8% from 10.4% year-over-year.

• Financial services revenue reached $50 million with a 45% gross margin; mortgage capture rate at 88%.

Outlook and guidance

• Full year 2024: ~12,725 home closings, average price ~$600,000, gross margin ~24.3%, SG&A in high-9% range.

• Q4 2024: ~3,400 closings, average price ~$610,000, gross margin ~24.5%, community count 330–340.

• Land and development spend expected at ~$2.5 billion; share repurchases to total ~$300 million.

• Community count expected to expand into 2025 and beyond.

• Management expects continued strong demand, supported by improved buyer confidence and stable macroeconomic factors.