Taylor Morrison Home (TMHC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 results met or exceeded expectations, with 3,285 home closings generating $1.96 billion in revenue and net income of $174 million ($1.76 per diluted share); adjusted net income was $188 million ($1.91 per diluted share).

• Delivered nearly 13,000 homes in 2025 with a 23% adjusted home closings gross margin, outperforming peers in gross margin and SG&A leverage.

• Achieved 40 basis points of SG&A expense leverage on flat home closings revenue, $381 million in share repurchases, 13% return on equity, and 14% book value per share growth.

• Maintained strong liquidity of $1.8 billion and a well-capitalized balance sheet.

• Strategic focus on move-up and resort lifestyle segments, with Esplanade communities driving 7% YoY net order growth in Q4.

Financial highlights

• Q4 home closings: 3,285 homes at $596,000 average price, generating ~$2 billion in revenue; full-year home closings: 12,997 homes at $597,000 average price, ~$7.8 billion in revenue.

• Q4 home closings gross margin: 21.8% (down 300 bps YoY); full-year adjusted margin: 23% (down from 24.5% YoY).

• SG&A ratio improved to 9.5% for the year, a 40 basis point YoY improvement; Q4 SG&A was 9.9%.

• Q4 net sales orders declined 5% YoY to 2,499; full-year net sales orders were 11,074, down 9.6% YoY.

• Q4 backlog was 2,819 homes valued at $1.9 billion.

Outlook and guidance

• Expect to deliver ~11,000 homes in 2026, with ~2,200 in Q1; average closing price expected at ~$580,000 in Q1 and $580,000–$590,000 for the year.

• Q1 home closings gross margin expected at ~20%, with full-year 2026 margin guidance of 23.0%–23.5%.

• Over 100 new community openings planned in 2026, including 20+ Esplanade outlets; ending community count forecasted at 365–370.

• SG&A ratio expected in the mid-10% range for 2026; plan to repurchase ~$400 million in stock.

• Land investment target for 2026 is ~$2 billion.