#Q3 Results #Taylor Morrison #homebuilding

Taylor Morrison Home Corporation Reports Impressive Q3 2025 Results

Taylor Morrison Home Corporation (NYSE: TMHC), a prominent player in land development and homebuilding, announced its financial results for the third quarter ending on September 30, 2025. The company reported a net income of $201 million, translating to $2.01 per diluted share, while adjusted net income came in at $211 million at $2.11 per share.

Highlights of Q3 2025

• - Revenue from Home Closings: Generated $2.0 billion from 3,324 closings, with an average selling price of $602,000.
• - Gross Margin: Reported a home closings gross margin of 22.1%, with an adjusted gross margin at 22.4%.
• - Sales: Net sales orders reached 2,468, with an absorption rate averaging 2.4 homes per community.
• - Community Engagement: Active selling communities expanded to 349, with a total of 84,564 homebuilding lots owned or controlled.
• - Financial Health: The company maintained a total liquidity of $1.3 billion, underpinned by effective cost management.

CEO Sheryl Palmer expressed satisfaction with the results amidst tough market conditions, emphasizing the company's commitment to careful inventory management and pricing strategies. She highlighted, “Our diversified portfolio and precise calibration of pricing and inventory within our well-placed communities have allowed us to meet or exceed our performance targets.”

Taylor Morrison is focusing on addressing affordability through innovative pricing, especially in their entry-level homes while also making strides towards sustainable operations.

Detailed Financial Overview

In comparison to the previous year’s quarter, home closings revenue decreased by 1%, mainly due to a slight decline in closings volume. However, the average closing price witnessed an uptick of 1%. Cancellations, while increasing to 10.1% compared to last year, have not significantly hampered overall performance, attributed to strategic adjustments in inventory and community counts.

Land Portfolio and Investments

Taylor Morrison has invested $533 million in homebuilding land for the quarter, focusing on both development and lot acquisitions. This strategic investment ensures the company maintains a robust supply of building lots, crucial for supporting future projects.

Market Dynamics and Moving Forward

The Q3 report reflects not only Taylor Morrison's resilience but also its adaptability in a fluctuating market. Net absorption rates improved, indicating a positive shift in buyer confidence attributed to declining mortgage interest rates. Palmer mentioned,