1. TMHC reported Q1 2025 net income of $213 million, or $2.07 per share. 2. Home closings revenue of $1.8 billion increased 12% year-over-year. 3. Adjusted home closings gross margin improved to 24.8%, up 80 basis points. 4. 2025 home delivery forecast revised to 13,000-13,500 homes. 5. Consumer demand shows diversification benefits, despite market volatility.
The strong earnings report and growth in revenue and margins outpace historical performance, suggesting increased investor confidence.
The positive earnings and growth reinforce TMHC's market position, affecting investor stakes and pricing.
Q1 results likely to drive immediate interest; however, guidance reflects caution for the year ahead.
SCOTTSDALE, Ariz., April 23, 2025 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the first quarter ended March 31, 2025. Reported first quarter net income was $213 million, or $2.07 per diluted share, while adjusted net income was $225 million, or $2.18 per diluted share.
"In the first quarter, we delivered 3,048 homes at an average price of $600,000, producing $1.8 billion of home closings revenue, up 12% year over year, with an adjusted home closings gross margin of 24.8%, up 80 basis points year over year. Combined with 70 basis points of SG&A leverage, our adjusted earnings per diluted share increased 25% while our book value per share grew 16% to approximately $58. Once again, each of our operational metrics met or exceeded our prior guidance. These strong top and bottom-line results reflect the benefits of our diversified consumer and product strategy. Especially in volatile market environments, this diversification is a valuable differentiator that we believe contributes to greater volume and margin resiliency," said Sheryl Palmer, Taylor Morrison CEO and Chairman.
"From a sales perspective, the slow start in January gave way to stabilization in February and modest growth in March, following the historic pattern, albeit with slightly less velocity than we would have otherwise anticipated during the early spring selling season. In total, our monthly absorption pace increased to 3.3 per community from 2.6 in the fourth quarter but was down from the near-record of 3.7 we achieved a year ago. However, this was still solidly ahead of our pre-COVID historic first quarter average of 2.6 from 2013 to 2019, reflecting our strategic shift into higher-pacing, larger communities. By consumer group, our net sales were fueled by growth in our resort lifestyle segment, driven by strength in Florida, a modest decline in our move-up segment and a steeper reduction in entry-level sales—reinforcing the importance of our broad consumer reach," said Palmer.
"Given our diversified portfolio, there is not a singular approach to our pace-versus-price strategy, but rather an ongoing community-specific process that considers each asset's unique competitive dynamics, sales momentum and other market influences. Assuming a continuation of current market conditions as we look out to the remainder of the year, we now expect to deliver between 13,000 to 13,500 homes at a home closings gross margin around 23% in 2025."
Palmer continued, "While the current environment has made it challenging to provide near-term guidance with strong conviction, we remain confident in our long-term trajectory on our path to 20,000 closings by 2028. The path there will not be a straight line as we navigate the market—with 2025 now expected to represent a speed bump on our path there; however, we believe our disciplined underwriting and attractive product positioning is strongly supportive of a business capable of generating low-to-mid 20% home closings gross margins and high-teen returns on equity over time. Additionally, we continue to believe the market overall remains under-supplied and demographics supportive of the strong need for new construction. In aspiring to reach 20,000 closings, we will prioritize bottom-line earnings and returns for our shareholders while always maintaining the health of our balance sheet. We are not interested in growth for growth's sake. As our strategy has proven over the last decade-plus, we seek to maximize long-term return potential by thoughtfully balancing both pace and price through a uniquely diversified portfolio that is well positioned to withstand housing's cyclicality."
| Three Months Ended March 31 | 2025 | 2024 |
|---|---|---|
| Home closings revenue, net | $ 1,830,068 | $ 1,636,255 |
| Total revenue | $ 1,896,019 | $ 1,699,752 |
| Net income | $ 213,466 | $ 190,270 |
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation's leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up and resort lifestyle homebuyers and renters under our family of brands—including Taylor Morrison, Esplanade, and Yardly. From 2016 to 2025, Taylor Morrison has been recognized as America's Most Trusted® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
This earnings summary includes "forward-looking statements." These statements are subject to a number of risks, uncertainties, and other factors that could cause our actual results, performance, prospects, or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements.
CONTACT: Mackenzie Aron, VP Investor Relations (407) 906-6262 [email protected]