Taylor Morrison Home Corporation (TMHC)
Description
Taylor Morrison Home Corporation is a leading national homebuilder and land developer operating across multiple U.S. regions, offering a broad portfolio of single- and multifamily homes alongside complementary financial, title and insurance services.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $2.084 billion
- Debt History
- Debt decreased by approximately 0.5% compared to Q1 2024
- Debt Trend
- Decreasing
Profit Information
- Profit
- $213.5 million
- Profit History
- Profit increased by approximately 12.2% compared to Q1 2024
- Profit Trend
- Increasing
Detailed Report
Taylor Morrison Home Corporation Q1 2025 Financial Analysis
Report Date: 2025-04-30
Period Covered: Three months ended March 31, 2025
1. Profit & Debt Analysis
• Net Income: $213.5 million (up 12.2% YoY)
• Total Debt: $2.084 billion (down 0.5% YoY)
• Home Closing Gross Margin: 24.0% (adjusted 24.8% ex-impairment)
Drivers of Performance
• Higher home closings (1,830 homes) and leveraged operating expenses drove margin growth.
• Reduced per-unit incentives and stronger lot and option premiums supported profitability.
• A $149 million inventory impairment in Q1 2025 negatively impacted gross margin but was a one-time charge reflecting recent price declines in select communities.
Pros
- Diversified geographic footprint across East, Central and West regions
- Robust backlog and near-record absorption rates
- Strong liquidity ($1.312 billion total) and positive operating cash flow
- Stable financial services and title revenue streams
Cons
- Inventory impairment of $149 million in Q1 2025
- Cancellation rate normalized to historical levels (1.1%) amid higher interest rates
- Exposure to inflationary cost pressures and interest-rate risk
- Seasonal variability in home closings (back-loaded in Q3/Q4)
2. Detailed Segment & Revenue Breakdown
| Revenue Stream | Q1 2025 (million) | Q1 2024 (million) |
|---|---|---|
| Home Closing Revenue | $1,830.1 | $1,636.3 |
| Land Closing Revenue | $4.3 | $7.2 |
| Financial Services Revenue | $51.2 | $46.9 |
| Amenity Revenue | $10.5 | $9.3 |
| Total Revenue | $1,896.0 | $1,699.8 |
3. Statistical Breakdown
– Home Closings: 1,830 units (↑11.9% YoY) at average price $600 K – Net Sales Orders: 3,374 homes (second-highest Q1 ever) – Cancellation Rate: 1.10% (vs. 0.79% in Q1 2024) – Ending Active Communities: 344 (vs. 331 in Q1 2024)
4. Forward-Looking Insights
Taylor Morrison enters the back half of 2025 with a healthy backlog, strong liquidity and disciplined cost control. The company’s large land inventory and build-to-rent pipeline position it for continued growth, but it remains exposed to interest-rate movements and housing market cycles. Continued focus on absorption rates, targeted community openings, and capital allocation discipline will be key to sustaining margin and return-on-capital performance.
Statistics Breakdown
Revenue by stream: Home Closings $1,830.1 M; Land Closings $4.3 M; Financial Services $51.2 M; Amenity $10.5 M; Total $1,896.0 M.
Company Direction Insights
Taylor Morrison’s diversified homebuilding footprint, strong balance sheet and positive operating cash flow underpin a stable growth trajectory. With near-record net sales orders and controlled land‐bank commitments, the company is well positioned to navigate higher financing costs. Key opportunities include leveraging build-to-rent and remedial price adjustments in challenged communities. Potential headwinds remain in mortgage rates volatility and rising construction costs, but disciplined land acquisition and cost management should mitigate these risks.