Taylor Morrison Q1 2025 Earnings Report
Key Takeaways
Taylor Morrison delivered $1.9 billion in revenue and $213 million in net income for Q1 2025, buoyed by a 12% increase in home closings. Despite a year-over-year dip in net sales orders, margins remained firm, with adjusted EPS rising to $2.18.
Achieved 3,048 home closings, up 12% YoY, generating $1.83 billion in revenue.
Adjusted gross margin improved to 24.8% from 24.0% YoY.
Net income reached $213 million; adjusted EPS was $2.18.
Net sales orders dropped 8% YoY to 3,374, due to slower early-quarter demand.
Taylor Morrison
Taylor Morrison
Taylor Morrison Revenue by Segment
Taylor Morrison Revenue by Geographic Location
Forward Guidance
The company expects to deliver 13,000–13,500 homes in FY2025 with a gross margin around 23%, while maintaining discipline in capital deployment and focusing on long-term returns.
Positive Outlook
- Home closings expected to increase to 13,000–13,500 in 2025.
- Average closing price expected to remain strong at $590,000–$600,000.
- Ending active communities projected to rise to at least 355.
- SG&A ratio expected to stay in the mid-9% range.
- Share repurchases forecasted at approximately $350 million.
Challenges Ahead
- Home closings gross margin expected to moderate to 23%.
- Pace of sales showed early-quarter weakness.
- Higher cancellations at 11%, up from 7% YoY.
- Sales in entry-level segment saw a steeper decline.
- Backlog homes and value declined nearly 19% and 21%, respectively, YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income