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Jun 30
Taylor Morrison Q2 2025 Earnings Report
Taylor Morrison reported its second quarter 2025 financial results, demonstrating resilience with increased home closings revenue and improved SG&A leverage, despite a decline in net sales orders.
Key Takeaways
Taylor Morrison delivered a solid second quarter in 2025, meeting or exceeding guidance on most key metrics. The company reported net income of $194 million and adjusted net income of $204 million. Home closings revenue increased by 2% to $2.0 billion, driven by a 4% rise in closings, although the average closing price decreased by 2%. SG&A expenses showed significant leverage, improving by 90 basis points to 9.3% of home closings revenue. However, net sales orders declined by 12% and the monthly absorption pace decreased.
Net income was $194 million, with adjusted net income reaching $204 million, reflecting strong profitability.
Home closings revenue increased by 2% to $2.0 billion, driven by a 4% increase in home closings to 3,340 units.
SG&A expenses as a percentage of home closings revenue improved by 90 basis points to 9.3%, indicating effective cost management.
Net sales orders decreased by 12% to 2,733, and the monthly absorption pace declined from 3.0 to 2.6 per community, highlighting a more competitive sales environment.
Taylor Morrison
Taylor Morrison
Taylor Morrison Revenue by Segment
Taylor Morrison Revenue by Geographic Location
Revenue by Segment
Home Closings Revenue, net Revenue
CapyFin.comLand Closings Revenue
CapyFin.comFinancial Services Revenue, net Revenue
CapyFin.comAmenity and Other Revenue
CapyFin.comRevenue by Geographic Location
East Revenue
CapyFin.comCentral Revenue
CapyFin.comWest Revenue
CapyFin.com Forward Guidance
Taylor Morrison expects home closings for Q3 2025 to be between 3,200 to 3,300, with an average closing price of approximately $600,000. Full-year 2025 home closings are projected to be between 13,000 to 13,500, with an average closing price of $595,000 to $600,000. The company anticipates a GAAP home closings gross margin of approximately 22.5% for the full year and expects to repurchase at least $350 million in shares.
Positive Outlook
- Expected full-year home closings of 13,000 to 13,500, indicating continued volume.
- Anticipated full-year adjusted home closings gross margin of approximately 23%, reflecting a focus on profitability.
- Commitment to return capital to shareholders with at least $350 million in share repurchases for the full year.
- Expected SG&A as a percentage of home closings revenue in the mid-9% range for the full year, indicating continued cost efficiency.
- Strong emphasis on working with customers to personalize incentives, aiming to create value for both buyers and the company.
Challenges Ahead
- Near-term outlook calls for a more patient growth trajectory, prioritizing capital efficiency over volume.
- Competitive pressures, especially for spec homes, have intensified.
- Monthly absorption pace declined in Q2 2025, indicating slower sales activity.
- Net sales orders declined by 12% in Q2 2025, suggesting a softening demand.
- Cancellation rates as a percentage of gross orders and beginning backlog increased significantly compared to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income