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Sep 30, 2023

Taylor Morrison Q3 2023 Earnings Report

Taylor Morrison reported strong results driven by strategic capital allocation and diversified consumer strategy.

Key Takeaways

Taylor Morrison reported a net income of $171 million, or $1.54 per diluted share, for Q3 2023. The company's performance was driven by over 2,600 home deliveries and an adjusted home closings gross margin of 23.9%. The company also increased land investment, retired debt, and repurchased shares, ending the quarter with $1.6 billion in liquidity.

Home closings revenue reached $1.6 billion with 2,639 home closings at an average price of $611,000.

Adjusted home closings gross margin was 23.9%, excluding an inventory impairment.

Net sales orders increased by 25% to 2,592, with a monthly absorption pace of 2.7 per community.

The mortgage capture rate reached an all-time high of 88%.

Total Revenue
$1.68B
Previous year: $2.03B
-17.6%
EPS
$1.62
Previous year: $2.72
-40.4%
Total Net Sales Orders ASP
$623K
Previous year: $619K
+0.6%
Gross Profit
$392M
Previous year: $558M
-29.8%
Cash and Equivalents
$614M
Previous year: $329M
+86.4%
Free Cash Flow
-$82.5M
Previous year: $255M
-132.4%
Total Assets
$8.44B
Previous year: $8.59B
-1.8%

Taylor Morrison

Taylor Morrison

Taylor Morrison Revenue by Segment

Forward Guidance

Taylor Morrison provided guidance for Q4 2023 and full year 2023.

Positive Outlook

  • Home closings are expected to be approximately 2,950 in Q4 2023.
  • Average closing price is expected to be around $615,000 in Q4 2023.
  • Home closings gross margin is expected to be approximately 23.0% in Q4 2023.
  • Ending active community count is expected to be between 320 to 325.
  • Adjusted home closings gross margin excluding inventory impairments is now expected to be around 23.7% for full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income