Taylor Morrison Home Corporation (NYSE: TMHC) has released its second quarter 2025 results, showing a reported net income of $194 million or $1.92 per diluted share. Adjusted net income was $204 million, or $2.02 per diluted share. Let's dive into the specific metrics that have changed compared to the year-ago period:
- Home closings revenue increased by 2% to reach $2.0 billion.
- There were 3,340 closings, representing a 4% increase, at an average price of $589,000, down 2% from the previous period.
- Home closings gross margin was reported at 22.3%, with an adjusted margin of 23.0%.
- SG&A expense leverage improved by 90 basis points to 9.3% of home closings revenue.
- Net sales orders decreased by 12% to 2,733, with a monthly absorption pace of 2.6 per community, down from 3.0.
- Ending active selling communities totaled 345, down 1% from the prior year.
- The company repurchased 1.7 million common shares for $100 million, with total liquidity reaching $1.1 billion.
Looking at the financial services sector, the mortgage capture rate decreased to 87% from 89% a year ago. Borrowers' average credit score was 751, and the average debt-to-income ratio was 40%.
In terms of the balance sheet, the company's total liquidity at the end of the quarter was approximately $1.1 billion, including $952 million of total capacity on the revolving credit facility. The gross homebuilding debt to capital ratio was 24.2%, and the net homebuilding debt-to-capital ratio was 22.9%.
Looking ahead, the company provided its business outlook for the third quarter and full year 2025. For the third quarter, home closings are expected to be between 3,200 to 3,300, with an average closing price of approximately $600,000. The full year 2025 outlook includes expected home closings between 13,000 to 13,500, with an average closing price between $595,000 to $600,000.
In a quarterly financial comparison, it's noted that total revenue increased by 2.0% to $2,030,070, home closings revenue, net increased by 2.4% to $1,966,100, and home closings gross margin decreased by 4.0% to 22.3%.
Taylor Morrison will be holding a conference call to discuss its results, and a live audio webcast of the conference call will be available on the company’s website.
As a leading national land developer and homebuilder, Taylor Morrison maintains a strong emphasis on working with each customer to personalize incentives, aiming to create value for both buyers and the company.
Please note that the provided figures are in thousands of dollars, and all comparisons are of the current quarter to the prior-year quarter unless indicated otherwise. As a result of these announcements, the company's shares have moved -3.61% on the market, and are now trading at a price of $64.405. Check out the company's full 8-K submission here.
