Taylor Morrison Home Corporation (NYSE: TMHC) has reported its third-quarter results for 2025, highlighting strong performance despite challenging market conditions. The reported net income was $201 million, or $2.01 per diluted share, while adjusted net income stood at $211 million, or $2.11 per diluted share.
In the third quarter of 2025, the company achieved home closings revenue of $2.0 billion, with 3,324 closings at an average sales price of $602,000. The home closings gross margin was reported at 22.1%, and the adjusted home closings gross margin stood at 22.4%. Taylor Morrison also demonstrated an 80 basis points reduction in SG&A expense leverage, bringing it to 9.0% of home closings revenue.
The company reported 2,468 net sales orders, with a monthly absorption pace of 2.4 per community and ending active selling communities of 349. Additionally, Taylor Morrison revealed a total liquidity of $1.3 billion and repurchased 1.3 million common shares for $75 million.
In terms of the land portfolio, homebuilding land investment totaled $533 million, with 84,564 homebuilding lots owned and controlled. The mortgage capture rate in the financial services segment remained unchanged at 88%.
Looking at the company's balance sheet, the total liquidity stood at approximately $1.3 billion, including $955 million of total capacity on the revolving credit facility. The gross homebuilding debt to capital ratio was 24.8%, while the net homebuilding debt-to-capital ratio was 21.3%. Share repurchases for the year totaled 5.3 million shares for approximately $310 million.
For the fourth quarter of 2025, Taylor Morrison expects ending active community count to be approximately 345, with home closings projected to be between 3,100 to 3,300. The average closing price is anticipated to be around $590,000, and the GAAP home closings gross margin is expected to be approximately 21.5%.
Looking ahead to the full year 2025, the company now expects home closings to be between 12,800 to 13,000, with an average closing price of approximately $595,000. The GAAP home closings gross margin, including impairment and certain warranty charges, is expected to be approximately 22.5%, while the adjusted home closings gross margin, excluding impairment and certain warranty charges, is projected to be approximately 23%.
In a quarterly financial comparison, home closings revenue, net, decreased by 1.4% compared to the same quarter in 2024. The home closings gross margin and adjusted home closings gross margin both saw decreases compared to the prior year.
Taylor Morrison will hold a conference call to discuss its results, with a live audio webcast available on the company’s website.
As the company continues to navigate market dynamics, it remains focused on deploying innovative and compelling incentives and pricing offers to drive buyer confidence and improve affordability. Taylor Morrison also expressed its commitment to contributing towards meaningful solutions in addressing the country’s critical need to make housing more affordable. Following these announcements, the company's shares moved 0.76%, and are now trading at a price of $62.60. For more information, read the company's full 8-K submission here.
