Taylor Morrison Home Corporation (NYSE: TMHC) has reported its third-quarter results for 2025, showing various key metrics and financial figures. The reported net income for the period was $201 million, or $2.01 per diluted share, while the adjusted net income stood at $211 million, or $2.11 per diluted share.
In terms of home closings revenue, the company recorded $2.0 billion, with 3,324 closings at an average sales price of $602,000. The home closings gross margin was 22.1%, and the adjusted home closings gross margin was 22.4%. The company achieved 80 basis points of SG&A expense leverage, bringing it to 9.0% of home closings revenue.
The company saw 2,468 net sales orders and a monthly absorption pace of 2.4 per community, with 349 active selling communities and 84,564 homebuilding lots owned and controlled. Notably, 60% of these lots were controlled off balance sheet.
Taylor Morrison repurchased 1.3 million common shares for $75 million, and its total liquidity stood at $1.3 billion. The company’s mortgage capture rate remained steady at 88%, and borrowers had an average credit score of 750 and an average debt-to-income ratio of 40%.
In terms of the balance sheet, the total liquidity was approximately $1.3 billion, with a gross homebuilding debt to capital ratio of 24.8% and a net homebuilding debt-to-capital ratio of 21.3%. The company also repurchased 1.3 million shares for $75 million during the quarter.
Looking ahead, for the fourth quarter of 2025, Taylor Morrison expects an ending active community count of approximately 345 and home closings between 3,100 to 3,300, with an average closing price of approximately $590,000. The effective tax rate is expected to be approximately 25%, and the diluted share count is expected to be approximately 99 million.
For 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 expected to be approximately 23%.
In a quarterly financial comparison, Taylor Morrison's total revenue for the third quarter of 2025 was $2,095,751, a 1.2% decrease from the same period in 2024. Home closings revenue, net was $2,000,909, a 1.4% decrease from the third quarter of 2024. The home closings gross margin was 22.1%, representing a 270 basis points decrease from the third quarter of 2024.
Taylor Morrison's earnings conference call to discuss its results is scheduled for 8:30 a.m. ET, with a live audio webcast available on the company’s website.
As a leading homebuilder and developer, Taylor Morrison continues to navigate challenging market conditions while focusing on maintaining healthy performance and generating strong bottom-line earnings, cash flow, and returns for its shareholders. The market has reacted to these announcements by moving the company's shares 0.76% to a price of $62.60. For more information, read the company's full 8-K submission here.
