Taylor Morrison Home reported first-quarter 2026 net income of $99 million, or $1.01 per diluted share, down from $1.12 a share on an adjusted basis, as revenue and margins fell from a year earlier.
Total revenue dropped 26.8% to $1.39 billion from $1.90 billion in the first quarter of 2025. Home closings revenue fell 28.3% to $1.31 billion. The company closed 2,268 homes, down 26% from a year ago, while the average closing price slipped 4% to $578,000.
Home closings gross margin narrowed to 20.0% from 24.0% a year ago, a 400-basis-point decline. On an adjusted basis, gross margin was 20.6%, down 420 basis points from 24.8%. SG&A expenses fell 15.7% to $148.8 million, but SG&A as a percentage of home closings revenue rose to 11.4% from 9.7% because revenue declined faster than spending.
Net sales orders totaled 2,914, down 14% from the prior-year quarter, though the average selling price on those orders rose 2% to $603,000. The monthly net sales pace improved to 2.7 per community from 2.4 in the fourth quarter of 2025, but was below 3.3 in the first quarter of 2025. Cancellations were 10.0% of gross orders, compared with 11.0% a year earlier.
Backlog ended the quarter at 3,465 homes, up 23% from 2,819 at year-end 2025, with a value of $2.3 billion. Customer deposits averaged about $45,000 per home.
The company’s active selling communities totaled 356, up 4% from a year ago. Homebuilding lot supply stood at 75,626 homesites, down from 86,266 in the first quarter of 2025 and 78,835 at year-end 2025. Of that total, 51% was controlled off balance sheet, down from 59% a year earlier and 54% at year-end 2025. Based on trailing 12-month closings, the lot supply represented 6.2 years of supply, versus 6.5 years a year ago.
Taylor Morrison invested $503 million in homebuilding land and development during the quarter, up from $469 million a year earlier. That included $224 million for land development, compared with $218 million in the first quarter of 2025.
Liquidity ended at about $1.6 billion, including $653 million of cash and $905 million of availability on the revolving credit facility. The company repurchased about 2.5 million shares for $150 million at an average price of about $61 per share. Following these announcements, the company's shares moved -1.06%, and are now trading at a price of $58.89. For the full picture, make sure to review Taylor Morrison Home Corp's 8-K report.
