Taylor Morrison Home (TMHC) Investor Day 2025 summary

Strategic transformation and growth targets

• Targeting 20,000 annual closings by 2028, representing a 12% CAGR, with nearly 90% of required land already controlled and a 50% increase in planned community openings for 2025-28, supported by $12 billion in planned investment through 2028.

• Expanded from 9 to 21 divisions and 5 to 12 states since 2015, doubling closings and lots controlled, and tripling market capitalization.

• Growth strategy is primarily organic, with M&A limited to small tuck-ins if they meet strict financial and strategic criteria.

• Aggressively reallocating capital from the West to higher-return East and Central regions, optimizing for ROE and margin.

• Focused on operational agility, centralization, and digital transformation to drive efficiency and customer experience.

Portfolio diversification and customer focus

• Maintains a diversified product offering from entry-level to luxury, with price points from $300,000 to over $1 million, and a mix of spec and to-be-built homes tailored to buyer needs.

• Demographic shifts have led to a more ethnically diverse customer base, influencing land acquisition, product design, and marketing.

• Customer-centric initiatives include a proprietary mortgage, title, and insurance platform, with 89% of buyers using in-house financing and high capture rates for insurance and title services.

• Digital tools allow buyers to design and reserve homes online, with 18% of sales originating through this channel and higher ASPs and lower cancellation rates than traditional sales.

• Esplanade communities emphasize curated lifestyle and hospitality, driving higher margins and strong demand among affluent, discretionary buyers, with significant growth forecasted as the 55+ population expands.

Land strategy and capital allocation

• Land supply increased 68% since 2018, with 86,000 lots controlled and a shift toward self-development, joint ventures, and land banking to optimize returns and lighten the balance sheet.

• Controlled lot percentage now exceeds 65%, with a target of at least 65%, larger, higher-pace communities, and a focus on core locations for resilience and margin protection.

• Capital allocation priorities include maintaining strong liquidity, investing efficiently in land, and returning capital to shareholders via buybacks, targeting $300M–$350M in 2025 and over $1B through 2028.

• Over $2.1B in operating cash flow generated in the last three years, with $6B invested in land and $852M in share repurchases.

• Net leverage targeted to fall from 20% in 2024 to 10–20% by 2028, with a focus on mid- to high-teens ROE.