Taylor Morrison Home (TMHC) Q1 2026 earnings summary

Executive summary

• Delivered 2,268 homes at an average price of $578,000, generating $1.3 billion in home closings revenue, with adjusted gross margin of 20.6% and adjusted EPS of $1.12; reported EPS was $1.01.

• Net sales orders totaled 2,914, down 14% year-over-year, and backlog increased 23% sequentially to 3,465 homes valued at $2.3 billion.

• Liquidity remained strong at $1.6 billion, with book value per share up to $64.06.

• Share repurchases totaled $150 million in Q1, with $863 million remaining under authorization expiring December 2027.

• Technology and AI investments improved efficiency and customer satisfaction, with over a dozen AI-powered applications in production.

Financial highlights

• Home closings revenue was $1.3 billion, down from $1.8 billion year-over-year, with adjusted gross margin at 20.6% and reported gross margin at 20.0%.

• SG&A expense was $149 million (11.4% of revenue), up from 9.7% a year ago, but down 16% in dollar terms.

• Net homebuilding debt-to-capital ratio was 20.5%.

• EBITDA was $163 million; adjusted EBITDA was $183 million.

• Mortgage capture rate was 88%, with average buyer FICO score of 750 and 20% downpayment.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: ~11,000 home closings at $580,000–$590,000 average price, SG&A ratio in mid-10% range, and effective tax rate of ~25%.

• Q2 2026 guidance: 2,500–2,600 closings at ~$575,000 average price, gross margin at least 20%.

• Gradual margin improvement expected in the second half, with $2 billion planned land investment and $400 million in share repurchases targeted for 2026.

• Active community count expected to rise to 365–370 for the year.

• Company focused on managing incentives, controlling costs, and maintaining liquidity amid macroeconomic headwinds.