Taylor Morrison Home (TMHC) Q2 2025 earnings summary

Executive summary

• Delivered 3,340 homes in Q2 2025 at an average price of $589,000, generating $2.03 billion in revenue, a 2% year-over-year increase, with adjusted home closings gross margin at 23%.

• Net income for Q2 was $194 million ($1.92 per diluted share); adjusted net income was $204 million ($2.02 per diluted share), reflecting strong operational execution.

• Spec sales reached a record 71% of total sales, driven by consumer preference for incentives and quick move-in options.

• Net sales orders declined 12% year-over-year, with a 2.6 monthly absorption pace and a 14.6% cancellation rate, up from 9.4%.

• Performance met or exceeded guidance on most key metrics, supported by a diversified product portfolio and balanced strategy.

Financial highlights

• Adjusted home closings gross margin was 23.0%; GAAP gross margin was 22.3%, both down year-over-year.

• SG&A expense as a percentage of revenue improved by 90 basis points year-over-year to 9.3%.

• Net homebuilding debt to capitalization ratio at 22.9%; gross homebuilding debt to capital ratio at 24.2%.

• Total liquidity was $1.1 billion, including $130 million cash and $952 million available on revolver.

• Financial services revenue was $53 million with a gross margin of 51.1%.

Outlook and guidance

• Full-year 2025 home closings expected between 13,000 and 13,500, with an average closing price of $595,000–$600,000.

• Adjusted home closings gross margin guidance at approximately 23% for the year; GAAP gross margin expected near 22.5%.

• Q3 2025 home closings expected between 3,200–3,300, average closing price around $600,000, and GAAP gross margin near 22%.

• SG&A as a percentage of home closings revenue projected in the mid-9% range.

• At least $350 million in share repurchases planned for 2025.