Taylor Morrison Home (TMHC) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered 3,324 home closings and $2.0 billion in revenue, with net income of $201 million ($2.01 per diluted share) and adjusted net income of $211 million ($2.11 per share), despite a 13% decline in net sales orders and a 15% drop in EPS year-over-year.

• Gross margin was 22.1% (adjusted 22.4%), with SG&A leverage improving to 9.0% of home closings revenue.

• Maintained strong liquidity of $1.3 billion and continued disciplined capital allocation, including $75 million in Q3 share repurchases and $310 million year-to-date.

• Focused on operational efficiency, innovation, and customer experience, including the launch of an AI-powered digital assistant.

• Net sales orders declined to 2,468, with a cancellation rate of 15.4% and a monthly absorption pace of 2.4 per community.

Financial highlights

• Total Q3 revenue was $2.10 billion, down 1.2% year-over-year; home closings revenue was $2.0 billion, with an average closing price of $602,000.

• Home closings gross margin decreased to 22.1% (down 270 bps YoY); adjusted gross margin was 22.4%.

• SG&A as a percentage of home closings revenue improved by 80 bps to 9.0%.

• EBITDA for Q3 was $314 million; adjusted EBITDA was $333 million.

• Financial services revenue was $56 million with a 52.5% gross margin, up from $50 million and 45% a year ago.

Outlook and guidance

• Q4 2025: Home closings expected between 3,100–3,300; average closing price ~$590,000; gross margin ~21.5%.

• Full year 2025: Home closings expected between 12,800–13,000; average closing price ~$595,000; gross margin ~22.5% (GAAP), ~23% (adjusted).

• SG&A as a percentage of home closings revenue expected in the mid-9% range; share repurchases to be at least $350 million.

• Over 100 new communities expected to open next year, supporting mid to high single-digit outlet growth.

• Effective tax rate expected at 24.5%–25%; homebuilding land and development spend projected at ~$2.3 billion.