Taylor Morrison Home Corporation (NYSE:TMHC) reported adjusted earnings of $2.02 per share for the second quarter on Wednesday, beating analyst expectations of $1.95. Revenue also outperformed, reaching $2 billion compared to the consensus estimate of $1.93 billion.
The homebuilder closed on 3,340 homes during the quarter, marking a 4% increase year-over-year, although the average closing price slipped 2% to $589,000. Revenue from home closings rose 2% compared to the prior year.
Gross margin on home closings stood at 22.3%, with the adjusted gross margin slightly higher at 23.0%. Meanwhile, the company improved its selling, general, and administrative expenses, reducing them by 90 basis points to 9.3% of revenue.
“In the second quarter, we met or exceeded our guidance on substantially all key metrics despite the unique environment,” stated Sheryl Palmer, Taylor Morrison’s CEO and Chairman.
“Our performance reflects our diversified product portfolio that serves a broad and well-qualified consumer set with to-be-built and spec offerings, concentrated in core locations.”
Net sales orders decreased 12% to 2,733 homes, with the monthly absorption rate falling to 2.6 homes per community from 3.0 in the same period last year. The company finished the quarter with 345 active selling communities, a slight 1% decline year-over-year.
Looking ahead, Taylor Morrison projects third-quarter home closings to range between 3,200 and 3,300, with an average closing price near $600,000.
For the full year 2025, the company expects to close between 13,000 and 13,500 homes, with average closing prices in the $595,000 to $600,000 range.
During the quarter, Taylor Morrison repurchased 1.7 million shares at a cost of $100 million and has raised its full-year share buyback target to at least $350 million.
Additionally, the company secured a new $3 billion land and construction financing facility through an agreement with Kennedy Lewis Investment Management to support its build-to-rent business.
Taylor Morrison Home Corporation stock price
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