Q4 2025 Taylor Morrison Home Corp Earnings Call Transcript
Key Points
- Taylor Morrison Home Corp (TMHC) delivered nearly 13,000 homes in 2025 with an adjusted home closings gross margin of 23%, showcasing strong operational performance.
- The company achieved a 13% return on equity and 14% growth in book value per share, indicating robust financial health.
- TMHC's diversified operating model and focus on move-up and resort lifestyle customers helped navigate market headwinds effectively.
- The company plans to open over 100 new community outlets in 2026, including more than 20 new Esplanade outlets, which are expected to drive future growth.
- TMHC has been recognized as America's most trusted builder for the 11th consecutive year and is listed among Fortune's most admired companies, reflecting strong brand reputation.
- Industry-wide inventory levels remain elevated, posing a challenge for TMHC and the broader market.
- The company ended 2025 with nearly 3,000 unsold homes, including over 1,200 finished homes, which could impact gross margins in the near term.
- TMHC's backlog of homes is lower than normal, making 2026 home closing deliveries and margins more dependent on spring sales.
- Competitive pricing pressures are expected to persist, potentially affecting profitability.
- The central region, particularly Texas, experienced slower sales due to market softness, impacting overall performance.
Good morning and welcome to Taylor Morrison's fourth quarter 2025 earnings webcast. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to introduce Mackenzie Aron, Vice President of Investor Relations. Please go ahead.
Thank you, and good morning. We appreciate you joining us today. Before we begin, let me remind you that this call, including the question-and-answer session, will include forward-looking statements. These statements are subject to the Safe Harbor statement for forward-looking information that you can review in our earnings release on the investor relations portion of our website at taylormorrison.com.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those factors identified in the release and in our filings with the SEC, and we do not undertake
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