Taylor Morrison Home Corporation reported its financial results for the second quarter of 2025, revealing a total revenue of $2.03 billion, a 2% increase from $1.99 billion in the same period last year. The company's home closings revenue reached $1.97 billion, up from $1.92 billion, driven by 3,340 home closings, which marked a 4% increase year-over-year. However, the average selling price of homes decreased by 2% to $589,000. The gross margin for home closings was 22.3%, down from 23.8% in the prior year, reflecting increased costs and inventory impairments.
In terms of profitability, net income for the quarter was $193.6 million, or $1.92 per diluted share, compared to $199.5 million, or $1.86 per diluted share, in the previous year. The decline in net income was attributed to a decrease in home closings gross margin and an increase in interest expenses. The company also reported a significant increase in warranty charges related to specific repair issues, which contributed to the overall decline in profitability.
Operationally, Taylor Morrison experienced a decrease in net sales orders, which fell by 12% to 2,733 for the quarter. The cancellation rate increased to 14.6%, up from 9.4% in the prior year, indicating challenges in the market, particularly in the Central and West regions. The company ended the quarter with 345 active selling communities, a slight decrease from 347 a year earlier. Despite these challenges, the company maintained a strong liquidity position with total liquidity of $1.08 billion, including $130.2 million in cash and cash equivalents.
Strategically, Taylor Morrison continued to focus on land acquisition, spending $612 million on land, with 43% allocated to development-related activities. The company also repurchased 1.7 million shares for $100 million during the quarter as part of its ongoing stock repurchase program. The total number of homebuilding lots owned and controlled was 85,051, with 60% of these controlled off-balance sheet, reflecting a slight increase from the previous year.
Looking ahead, Taylor Morrison remains cautious about market conditions, particularly regarding high mortgage interest rates and their impact on homebuyer affordability. The company plans to continue leveraging its liquidity and operational efficiencies to navigate these challenges while focusing on maintaining its market position across its various segments.
About Taylor Morrison Home Corp
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