Taylor Morrison Reports 26.8% Revenue Decline and 53.8% Drop in Net Income for Q1 2026

Taylor Morrison Home Corporation reported a significant decline in financial performance for the first quarter of 2026 compared to the same period in 2025. The company generated total revenue of $1.39 billion, down 26.8% from $1.90 billion a year earlier. Home closings revenue, which constitutes the bulk of the company's income, fell to $1.31 billion from $1.83 billion, reflecting a decrease in the number of homes closed, which dropped to 2,268 from 3,048. The gross margin also decreased to 20.0% from 24.0%, primarily due to increased discounts and incentives offered to buyers amid challenging market conditions.

In terms of profitability, net income for the quarter was $98.6 million, a 53.8% decrease from $213.5 million in the prior year. This resulted in diluted earnings per share of $1.01, down from $2.07. The decline in profitability was attributed to lower home closings revenue and reduced gross margin dollars, driven by fewer homes closed and a shift in sales mix towards lower-margin quick move-in homes. The company also recorded $8.2 million in inventory impairment charges, down from $14.9 million in the previous year, indicating some improvement in managing inventory.

Operationally, Taylor Morrison's total sales orders decreased by 13.6% to 2,914, with an average selling price of $603,000, reflecting a slight increase from the previous year. The sales order backlog also fell by 31.6% to 3,465 homes, valued at $2.3 billion. The company reported a total of 75,626 homebuilding lots owned and controlled, with 51% of these controlled off-balance sheet. The company’s liquidity position remains strong, with total liquidity of approximately $1.6 billion, including $653 million in cash.

Strategically, Taylor Morrison has continued to focus on its land banking arrangements, which increased to 10,002 lots as of March 31, 2026, compared to 8,498 lots at the end of 2025. The company also repurchased approximately 2.5 million shares for $150 million during the quarter, reflecting its commitment to returning value to shareholders. Looking ahead, the company remains cautious about market conditions, particularly given the impact of rising interest rates and inflation on consumer demand. Taylor Morrison is actively engaging with policymakers regarding potential housing reforms that could affect the industry, while continuing to offer incentives to stimulate sales.