Taylor Morrison Reports Q3 2025 Revenue of $2.1 Billion, Net Income Declines

Taylor Morrison Home Corporation reported its financial results for the third quarter of 2025, revealing a total revenue of $2.1 billion, a slight decrease from $2.1 billion in the same period last year. Home closings revenue, which constitutes the bulk of the company's income, totaled $2.0 billion, down from $2.03 billion in the prior year. The company recorded a net income of $201.4 million, or $2.01 per diluted share, compared to $251.1 million, or $2.37 per diluted share, in the third quarter of 2024. The decline in profitability was attributed to a decrease in home closings gross margin, which fell to 22.1% from 24.8% year-over-year, alongside increased interest expenses.

In terms of operational metrics, Taylor Morrison reported 3,324 home closings during the quarter, a decrease of 2.1% from the previous year. The average sales price for homes closed was approximately $602,000, reflecting a marginal increase from $598,000 in the prior year. The company also experienced a decline in net sales orders, which fell by 12.8% to 2,468 orders, with a corresponding decrease in sales value of 15.7%. The cancellation rate for sales orders increased to 15.4%, up from 9.3% in the same quarter last year, indicating challenges in the current market environment.

Strategically, Taylor Morrison has continued to expand its land holdings, with a total of 84,564 homebuilding lots owned and controlled as of September 30, 2025. Approximately 60% of these lots are controlled off-balance sheet, reflecting the company's ongoing land banking strategy. The company also reported a total liquidity of $1.3 billion, which includes availability under its $1 billion revolving credit facility. This liquidity position is expected to support ongoing operations and future investments.

The company has faced challenges related to inventory impairment, recording $7.2 million in charges for the third quarter and $28.8 million for the nine months ended September 30, 2025. These impairments were primarily driven by declining sales prices and increased pricing incentives. Looking ahead, Taylor Morrison anticipates continued market pressures, including elevated mortgage interest rates, which may impact buyer demand and sales pace. The company remains focused on leveraging its operational efficiencies and maintaining a strong liquidity position to navigate these challenges.