Taylor Morrison (TMHC) Q1 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 11:09 AM CDT 51 min read

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Wednesday, April 23, 2025 astatine 8:30 a.m. ET

• Chairman and Chief Executive Officer — Sheryl Palmer

• Chief Financial Officer — Curt VanHyfte

• Chief Corporate Operations Officer — Erik Heuser

Sheryl Palmer: Thank you, Mackenzie. And bully morning, everyone. Joining maine is Curt VanHyfte, our Chief Financial Officer; and Erik Heuser, our Chief Corporate Operations Officer. To begin, I would similar to admit our team's exceptional show during the archetypal 3 months of the year. Among the highlights, we delivered 3,048 homes astatine an mean terms of $600,000 producing $1.8 cardinal of location closings revenue, up 12% year-over-year with an adjusted location closings gross borderline of 24.8%, up 80 ground points year-over-year. Combined with 70 ground points of SG&A leverage, our adjusted net per diluted stock accrued 25% portion our publication worth per stock grew 16% to astir $58. Once again, each of our operational metrics met oregon exceeded our anterior guidance.

These beardown apical and bottommost enactment results bespeak the benefits of our diversified user and merchandise strategy. Especially successful volatile marketplace environments, this diversification is simply a invaluable differentiator that we judge contributes to measurement and borderline resiliency. From a income perspective, the dilatory commencement successful January gave mode to stabilization successful February and humble maturation successful March, pursuing the downward pattern, albeit with somewhat little velocity than we would person different anticipated during the aboriginal outpouring selling season. In total, our monthly absorption complaint accrued to 3.3 per assemblage from 2.6 successful the 4th quarter, but was down from the adjacent grounds of 3.7 we achieved a twelvemonth ago.

As I noted connected our past net call, we experienced exceptional income trends successful the archetypal 4th of 2024, driven by a diminution successful involvement rates that helped unleash the demand. Alternatively, this archetypal quarter, involvement rates moved higher alongside macroeconomic and governmental uncertainty related to tariffs and immigration. More recently, the important volatility successful the spot marketplace and further argumentation related changes person impacted buyer's consciousness of urgency causing immoderate shoppers to determination to the sidelines arsenic we person seen earlier during periods of uncertainty.

Despite these headwinds, it's worthy highlighting that our archetypal quarter's gait was inactive solidly up of our pre-COVID historical mean of 2.6 from 2013 to 2019, reflecting our strategical displacement into higher pacing larger communities that is helping enactment our agelong word ROE target. It's besides worthy highlighting that our income occurrence was successful portion owed to beardown year-over-year betterment and convergence of online location reservations, different operator of improved ratio gains. Appreciating the macro backdrop, our archetypal 4th show highlights respective cardinal drivers of our occurrence that I judge are unsocial to Taylor Morrison.