Taylor Morrison Reports Significant Decline in 2025 Net Sales, Backlog, and Margins; Authorizes New $1 Billion Share Repurchase Program
TMHC sits 30% above its 52-week low of $51.895.
Summary
Taylor Morrison reported a significant decline in 2025 net sales, backlog, and gross margins, alongside an increased cancellation rate, while also announcing a new $1.0 billion share repurchase authorization.
Key Events · Earnings and Guidance · TMHC
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Financial Performance Decline
Reported a decrease in 2025 net income to $782.5 million from $883.3 million in 2024, and diluted EPS fell to $7.77 from $8.27. Home closings gross margin decreased by 190 basis points to 22.5%.
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Significant Drop in Sales & Backlog
Net sales orders decreased by 9.6% to 11,074 units, with sales value declining 12.1% to $6.42 billion in 2025. Total backlog units plummeted by 40.6% to 2,819, and backlog sales value decreased by 41.8% to $1.86 billion.
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Increased Cancellation Rate
The total company cancellation rate rose to 13.2% in 2025 from 9.5% in 2024, primarily due to macroeconomic factors like elevated mortgage rates and inflation, and reduced customer deposits.
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New Share Repurchase Authorization
The Board of Directors authorized a new stock repurchase program of up to $1.0 billion, replacing the prior authorization and expiring on December 31, 2027. The company repurchased $381.0 million in shares during 2025.
Analysis · TMHC · Real Estate & Construction
Taylor Morrison's 2025 annual report confirms a challenging operating environment, marked by significant declines in key performance indicators. The substantial drop in net sales orders and backlog units signals weaker future revenue, while compressed gross margins and increased cancellation rates directly impacted profitability. Although the company enhanced its liquidity and authorized a new $1.0 billion share repurchase program, these capital allocation efforts are set against a backdrop of persistent macroeconomic headwinds, including elevated mortgage rates and inflation. Investors should closely monitor the company's ability to navigate these market conditions and stabilize operational performance, despite the commitment to shareholder returns.
At the time of this filing, TMHC was trading at $67.43 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $6.6B. The 52-week trading range was $51.90 to $72.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.