Taylor Morrison Reports Fourth Quarter and Full Year 2024 Results


SCOTTSDALE, Ariz., Feb. 12, 2025 /PRNewswire/ – Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the fourth quarter and full year ended December 31, 2024. Reported fourth quarter net income was $242 million, or $2.30 per diluted share, while adjusted net income was $278 million, or $2.64 per diluted share. For the full year 2024, reported net income was $883 million, or $8.27 per diluted share, while adjusted net income was $931 million, or $8.72 per diluted share.

Fourth quarter 2024 highlights:

Net sales orders increased 11% year over year to 2,621Monthly absorption pace of 2.6, up from 2.4 a year agoEnding outlets of 339, up 4% from a year agoHome closings revenue of $2.2 billion, up 12% year over year3,571 closings, up 12% year over year, at an average price of $608,000 Home closings gross margin of 24.8% and adjusted home closings gross margin of 24.9%86,153 homebuilding lots owned and controlled57% controlled off balance sheet, up from 53% a year ago

Full year 2024 highlights:

Home closings revenue of $7.8 billion, up 8% year over year 12,896 home closings, up 12% year over year, at an average price of $601,000 Home closings gross margin of 24.4% and adjusted home closings gross margin of 24.5%Total homebuilding land spend of $2.4 billion, of which 43% was development relatedRepurchased 5.6 million common shares for $348 million Homebuilding debt-to-capitalization of 24.9% on a gross basis and 20.0% net of unrestricted cashTotal liquidity of $1.4 billion

“I am proud to share the strong results of our fourth quarter, which I believe once again distinguished our team’s execution and the merits of our diversified consumer and geographic strategy. With strong closings growth, higher margins and cost discipline, we produced a nearly-30% year-over-year increase in our adjusted earnings per diluted share and a 14% year-over-year increase in our book value per share to $56,” said Sheryl Palmer, Taylor Morrison CEO and Chairman.

Palmer continued, “This quarter’s results capped off another milestone year for our organization, in which we met or exceeded each of the long-term goals we laid out in early 2024. This included 12% closings growth, which was well ahead of the 4% increase contemplated in our initial guidance heading into the year and our 10% average growth target. Along with this stronger volume, our adjusted gross margin of 24.5% was up 50 basis points year over year and more than 100 basis points better than our initial expectation. Our annualized sales pace of 3.0 for the year also met our targeted range despite the challenging environment. Combined with nearly $350 million in share repurchases, our return on equity improved to approximately 16%. We are committed to strategies that support sustainable mid-to-high teen returns on equity going forward, from our increasingly asset-lighter balance sheet and land investments to our substantial share repurchase activity and operational efficiencies.”

“By meeting the needs of well-qualified homebuyers with appropriate product offerings in prime community locations, we continue to benefit from healthy demand and pricing resiliency across our portfolio. While 2025 promises to bring new challenges and it is early in the year, we are confident that our long-standing emphasis on capital-efficient growth will yield another year of strong performance. At this time, we are forecasting growth in our total deliveries to between 13,500 to 14,000 homes at a home closings gross margin in the range of 23% to 24%, assuming current market conditions,” said Palmer.

Fourth Quarter Business Highlights (All comparisons are of the current quarter to the prior-year quarter, unless indicated.)

Homebuilding

Home closings revenue increased 12% to $2.2 billion, driven by a 12% increase in closings to 3,571 homes and less-than-1% increase in average closing price to $608,000.Fourth quarter home closings gross margin was 24.8% on a reported basis and 24.9% on an adjusted basis, which was up 70 and 80 basis points, respectively, from the reported gross margin of 24.1% in the year-ago quarter.Net sales orders increased 11% to 2,621, driven by an 8% improvement in the monthly absorption pace to 2.6 per community and a 4% increase in ending community count to 339 outlets.SG&A as a percentage of home closings revenue decreased 30 basis points to 9.4% from 9.7% a year ago.Cancellations equaled 13.1% of gross orders, up from 11.6% a year ago.Backlog at quarter end was 4,742 homes with a sales value of $3.2 billion. Backlog customer deposits averaged approximately $50,000 per home.

Land Portfolio

Homebuilding land acquisition and development investment totaled $590 million, up from $537 million a year ago. Development-related investment accounted for 50% of the total versus 42% a year ago.Homebuilding lot supply was 86,153 homesites, of which 57% was controlled off balance sheet. This compared to total lots of 72,362 at the end of 2023, of which 53% was controlled.Based on trailing twelve-month home closings, total homebuilding lots represented 6.6 years of supply, of which 2.8 years was owned.

Financial Services

The mortgage capture rate was 89% in the fourth quarter, up from 86% a year ago.Borrowers had an average credit score of 752 and average debt-to-income ratio of 39%.

Balance Sheet

At quarter end, total liquidity was approximately $1.4 billion, including $947 million of total capacity on the Company’s revolving credit facility, which was undrawn outside of normal letters of credit.The gross homebuilding debt to capital ratio was 24.9%. Including $487 million of unrestricted cash on hand, the net homebuilding debt-to-capital ratio was 20.0%.The Company repurchased 1.4 million shares for $90 million, bringing the full-year total to 5.6 million shares for $348 million. At quarter end, the remaining share repurchase authorization was $910 million.

Business Outlook

First Quarter 2025

Home closings are expected to be approximately 2,900Average closing price is expected to be between $590,000 to $600,000 Home closings gross margin is expected to be in the high-23% rangeEnding active community count is expected to be between 340 to 345Effective tax rate is expected to be approximately 24%Diluted share count is expected to be approximately 104 million

Full Year 2025

Home closings are expected to be between 13,500 to 14,000Average closing price is expected to be between $590,000 to $600,000 Home closings gross margin is expected to be between 23% to 24%Ending active community count is expected to be at least 355SG&A as a percentage of home closings revenue is expected to be in the mid-9% rangeEffective tax rate is expected to be between 24.5% to 25%Diluted share count is expected to be approximately 102 millionHomebuilding land acquisition and development investment is expected to be around $2.6 billion Share repurchases are expected to be in the range of $300 million to $350 million

Quarterly Financial Comparison

(Dollars in thousands)

Q4 2024

Q4 2023

Q4 2024 vs. Q4 2023

Total Revenue

$ 2,356,489

$ 2,019,865

16.7 %

Home Closings Revenue

$ 2,169,703

$ 1,937,632

12.0 %

Home Closings Gross Margin

$ 537,700

$ 466,980

15.1 %

24.8 %

24.1 %

70 bps increase

Adjusted Home Closings Gross Margin

$ 540,411

$ 466,980

15.7 %

24.9 %

24.1 %

80 bps increase

SG&A

$ 204,258

$ 188,212

8.5 %

% of Home Closings Revenue

9.4 %

9.7 %

30 bps decrease

Annual Financial Comparison

(Dollars in thousands)

2024

2023

2024 vs. 2023

Total Revenue

$ 8,168,136

$ 7,417,831

10.1 %

Home Closings Revenue

$ 7,755,219

$ 7,158,857

8.3 %

Home Closings Gross Margin

$ 1,891,476

$ 1,707,456

10.8 %

24.4 %

23.9 %

50 bps increase

Adjusted Home Closings Gross Margin

$ 1,896,512

$ 1,719,247

10.3 %

24.5 %

24.0 %

50 bps increase

SG&A

$ 770,498

$ 698,707

10.3 %

% of Home Closings Revenue

9.9 %

9.8 %

10 bps increase

Earnings Conference Call Webcast

A public webcast to discuss the Company’s earnings will be held later today at 8:30 a.m. ET. To receive a unique passcode and dial-in information, please register here. The webcast will be recorded and available for replay on Taylor Morrison’s website at www.taylormorrison.com on the Investor Relations portion of the site under the News & Events tab.

Upcoming Investor Day

As previously announced, Taylor Morrison will host its first-ever Investor Day on Thursday, March 6, 2025, in Sarasota, Florida. The event will feature presentations by Taylor Morrison’s executive leadership team on the Company’s long-term strategic vision and guest speaker Ali Wolf, Chief Economist at Zonda, on the state of the housing market. In-person attendees will also have the opportunity to join a tour of Taylor Morrison communities and experience its award-winning Esplanade resort lifestyle offerings.

A live webcast of the presentations and question-and-answer sessions will be available on the Investor Relations page of Taylor Morrison’s website at www.taylormorrison.com. Presentations are expected to begin at 12 p.m. ET and conclude at 3:30 p.m. ET. The webcast replay and presentation materials will be available on the Investor Relations webpage within 24 hours of the event.

In-person attendance is available for institutional investors and analysts only and requires advanced registration. Those interested in attending the event in-person are asked to register here.

About Taylor Morrison

Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands-including Taylor Morrison, Esplanade and Yardly. From 2016 to 2025, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.

For more information about Taylor Morrison, please visit www.taylormorrison.com.

Forward-Looking Statements

This earnings summary includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words "“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “will,” “can,” “could,” “might,” “should” and similar expressions identify forward-looking statements, including statements related to expected financial, operating and performance results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future.

Such risks, uncertainties and other factors include, among other things: inflation or deflation; changes in general and local economic conditions; slowdowns or severe downturns in the housing market; homebuyers’ ability to obtain suitable financing; increases in interest rates, taxes or government fees; shortages in, disruptions of and cost of labor; higher cancellation rates of existing agreements of sale; competition in our industry; any increase in unemployment or underemployment; the seasonality of our business; the physical impacts of climate change and the increased focus by third-parties on sustainability issues; our ability to obtain additional performance, payment and completion surety bonds and letters of credit; significant home warranty and construction defect claims; our reliance on subcontractors; failure to manage land acquisitions, inventory and development and construction processes; failure to develop and maintain relationships with suitable land banks; availability of land and lots at competitive prices; decreases in the market value of our land inventory; new or changing government regulations and legal challenges; our compliance with environmental laws and regulations regarding climate change; our ability to sell mortgages we originate and claims on loans sold to third parties; governmental regulation applicable to our financial services and title services business; the loss of any of our important commercial lender relationships; our ability to use deferred tax assets; raw materials and building supply shortages and price fluctuations, including as a result of tariffs; our concentration of significant operations in certain geographic areas; risks associated with our unconsolidated joint venture arrangements; information technology failures and data security breaches; costs to engage in and the success of future growth or expansion of our operations or acquisitions or disposals of businesses; costs associated with our defined benefit and defined contribution pension schemes; damages associated with any major health and safety incident; our ownership, leasing or occupation of land and the use of hazardous materials; existing or future litigation, arbitration or other claims; negative publicity or poor relations with the residents of our communities; failure to recruit, retain and develop highly skilled, competent people; utility and resource shortages or rate fluctuations; constriction of the capital markets; risks related to instability in the banking system; risks associated with civil unrest, acts of terrorism, threats to national security, the conflicts in Eastern Europe and the Middle East and other geopolitical events; the scale and scope of current and future public health events, including pandemics and epidemics; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal government’s operations (also known as a government shutdown), and financial markets’ and businesses’ reactions to any such failure; risks related to our substantial debt and the agreements governing such debt, including restrictive covenants contained in such agreements; our ability to access the capital markets; the risks associated with maintaining effective internal controls over financial reporting; provisions in our charter and bylaws that may delay or prevent an acquisition by a third party; and our ability to effectively manage our expanded operations.

In addition, other such risks and uncertainties may be found in our most recent annual report on Form 10-K and our subsequent quarterly reports filed with the Securities and Exchange Commission (SEC) as such factors may be updated from time to time in our periodic filings with the SEC. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations, except as required by applicable law.

Taylor Morrison Home Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts, unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Home closings revenue, net

$ 2,169,703

$ 1,937,632

$ 7,755,219

$ 7,158,857

Land closings revenue

33,138

29,532

81,417

60,971

Financial services revenue

53,930

43,204

199,459

160,312

Amenity and other revenue

99,718

9,497

132,041

37,691

Total revenue

2,356,489

2,019,865

8,168,136

7,417,831

Cost of home closings

1,632,003

1,470,652

5,863,743

5,451,401

Cost of land closings

22,694

24,598

73,609

55,218

Financial services expenses

28,039

23,372

108,592

93,990

Amenity and other expenses

109,743

9,139

137,980

34,149

Total cost of revenue

1,792,479

1,527,761

6,183,924

5,634,758

Gross margin

564,010

492,104

1,984,212

1,783,073

Sales, commissions and other marketing costs

121,822

113,543

456,092

418,134

General and administrative expenses

82,436

74,669

314,406

280,573

Net income from unconsolidated entities

(261)

(1,708)

(6,347)

(8,757)

Interest expense/(income), net

5,893

(564)

13,316

(12,577)

Other expense, net

46,790

80,884

50,627

87,567

Loss on extinguishment of debt, net

26

295

Income before income taxes

307,330

225,254

1,156,118

1,017,838

Income tax provision

63,307

52,092

269,548

248,097

Net income before allocation to non-controlling interests

244,023

173,162

886,570

769,741

Net income attributable to non-controlling interests

(1,570)

(577)

(3,261)

(812)

Net income

$ 242,453

$ 172,585

$ 883,309

$ 768,929

Earnings per common share:

Basic

$ 2.35

$ 1.61

$ 8.43

$ 7.09

Diluted

$ 2.30

$ 1.58

$ 8.27

$ 6.98

Weighted average number of shares of common stock:

Basic

103,189

107,227

104,813

108,424

Diluted

105,218

108,969

106,846

110,145

Taylor Morrison Home Corporation

Condensed Consolidated Balance Sheets

(In thousands, unaudited)

December 31,

2024

December 31,

2023

Assets

Cash and cash equivalents

$ 487,151

$ 798,568

Restricted cash

15

8,531

Total cash

487,166

807,099

Owned inventory

6,162,889

5,473,828

Consolidated real estate not owned

71,195

71,618

Total real estate inventory

6,234,084

5,545,446

Land deposits

299,668

203,217

Mortgage loans held for sale

207,936

193,344

Lease right of use assets

68,057

75,203

Prepaid expenses and other assets, net

370,642

290,925

Other receivables, net

217,703

184,518

Investments in unconsolidated entities

439,721

346,192

Deferred tax assets, net

76,248

67,825

Property and equipment, net

232,709

295,121

Goodwill

663,197

663,197

Total assets

$ 9,297,131

$ 8,672,087

Liabilities

Accounts payable

$ 270,266

$ 263,481

Accrued expenses and other liabilities

632,250

549,074

Lease liabilities

78,998

84,999

Income taxes payable

2,243

Customer deposits

239,151

326,087

Estimated development liabilities

4,365

27,440

Senior notes, net

1,470,454

1,468,695

Loans payable and other borrowings

475,569

394,943

Revolving credit facility borrowings

Mortgage warehouse borrowings

174,460

153,464

Liabilities attributable to consolidated real estate not owned

71,195

71,618

Total liabilities

$ 3,418,951

$ 3,339,801

Stockholders’ equity

Total stockholders’ equity

5,878,180

5,332,286

Total liabilities and stockholders’ equity

$ 9,297,131

$ 8,672,087

Homes Closed and Home Closings Revenue, Net:

Three Months Ended December 31,

Homes Closed

Home Closings Revenue, Net

Average Selling Price

(Dollars in thousands)

2024

2023

Change

2024

2023

Change

2024

2023

Change

East

1,432

1,252

14.4 %

$ 835,590

$ 712,461

17.3 %

$ 584

$ 569

2.6 %

Central

924

767

20.5 %

501,184

436,080

14.9 %

542

$ 569

(4.7) %

West

1,215

1,171

3.8 %

832,929

789,091

5.6 %

686

$ 674

1.8 %

Total

3,571

3,190

11.9 %

$ 2,169,703

$ 1,937,632

12.0 %

$ 608

$ 607

0.2 %

Twelve Months Ended December 31,

Homes Closed

Home Closings Revenue, Net

Average Selling Price

(Dollars in thousands)

2024

2023

Change

2024

2023

Change

2024

2023

Change

East

4,922

4,480

9.9 %

$ 2,826,628

$ 2,619,322

7.9 %

$ 574

$ 585

(1.9 %)

Central

3,552

3,143

13.0 %

1,969,381

1,935,500

1.8 %

554

616

(10.1 %)

West

4,422

3,872

14.2 %

2,959,210

2,604,035

13.6 %

669

673

(0.6) %

Total

12,896

11,495

12.2 %

$ 7,755,219

$ 7,158,857

8.3 %

$ 601

$ 623

(3.5) %

Net Sales Orders:

Three Months Ended December 31,

Net Sales Orders

Sales Value

Average Selling Price

(Dollars in thousands)

2024

2023

Change

2024

2023

Change

2024

2023

Change

East

993

902

10.1 %

$ 532,647

$ 579,540

(8.1 %)

$ 536

$ 643

(16.6 %)

Central

784

602

30.2 %

411,750

339,973

21.1 %

525

565

(7.1) %

West

844

857

(1.5 %)

587,451

565,747

3.8 %

696

660

5.5 %

Total

2,621

2,361

11.0 %

$ 1,531,848

$ 1,485,260

3.1 %

$ 584

$ 629

(7.2 %)

Twelve Months Ended December 31,

Net Sales Orders

Sales Value

Average Selling Price

(Dollars in thousands)

2024

2023

Change

2024

2023

Change

2024

2023

Change

East

4,588

3,968

15.6 %

$ 2,537,245

$ 2,366,528

7.2 %

$ 553

$ 596

(7.2) %

Central

3,250

2,725

19.3 %

1,773,792

1,588,169

11.7 %

546

583

(6.3) %

West

4,410

4,137

6.6 %

2,991,700

2,784,803

7.4 %

678

673

0.7 %

Total

12,248

10,830

13.1 %

$ 7,302,737

$ 6,739,500

8.4 %

$ 596

$ 622

(4.2) %

Sales Order Backlog:

As of December 31,

Sold Homes in Backlog

Sales Value

Average Selling Price

(Dollars in thousands)

2024

2023

Change

2024

2023

Change

2024

2023

Change

East

1,737

2,071

(16.1) %

$ 1,190,884

$ 1,480,268

(19.5) %

$ 686

$ 715

(4.1 %)

Central

1,098

1,299

(15.5) %

668,574

864,162

(22.6) %

609

665

(8.4) %

West

1,907

1,919

(0.6 %)

1,332,690

1,300,200

2.5 %

699

678

3.1 %

Total

4,742

5,289

(10.3) %

$ 3,192,148

$ 3,644,630

(12.4) %

$ 673

$ 689

(2.3 %)

Ending Active Selling Communities:

As of

Change

December 31,

2024

December 31,

2023

East

124

108

14.8 %

Central

99

93

6.5 %

West

116

126

(7.9 %)

Total

339

327

3.7 %

Reconciliation of Non-GAAP Financial Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we provide our investors with supplemental information relating to: (i) adjusted net income and adjusted earnings per common share, (ii) adjusted income before income taxes and related margin, (iii) adjusted home closings gross margin, (iv) EBITDA and adjusted EBITDA and (v) net homebuilding debt to capitalization ratio.

Adjusted net income, adjusted earnings per common share and adjusted income before income taxes and related margin are non-GAAP financial measures that reflect the net income/(loss) available to the Company excluding, to the extent applicable in a given period, the impact of inventory and real estate impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net, and legal reserves or settlements that the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items. Adjusted home closings gross margin is a non-GAAP financial measure calculated as GAAP home closings gross margin (which is inclusive of capitalized interest), excluding inventory impairment charges. EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude, as applicable, interest expense/(income), net, amortization of capitalized interest, income taxes, depreciation and amortization (EBITDA), non-cash compensation expense, if any, inventory and real estate impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net and legal reserves or settlements that the Company deems not to be in the ordinary course of business, in each case, as applicable in a given period. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, plus unamortized debt issuance cost/(premium), net, and less mortgage warehouse borrowings, net of unrestricted cash and cash equivalents (“net homebuilding debt”), by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity).

Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our segments, and to set targets for performance-based compensation. We also use the ratio of net homebuilding debt to total capitalization as an indicator of overall financial leverage and to evaluate our performance against other companies in the homebuilding industry. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors.

We believe that adjusted net income, adjusted earnings per common share, adjusted income before income taxes and related margin, as well as EBITDA and adjusted EBITDA, are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the ratio of net homebuilding debt to total capitalization to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason. We believe that adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the varying effects of items or transactions we do not believe are characteristic of our ongoing operations or performance.

These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours.

A reconciliation of (i) adjusted net income and adjusted earnings per common share, (ii) adjusted income before income taxes and related margin, (iii) adjusted home closings gross margin, (iv) EBITDA and adjusted EBITDA and (v) net homebuilding debt to capitalization ratio to the comparable GAAP measures is presented below.

Adjusted Net Income and Adjusted Earnings Per Common Share

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

2024

2023

2024

2023

Net income

$ 242,453

$ 172,585

$ 883,309

$ 768,929

Legal reserves or settlements

17,392

64,665

23,682

64,665

Real estate impairment charges

20,530

29,637

11,791

Pre-acquisition abandonment charges

6,545

1,176

9,453

4,235

Loss on extinguishment of debt, net

26

295

Tax impact due to above non-GAAP reconciling items

(9,160)

(15,216)

(14,638)

(19,737)

Adjusted net income

$ 277,760

$ 223,236

$ 931,443

$ 830,178

Basic weighted average number of shares

103,189

107,227

104,813

108,424

Adjusted earnings per common share - Basic

$ 2.69

$ 2.08

$ 8.89

$ 7.66

Diluted weighted average number of shares

105,218

108,969

106,846

110,145

Adjusted earnings per common share - Diluted

$ 2.64

$ 2.05

$ 8.72

$ 7.54

Adjusted Income Before Income Taxes and Related Margin

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(Dollars in thousands)

2024

2023

2024

2023

Income before income taxes

307,330

225,254

1,156,118

1,017,838

Legal reserves or settlements

17,392

64,665

23,682

64,665

Real estate impairment charges

20,530

29,637

11,791

Pre-acquisition abandonment charges

6,545

1,176

9,453

4,235

Loss on extinguishment of debt, net

26

295

Adjusted income before income taxes

$ 351,797

$ 291,121

$ 1,218,890

$ 1,098,824

Total revenue

$ 2,356,489

$ 2,019,865

$ 8,168,136

$ 7,417,831

Income before income taxes margin

13.0 %

11.2 %

14.2 %

13.7 %

Adjusted income before income taxes margin

14.9 %

14.4 %

14.9 %

14.8 %

Adjusted Home Closings Gross Margin

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(Dollars in thousands)

2024

2023

2024

2023

Home closings revenue

$ 2,169,703

$ 1,937,632

$ 7,755,219

$ 7,158,857

Cost of home closings

1,632,003

1,470,652

5,863,743

5,451,401

Home closings gross margin

$ 537,700

$ 466,980

$ 1,891,476

$ 1,707,456

Inventory impairment charges

2,711

5,036

11,791

Adjusted home closings gross margin

$ 540,411

$ 466,980

$ 1,896,512

$ 1,719,247

Home closings gross margin as a percentage of home closings revenue

24.8 %

24.1 %

24.4 %

23.9 %

Adjusted home closings gross margin as a percentage of home closings revenue

24.9 %

24.1 %

24.5 %

24.0 %

EBITDA and Adjusted EBITDA Reconciliation

Three Months Ended December 31,

Twelve Months Ended December 31,

(Dollars in thousands)

2024

2023

2024

2023

Net income before allocation to non-controlling interests

$ 244,023

$ 173,162

$ 886,570

$ 769,741

Interest expense/(income), net

5,893

(564)

13,316

(12,577)

Amortization of capitalized interest

32,207

37,491

114,199

134,870

Income tax provision

63,307

52,092

269,548

248,097

Depreciation and amortization

2,279

2,918

11,535

8,976

EBITDA

$ 347,709

$ 265,099

$ 1,295,168

$ 1,149,107

Legal reserves or settlements

17,392

64,665

23,682

64,665

Non-cash compensation expense

5,445

7,589

22,461

26,095

Real estate impairment charges

20,530

29,637

11,791

Pre-acquisition abandonment charges

6,545

1,176

9,453

4,235

Loss on extinguishment of debt, net

26

295

Adjusted EBITDA

$ 397,621

$ 338,555

$ 1,380,401

$ 1,256,188

Total revenue

$ 2,356,489

$ 2,019,865

$ 8,168,136

$ 7,417,831

Net income before allocation to non-controlling interests as a percentage of total revenue

10.4 %

8.6 %

10.9 %

10.4 %

EBITDA as a percentage of total revenue

14.8 %

13.1 %

15.9 %

15.5 %

Adjusted EBITDA as a percentage of total revenue

16.9 %

16.8 %

16.9 %

16.9 %

Debt to Capitalization Ratios Reconciliation

(Dollars in thousands)

As of December 31, 2024

As of September 30, 2024

As of December 31, 2023

Total debt

$ 2,120,483

$ 2,143,223

$ 2,017,102

Plus: unamortized debt issuance cost, net

6,616

7,056

8,375

Less: mortgage warehouse borrowings

(174,460)

(233,331)

(153,464)

Total homebuilding debt

$ 1,952,639

$ 1,916,948

$ 1,872,013

Total equity

5,878,180

5,723,462

5,332,286

Total capitalization

$ 7,830,819

$ 7,640,410

$ 7,204,299

Total homebuilding debt to capitalization ratio

24.9 %

25.1 %

26.0 %

Total homebuilding debt

$ 1,952,639

$ 1,916,948

$ 1,872,013

Less: cash and cash equivalents

(487,151)

(256,447)

(798,568)

Net homebuilding debt

$ 1,465,488

$ 1,660,501

$ 1,073,445

Total equity

5,878,180

5,723,462

5,332,286

Total capitalization

$ 7,343,668

$ 7,383,963

$ 6,405,731

Net homebuilding debt to capitalization ratio

20.0 %

22.5 %

16.8 %

CONTACT:

Mackenzie Aron, VP Investor Relations

(407) 906-6262

[email protected]

SOURCE Taylor Morrison

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