Taylor Morrison Home Corp. reported third-quarter profit of $201 million, or $2.01 per diluted share, as the builder navigated a still-challenging housing market with a disciplined focus on pricing, incentives, and land strategy. Adjusted profit reached $211 million, or $2.11 per share.
Third-quarter home-closing revenue totaled $2 billion on 3,324 closings at an average price of $602,000, with an adjusted gross margin of 22.4%, slightly ahead of guidance. The company also gained 80 basis points of SG&A leverage, bringing expenses down to 9.0% of home-closing revenue.
“We are pleased to report strong third-quarter results despite the continuation of challenging market conditions,” said Sheryl Palmer, chairman and CEO. “Driven by our diversified portfolio and careful calibration of inventory, pricing, and pace across well-located communities, we once again met or exceeded our guidance on all key metrics.”
Orders and Land Position
Taylor Morrison logged 2,468 net sales orders, down 13% year over year, with a monthly absorption rate of 2.4 per community. The builder ended the quarter with 349 active selling communities, a 3% increase, and 3,605 homes in backlog valued at $2.3 billion.
The company’s land holdings totaled 84,564 lots, 60% of which are controlled off balance sheet, representing 6.4 years of supply based on trailing closings. Taylor Morrison invested $533 million in land during the quarter—split evenly between development and acquisitions—and expects full-year land spending of about $2.3 billion.
Liquidity and Shareholder Returns
Liquidity remained strong at $1.3 billion, including $371 million in cash, with a net homebuilding debt-to-capital ratio of 21.3%. The builder repurchased 1.3 million shares for $75 million during the quarter and has returned $310 million to shareholders year-to-date.
Looking Ahead
For the fourth quarter, Taylor Morrison expects 3,100 to 3,300 closings at an average price of $590,000 and a GAAP gross margin of about 21.5%. Full-year closings are forecast between 12,800 and 13,000 homes.
Palmer said the builder is “leaning into” affordability through creative incentives and pricing strategies while managing new starts to prepare for the 2026 spring selling season.
“Encouragingly, net absorption paces improved each month during the quarter, in contrast to typical seasonal slowing,” she said. “We believe strengthened consumer confidence is critical to further stabilizing demand, especially for discretionary home purchases in our move-up and resort lifestyle communities.”
Palmer also endorsed the federal administration’s recent focus on housing affordability, adding that Taylor Morrison “welcomes the opportunity to work collaboratively toward expanding homeownership and improving accessibility.”
