Operative BuildersIFRS · EUR

Taylor Morrison Home Corp

Taylor Morrison Home Corp is a U.S. homebuilder that develops, constructs, and sells single-family homes and related residential communities through regional operating divisions. Its business spans land acquisition, community development, home construction, and home closings across multiple U.S. housing markets.

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Revenue8,121m EUR
−0.6 %y/y
Net income783m EUR
−11.4 %y/y
Free cash flow777m EUR
+347.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02,0004,0006,0008,00010,000m EUR20202021: 7,501 m EUR20212022: 8,225 m EUR20222023: 7,418 m EUR20232024: 8,168 m EUR20242025: 8,121 m EUR20258,121
RevenueOperating profit (EBIT)

Business

Share of revenue
Home closings revenue85 %

Revenue from completed homes delivered to buyers at closing.

Land and lot development10 %

Acquisition, entitlement, and development of land for future communities.

Options and upgrades3 %

Buyer-selected lot premiums, design options, and upgrade features.

Other homebuilding services2 %

Ancillary homebuilding-related revenue and adjustments.

Products

Reported · share of revenue
95.5%FY2025100 %
  • Home Sales95.5 %
  • Financial Services2.6 %
  • Amenity1.5 %
  • Land Sales0.5 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells homes to individual buyers purchasing primary residences, move-up homes, and second homes in U.S. residential markets. Demand is driven by household formation, affordability, mortgage rates, and the availability of desirable communities and move-in-ready inventory.

Primary homebuyers

Buyers purchasing homes for owner-occupied living in company communities.

Move-up buyers

Existing homeowners trading up to larger or newer homes.

First-time buyers

Entry-level buyers seeking affordability, financing support, and community amenities.

Lifestyle and second-home buyers

Buyers in selected markets seeking vacation or retirement-oriented homes.

Strategy

The company focuses on managing its land pipeline, community count, and product mix to match local housing demand across its operating regions. It also emphasizes quick-move-in inventory, regional pricing discipline, and construction efficiency to support closings and buyer conversion.

Optimize land and community pipelineMedium term

Homebuilders need controlled land investment to support future closings without overextending capital.

Improve sales conversion through quick-move-in inventoryShort term

Move-in-ready homes can reduce buyer wait times and support faster closings.

Refine regional product mix and pricingMedium term

Different markets support different price points, incentives, and margin profiles.

Geography

Taylor Morrison operates across multiple U.S. regions, with reported home closings in the East, Central, and West divisions. Its business is geographically tied to local housing demand, land positions, labor availability, and regional pricing conditions, which can cause performance to vary by market.

Risks

Taylor Morrison is exposed to cyclical U.S. housing demand, mortgage-rate sensitivity, and local market volatility, all of which can affect sales pace and cancellations. The company also faces land, construction, and inventory risks typical of homebuilders, including impairment charges, warranty costs, and regional mix shifts that can pressure results.

Sorted by severity
Mortgage-rate and affordability sensitivityHigh

Higher borrowing costs reduce buyer purchasing power and can slow new-home demand.

Exposure: U.S. residential homebuyers

Cancellations and order volatilityHigh

Home purchases are often contingent on financing and buyer confidence, making orders less predictable.

Exposure: Net sales and backlog

Land and inventory impairmentHigh

Homebuilders carry land and work-in-process inventory that may need write-downs if market conditions weaken.

Exposure: Community land positions and unsold inventory

Construction cycle and labor disruptionMedium

Delays in labor, materials, or permitting can push out closings and raise costs.

Exposure: Regional operations

Regional market concentrationMedium

Performance depends on local housing conditions in the East, Central, and West divisions.

Exposure: U.S. regional housing markets

Accounting

Judgemental items
Revenue recognition at closing

Homebuilding revenue is typically recognized when control transfers at closing, creating quarter-to-quarter timing swings.

Impact: Affects reported home closings revenue and backlog conversion

Inventory and land impairment

Real estate assets are tested for recoverability and may be written down if market conditions weaken.

Impact: Can materially affect gross margin and earnings

Warranty reserves

The company estimates future warranty claims on completed homes and adjusts reserves over time.

Impact: Affects cost of sales and adjusted margin measures

Capitalized interest

Interest incurred during development is capitalized into inventory and later recognized in cost of sales.

Impact: Influences gross margin and inventory carrying values

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Last updated: 24/09/2026