Core Points - Darrell Sherman, EVP, Chief Legal Officer and Secretary of Taylor Morrison, will retire on May 31, 2025, after nearly 16 years in the role [1][2] - Todd Merrill, currently VP and General Counsel of Operations, will succeed Sherman effective June 1, 2025 [1][2] - Sherman has been recognized for his contributions to corporate governance, finance, land acquisition, risk management, M&A, and strategic growth [2] - Merrill has over 20 years of experience with Taylor Morrison and has been part of the legal team since August 2004 [2][3] - Taylor Morrison is a leading homebuilder in the U.S., recognized as America's Most Trusted® Builder from 2016-2025 [3] Company Overview - Taylor Morrison is headquartered in Scottsdale, Arizona, and serves a diverse range of consumers, including first-time, move-up, luxury, and resort lifestyle homebuyers and renters [3] - The company operates under various brands, including Taylor Morrison, Esplanade, and Yardly [3] - Taylor Morrison emphasizes sustainable operations, as highlighted in its annual Sustainability and Belonging Report [3]

Core Insights - Taylor Morrison celebrates Women in Construction Week by highlighting the increasing number of women in its workforce and their significant career growth in the traditionally male-dominated homebuilding industry [1][2][9] Workforce Statistics - As of March 2025, Taylor Morrison has experienced an 887% increase in women holding construction roles over the past decade [9] - The company boasts a 45% female representation in its workforce, which is over four times the U.S. construction industry average of 11% [9] - The Board of Directors at Taylor Morrison has a female majority, the highest in the industry [9] Employee Experiences - Haley Hoffman, a Dallas Build-to-Rent Assistant Land Project Manager, emphasizes the importance of asking questions and seeking mentorship in the construction field [3] - Autumn Schmicker, an Indianapolis-based Superintendent, encourages women to build upon their skills and not underestimate themselves [4] - Tracey Michaels, a Jacksonville-based Superintendent, shares her rewarding experience of seeing completed homes and the joy of homeowners [6][7] Company Overview - Taylor Morrison is headquartered in Scottsdale, Arizona, and is recognized as one of the nation's leading homebuilders and developers [8] - The company serves a diverse range of consumers, including first-time, move-up, luxury, and resort lifestyle homebuyers and renters [8] - Taylor Morrison has been recognized as America's Most Trusted® Builder by Lifestory Research from 2016 to 2025 [8]

Core Insights - Taylor Morrison Home Corporation is hosting its first-ever Investor Day to present its long-term strategic vision and financial targets [1][2] - The company aims for approximately 20,000 home closings by 2028, with a focus on profitable growth and improved returns for shareholders [3][7] Company Overview - Taylor Morrison is a leading national developer and homebuilder, recognized as America's Most Trusted® Builder from 2016 to 2025 [4] - The company serves a diverse consumer base, including first-time, move-up, and resort lifestyle homebuyers and renters [4] Financial Targets - The company targets at least 10% annual growth in home closings [7] - It aims for a low-to-mid 20% gross margin on home closings and a high-teen range return on equity [7] - The company plans to maintain at least 65% control over homebuilding lots [7] Strategic Vision - Taylor Morrison emphasizes diversification, consumer centricity, and a well-defined strategy as competitive differentiators [3] - The company is committed to sustainable operations, as highlighted in its annual Sustainability and Belonging Report [4]

Core Insights - The 2025 CNBC Changemakers list recognizes 50 women leaders making significant impacts in the business world, highlighting the underrepresentation of women in leadership roles, particularly in Fortune 500 companies where only 10% of CEOs are women [2][5] - Sheryl Palmer, CEO of Taylor Morrison, has been acknowledged for her commitment to increasing opportunities for women in the homebuilding industry, emphasizing the importance of representation in leadership roles [3][4] Company Performance - Under Sheryl Palmer's leadership since 2013, Taylor Morrison has achieved strategic growth through seven acquisitions and has been recognized as America's Most Trusted® Home Builder for ten consecutive years [3] - The company reported over $8 billion in revenue across 20 markets in 2024, showcasing its significant market presence and consumer trust [3] Workforce Diversity - Taylor Morrison boasts a female workforce of 44%, significantly higher than the construction industry average of 11%, reflecting the company's commitment to inclusivity and diversity [4]

Debt and Interest Rates - As of December 31, 2024, approximately 92% of the company's debt was fixed rate, while 8% was variable rate[312]. - The company had no outstanding borrowings under its $1 Billion Revolving Credit Facility as of December 31, 2024, with approximately $947.1 million of additional availability for borrowings[312]. - Each 1% increase in interest rates would increase the interest incurred by the company by approximately $1.7 million per year for its variable rate debt[316]. - The total fixed rate debt amounts to $1,952.6 million, with a weighted average interest rate of 4.9%[316]. - The effective weighted average interest rate for variable rate debt is 6.2%[316]. - The company’s mortgage warehouse facilities use SOFR as the basis for determining interest rates, which may lead to increased costs for variable rate indebtedness[313]. - The total mortgage warehouse borrowings as of December 31, 2024 amounted to $174.46 million, with a total facility amount of $410 million[440]. - The company reported total debt of $2.127 billion as of December 31, 2024, with future minimum principal payments scheduled for 2025 at $307.646 million[443]. - Total debt increased to $2.13 billion in 2024 from $2.02 billion in 2023, marking a 5.5% increase[419]. Financial Performance - Total revenue for 2024 was $8,168,136, an increase of 10.1% from $7,417,831 in 2023[337]. - Home closings revenue reached $7,755,219, up 8.3% from $7,158,857 in the previous year[337]. - Net income for 2024 was $883,309, representing a 14.8% increase compared to $768,929 in 2023[337]. - Earnings per diluted share increased to $8.27 in 2024 from $6.98 in 2023, a rise of 18.5%[337]. - Total assets grew to $9,297,131 in 2024, up from $8,672,087 in 2023, reflecting a 7.2% increase[335]. - Total liabilities increased to $3,418,951 in 2024, compared to $3,339,801 in 2023, marking a 2.4% rise[335]. - Retained earnings rose to $4,393,853 in 2024, up from $3,510,544 in 2023, an increase of 25.1%[335]. - The company reported a gross margin of $1,984,212 for 2024, compared to $1,783,073 in 2023, indicating a margin improvement[337]. - Financial services revenue increased to $199,459 in 2024, up from $160,312 in 2023, a growth of 24.4%[337]. - Comprehensive income available to Taylor Morrison Home Corporation was $884,922 in 2024, compared to $769,466 in 2023, an increase of 15.0%[340]. - Cash provided by operating activities for 2024 was $210,079,000, a significant decrease from $806,169,000 in 2023[344]. - The company repurchased $347,598,000 worth of common stock in 2024, compared to $127,959,000 in 2023, indicating an increase in share buybacks[344]. Real Estate and Inventory - Total real estate inventory as of December 31, 2024, was $6.234 billion, up from $5.545 billion in 2023, with developed and under development real estate valued at $4.456 billion[404]. - Real estate inventory and land deposits decreased by $797,330,000 in 2024, compared to a decrease of $78,575,000 in 2023[344]. - The company acquired approximately 1,700 owned and controlled lots from Pyatt Builders on April 29, 2024, as part of an asset acquisition[396]. - The total number of owned and controlled lots increased to 86,153 as of December 31, 2024, from 72,362 in 2023[406]. - Real estate inventory in unconsolidated entities increased to $1.397 billion in 2024 from $952.2 million in 2023, with net income from these entities at $16.6 million[411]. Stock and Equity - Total stockholders' equity as of December 31, 2024, reached $5,878,180,000, up from $5,332,286,000 in 2023, reflecting a growth of 10.3%[342]. - As of December 31, 2024, the company authorized a stock repurchase program allowing for the repurchase of up to $1.0 billion of common stock through December 31, 2026[457]. - The total amount repurchased under the stock repurchase program for the year ended December 31, 2024, was 5,607,852 shares, compared to 2,814,956 shares in 2023[460]. - The company recognized stock-based compensation expense of $22.461 million for the year ended December 31, 2024, down from $26.095 million in 2023[462]. - The aggregate intrinsic value of options outstanding as of December 31, 2024, was $63.069 million, compared to $59.758 million in 2023[464]. Tax and Deferred Assets - The provision for income taxes for the year ended December 31, 2024 was $269.548 million, with an effective tax rate of 23.3%[450]. - The company’s effective tax rate decreased from 24.4% in 2023 to 23.3% in 2024[450]. - Deferred tax assets totaled $148.897 million and deferred tax liabilities were $66.921 million as of December 31, 2024, resulting in net deferred tax assets of $76.248 million[452]. - The company has approximately $163.2 million in available gross federal NOL carryforwards, which may offset future taxable income for a period of 20 years[453]. Legal and Compliance - The company is currently under examination by the IRS for certain federal income tax returns for tax years 2015 through 2018 and 2021, with outcomes not yet determinable[455]. - The court has approved an agreement regarding class certification in the ongoing litigation, although the ultimate outcome remains uncertain[482]. - The company has recorded an estimated liability accrual related to a class action suit, reflecting potential costs associated with litigation as of December 31, 2024[482]. Commitments and Liabilities - Total future minimum lease payments required under leases as of December 31, 2024, amount to $325.318 million, with $62.378 million in operating lease payments and $262.940 million in finance lease payments[370]. - Total accrued expenses and other liabilities increased to $632.25 million in 2024 from $549.07 million in 2023, representing a 15.1% increase[414]. - Self-insurance and warranty reserves rose to $214.11 million in 2024, up from $184.45 million in 2023, reflecting a 16.0% increase[414]. - Estimated development liabilities were reduced by $23.1 million in 2024, contributing approximately $0.17 per diluted share, compared to a reduction of $14.8 million and $0.10 per diluted share in 2023[417]. Derivative Instruments and Risk Management - The fair value of derivative assets related to interest rate lock commitments is reflected on the balance sheet, with changes recognized in Financial Services revenue[372]. - The fair value of interest rate lock commitments (IRLCs) was $(5,917) thousand as of December 31, 2024, with a notional amount of $233,881 thousand[484]. - The company has exposure to credit loss from derivative instruments used in rate risk management, managed by selecting financially strong counterparties and spreading risk[486]. - The notional amounts in the derivative instruments table include mandatory and best effort mortgages that have been locked and approved[484].

2 Investor Presentation Fourth Quarter 2024 Strategic priorities grounded in sustaining attractive full-cycle returns Operational Efficiency Returns-Focused Land Investment Balanced Capital Allocation • Diversified Consumer Base • Balanced To-be-Built and Spec Home Strategy • Pace and Price Management • Floorplan and Option Rationalization • "Canvas" Option Packages on All Spec Homes • Digital Sales and Marketing Innovation • Efficiencies with Enhanced Scale • Focused on Investing in Prime Core Locations • ...

Financial Data and Key Metrics Changes - The company reported a net income of $242 million or $2.30 per diluted share for Q4 2024, with adjusted net income of $278 million or $2.64 per diluted share, reflecting a 29% increase from the previous year [34][35] - Home closings increased by 12% year-over-year to 3,571 homes, generating revenue of approximately $2.2 billion, with an average closing price of $608,000 [35][36] - Adjusted gross margin for Q4 was 24.9%, stable sequentially and up from 24.1% in Q4 2023 [39] Business Line Data and Key Metrics Changes - The company achieved a 27% growth in move-up segment orders, while entry-level sales increased by 5% and resort lifestyle sales declined by 9% due to external factors like hurricanes [19] - The fourth quarter saw 54% of closings from spec homes, contributing to higher closing volumes [14] Market Data and Key Metrics Changes - The company’s absorption pace increased to 2.6% per community, up from 2.4% a year ago, with net orders rising 11% year-over-year [10][43] - The average underwritten community size has grown significantly, allowing for higher sales paces and more cost-effective structures [27] Company Strategy and Development Direction - The company emphasizes a balanced approach with a mix of to-be-built and spec homes to meet customer preferences and maintain margins [12][13] - The strategic focus on prime locations has insulated the company from broader market pressures, particularly in tertiary markets facing pricing challenges [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current market challenges, including rising interest rates and affordability constraints, while maintaining a positive outlook for new construction demand [20][54] - Initial guidance for 2025 anticipates 13,500 to 14,000 home closings with gross margins between 23% to 24% [21][39] Other Important Information - The company ended Q4 with liquidity of approximately $1.4 billion, including $487 million in unrestricted cash [46] - Share repurchases totaled $348 million for the year, with a remaining authorization of $910 million [48] Q&A Session Summary Question: Can you discuss the cadence for gross margins this year with higher incentives? - Management indicated that margins are expected to moderate over the year due to increased incentives and land cost inflation [61][62] Question: What is your pricing strategy given the market conditions? - Management noted that pricing power was observed in about 50% of communities, with a national price increase implemented in January [74][75] Question: How do you view the impact of tariffs on material costs? - Management expects some cost pressure from tariffs, particularly in the latter half of the year, but believes it is manageable within the current guidance [66][68] Question: What are the expectations for growth by consumer segment in 2025? - Management anticipates similar penetration for resort lifestyle closings in 2025 compared to 2024, with slight growth expected in active adult segments [120][121] Question: How is the company managing potential immigration-related issues on job sites? - Management reported no disruptions on job sites due to immigration issues, with protocols in place to mitigate risks [103][104]

Core Viewpoint - Taylor Morrison Home (TMHC) reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][2]. Financial Performance - Quarterly earnings were $2.64 per share, surpassing the Zacks Consensus Estimate of $2.40 per share, and up from $2.05 per share a year ago, representing a 10% earnings surprise [1] - Revenues for the quarter ended December 2024 were $2.36 billion, exceeding the Zacks Consensus Estimate by 10.53% and up from $2.02 billion year-over-year [2] - The company has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance and Outlook - Taylor Morrison shares have increased approximately 1.9% year-to-date, compared to a 3.2% gain in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.85 on revenues of $1.83 billion, and for the current fiscal year, it is $9.32 on revenues of $8.56 billion [7] Industry Context - The Building Products - Home Builders industry is currently ranked in the bottom 3% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Financial Performance - 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[2]. - Full year reported net income was $883 million, or $8.27 per diluted share, with adjusted net income at $931 million, or $8.72 per diluted share[2]. - Net income for Q4 2024 was $242,453, representing a 40.5% increase compared to $172,585 in Q4 2023[30]. - Adjusted net income for Q4 2024 was $277,760,000, up from $223,236,000 in Q4 2023, representing a 24.4% increase[41]. - Adjusted earnings per common share (diluted) for the twelve months ended December 31, 2024, was $8.72, compared to $7.54 in 2023, a 15.7% increase[41]. Revenue and Sales - Home closings revenue for the fourth quarter was $2.2 billion, up 12% year over year, with 3,571 closings at an average price of $608,000[6]. - Home closings revenue for Q4 2024 reached $2,169,703, a 12.0% increase from $1,937,632 in Q4 2023[30]. - Total revenue for the twelve months ended December 31, 2024, was $8,168,136, up 10.1% from $7,417,831 in 2023[30]. - Total revenue for Q4 2024 reached $2,356,489,000, compared to $2,019,865,000 in Q4 2023, marking a 11.7% growth[43]. - Home closings revenue for the twelve months ended December 31, 2024, was $7,755,219,000, compared to $7,158,857,000 in 2023, a 8.3% increase[45]. Home Closings and Orders - Net sales orders increased 11% year over year to 2,621, with a monthly absorption pace of 2.6, up from 2.4 a year ago[6]. - Net sales orders for Q4 2024 totaled 2,621, an 11.0% increase from 2,361 in Q4 2023[31]. - The sales order backlog as of December 31, 2024, decreased by 10.3% to 4,742 homes, with a sales value of $3,192,148, down from $3,644,630 in 2023[32]. - The company ended Q4 2024 with 339 active selling communities, a 3.7% increase from 327 in Q4 2023[33]. Margins and Profitability - Home closings gross margin was 24.8% for the fourth quarter, an increase of 70 basis points from the previous year[10]. - The adjusted home closings gross margin for Q4 2024 was 24.9% of home closings revenue, compared to 24.1% in Q4 2023[45]. - Income before income taxes for Q4 2024 was $307,330,000, up from $225,254,000 in Q4 2023, indicating a 36.5% increase[43]. - Adjusted income before income taxes margin for Q4 2024 was 14.9%, compared to 14.4% in Q4 2023[43]. Assets and Equity - Total assets as of December 31, 2024, were $9,297,131, an increase from $8,672,087 in 2023[29]. - The total stockholders' equity increased to $5,878,180 in 2024, up from $5,332,286 in 2023[29]. Debt and Liquidity - Total liquidity at quarter end was approximately $1.4 billion, with a gross homebuilding debt-to-capital ratio of 24.9%[14]. - The net homebuilding debt to capitalization ratio improved to 20.0% as of December 31, 2024, down from 22.5% as of September 30, 2024[49]. - The total homebuilding debt to capitalization ratio was 24.9% as of December 31, 2024, slightly down from 25.1% as of September 30, 2024[49]. Share Repurchase - The company repurchased 5.6 million common shares for $348 million during the year, improving return on equity to approximately 16%[7]. Future Outlook - For 2025, the company forecasts home closings between 13,500 to 14,000, with a gross margin in the range of 23% to 24%[7].

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 ...