Taylor Morrison to Update Financial Targets and Introduce Long-Term Growth Aspirations at Today's Investor Day
Rhea-AI Summary
Taylor Morrison (NYSE: TMHC) announces its first-ever Investor Day in Sarasota, Florida, where it will present updated financial targets and long-term growth plans through 2028. The company unveiled ambitious goals including:
- Targeting approximately 20,000 annual home closings by 2028
- Achieving at least 10% annual home closings growth
- Maintaining low-to-mid 20% home closings gross margin
- Targeting low-three range annualized monthly sales pace
- Aiming for mid-to-high 8% SG&A as percentage of revenue
- Controlling at least 65% of homebuilding lots
- Achieving high-teen range return on equity
The event features presentations from the executive team and Zonda's Chief Economist Ali Wolf on housing market conditions, along with tours of Taylor Morrison communities.
Positive
- Ambitious growth target of 20,000 annual home closings by 2028
- Minimum 10% annual home closings growth commitment
- Strong gross margin target in low-to-mid 20% range
- High-teen ROE target indicates robust profitability goals
- Strategic control of 65%+ homebuilding lots ensures supply chain stability
Negative
- SG&A expenses remain relatively high at mid-to-high 8% of revenue
- Aggressive growth targets amid industry headwinds pose execution risks
News Market Reaction
On the day this news was published, TMHC gained 1.37%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The previously-announced 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 join a tour of Taylor Morrison communities and experience its award-winning Esplanade resort lifestyle offerings.
At the event, the Company is providing an update to its multi-year financial targets and introducing its longer-term growth ambitions through 2028, including:
- At least
10% annual home closings growth - Approximately 20,000 annual home closings by 2028
- Low-to-mid
20% home closings gross margin - Low-three range annualized monthly sales pace
- Mid-to-high
8% SG&A as a percentage of home closings revenue - At least
65% of homebuilding lots controlled - High-teen range return on equity
"Following years of intentional strategic positioning of our company to deliver top-tier financial results, we are proud of the transformation of Taylor Morrison's operational capabilities and uniquely diversified homebuilding portfolio," said Sheryl Palmer, Chairman and CEO. "Our diversification, consumer centricity and courage to chart our own path are competitive differentiators that give us confidence in our positive long-term outlook despite the broader headwinds facing our industry. We have a well-defined strategy to drive profitable growth as we target approximately 20,000 home closings by 2028 while generating attractive and improved returns for our shareholders."
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 12:00 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.
About Taylor Morrison
Headquartered in Scottsdale,
For more information about Taylor Morrison, please visit www.taylormorrison.com.
Forward-Looking Statements
This press release 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," "ambitions," "estimate," "expect," "project," "target," "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. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things, the risks and uncertainties identified under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated in our subsequent reports filed with the Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. Except as required by law, we do not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of the issuance of this press release or to reflect the occurrence of unanticipated events or otherwise.
CONTACT:
Mackenzie Aron, VP Investor Relations
Taylor Morrison Home Corp.
(407) 906-6262
investor@taylormorrison.com
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SOURCE Taylor Morrison
FAQ
What are Taylor Morrison's (TMHC) home closing targets for 2028?
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