Revenue drops as Taylor Morrison (NYSE: TMHC) posts Q1 2026 earnings
Rhea-AI Filing Summary
Taylor Morrison Home Corporation reported weaker results for the first quarter ended March 31, 2026. Total revenue was $1.39 billion, down 26.8% from $1.90 billion a year earlier. Net income fell to $98.6 million, or $1.01 per diluted share, versus $2.07 a year ago, while adjusted diluted earnings were $1.12.
The company delivered 2,268 homes at an average price of $578,000, with adjusted home closings gross margin of 20.6%, down from 24.8%. SG&A rose to 11.4% of home closings revenue. Net sales orders totaled 2,914 homes and backlog ended at 3,465 homes.
Management invested $503 million in land and development and repurchased $150 million of shares, finishing the quarter with $1.6 billion in liquidity. For 2026, the company reaffirmed guidance for approximately 11,000 home closings, average closing price between $580,000 and $590,000, and about $400 million of share repurchases.
Positive
- None.
Negative
- Q1 2026 financial performance weakened materially, with total revenue falling 26.8% to $1.39 billion, net income dropping more than 50% to $98.6 million, and adjusted EBITDA margin compressing from 17.8% to 13.2%.
- Home closings profitability deteriorated, as home closings gross margin declined from 24.0% to 20.0% and adjusted home closings gross margin fell from 24.8% to 20.6%, while SG&A rose to 11.4% of home closings revenue.
Insights
Q1 2026 shows sharp profit compression but guidance reaffirmed for 2026.
Taylor Morrison saw Q1 2026 revenue drop to $1.39 billion, down 26.8% year over year, with net income falling to $98.6 million. Home closings gross margin slipped 400 basis points to 20.0%, and adjusted home closings gross margin declined to 20.6%.
The company still generated solid scale, closing 2,268 homes at an average price of $578,000, and achieved adjusted EBITDA of $183.4 million or 13.2% of revenue. Sequentially, management highlighted a higher mix of to‑be‑built orders and reduced incentives, supporting a 23% sequential backlog increase to 3,465 homes.
Leverage remained moderate, with net homebuilding debt to capitalization at 20.5% as of March 31, 2026. Management reaffirmed full‑year 2026 guidance, including approximately 11,000 home closings, average price between $580,000 and $590,000, mid‑10% SG&A as a percentage of home closings revenue, and about $400 million of share repurchases.
8-K Event Classification
Key Figures
Key Terms
adjusted home closings gross margin financial
adjusted EBITDA financial
net homebuilding debt to capitalization ratio financial
to-be-built orders financial
inventory impairment charges financial
Earnings Snapshot
For 2026, Taylor Morrison guides to approximately 11,000 home closings, average closing price between $580,000 and $590,000, mid-10% SG&A as a percentage of home closings revenue, effective tax rate about 25.0%, and roughly $400 million in share repurchases.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On April 22, 2026, Taylor Morrison Home Corporation (the “Company”) issued a press release setting forth its financial results for its first quarter ended March 31, 2026. A copy of the Company’s press release is attached as Exhibit 99.1 to this report. The Company does not intend for this Item 2.02 or Exhibit 99.1 to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference into filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. |
||
| 99.1 | Press release issued April 22, 2026 by Taylor Morrison Home Corporation and furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.” | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Taylor Morrison Home Corporation | ||||||
| Date: April 22, 2026 | By: | /s/ Todd Merrill | ||||
| Todd Merrill Executive Vice President, Chief Legal Officer and Secretary | ||||||
Exhibit 99.1
CONTACT:
Mackenzie Aron
Vice President, Investor Relations
(407) 906-6262
investor@taylormorrison.com
Taylor Morrison Reports First Quarter 2026 Results
SCOTTSDALE, Ariz., April 22, 2026 — Taylor Morrison Home Corporation (NYSE: TMHC), a leading national community developer and homebuilder, announced results for the first quarter ended March 31, 2026. For the first quarter, reported net income was $99 million, or $1.01 per diluted share, while adjusted net income was $109 million, or $1.12 per diluted share.
First Quarter 2026 Highlights
| • | Home closings revenue of $1.3 billion |
| • | 2,268 closings at an average sales price of $578,000 |
| • | Home closings gross margin of 20.0%; adjusted home closings gross margin of 20.6% |
| • | SG&A ratio of 11.4% of home closings revenue |
| • | Net sales orders of 2,914 at an average selling price of $603,000 |
| • | Monthly net sales pace of 2.7 per community |
| • | Sales order backlog of 3,465 homes with a sales value of $2.3 billion |
| • | 75,626 homebuilding lots owned and controlled; 51% controlled off balance sheet |
| • | Homebuilding land and development investment of $503 million |
| • | Repurchased approximately 2.5 million common shares for $150 million |
| • | Total liquidity of approximately $1.6 billion, inclusive of $653 million of cash |
“Our first quarter results reflected the effectiveness of our diversified strategy, the quality of our core locations, and the disciplined execution of our teams. We delivered 2,268 homes at an average price of $578,000 and an adjusted home closings gross margin of 20.6%, driving adjusted earnings per diluted share of $1.12 and 11% year-over-year growth in our book value per share to $64. On the capital front, we invested $503 million in land and development and $150 million in share repurchases and ended the quarter with $1.6 billion in liquidity,” said Sheryl Palmer, Taylor Morrison Chairman and CEO.
Palmer continued, “Encouragingly, our first quarter sales were achieved with a significant increase in the mix of to-be-built orders to 38% from 28% in the fourth quarter, a more than 100 basis point sequential reduction in incentives, and a 30% decline in our finished spec count to 863 homes. With net orders outpacing closings, our backlog grew 23% sequentially to 3,465 homes. We believe our diversification across consumer segments remains a critical driver of our results relative to the broader market. In particular, our resort lifestyle segment provided a strong source of differentiated sales success during the quarter as the only consumer segment to grow year over year, driven by a 9% increase in Esplanade sales. Supported by the underlying strength of our strategy, we are reaffirming our full-year 2026 guidance across all key metrics, despite the evolving market backdrop.”
“Our strategic priorities center on a refocusing of our expertise in the discerning entry-level, move-up and resort lifestyle segments, with land investments focused on well-located, core submarkets that best align with our product offerings and target consumer groups. Tactically, we are focused on continuing to rebuild our backlog with ongoing normalization in our sales mix, managing our starts cadence, and ensuring the more than 125 new communities we have slated for the year open with strong momentum. We believe these priorities are laying the groundwork for a meaningful reacceleration in growth in 2027 and beyond while positioning our portfolio to generate attractive long-term returns for our shareholders.”
Business Outlook
The Company is providing the following guidance for the second quarter and full year 2026:
| Second Quarter 2026 | Full Year 2026 | |||
| Ending Community Count |
Around 370 | Between 365 to 370 | ||
| Home Closings |
Between 2,500 to 2,600 | Approximately 11,000 | ||
| Average Closing Price |
Approximately $575,000 | Between $580,000 to $590,000 | ||
| Home Closings Gross Margin1 (excluding any inventory-related charges) |
At least 20% | Not provided | ||
| SG&A as a Percentage of Home Closings Revenue |
Not provided | Mid-10% range | ||
| Effective Tax Rate |
Approximately 25.5% | Approximately 25.0% | ||
| Average Diluted Share Count |
Approximately 95 million | Approximately 95 million | ||
| Homebuilding Land Investment |
Not provided | Approximately $2 billion | ||
| Share Repurchases |
Not provided | Approximately $400 million |
| (1) | A reconciliation of our forward-looking adjusted home closings gross margin to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. |
First Quarter Business Highlights
All comparisons are of the current quarter to the prior-year quarter, unless indicated.
Homebuilding
| • | Home closings revenue decreased approximately 28% to $1.3 billion, driven by an approximately 26% decline in closings volume to 2,268 homes and an approximately 4% decrease in average closing price to $578,000. |
| • | Home closings gross margin was 20.0% on a reported basis and 20.6% on an adjusted basis, excluding $8.2 million of inventory impairment charges. |
| • | Net sales orders decreased approximately 14% to 2,914 at an average selling price of $603,000, up approximately 2% year over year. The monthly sales pace was 2.7 per community, up from 2.4 in the fourth quarter of 2025 but down from 3.3 in the first quarter of 2025. |
| • | Ending active selling communities were 356, up 4% year over year. |
| • | The cancellation rate was 10.0% of gross orders, compared to 11.0% a year ago. |
| • | SG&A as a percentage of home closings revenue increased to 11.4% from 9.7% a year ago, as the reduction in SG&A dollar spend was offset by lower home closings revenue. |
| • | Backlog at quarter end was 3,465 homes, up 23% sequentially from 2,819 homes at year end 2025. Backlog customer deposits averaged approximately $45,000 per home. |
Land Portfolio
| • | Homebuilding land and development investment totaled $503 million in the first quarter of 2026, inclusive of $224 million for land development, as compared to $469 million in the first quarter of 2025, inclusive of $218 million for land development. |
| • | Homebuilding lot supply was 75,626 homesites at quarter end, of which 51% was controlled off balance sheet. This compared to total homesites of 86,266 in the first quarter of 2025, of which 59% was controlled, and 78,835 at year end 2025, of which 54% was controlled. |
| • | Based on trailing twelve-month home closings, total homebuilding lots represented 6.2 years of supply, of which 3.0 years was owned. This compared to 6.5 years of supply and 2.7 years owned in the first quarter of 2025. |
Financial Services
| • | The mortgage capture rate was 88%, stable compared to a year ago. |
| • | Borrowers had an average credit score of 750, average household income of approximately $181,000, and average loan-to-value ratio of 80%. |
Balance Sheet
| • | At quarter end, total liquidity was approximately $1.6 billion, inclusive of $653 million of cash and $905 million of available capacity on the Company’s revolving credit facility. |
| • | The gross homebuilding debt-to-capital ratio was 26.6% and the net homebuilding debt-to-capital ratio was 20.5%. |
| • | The Company repurchased approximately 2.5 million shares at an average price of approximately $61 per share during the first quarter. As of quarter end, $863 million remained available under the Company’s $1 billion repurchase authorization, which expires in December 2027. |
Earnings Webcast
Taylor Morrison will hold a webcast to discuss its results today at 8:30 a.m. ET. A live audio webcast of the conference call will be available on Taylor Morrison’s website at www.taylormorrison.com on the Investor Relations portion of the site under the Events tab. At least 10 minutes prior to the webcast start time, participants are asked to register for the event here. The webcast will be recorded and available for replay on the Company’s website.
Quarterly Financial Comparison
| (Dollars in thousands) | Q1 2026 | Q1 2025 | Q1 2026 vs. Q1 2025 | |||||||||
| Total Revenue |
$ | 1,387,092 | $ | 1,896,019 | (26.8 | )% | ||||||
| Home Closings Revenue, net |
$ | 1,311,421 | $ | 1,830,068 | (28.3 | )% | ||||||
| Home Closings Gross Margin |
$ | 261,721 | $ | 438,708 | (40.3 | )% | ||||||
| 20.0 | % | 24.0 | % | 400 bps decrease | ||||||||
| Adjusted Home Closings Gross Margin |
$ | 269,903 | $ | 453,586 | (40.5 | )% | ||||||
| 20.6 | % | 24.8 | % | 420 bps decrease | ||||||||
| SG&A |
$ | 148,847 | $ | 176,624 | (15.7 | )% | ||||||
| % of Home Closings Revenue |
11.4 | % | 9.7 | % | 170 bps increase | |||||||
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 and resort lifestyle homebuyers and renters under our family of brands—including Taylor Morrison, Esplanade and Yardly. Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research since 2016, was honored as one of Fortune’s World’s Most Admired Companies in 2026, and on Forbes’ Most Trusted and Best Companies in America lists in 2025. 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, policy initiatives 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 March 31, |
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| 2026 | 2025 | |||||||
| Home closings revenue, net |
$ | 1,311,421 | $ | 1,830,068 | ||||
| Land closings revenue |
14,479 | 4,261 | ||||||
| Financial services revenue, net |
49,264 | 51,193 | ||||||
| Amenity and other revenue |
11,928 | 10,497 | ||||||
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| Total revenue |
1,387,092 | 1,896,019 | ||||||
| Cost of home closings |
1,049,700 | 1,391,360 | ||||||
| Cost of land closings |
12,002 | 3,489 | ||||||
| Financial services expenses |
24,451 | 28,321 | ||||||
| Amenity and other expenses |
10,301 | 9,575 | ||||||
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| Total cost of revenue |
1,096,454 | 1,432,745 | ||||||
| Gross margin |
290,638 | 463,274 | ||||||
| Sales, commissions and other marketing costs |
89,876 | 109,076 | ||||||
| General and administrative expenses |
58,971 | 67,548 | ||||||
| Net income from unconsolidated entities |
(2,877 | ) | (1,975 | ) | ||||
| Interest expense, net |
11,155 | 8,499 | ||||||
| Other expense, net |
2,831 | 1,557 | ||||||
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| Income before income taxes |
130,682 | 278,569 | ||||||
| Income tax provision |
30,253 | 64,838 | ||||||
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| Net income before allocation to non-controlling interests |
100,429 | 213,731 | ||||||
| Net income attributable to non-controlling interests |
(1,804 | ) | (265 | ) | ||||
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| Net income |
$ | 98,625 | $ | 213,466 | ||||
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| Earnings per common share: |
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| Basic |
$ | 1.03 | $ | 2.11 | ||||
| Diluted |
$ | 1.01 | $ | 2.07 | ||||
| Weighted average number of shares of common stock: |
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| Basic |
96,033 | 101,245 | ||||||
| Diluted |
97,530 | 103,017 | ||||||
Taylor Morrison Home Corporation
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
| March 31, 2026 |
December 31, 2025 |
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| Assets |
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| Cash and cash equivalents |
$ | 652,933 | $ | 850,037 | ||||
| Restricted cash |
500 | 1,194 | ||||||
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| Total cash |
653,433 | 851,231 | ||||||
| Owned inventory |
6,138,036 | 6,046,468 | ||||||
| Consolidated real estate not owned |
100,527 | 94,195 | ||||||
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| Total real estate inventory |
6,238,563 | 6,140,663 | ||||||
| Land deposits |
388,277 | 360,690 | ||||||
| Mortgage loans held for sale |
139,001 | 132,512 | ||||||
| Lease right of use assets |
63,073 | 60,800 | ||||||
| Prepaid expenses and other assets, net |
530,473 | 566,670 | ||||||
| Other receivables, net |
269,835 | 241,678 | ||||||
| Investments in unconsolidated entities |
483,011 | 486,978 | ||||||
| Deferred tax assets, net |
74,363 | 74,363 | ||||||
| Property and equipment, net |
268,773 | 259,015 | ||||||
| Goodwill |
663,197 | 663,197 | ||||||
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| Total assets |
$ | 9,771,999 | $ | 9,837,797 | ||||
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| Liabilities and stockholders’ equity |
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| Accounts payable |
$ | 255,352 | $ | 251,641 | ||||
| Accrued expenses and other liabilities |
586,138 | 682,500 | ||||||
| Lease liabilities |
72,822 | 71,525 | ||||||
| Income taxes payable |
8,333 | 8,146 | ||||||
| Customer deposits |
154,527 | 125,029 | ||||||
| Estimated development liabilities |
4,365 | 4,365 | ||||||
| Senior notes, net |
1,463,865 | 1,463,333 | ||||||
| Loans payable and other borrowings |
787,061 | 745,169 | ||||||
| Revolving credit facility borrowings |
— | — | ||||||
| Mortgage warehouse facilities borrowings |
90,855 | 82,605 | ||||||
| Liabilities attributable to consolidated real estate not owned |
100,527 | 94,195 | ||||||
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| Total liabilities |
$ | 3,523,845 | $ | 3,528,508 | ||||
| Total stockholders’ equity |
6,248,154 | 6,309,289 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 9,771,999 | $ | 9,837,797 | ||||
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Homes Closed and Home Closings Revenue, Net:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
| Homes Closed | Home Closings Revenue, Net | Average Selling Price | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | Change | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||
| East |
869 | 1,110 | (21.7 | )% | $ | 469,061 | $ | 625,714 | (25.0 | )% | $ | 540 | $ | 564 | (4.3 | %) | ||||||||||||||||||||
| Central |
558 | 883 | (36.8 | )% | 271,158 | 477,494 | (43.2 | )% | 486 | 541 | (10.2 | )% | ||||||||||||||||||||||||
| West |
841 | 1,055 | (20.3 | %) | 571,202 | 726,860 | (21.4 | )% | 679 | 689 | (1.5 | )% | ||||||||||||||||||||||||
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| Total |
2,268 | 3,048 | (25.6 | )% | $ | 1,311,421 | $ | 1,830,068 | (28.3 | )% | $ | 578 | $ | 600 | (3.7 | )% | ||||||||||||||||||||
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Net Sales Orders:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
| Net Sales Orders | Sales Value | Average Selling Price | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | Change | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||
| East |
1,155 | 1,391 | (17.0 | )% | $ | 652,435 | $ | 721,027 | (9.5 | %) | $ | 565 | $ | 518 | 9.1 | % | ||||||||||||||||||||
| Central |
736 | 867 | (15.1 | %) | 342,865 | 449,363 | (23.7 | %) | 466 | 518 | (10.0 | )% | ||||||||||||||||||||||||
| West |
1,023 | 1,116 | (8.3 | %) | 762,348 | 828,905 | (8.0 | %) | 745 | 743 | 0.3 | % | ||||||||||||||||||||||||
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| Total |
2,914 | 3,374 | (13.6 | %) | $ | 1,757,648 | $ | 1,999,295 | (12.1 | %) | $ | 603 | $ | 593 | 1.7 | % | ||||||||||||||||||||
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Sales Order Backlog:
| As of March 31, | ||||||||||||||||||||||||||||||||||||
| Sold Homes in Backlog | Sales Value | Average Selling Price | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | Change | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||
| East |
1,432 | 2,018 | (29.0 | )% | $ | 930,791 | $ | 1,286,197 | (27.6 | )% | $ | 650 | $ | 637 | 2.0 | % | ||||||||||||||||||||
| Central |
675 | 1,082 | (37.6 | )% | 358,424 | 640,443 | (44.0 | )% | 531 | 592 | (10.3 | )% | ||||||||||||||||||||||||
| West |
1,358 | 1,968 | (31.0 | %) | 1,013,612 | 1,434,734 | (29.4 | %) | 746 | 729 | 2.3 | % | ||||||||||||||||||||||||
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| Total |
3,465 | 5,068 | (31.6 | )% | $ | 2,302,827 | $ | 3,361,374 | (31.5 | )% | $ | 665 | $ | 663 | 0.3 | % | ||||||||||||||||||||
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Ending Active Selling Communities:
| As of March 31, | Change | |||||||||||
| 2026 | 2025 | |||||||||||
| East |
148 | 137 | 8.0 | % | ||||||||
| Central |
97 | 94 | 3.2 | % | ||||||||
| West |
111 | 113 | (1.8 | %) | ||||||||
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| Total |
356 | 344 | 3.5 | % | ||||||||
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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 real estate and inventory impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, unique and unusual warranty 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 and unique and unusual warranty 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 tax provisions, depreciation and amortization (EBITDA), non-cash compensation expense, if any, real estate and inventory impairment charges, impairment of investments in unconsolidated entities, pre-acquisition abandonment charges, unique and unusual warranty 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 facilities 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 net homebuilding debt to total capitalization ratio 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 net homebuilding debt to total capitalization ratio 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. For purposes of our presentation of our non-GAAP financial measures for the three months ended March 31, 2025, such measures have been recast to include certain adjustments being presented in the three months ended March 31, 2026 that were previously deemed immaterial in the prior period.
Adjusted Net Income and Adjusted Earnings Per Common Share
| Three Months Ended March 31, | ||||||||
| (Dollars in thousands, except per share data) | 2026 | 2025 | ||||||
| Net income |
$ | 98,625 | $ | 213,466 | ||||
| Inventory impairment charges |
8,182 | 14,878 | ||||||
| Pre-acquisition abandonment charges |
5,591 | 927 | ||||||
| Tax impact of non-GAAP reconciling items |
(3,189 | ) | (3,679 | ) | ||||
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| Adjusted net income |
$ | 109,209 | $ | 225,592 | ||||
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| Basic weighted average number of shares |
96,033 | 101,245 | ||||||
| Adjusted earnings per common share - Basic |
$ | 1.14 | $ | 2.23 | ||||
| Diluted weighted average number of shares |
97,530 | 103,017 | ||||||
| Adjusted earnings per common share - Diluted |
$ | 1.12 | $ | 2.19 | ||||
Adjusted Income Before Income Taxes and Related Margin
| Three Months Ended March 31, |
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| (Dollars in thousands) | 2026 | 2025 | ||||||
| Income before income taxes |
$ | 130,682 | $ | 278,569 | ||||
| Inventory impairment charges |
8,182 | 14,878 | ||||||
| Pre-acquisition abandonment charges |
5,591 | 927 | ||||||
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| Adjusted income before income taxes |
$ | 144,455 | $ | 294,374 | ||||
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| Total revenue |
$ | 1,387,092 | $ | 1,896,019 | ||||
| Income before income taxes margin |
9.4 | % | 14.7 | % | ||||
| Adjusted income before income taxes margin |
10.4 | % | 15.5 | % | ||||
Adjusted Home Closings Gross Margin
| Three Months Ended March 31, |
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| (Dollars in thousands) | 2026 | 2025 | ||||||
| Home closings revenue, net |
$ | 1,311,421 | $ | 1,830,068 | ||||
| Cost of home closings |
1,049,700 | 1,391,360 | ||||||
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| Home closings gross margin |
$ | 261,721 | $ | 438,708 | ||||
| Inventory impairment charges |
8,182 | 14,878 | ||||||
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| Adjusted home closings gross margin |
$ | 269,903 | $ | 453,586 | ||||
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| Home closings gross margin as a percentage of home closings revenue |
20.0 | % | 24.0 | % | ||||
| Adjusted home closings gross margin as a percentage of home closings revenue |
20.6 | % | 24.8 | % | ||||
EBITDA and Adjusted EBITDA Reconciliation
| Three Months Ended March 31, |
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| (Dollars in thousands) | 2026 | 2025 | ||||||
| Net income before allocation to non-controlling interests |
$ | 100,429 | $ | 213,731 | ||||
| Interest expense, net |
11,155 | 8,499 | ||||||
| Amortization of capitalized interest |
18,672 | 24,773 | ||||||
| Income tax provision |
30,253 | 64,838 | ||||||
| Depreciation and amortization |
2,535 | 1,696 | ||||||
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| EBITDA |
$ | 163,044 | $ | 313,537 | ||||
| Non-cash compensation expense |
6,560 | 7,785 | ||||||
| Inventory impairment charges |
8,182 | 14,878 | ||||||
| Pre-acquisition abandonment charges |
5,591 | 927 | ||||||
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| Adjusted EBITDA |
$ | 183,377 | $ | 337,127 | ||||
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| Total revenue |
$ | 1,387,092 | $ | 1,896,019 | ||||
| Net income before allocation to non-controlling interests as a percentage of total revenue |
7.2 | % | 11.3 | % | ||||
| EBITDA as a percentage of total revenue |
11.8 | % | 16.5 | % | ||||
| Adjusted EBITDA as a percentage of total revenue |
13.2 | % | 17.8 | % | ||||
Debt to Capitalization Ratios Reconciliation
| (Dollars in thousands) | As of March 31, 2026 |
As of December 31, 2025 |
As of March 31, 2025 |
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| Total debt |
$ | 2,341,781 | $ | 2,291,107 | $ | 2,083,599 | ||||||
| Plus: unamortized debt issuance cost, net |
11,135 | 11,667 | 6,177 | |||||||||
| Less: mortgage warehouse facilities borrowings |
(90,855 | ) | (82,605 | ) | (175,741 | ) | ||||||
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| Total homebuilding debt |
$ | 2,262,061 | $ | 2,220,169 | $ | 1,914,035 | ||||||
| Total stockholders’ equity |
6,248,154 | 6,309,289 | 5,957,524 | |||||||||
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| Total capitalization |
$ | 8,510,215 | $ | 8,529,458 | $ | 7,871,559 | ||||||
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| Total homebuilding debt to capitalization ratio |
26.6 | % | 26.0 | % | 24.3 | % | ||||||
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| Total homebuilding debt |
$ | 2,262,061 | $ | 2,220,169 | $ | 1,914,035 | ||||||
| Less: cash and cash equivalents |
(652,933 | ) | (850,037 | ) | (377,815 | ) | ||||||
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| Net homebuilding debt |
$ | 1,609,128 | $ | 1,370,132 | $ | 1,536,220 | ||||||
| Total stockholders’ equity |
6,248,154 | 6,309,289 | 5,957,524 | |||||||||
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| Total capitalization |
$ | 7,857,282 | $ | 7,679,421 | $ | 7,493,744 | ||||||
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| Net homebuilding debt to capitalization ratio |
20.5 | % | 17.8 | % | 20.5 | % | ||||||