TMHC Filings — Taylor Morrison Home Corp - FilingSpy
TMHC
Taylor Morrison Home Corp
A national U.S. homebuilder and land developer that builds and sells homes under the Taylor Morrison and Esplanade brands, plus build-to-rent homes under the Yardly brand. It also provides mortgage, title, and insurance services through its own subsidiaries, and operates as a general contractor managing third-party subcontractors. The company uses an asset-light land strategy, acquiring finished lots through land banking and joint ventures rather than owning land outright.
Taylor Morrison's Q1 revenue fell 27% and gross margin contracted to 21% as orders dropped 14% and inventory impairments continued.
The that began in 2025 deepened. fell 26.8% to $1.39 billion and home closings contracted 3.5 points to 21.0% as higher discounts, financing incentives, and $8.2 million in impairments weighed on results. The company enters the spring selling season with a smaller and persistent buyer apprehension.
Key takeaways
Home closings dropped 28.3% to $1.31 billion on a 25.6% decline in closings, driven by a lower opening and a strategic shift from to to-be-built homes.
Home closings contracted to 20.0% from 24.0% a year ago, pressured by higher discounts and financing incentives, a greater mix of lower-margin , and $8.2 million in charges.
orders decreased 13.6% to 2,914 units, with management citing tariffs, elevated mortgage rates, inflation, and geopolitical events as factors increasing buyer apprehension, particularly among entry-level and move-up buyers.
Section summaries
Management's Discussion and Analysis
Home closings revenue fell 28% to $1.3B on lower backlog and a shift toward to-be-built homes, compressing margins.
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Home closings dropped 28.3% to $1.31B on 25.6% fewer closings, driven by lower opening and a strategic shift from quick move-in to to-be-built homes.
fell 53.8% to $98.6 million and declined 51.2% to $1.01, reflecting the sharp drop in and .
Financial services income before taxes rose 13.2% to $29.4 million, as higher earned on loan sales and increased income from unconsolidated entities offset a 28.7% decline in loan originations.
The company repurchased 2.5 million shares for $150 million during the quarter, while total liquidity stood at $1.56 billion with $653 million in cash and $905 million in availability.
What changed
The home closings fell to 20.0%, below the 22.0% recorded in Q4 2025, confirming that the margin erosion flagged in prior quarters has not stabilized and continues to compress.
charges of $8.2 million appeared again, extending the pattern of charges in the East that began in Q1 2025 and totaled $28.8 million for the full year 2025.
The cancellation rate was not explicitly stated this quarter, but the 13.6% order decline and management's commentary on buyer apprehension suggest the elevated cancellation trend from 2025's 13.2% full-year rate has not reversed.
was an outflow of $20.4 million, a sharp reversal from the $635.3 million inflow in Q4 2025, as the seasonal build consumed cash, though the year-ago Q1 also saw an outflow of $68.7 million.
What to watch
Whether the home closings can hold above 20% in Q2 2026 as the spring selling season progresses, or if further discounting and incentives are required to move .
Whether the East records additional impairments in Q2 2026, after charges appeared in four of the last five quarters.
The trajectory of orders in the spring selling season, given the 13.6% decline in Q1 and management's citation of tariffs and mortgage rates as headwinds.
The pace of share repurchases against the remaining authorization, given the $150 million spent this quarter and the competing demand for cash from land investment with only $653 million in unrestricted cash.
Home closings contracted to 20.0% from 24.0%, pressured by higher discounts and financing incentives, a greater mix of lower-margin quick move-in homes, and $8.2M in .
orders decreased 13.6% to 2,914, with management citing tariffs, elevated mortgage rates, inflation, and geopolitical events as factors increasing buyer apprehension, particularly among entry-level and move-up buyers.
Financial services income before taxes rose 13.2% to $29.4M, as higher earned on loan sales and increased income from offset a 28.7% decline in loan originations.
Total liquidity stood at $1.56B, including $653M in cash and $905M in availability, while the company repurchased 2.5M shares for $150M during the quarter.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk is the primary market risk, with 96% of debt fixed-rate and a 1% rate rise on variable debt costing ~$0.9M/year.
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At March 31, 2026, 96% of total debt was fixed-rate and 4% was variable-rate; no instruments are held for trading.
Fixed-rate debt changes affect but not earnings or cash flows until refinancing or repayment.
Variable-rate debt, tied to SOFR, impacts future earnings and cash flows; a 1% rate increase would raise annual interest by approximately $0.9 million.
The company had no outstanding borrowings under its and $905.2 million in additional availability, including $305.2 million for .
Variable-rate exposure is concentrated in secured by loans held for sale, typically sold within 20–30 days.
The company must offer to senior unsecured notes at 101% of principal plus accrued interest upon specified change-of-control events.
The information required with respect to this item can be found in Note 13 - Commitments and Contingencies under “Legal Proceedings” in the Notes to the unaudited Condensed consolidated financial statements included in this quarterly report and is incorporated by reference herei…
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The information required with respect to this item can be found in Note 13 - Commitments and Contingencies under “Legal Proceedings” in the Notes to the unaudited Condensed consolidated financial statements included in this quarterly report and is incorporated by reference herein.
There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report. These risk factors may materially affect our business, financial condition or results of operations. You should carefully consider the risk factors set forth in our Annual…
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There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report. These risk factors may materially affect our business, financial condition or results of operations. You should carefully consider the risk factors set forth in our Annual Report and the other information set forth elsewhere in this quarterly report. You should be aware that these risk factors and other information may not describe every risk facing our Company.
TAYLOR MORRISON HOME CORPORATION 10-Q
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Table of Contents
PART II — OTHER INFORMATION