Taylor Morrison Home : 2025 Annual Report of 2025

Published: 2026-04-13 12:03:39 ET TMHC

Published on 04/13/2026 at 12:03 pm EDT

WEʼRE BUILT FOR THIS.

In homebuilding, resilience isnʼt optional-itʼs foundational. And in 2025, that foundation was tested. The year underscored the grit, discipline and steadfast belief in strategy required to operate in our sector.

Entering the year, our industry had clear expectations for what we were all supposed to deliver. Demand remained fundamentally sound, demographics were supportive, and the long-term need for housing was undeniable.

In March of 2025, Taylor Morrison hosted our inaugural Investor Day, a milestone moment of pride for both me and the company. We introduced our diversified strategy and articulated our goal of delivering 20,000 homes annually by 2028. We showcased the premium resort lifestyle offered by our Esplanade brand. We also shared how our balanced portfolio, geographic footprint, and operational scale position us to compete in a range of market environments.

Quickly thereafter, the market shifted.

Macroeconomic uncertainty intensified. Tariffs and political tensions introduced new noise. Housing policy moved front and center. Consumers began feeling

the full brunt of inflationary pressures and financial anxiety. There is no playbook for navigating a moment like this. But as leaders in our industry, I believe we own the responsibility of helping customers find clarity amid uncertainty-and confidence in one of lifeʼs most important decisions.

Through it all, Taylor Morrison delivered one of the strongest home closings gross margins in the industry, a clear validation of the strategy weʼve built and refined over time. We proved that diversification is not a

headline, itʼs a discipline, and in 2025, it proved its value.

As we look ahead, we are strengthening our focus on who we are. We are concentrating on customers whose decision is less "Can I buy?ˮ and more "Should I buy?ˮ-allowing us to sell the enduring value of our communities rather than compete solely on price.

Our focus on thoughtfully designed communities in highly desirable core locations, combined with our expertise in serving all consumer cohorts, and our trusted reputation is the very fabric of who we've always been. These are the areas weʼve always been good at. This is Taylor Morrison, getting back to its roots, and I have more conviction than ever that we know who we are and where we want to go.

We believe our goal of delivering 20,000 homes annually is still squarely in our sights and the market backdrop will help determine the ultimate timing of that goal. In

the nearer term, we expect 2026 to include a deliberate reset toward a more to-be-built mix following a spec-heavy 2025. It will require greater discipline on land, particularly in tertiary markets, and renewed focus on our core locations. It also means a willingness to accept a temporary reduction in volume in exchange for longterm margin health and brand strength.

Iʼm a firm believer that environments like the one weʼre in today are defining moments, and Iʼm inspired to take an entirely new direction for my letter. In the pages to follow, Iʼll shine a light on the challenges we see, and even more importantly, the solutions weʼre actively pursuing.

Because at Taylor Morrison, we believe firmly in our strategy, weʼre deeply committed to what makes

us so unique, and weʼre ready to set the stage for reacceleration. We are built for this.

Mason Woods | Houston, TX

$8.1B

Total revenue

$597K

Home closing ASP

12,997

Homes delivered

2.7

Annualized monthly

sales pace per community

$7.8B

Home closings revenue

6.1

Years of land supply

$817M $2.2B $381M

Operating cash flow generated

Invested in homebuilding land and development

Invested in share repurchases

$1.8B

23.9%

24.4% 22.5%

15%

16%

13%

2023

2024 2025

2023 2024 2025

Year-end liquidity

Home closings gross margin

Return on equity*

*Calculated as annual net income divided by the average ofi stockholdersʼ equity in the current and prior-year period.

Since 2016

Since 2025

Since 2023

2025

2019, 2020

and 2026

Since 2025

2025

Since 2022

Since 2025

Since 2021

Since 2023

Since 2025

Our Markets

WEST

Bay Area Las Vegas

Pacific Northwest Phoenix Sacramento Southern California

CENTRAL

Austin Dallas Denver Houston Indianapolis

EAST

Atlanta Charlotte Jacksonville Naples Orlando Raleigh Sarasota Tampa Treasure Coast

THE CHALLENGE

A Market in Stalemate

The housing market sits in an unusual middle ground-neither a true buyerʼs market nor a sellerʼs market. Many homeowners remain locked into historically low mortgage rates with little urgency to sell, while consumer confidence nears a multi-decade low and affordability pressures continue to weigh on purchase decisions. Both supply and demand are out of rhythm, creating friction across the system.

Mortgage rates hovering near

Resale inventory building for

3 consecutive years

Unsold new homes at a 12-year high

2.7 per community

Elevated multifamily vacancy

35 year high

OUR RESPONSE

We view 2026 not as a retreat, but as a moderate reset. In a market where home sales, both new and resale, are likely to remain pressured in the near term, we

are narrowing our focus away from incentive-heavy, commoditized segments and leaning into core move-up and resort-lifestyle buyers where brand strength, build-to-order personalization, and customer trust support healthier margins.

This reset includes disciplined land positioning, greater balance across starts, sales and closings, and continuing to prioritize returns over volume. We expect modest pricing pressure in the short term as excess

inventory clears, but believe reduced starts across the industry will restore equilibrium over time. As mortgage rates gradually moderate and household formation strengthens-particularly among millennial and early Gen Z buyers-longer-term demand fundamentals remain intact.

By proactively adjusting now-refining our mix, improving cycle times, investing in operational efficiencies, and maintaining readiness for disciplined M&A opportunities-we are positioning Taylor Morrison to emerge stronger as the cycle evolves.

Lisso | Austin, TX

THE CHALLENGE

Shifting Housing Fundamentals

Housing market conditions impact different consumer groups at different times and in different ways, but Taylor Morrison has never had a singular focus of one product serving one buyer-and that has been by design. Our barbell approach has served us well, even when it wasn't easily understood or appreciated. Through it

all we have remained disciplined in our belief that true resilience requires breadth and concentration, and that our diversification is not only unique in the industry, but one of our greatest strengths.

Market preference for simplified business models Singular product strategies often rewarded

Short-term optics vs. long-term durability

Travisso | Austin, TX

OUR RESPONSE

Diversification has never been a reactionary move for us-itʼs our operating model. Across consumer segments, generational cohorts, geographies and product types, we have intentionally built a portfolio designed to flex with demand and absorb volatility.

In 2025, that discipline delivered results. We generated one of the highest home closings gross margins in

the industry, uniquely secured SG&A leverage, and achieved year-over-year closings growth-despite softer consumer confidence, heightened pricing competition, and elevated inventory levels.

Take the differentiated strength of our resort lifestyle brand, Esplanade, for example. This active adult demographic holds $114T in buying power, is generally

a rate-resilient, cash-buying customer, and helps us maintain a steady stream of to-be-built business-even in a spec-heavy environment like 2025-that drives superior home prices and gross margins.

As investors have become more familiar with our differentiated approach, the value of that strategy is increasingly visible. From serving renters with our build-to-rent brand, Yardly, to all generations of homebuyers across the entry-level, move-up, and resort lifestyle segments to customers who need support from our financial services offerings, we really do have a housing solution for everyone.

The Consumers We Serve

31%

20%

Entry Level Active Adult

16%

33%

1st Move-Up 2nd Move-Up

OUR RESPONSE

Taylor Morrison's resort lifestyle brand, Esplanade, offers exceptional experiences through concierge-level staff, world-class culinary, wellness, sports programs, and championship golf courses within our Esplanade

$114T 20+

communities nationwide.

In buying power among the active adult group

New Esplanade outlets expected to open in 2026

Resort-Style Amenities Include:

Golf courses

3 under-construction

3.2M

Pool gallons

2.4M+ gallons planned

Restaurants

30 restaurants planned

239

Recreation courts

219 courts planned

Spa treatment rooms

27 rooms planned

Bark parks

14 parks planned

OUR RESPONSE

Renting gets a purposeful refresh with lifestyle in mind at Yardly by Taylor Morrison, where private backyards, pet-friendly features, and smart home tech support are all designed to support wellness and flexibility. Renters

enjoy optimized floor plans with first-floor entry, limited wall sharing, and no neighbors above or below.

Build-to-Rent developer by Zonda

Of U.S. households rent according to the National Multifamily Council

Recent Yardly Sales

$55.2M $46.5M $41.9M

Paradisi: Surprise, AZ 2025

McDowell: Phoenix, AZ 2024

Dechman: Grand Prairie, TX 2024

9 markets

Across 4 states

$3B

Land banking capacity

dedicated to Yardlyʼs expansion

Communities expected to be

in leasing operations in 2026

45+

Owned and controlled Yardly communities

Standing: Anne Mariucci, David Merritt (will rєʹirє єrrєcʹivє as or ʹhє May 2026 Sharєholdєr Mєєʹing), Heather Ostis, Peter Lane, Anissa Dhouibi (board fiellow), Christopher Yip, Andi Owen

Seated: Denise Warren, Sheryl Palmer, Analiza Quiroz Wolfi (board fiellow)

OUR RESPONSE

Amanda Whalen

Director

Joined March 2026

Taylor Morrison is guided by a highly sophisticated and engaged Board of Directors whose diverse expertise strengthens our strategic direction. Representing deep experience across real estate, finance, operations, governance, and public company leadership, our directors provide thoughtful oversight and meaningful challenge that sharpens our decision-making.

Our Board is not only independent, it is aligned. Drawing upon their collective insights and varied experiences, they actively support the long-term strategy we have outlined, reinforcing our commitment to disciplined growth, operational excellence, and sustainable value creation. Their partnership ensures that our strategy is both ambitious and responsibly executed.

Amanda Whalen is currently Chief Financial Officer at Klaviyo. Previously, she served as EVP and CFO of Walmart International and spent more than a decade at Bain & Company. Ms. Whalen holds an MBA from the MIT Sloan School of Management and a BA from Princeton University.

Collective Experience

100%

75%

50%

8.6 yrs

With executive leadership experience

With public company board experience

With homebuilding experience

Average tenure

Refilects director nominees standing fior election at the May 2026 Meeting

THE CHALLENGE OUR RESPONSE

Housing Reform Stand Ready

With housing reform rising to the forefront of the Administrationʼs agenda, the industry has been thrust into the spotlight and there is urgency to deliver solutions. Meeting this moment calls for proactivity and collaboration among policymakers and the nation's largest homebuilders.

Administration focused on tackling affordability crisis

Spotlight on the housing industry

The Administration's focus on expanding pathways to homeownership is encouraging, as few economic catalysts are as powerful as housing.

With national attention turning toward meaningful solutions to address affordability, our industry has an important role to play. As these conversations move forward, we remain committed to working with our builder peers to help make the dream of owning a home possible.

THE CHALLENGE

Building Excellence

There is nothing quite as man-made as building a home. Hundreds of hands, thousands of products, and millions of SKUs go into each one. In recent years,

persistent labor shortages and supply-chain disruptions have added a layer of complexity to the construction process, but we are committed as ever to the customer experience-no matter the environment.

Ongoing skilled labor shortages

Supply-chain volatility impacts materials and timelines

Elevated customer expectations for move-in readiness

OUR RESPONSE

At Taylor Morrison, quality is not a talking point, itʼs a standard. Our focus on delivering homes that are 100% complete at closing, combined with strong customer satisfaction metrics, reflects a commitment that goes well beyond industry expectations. We believe a home should be finished-not just functional-when our buyers receive their keys.

We are proud to spotlight the craftsmanship behind every build. Our recent video campaigns spotlight the skilled hands behind every home, while our "Homes Built for Real Lifeˮ brand platform captures the lived-in moments that follow. Together, they reinforce what has always set us apart: craftsmanship grounded in care. Because in the end, construction quality isnʼt about perfection-itʼs about pride, accountability, and delivering homes built to stand the test of real life.

92%

2025 Home Readiness

according to our customer surveys

90%

2025 Overall Satisfaction according to our customer surveys

THE CHALLENGE

Solving Homeowner Affordability

Persistently high home prices, elevated mortgage rates, housing shortages in some markets, and surplus inventory in others are factors that make the ultimate dream of homeownership harder to reach for many. But the reality is that todayʼs affordability pressures extend beyond the housing market.

As costs continue to climb across goods and services, consumers are feeling the impact, and in this complex environment, delivering clarity is critical.

Historically high home prices

Housing shortages in some markets, surplus inventory in others

Elevated mortgage rates

OUR RESPONSE

We know weʼre most successful when we lean into what we do best, which is why doubling down in areas where we have a proven track record is the best path forward.

Our portfolio of over 340 communities is intentionally concentrated in prime, core submarkets with healthy long-term demand fundamentals, limiting our exposure to more volatile tertiary submarkets. This is validated by our home shoppers who consider 85 percent of our communities as being in core locations.

Further enhancing our business resiliency, we primarily cater to move-up and resort-lifestyle buyers, which accounted for approximately 70 percent of our sales

in 2025. This is complemented by selective entry-level offerings that attract more well-qualified first-time buyers, compared to the outsized incentives required to serve affordability-strained first-time homebuyers.

This paves the way for us to sell the underlying value of our thoughtfully designed, highly amenitized

communities. Especially in light of what we continue to hear from shoppers-that community matters just as much, and often more, than the home.

We further diversify our business by scaling our unique build-to-rent brand, Yardly, which develops horizontal apartment-style communities that offer an alternative to traditional multi-family rental housing options.

Together, our balance and diversified strategy helps insulate our business, as evident by our 2025 results.

OUR RESPONSE

Our in-house mortgage lender, Taylor Morrison Home Funding, continues to offer powerful tools that make homeownership more attainable and sustainable

in elevated mortgage rate environments, ultimately supporting both buyers and Taylor Morrisonʼs operational performance. By lowering monthly payments, expanding buying power, and improving qualification profiles, promotional financing directly enhances sales absorption, strengthens capture, and supports first-time homebuyer participation at scale.

Taylor Morrison Home Funding

5.09%

Promotional interest rate

National Average

6.47%

Average interest rate

$381

Lower monthly payment

Higher monthly payment

Impact at Scale

751

Average credit score among buyers financed through TMHF

47%

Of closings had a promotional rate

48%

Of buyers who used a promotional rate were first-time buyers

For mortgages originated by Taylor Morrison Home Funding in 2025 with a promotional rate and based on an average ASP ofi approximately $527K. National rate refilects on monthly average as sourced by Mortgage News Daily.

THE CHALLENGE

Higher Expectations in a Digital-First World

Consumer behavior doesnʼt stand still. Over time, expectations rise, technology reshapes discovery and decision-making, and what once felt innovative quickly becomes table stakes. This inflection point shows

up across nearly every industry-the moment when success creates comfort and differentiation starts to blur.

From a product standpoint, what consumers want in a home hasnʼt dramatically changed. What has changed is how they expect to engage with us.

Rising expectations for speed, transparency and personalization

Seamless online-to-offline experiences as the baseline

AI-driven discovery and digital-first search behavior

Shopping behaviors evolving faster than product preferences

OUR RESPONSE

Taylor Morrison has long been recognized as an industry leader in homebuilding innovation, and we intend to keep that reputation. Our online reservation system,

AI-enabled tools and digital product ecosystem continue to meet buyers where they already are, supporting self-service, personalization and pricing transparency.

We are closely studying emerging generations, including our up-and-coming Gen Z buyers, to understand how motivations and behaviors are evolving. As AI reshapes

how consumers search, compare and evaluate brands, we are thoughtfully integrating technology not as noise, but as a solution-enhancing the sales center experience, strengthening human connection, and modernizing the path to purchase.

Innovation, for us, is not about reacting to every headline. It is about deliberately investing in the tools, platforms and experiences that create long-term relevance and measurable impact.

4,222

14,905

58% 25%

Completed online reservations

Partial online reservations

Conversion rate, up 5% from 2024

Contribution to sales among all online reservations

OUR RESPONSE

Inside the organization, we believe artificial intelligence is a present-day competitive advantage. We have nearly 200 bots automating key processes across our

homebuilding and mortgage operations, and have rapidly deployed AI across IT operations, business intelligence and enterprise productivity.

Our IT team has deployed intelligent server monitoring that reduces issue detection from hours to minutes, a self-building knowledge base that prevents redundant investigations, and a suite of 50 specialized AI agents that allow a single engineer to accomplish what once required an entire team.

All of our capabilities were built and deployed in a matter of weeks, reflecting the talent of our team and our commitment to leading the industry in operational excellence. With 2026 AI-assisted interactions already representing more than 65 percent of the prior year's annual total, itʼs clear we are just getting started.

3.5M

AI-assisted interactions for FY 2025

2.4M

AI-assisted interactions Q1 2026

THE CHALLENGE

An Evolving Demographic Landscape

Last year, I spoke about the accelerating shift toward a more diverse homebuyer base. While that long-term

trajectory remains intact, recent U.S. immigration policy reform and slower population growth have introduced short-term demographic variability. A single year does not define a trend, but it is a signal worth monitoring.

Slower net population growth Reduced immigration in recent years

Year-over-year demographic fluctuation

OUR RESPONSE

At Taylor Morrison, we have always grounded our strategy in a deep understanding of who our buyers are, and who they will become. Our internal market research and lending data give us an unusually detailed view of household formation, generational shifts, and purchasing behavior across cultural backgrounds and life stages. Our product portfolio continues to

test well across diverse consumer groups, reinforcing the durability of our design, pricing and positioning.

I remember the skepticism surrounding millennial homeownership and how quickly that narrative reversed. Today, millennials not only represent exactly half of our buyers, but 50 percent of them are already buying their second home. We see similar early indicators with our Gen Z buyers, who grew 50 percent year-over-year. As the oldest members of this generation approach their prime buying years, we expect their presence to grow meaningfully.

Demographics may ebb and flow year to year, but our commitment to closely monitoring and serving the evolving consumer remains constant.

84%

Of our home shoppers say community design matters as much as the home-or more

85%

Of our home shoppers say Americaʼs Most Trusted® award is important to their decision

Buyer Demographic by Cultural Background

17%

33%

41%

2025 2%

16%

41%

34%

2024 2%

14%

37%

40%

2023 2%

Buyer Demographic by Generation

12.5%

28%

50%

2025 .5%

28%

26%

40%

2024 2%

THE CHALLENGE

Conscious Consumer

In todayʼs marketplace, one trend is impossible to ignore: the rise of conscious consumerism, led by younger generations who place significant value on how and where their dollars are spent. A companyʼs impact and environmental footprint carry more weight than ever before and honestly, that doesnʼt intimidate us one bit.

OUR RESPONSE

Giving back is core to our identity, not something we turn on in response to shifting expectations. In fact, community impact is innate to the people who choose to build their careers at Taylor Morrison and their commitment is delivered in countless ways, from volunteer efforts to charitable partnerships with organizations like HomeAid America.

Our people believe in doing the right thing-instinctively-further cementing our esteemed reputation and confirming what we know to be true on the inside.

93%

57%

Employee Experience

Team members who say Taylor Morrison is a great place to work

96%

Team members who say they're proud to tell others they work at Taylor Morrison

Benchmark at typical U.S. companies according to Great Place To Work®

Build Joy HomeAid America

Sponsoring team member philanthropic projects. Building a future without homelessness.

$260K

100

$1.7M 14

Donated since 2017

Philanthropic ideas brought to life

Donated in support of HomeAid's mission to-date

HomeAid projects led by Taylor Morrison as the Builder Captain

Extreme Makeover: Home Edition Banner MD Anderson Cancer Center

Exclusive homebuilder for ABC's reboot of the award-winning show. Built homes in Orlando, Tampa, Austin, Houston and Phoenix, and donated those homes to deserving families in 2025.

Built a community of healing for cancer patients and their families to stay in while receiving treatment at the Gilbert campus in Arizona. The community includes 8 homes and a 2,000 sq. ft. Wellness Center for patients to rest, connect and support one another.

5 homes

Built and donated to deserving families

576

Total build hours

91%

Of patients rate their stay 5 stars

2,247

Days of lodging for 54 patients in 2025

From the outside looking in, it's clear that even in a complex environment, the world recognizes what we have the privilege of seeing every day: a company that shines because of its culture and the exceptionally talented people who bring it to life.

The confidence we continue to earn from the Street, alongside the steady beat of recognitions and industry accolades, from 11 consecutive years as America's Most Trusted® Home Builder to our standing on the Fortune 500 and our place among Fortuneʼs Worldʼs Most Admired Companies, serve as meaningful validation of the business weʼve built.

To our teams and stakeholders who place their trust in us, thank you. Your commitment and belief in Taylor Morrison empower us to keep raising the bar.

We have a good thing going, and itʼs only growing stronger. Anchored by a strategy built for this moment and for what comes next, we are confident in our positioning and the capabilities weʼve developed over the years that the best is still ahead. And we plan to navigate it in style.

Warmly,

Sheryl D. Palmer

Chairman and Chief Executive Officer

Verdin | Phoenix, AZ

Design Studio | Charlotte, NC

Disclaimer

Taylor Morrison Home Corp. published this content on April 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 13, 2026 at 16:02 UTC.