Taylor Morrison Q4 results beat; raises stock repurchase program to $1 bln

Overview

• Homebuilder's Q4 total revenue and adjusted EPS beat analyst expectations

• Home closings revenue for Q4 fell 10% yr/yr to $1.96 bln

• Company increased stock repurchase program to $1 bln, extended to 2027

Outlook

• Taylor Morrison expects Q1 2026 home closings of approximately 2,200

• Company sees full-year 2026 home closings at approximately 11,000

• Taylor Morrison anticipates competitive pricing pressures to persist

Result Drivers

• CLOSINGS REVENUE DECLINE - Home closings revenue fell 10% due to an 8% decline in closings volume and a 2% decrease in average closing price

• STABLE ABSORPTION PACE - Resort lifestyle segment maintained stable absorption pace, defying typical seasonal slowdown, per CEO Sheryl Palmer

• STRATEGIC FOCUS - Co plans to limit investments in non-core submarkets and expand Esplanade brand to ensure portfolio performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy"

• Wall Street's median 12-month price target for Taylor Morrison Home Corp is $73.00, about 9.9% above its February 10 closing price of $66.41

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn1gtFy8a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.