Revenue growth has shifted to a 26.8% contraction in 2026Q1, while operating margins have compressed significantly from 16.2% in 2024Q4 to 10.2% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 7.61B | 8.12B | 8.17B | 7.42B | 8.22B | 7.5B | 6.13B | 4.76B | 4.23B | 3.89B | 3.55B | 2.98B | 2.71B | 1.92B | 1.04B | 1.37B |
| Revenue Growth % | -8.99% | -0.57% | 10.11% | -9.81% | 9.65% | 22.38% | 28.71% | 12.65% | 8.81% | 9.44% | 19.26% | 9.91% | 41.35% | 84.03% | -24.01% | - |
| Cost of Goods Sold | 5.9B | 6.25B | 6.15B | 5.62B | 6.11B | 5.94B | 5.07B | 3.89B | 3.44B | 3.15B | 2.87B | 2.41B | 2.14B | 1.5B | 834.54M | 1.09B |
| COGS % of Revenue | - | 76.97% | 75.35% | 75.8% | 74.26% | 79.25% | 82.64% | 81.79% | 81.38% | 80.98% | 80.84% | 80.92% | 79.09% | 78.3% | 80.15% | 79.58% |
| Gross Profit | 1.71B | 1.87B | 2.01B | 1.79B | 2.12B | 1.56B | 1.06B | 867.19M | 787.09M | 738.93M | 680.28M | 567.91M | 566.25M | 415.87M | 206.64M | 279.73M |
| Gross Margin % | 22.44% | 23.03% | 24.65% | 24.2% | 25.74% | 20.75% | 17.36% | 18.21% | 18.62% | 19.02% | 19.16% | 19.08% | 20.91% | 21.7% | 19.85% | 20.42% |
| Gross Profit Growth % | - | -7.13% | 12.2% | -15.23% | 36.02% | 46.25% | 22.73% | 10.18% | 6.52% | 8.62% | 19.79% | 0.29% | 36.16% | 101.25% | -26.13% | - |
| Operating Expenses | 707.21M | 734.99M | 770.5M | 698.71M | 643.21M | 668.34M | 572.38M | 490.27M | 416.94M | 390.44M | 361.76M | 293.91M | 250.05M | 204.62M | 135.74M | 279.73M |
| OpEx % of Revenue | - | 9.05% | 9.43% | 9.42% | 7.82% | 8.91% | 9.34% | 10.3% | 9.86% | 10.05% | 10.19% | 9.87% | 9.23% | 10.68% | 13.04% | 20.42% |
| Selling, General & Admin | 707.21M | 734.99M | 770.5M | 698.71M | 643.21M | 668.34M | 572.38M | 490.27M | 416.94M | 390.44M | 361.76M | 293.91M | 250.05M | 233.59M | 141.35M | 145.07M |
| SG&A % of Revenue | - | 9.05% | 9.43% | 9.42% | 7.82% | 8.91% | 9.34% | 10.3% | 9.86% | 10.05% | 10.19% | 9.87% | 9.23% | 12.19% | 13.58% | 10.59% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 134.66M |
| Operating Income | 1B | 1.14B | 1.24B | 1.1B | 1.47B | 888.18M | 491.93M | 376.92M | 370.15M | 348.49M | 318.52M | 274M | 316.2M | 211.25M | 94.38M | 134.66M |
| Operating Margin % | 13.15% | 13.98% | 15.22% | 14.78% | 17.92% | 11.84% | 8.03% | 7.92% | 8.76% | 8.97% | 8.97% | 9.2% | 11.67% | 11.03% | 9.06% | 9.83% |
| Operating Income Growth % | - | -8.7% | 13.43% | -25.64% | 65.96% | 80.55% | 30.51% | 1.83% | 6.22% | 9.41% | 16.25% | -13.34% | 49.68% | 123.84% | -29.92% | - |
| EBITDA | 1.02B | 1.14B | 1.28B | 1.13B | 1.51B | 928.16M | 529.26M | 408.34M | 396.54M | 352.44M | 322.49M | 278.11M | 320.29M | 214.71M | 98.75M | 138.88M |
| EBITDA Margin % | 13.34% | 14.07% | 15.73% | 15.23% | 18.33% | 12.37% | 8.63% | 8.57% | 9.38% | 9.07% | 9.08% | 9.34% | 11.83% | 11.21% | 9.48% | 10.14% |
| EBITDA Growth % | -23.43% | -11.04% | 13.72% | -25.09% | 62.46% | 75.37% | 29.61% | 2.98% | 12.51% | 9.29% | 15.96% | -13.17% | 49.17% | 117.44% | -28.9% | - |
| D&A (Non-Cash Add-back) | 14.03M | 7.49M | 41.19M | 33.41M | 33.84M | 39.98M | 37.34M | 31.42M | 26.39M | 3.95M | 3.97M | 4.11M | 4.09M | 3.46M | 4.37M | 4.22M |
| EBIT | 990.39M | 1.14B | 1.24B | 1.1B | 1.47B | 854.81M | 491.93M | 376.92M | 370.15M | 348.49M | 318.52M | 274M | 316.2M | 211.25M | 94.38M | 134.66M |
| Net Interest Income | -49.66M | -47M | -13.32M | 12.58M | -17.67M | -3.79M | 1.61M | 2.67M | 1.64M | 577K | 184K | 192K | -1.16M | -842K | 758K | 2.93M |
| Interest Income | 0 | 0 | 0 | 12.58M | 0 | 0 | 1.61M | 2.67M | 1.64M | 577K | 184K | 192K | 0 | 0 | 758K | 2.93M |
| Interest Expense | 49.66M | 47M | 13.32M | 0 | 17.67M | 3.79M | 0 | 0 | 0 | 0 | 0 | 0 | 1.16M | 842K | 0 | 0 |
| Other Income/Expense | -106.98M | -93.17M | -87.23M | -78.32M | -81.35M | -25.07M | -167.81M | -54.65M | -96.63M | 7.17M | -4.31M | -13.02M | -14.2M | -206.7M | -22.72M | -32.97M |
| Pretax Income | 894.16M | 1.04B | 1.16B | 1.02B | 1.39B | 863.11M | 324.12M | 322.27M | 273.52M | 355.66M | 314.21M | 260.99M | 301.99M | 97.94M | 170.55M | 101.7M |
| Pretax Margin % | 11.75% | 12.83% | 14.15% | 13.72% | 16.93% | 11.51% | 5.29% | 6.77% | 6.47% | 9.15% | 8.85% | 8.77% | 11.15% | 5.11% | 16.38% | 7.42% |
| Income Tax | 216.19M | 250.78M | 269.55M | 248.1M | 336.43M | 180.74M | 74.59M | 67.36M | 63.04M | 179.01M | 107.64M | 90M | 76.39M | 3.07M | -260.3M | 24.91M |
| Effective Tax Rate % | 24.18% | 24.07% | 23.31% | 24.37% | 24.16% | 20.94% | 23.01% | 20.9% | 23.05% | 50.33% | 34.26% | 34.48% | 25.3% | 3.13% | -152.62% | 24.5% |
| Net Income | 672.14M | 782.5M | 883.31M | 768.93M | 1.05B | 663.03M | 243.44M | 254.65M | 206.36M | 91.22M | 52.62M | 61.05M | 71.47M | 45.42M | 430.82M | 71.49M |
| Net Margin % | 8.83% | 9.63% | 10.81% | 10.37% | 12.8% | 8.84% | 3.97% | 5.35% | 4.88% | 2.35% | 1.48% | 2.05% | 2.64% | 2.37% | 41.38% | 5.22% |
| Net Income Growth % | -25.85% | -11.41% | 14.88% | -26.96% | 58.79% | 172.36% | -4.4% | 23.4% | 126.23% | 73.37% | -13.81% | -14.58% | 57.35% | -89.46% | 502.66% | - |
| Net Income (Continuing) | 677.96M | 791.26M | 886.57M | 769.74M | 1.06B | 682.37M | 249.53M | 254.91M | 210.48M | 176.65M | 206.56M | 170.99M | 225.6M | 28.36M | 355.95M | 76.79M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.65M | 11.31M | 15.49M | 0 | 0 |
| Minority Interest | 0 | 0 | 11.64M | 17.34M | 16.53M | 45.13M | 89.21M | 8.01M | 3.54M | 750.43M | 1.61B | 1.45B | 1.3B | 1.13B | 7.89M | 9.42M |
| EPS (Diluted) | 6.89 | 7.77 | 8.27 | 6.98 | 9.06 | 5.18 | 1.88 | 2.35 | 1.79 | 1.47 | 1.69 | 1.85 | 2.17 | 1.38 | 0.60 | 0.10 |
| EPS Growth % | -22% | -6.05% | 18.48% | -22.96% | 74.9% | 175.53% | -20% | 31.28% | 21.77% | -13.02% | -8.65% | -14.75% | 57.25% | 130% | 506.67% | - |
| EPS (Basic) | - | 7.90 | 8.43 | 7.09 | 9.16 | 5.26 | 1.90 | 2.38 | 1.85 | 1.47 | 1.69 | 1.85 | 2.17 | 1.38 | 0.60 | 0.10 |
| Diluted Shares Outstanding | 97.53M | 100.71M | 106.09M | 110.14M | 116.22M | 128.02M | 129.17M | 108.29M | 115.12M | 120.92M | 120.83M | 122.38M | 122.31M | 122.32M | 122.31M | 723.18M |
| Basic Shares Outstanding | 96.03M | 99.07M | 104.13M | 108.42M | 114.98M | 126.08M | 127.81M | 107M | 111.74M | 62.06M | 31.08M | 33.06M | 32.94M | 32.84M | 122.31M | 723.18M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 4.4% | - | - |
Cyclical Revenue Contraction
As reported in recent financial statements, Taylor Morrison experienced a significant revenue contraction of 26.8% in 2026Q1, marking a sharp departure from the growth trends observed in early 2024 and suggesting that the company is struggling to maintain volume in the current high-interest rate environment.
The transition from double-digit growth in 2024 to a double-digit decline in the most recent quarter indicates that the company's build-to-order model is highly sensitive to buyer hesitation. Investors should monitor whether this contraction reflects a strategic pivot toward margin preservation or a fundamental loss of market share in key Sunbelt regions.
Based on the provided income statement data, gross margins have steadily eroded from a peak of 25.1% in 2024Q3 to 21.0% in 2026Q1, indicating that the company's ability to pass through construction cost inflation to the move-up buyer segment may be reaching a structural limit.
The consistent decline in gross margins suggests that the customization premiums inherent in the Esplanade brand are being offset by rising input costs or the need for price concessions to clear inventory. This trend warrants further investigation into whether the company is sacrificing profitability to maintain absorption rates in a cooling housing market.
According to the quarterly income statement, operating margins have compressed from 16.2% in 2024Q4 to 10.2% in 2026Q1, demonstrating that the company's fixed SG&A costs are not scaling efficiently as delivery volumes decline, which may lead to further earnings volatility if revenue trends do not stabilize.
The inability to maintain operating margins during a period of revenue contraction suggests that the company's overhead structure remains relatively rigid. Analysts should evaluate whether management can implement sufficient cost-rationalization measures to protect operating income if the current downward trajectory in closings persists through the remainder of the fiscal year.
As indicated by the 51.2% year-over-year decline in EPS for 2026Q1, the company's earnings quality appears increasingly vulnerable, with the sharp drop in net income suggesting that the bottom line is highly sensitive to even moderate fluctuations in top-line revenue and margin performance.
Short-sellers may focus on the rapid deterioration of net income as evidence that the company's move-up buyer demographic is not as insulated from macro headwinds as previously assumed. The reliance on non-operating items or potential shifts in tax rates should be scrutinized to determine if the reported EPS is masking deeper operational weaknesses.
Quick answers to the most common questions about buying TMHC stock.
For fiscal year 2025, Taylor Morrison Home Corporation (TMHC) reported total revenue of $8.12B. This represents a 492.7% increase compared to $1.37B in 2011.
Taylor Morrison Home Corporation (TMHC) is profitable, generating $782.5M in net income for the fiscal year ending 2025 with a net profit margin of 9.6%.
Taylor Morrison Home Corporation (TMHC) reported an operating income of $1.14B, resulting in an operating profit margin of 14.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Taylor Morrison Home Corporation (TMHC) generated $1.87B in gross profit for the year, representing a gross profit margin of 23.0%. This demonstrates the company's core pricing power and production efficiency.