Slides
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Investor Presentation First Quarter 2025
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2 (1) ROE is calculated as trailing-twelve month net income divided by the average of stockholders’ equity in the current and prior-year period. At a glance 3.3 monthly sales pace $1.3 billion total liquidity 86,266 total homebuilding lots (59% controlled) 6.5 years of total lot supply (2.7 years owned) 344 active selling communities as of 1Q 2025 $1.8 billion home closings revenue 24.8% adjusted home closings gross margin 15.9% return on equity $600,000 average home closing price
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3 Q1 2025 Q1 2024 Year-Over-Year Change Total Revenue (in thousands) $1,896,019 $1,699,752 12% Home Closings Revenue, Net (in thousands) $1,830,068 $1,636,255 12% Home Closings 3,048 2,731 12% Home Closings Gross Margin 24.0% 24.0% 0 bps Adjusted Home Closings Gross Margin 24.8% 24.0% 80 bps SG&A % of Home Closings Revenue 9.7% 10.4% (70) bps Net Sales Orders 3,374 3,686 (8)% Ending Community Count 344 331 4% Gross Homebuilding Debt-to-Cap 24.3% 26.1% (180) bps Net Homebuilding Debt-to-Cap 20.5% 20.1% 40 bps First quarter 2025 key metrics
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4 *Note: Outlook issued on and as of Apr. 23, 2025 A transformative journey 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Milestones Acquired JEH Homes (Atlanta) and three divisions of Orleans Homes (Charlotte, Raleigh, Chicago) Acquired Acadia Homes (Atlanta) Increased public float to 70% from 25% through divestiture of private equity sponsors’ ownership Became a fully-floated public company Acquired AV Homes, adding scale to AZ, TX and Carolinas markets and entrance into Jacksonville Entered the Build-to-Rent business with unique product offering Acquired William Lyon Homes, adding scale to AZ, CA and TX markets and entrance into WA, OR and NV Exited Chicago Debuted on the Fortune 500 List Launched Build-to-Rent brand, Yardly Celebrated 100,000 home closings since going public Entered Indianapolis with acquisition of Pyatt Builders Named America’s Most Trusted Builder® for the 10th consecutive year Home Closings 6,311 7,369 8,032 8,760 9,964 12,524 13,699 12,647 11,495 12,896 13,000 to 13,500*
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5 Transformed financial strength 9% 12% 19% 2016-18 2019-21 2022-24 Return on Equity** $298 $631 $709 2016-18 2019-21 2022-24 Operating Cash Flow ($M) $3.9 $6.1 $7.9 2016-18 2019-21 2022-24 Total Revenue ($B) 8% 8% 15% 2016-18 2019-21 2022-24 Pre-tax Income Margin* Shareholder returnsScale Efficiencies Cash generation Average of periods *Calculated as annual income before taxes as a percent of total revenue **Calculated as annual net income divided by the average of stockholders’ equity in the current and prior year
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6 (1) ROE is calculated as trailing-twelve month net income divided by the average of stockholders’ equity in the current and prior-year period. Long-term targets reflect structural improvements to our expected earnings potential Return on Equity1 2.3 3.0 Low-Three Range 2013-19 Average 2024 Target 18.8% 24.4% Low-to-Mid 20% Range 2013-19 Average 2024 Target 10.3% 15.8% High-Teen Range 2013-19 Average 2024 Target Annualized Monthly Sales Pace Home Closings Gross Margin
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7 Note: Outlook issued on and as of Apr. 23, 2025 Second Quarter 2025 Full Year 2025 Ending active community count Around 345 At least 355 Home closings Approximately 3,200 13,000 to 13,500 Average closing price Around $585,000 $590,000 to $600,000 GAAP home closings gross margin Approximately 23% Approximately 23% SG&A % of home closings revenue Not Provided Mid-9% Range Effective tax rate Approximately 25% 24.5% to 25.0% Diluted share count Approximately 102 Million Approximately 101 Million Share repurchases Not Provided Around $350 Million Homebuilding land & development spend Not Provided Around $2.4 Billion Guidance metrics
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8 Note: (1) Defined per mortgage disclosures as buyers who have not owned a home in the prior three years. Our buyers tend to be well-qualified with financial flexibility $468,000 Average Loan Amount Taylor Morrison Home Funding Borrower Snapshot Mortgage Capture Rate 87% 89% 89% Q1 2024 Q4 2024 Q1 2025 Mortgage Unit Product Mix as of Q1 2025 Conventional 74% FHA 19% VA 6% Jumbo 1% 751 Average FICO Score 22% Average Downpayment 46% First-Time Homebuyers1 40% Average Debt-to-Income Ratio
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Capital Position 9 • $1.3 billion total liquidity • $378 million unrestricted cash • $934 million total revolving credit facility capacity, which was undrawn outside of normal course letters of credit • 20.5% net homebuilding debt-to-capital ratio • Now expect to repurchase approximately $350 million of common stock in 2025 • $775 million remaining repurchase authorization Senior Note Maturity Schedule (in Millions) $527 $450 $500 2025 2026 2027 2028 2029 2030 $103 $281 $376 $128 $348 $135 2020 2021 2022 2023 2024 1Q 2025 Share Repurchases (in Millions)
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Capital allocation priorities 10 Maintain strong liquidity and balance sheet strength Prudently manage senior notes outstanding and other liabilities Efficiently invest in profitable growth across our homebuilding and build-to-rent platforms Return capital to shareholders via share repurchases Homebuilding land investment $5,775 Build-to-rent investment $264 Share repurchases $852 Senior debt repayment $1,117 From 2022 to 2024, Taylor Morrison generated $2.1B of operating cash flow, after investing nearly $6.0B in total land acquisition and development Aggregate capital deployed from 2022-24 $ in millions
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Land Portfolio 11 • Disciplined land investment strategy focuses on prime land locations in core submarkets • Utilizing land-lighter investment tools to balance cost of capital with expected returns • Targeting controlled share of at least 60-65% in near term • Total homebuilding land investment was $469 million in 1Q 2025 • Down from $588 million in 1Q 2024 • 46% of 1Q 2025 spend was development-related Homebuilding Lot Supply Years of Homebuilding Lot Supply 6.3 6.6 6.5 3.0 2.8 2.7 Q4 2023 Q4 2024 Q1 2025 Total Owned Based on trailing-twelve month closings 53% 57% 59% 47% 43% 41% 72,362 86,153 86,266 Q4 2023 Q4 2024 Q1 2025 Owned Controlled
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12 Multiple dimensions of diversification across our business Resort Lifestyle 21% Move-Up 47% Entry-Level 32% Based on 1Q 2025 closings Central 29% East 36% West 35% Based on 1Q 2025 sales
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13 Online reservations are driving improved sales conversions as consumer adoption grows 0% 10% 20% 30% 40% 50% 60% 2020 2021 2022 2023 2024 Q1 2025 Reservation-to-sales conversion rate Sales contribution
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14 ~40 build-to-rent owned & controlled communities 9 markets with Yardly operations Our growing Build-to-Rent business develops single-family rental communities designed to cater to consumers seeking an alternative to traditional multi-family rentals. 5 to 7 asset dispositions expected in 2025
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Appendix
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About Taylor Morrison 16 Headquartered in Scottsdale, Arizona, Taylor Morrison (NYSE:TMHC) is a leading land developer and homebuilder with operations across 12 states. We serve a wide array of homebuyers with our diverse product portfolio, including entry-level, move-up and resort lifestyle consumers. We also develop lifestyle-oriented horizontal apartment communities that meet the need of rental households. Our Financial Services segment offers mortgage financing, title services and homeowners’ insurance. Backed by a homebuilding legacy of over 100 years, we are committed to sustainability, our communities and our team. This commitment has helped us earn the distinction of America’s Most Trusted® Homebuilder by Lifestory Research for an unmatched ten consecutive years.
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17 Coast-to-coast footprint West • Bay Area • Las Vegas • Phoenix • Portland • Sacramento • Seattle • Southern California Central • Austin • Dallas • Denver • Houston • Indianapolis East • Atlanta • Charlotte • Jacksonville • Naples • Orlando • Raleigh • Sarasota • Tampa • Treasure Coast 21 markets in 12 states
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18 What sets Taylor Morrison apart National, regional and local scale Enhanced scale provides operational efficiencies, cost leverage and land advantages Diversified consumer groups and price points Exposure to key demographic groups mitigates risk and enables a balanced spec and to-be-built business Core locations in prime submarkets Concentration in prime locations enhances our portfolio’s through-the-cycle resiliency 1 2 3 4 Consumer-centric mantra Floorplans, option offerings and digital sales capabilities are driven by deep research insights to best serve our consumers 5 Well-capitalized balance sheet Significant financial flexibility to invest for growth and drive shareholder returns 6 Community-focused land developer Development expertise adds value to homebuilding operations and expands investment opportunities 7 America’s Most Trusted® builder Committed to delivering an exceptional customer experience and embracing smart innovation 8 Wholly-owned financial services Leveraging finance as a sales tool improves customer experience, operational predictability and profitability
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19 Note: Dollars in millions, unless noted. Totals may not sum due to rounding. Historical operating data by region Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q1 2025 vs Q1 2024 Net Sales Orders East 1,079 1,047 940 902 3,968 1,295 1,160 1,140 993 4,588 1,391 7% Central 674 808 641 602 2,725 904 815 747 784 3,250 867 (4%) West 1,101 1,168 1,011 857 4,137 1,487 1,136 943 844 4,410 1,116 (25%) TMHC 2,854 3,023 2,592 2,361 10,830 3,686 3,111 2,830 2,621 12,248 3,374 (8%) Homes Closed East 1,004 1,228 996 1,252 4,480 933 1,237 1,320 1,432 4,922 1,110 19% Central 731 936 709 767 3,143 832 864 932 924 3,552 883 6% West 806 961 934 1,171 3,872 966 1,099 1,142 1,215 4,422 1,055 9% TMHC 2,541 3,125 2,639 3,190 11,495 2,731 3,200 3,394 3,571 12,896 3,048 12% Home Closings Revenue East $602 $732 $573 $712 $2,619 $542 $691 $758 $836 $2,827 $626 16% Central $463 $613 $423 $436 $1,936 $472 $481 $516 $501 $1,969 $477 1% West $548 $652 $616 $789 $2,604 $622 $748 $755 $833 $2,959 $727 17% TMHC $1,613 $1,997 $1,612 $1,938 $7,159 $1,636 $1,920 $2,029 $2,170 $7,755 $1,830 12% Home Closings Gross Margin East 27.5% 27.8% 27.6% 26.9% 27.4% 27.0% 26.0% 27.3% 27.4% 26.9% 24.3% (270) Central 24.0% 26.1% 25.6% 25.8% 25.4% 26.0% 25.3% 24.6% 22.3% 24.5% 24.3% (170) West 19.9% 18.3% 17.3% 20.6% 19.1% 19.9% 20.8% 22.5% 23.7% 21.9% 23.5% 360 TMHC 23.9% 24.2% 23.1% 24.1% 23.9% 24.0% 23.8% 24.8% 24.8% 24.4% 24.0% 0 Sales Order Backlog East 2,658 2,477 2,421 2,071 2,071 2,433 2,356 2,176 1,737 1,737 2,018 (17%) Central 1,660 1,532 1,464 1,299 1,299 1,371 1,423 1,238 1,098 1,098 1,082 (21%) West 1,949 2,156 2,233 1,919 1,919 2,440 2,477 2,278 1,907 1,907 1,968 (19%) TMHC 6,267 6,165 6,118 5,289 5,289 6,244 6,256 5,692 4,742 4,742 5,068 (19%) Backlog Value East $1,776 $1,627 $1,613 $1,480 $1,480 $1,715 $1,641 $1,494 $1,191 $1,191 $1,286 (25%) Central $1,133 $1,009 $960 $864 $864 $871 $875 $758 $669 $669 $640 (26%) West $1,328 $1,458 $1,524 $1,300 $1,300 $1,662 $1,682 $1,578 $1,333 $1,333 $1,435 (14%) TMHC $4,237 $4,094 $4,097 $3,645 $3,645 $4,248 $4,198 $3,830 $3,192 $3,192 $3,361 (21%)
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20 Reconciliation of non-GAAP 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 net homebuilding debt to capitalization ratio. 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 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). We use the ratio of net homebuilding debt to total capitalization 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 to the extent we deem them appropriate and useful to management and investors. Because we use the ratio of net homebuilding debt to total capitalization 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. 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 to the comparable GAAP measure is presented above. Net Homebuilding Debt to Capitalization Ratios Reconciliation (Dollars in thousands) As of March 31, 2025 As of December 31, 2024 As of March 31, 2024 Total debt $ 2,083,599 $ 2,120,483 $ 2,093,499 Plus: unamortized debt issuance cost, net 6,177 6,616 7,935 Less: mortgage warehouse facilities borrowings (175,741) (174,460) (183,174) Total homebuilding debt $ 1,914,035 $ 1,952,639 $ 1,918,260 Total stockholders' equity 5,957,524 5,878,180 5,426,168 Total capitalization $ 7,871,559 $ 7,830,819 $ 7,344,428 Total homebuilding debt to capitalization ratio 24.3% 24.9% 26.1% Total homebuilding debt $ 1,914,035 $ 1,952,639 $ 1,918,260 Less: cash and cash equivalents (377,815) (487,151) (554,287) Net homebuilding debt $ 1,536,220 $ 1,465,488 $ 1,363,973 Total stockholders' equity 5,957,524 5,878,180 5,426,168 Total capitalization $ 7,493,744 $ 7,343,668 $ 6,790,141 Net homebuilding debt to capitalization ratio 20.5% 20.0% 20.1%
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21 Reconciliation of non-GAAP 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 adjusted home closings gross margin. 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. 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 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 adjusted home closings gross margin is presented above. Adjusted Home Closings Gross Margin Three Months Ended March 31, (Dollars in thousands) 2025 2024 Home closings revenue, net $ 1,830,068 $ 1,636,255 Cost of home closings 1,391,360 1,243,209 Home closings gross margin $ 438,708 $ 393,046 Inventory impairment charges 14,878 — Adjusted home closings gross margin $ 453,586 $ 393,046 Home closings gross margin as a percentage of home closings revenue 24.0% 24.0% Adjusted home closings gross margin as a percentage of home closings revenue 24.8% 24.0%
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22 This presentation 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 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. Forward-looking statements