Slides
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Investor Presentation Third Quarter 2025
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2 We are backed by a reputation for exceptional customer service and a commitment to our teams and communities About Taylor Morrison (NYSE: TMHC) Our portfolio of brands offers for-sale and for-rent housing in distinctive communities, complemented by financial services Headquartered in Scottsdale, AZ Leading builder with operations across 12 states Diverse product offerings in prime locations Experienced leadership team Balanced operating model delivers strong financial results Track-record of growth, innovation and prudent capital allocation
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3 What sets Taylor Morrison apart National, regional and local scale Substantial scale provides operational efficiencies, cost leverage, land access and other competitive 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 5 3 4 Strong financial performance Robust profit margins and cash flow driven by revenue growth and disciplined cost management 2 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 Differentiated financial services Leveraging finance as a sales tool improves customer experience, operational predictability and profitability
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4 4 A transformative journey greatly expanded our platform while delivering strong results Acquired JEH Homes (Atlanta) and three divisions of Orleans Homes (Charlotte, Raleigh, Chicago) 2015 Acquired Acadia Homes (Atlanta) 2016 Increased public float to 70% from 25% through divestiture of private equity sponsors’ ownership 2017 Became a fully-floated public company Acquired AV Homes, adding scale to AZ, TX and Carolinas markets and entrance into Jacksonville 2018 Entered the Build- to-Rent business with unique product offering 2019 Debuted on the Fortune 500 List 2021 Launched Build-to- Rent brand, Yardly 2022 Celebrated 100,000 home closings since IPO 2023 Entered Indianapolis with acquisition of Pyatt Builders 2024 Named America’s Most Trusted Builder® for the 10th year and to Forbe’s Most Trusted Companies in America and Best Companies in America lists 2025 Acquired William Lyon Homes, adding scale to AZ, CA and TX markets and entrance into WA, OR and NV Exited Chicago 2020 Debuted on NYSE in largest homebuilding industry IPO 2013 Closings: 6,311 Diluted EPS: $1.85 Closings: 12,896 Diluted EPS: $8.27
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5 Most recent quarter at a glance 3Q 2025 3Q 2024 Year-Over-Year Change1 Net sales orders 2,468 2,830 (13%) Ending community count 349 340 3% Home closings revenue, net ($mm) $2,001 $2,029 (1%) Home closings 3,324 3,394 (2%) Home closings ASP $602,000 $598,000 1% Home closings gross margin 22.1% 24.8% (270) bps Adjusted home closings gross margin 22.4% 25.0% (260) bps SG&A % of home closings revenue 9.0% 9.8% (80) bps Reported diluted EPS $2.01 $2.37 (15%) Adjusted diluted EPS $2.11 $2.40 (12%) Book value per share2 $61.95 $53.95 15% 84,564 total homebuilding lots (60% controlled) 6.4 years of total lot supply (2.6 years owned) $1.3 billion total liquidity 14.3% return on equity3 (1) Subject to rounding; (2) Calculated used weighted average diluted shares; (3) ROE is calculated as trailing-twelve month net income divided by the average of stockholders’ equity in the current and prior-year period.
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6 Guidance metrics as of Oct. 22, 2025 Fourth Quarter 2025 Full Year 2025 Ending active community count ~345 ~345 Home closings 3,100 to 3,300 12,800 to 13,000 Average closing price ~$590,000 ~$595,000 GAAP home closings gross margin ~21.5% ~22.5% Adjusted home closings gross margin1 Not provided ~23% SG&A % of home closings revenue Not provided Mid-9% range Effective tax rate ~25% 24.5% to 25% Diluted share count ~99 million ~101 million Share repurchases Not Provided At least $350 million Homebuilding land & development spend Not Provided ~$2.3 billion (1) Adjusted home closings gross margin excludes inventory impairment and certain warranty charges realized year to date and assumes no additional inventory impairment or warranty charges for the remainder of the year. Adjusted home closings gross margin is a non-GAAP financial measure. A reconciliation of our forward-looking adjusted home closings gross margin to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted.
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7 21 12 16 West Central East % of Home Closings 36% 23% 41% % of Home Closings Revenue 44% 19% 37% Home Closings ASP $723,000 $511,000 $544,000 Home Closings Gross Margin 22.1% 21.5% 22.5% Our geographic footprint is focused on the country’s most attractive housing markets states markets top 10 market positions1 Data as of most recent quarter; Totals may not sum due to rounding. (1) Source: Zonda
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8 Our portfolio serves a broad range of buyer groups with to-be-built and spec home offerings 19% 37% 14% 30% Resort lifestyle 2nd Move-up 1st Move-up Entry level Net orders by consumer group $602K ~2,400 ~40% average square footage average closing price share of to-be-built home closings1 Data as of most recent quarter, unless specified (1) LTM as of Sept. 30, 2025
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9 • Our Esplanade brand offers a facilitated, concierge-style resort living experience in amenity-rich communities. • Since the brand’s conception in Florida, we have expanded its reach across the country in recent years. • Esplanade attracts an affluent customer base, with approximately half of buyers paying all cash. • Given these consumers’ preference to customize their home on their desired lot, Esplanade generates superior average sales prices and gross margins. Esplanade, our premier lifestyle brand, provides differentiated performance with strong growth potential Generational tailwinds +14M Growth forecasted in 55+ U.S. population by 2033 $114T Net worth of 55+ households Source: John Burns Research and Consulting
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10 Our diverse customer base tends to have strong financial flexibility Mortgage unit product mix Mortgage capture rate$464,000 average loan amount 750 average FICO score 22% average downpayment 42% first-time homebuyers1 40% average debt-to-income ratio Conventional 72% FHA 18% VA 8% Jumbo 2% 88% 87% 88% 3Q 2024 2Q 2025 3Q 2025 Data as of most recent quarter, unless specified (1) Defined per mortgage disclosures as buyers who have not owned a home in the prior three years
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11 Strong balance sheet with significant liquidity • Focused on generating consistent operating cash flow • Substantial liquidity position of $1.3 billion • Conservative use of $1.0 billion unsecured revolving line of credit • S&P rated BB+ and Moody’s rated Ba1 • Capital allocation priorities • Maintain strong liquidity • Liability management • Efficiently invest for growth • Share repurchases Senior note maturity schedule ($mm) $527 $450 $500 2025 2026 2027 2028 2029 2030 38.7% 34.1% 24.0% 16.8% 20.0% 21.3% 2020 2021 2022 2023 2024 3Q 2025 Homebuilding net debt to capitalization See Appendix for reconciliation
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12 Since 2020, we have opportunistically repurchased over $1.5 billion of our common stock outstanding Share repurchases ($mm) $103 $281 $376 $128 $348 $310 2020 2021 2022 2023 2024 YTD 2025 Share repurchases (in millions) 5.9 9.9 14.6 2.8 5.6 5.3 2020 2021 2022 2023 2024 YTD 2025 YTD as of Sept. 30, 2025
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13 Land strategy focused on efficiently enhancing scale in prime submarkets • Disciplined strategy focuses on prime land locations • Returns-focused underwriting guardrails • Emphasis on “core” locations with attractive long-term fundamentals • Have substantially increased share of lots controlled to improve capital efficiency and mitigate risk • Selective use of seller financing, joint ventures, option takedowns and land banking based on expected return lift versus gross margin trade-off • Targeting controlled share of at least 65% • Homebuilding land investment expected to total approximately $2.3 billion in 2025 • $1.6 billion invested year to date as of 3Q25 Homebuilding lot supply Years of supply 3.5 3.5 3.0 2.8 2.6 5.6 5.9 6.3 6.6 6.4 2021 2022 2023 2024 3Q 2025 Owned Controlled Based on trailing-twelve month closings 49% 51% 53% 57% 60% 51% 49% 47% 43% 40% 74,794 74,787 72,362 86,153 84,564 2021 2022 2023 2024 3Q 2025 Owned Controlled
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14 Online reservations are driving improved sales conversions as consumer adoption grows 0% 10% 20% 30% 40% 50% 60% 2020 2021 2022 2023 2024 3Q 2025 Reservation-to-sales conversion rate Sales contribution
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15 40+ Owned & controlled Yardly communities $3B Land banking capacity dedicated to Yardly’s expansion 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 Data as of most recent quarter, unless specified. Nine markets with Yardly operations across four states
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16 $1,256 $1,384 $1,398 2023 2024 LTM $7.4 $8.2 $8.4 2023 2024 LTM 11,495 12,896 13,283 2023 2024 LTM A track record of translating growth into financial performance Home closings 23.9% 24.4% 23.3% 2023 2024 LTM Total revenue ($bn) Home closings gross margin Net income ($mm) Stockholders’ equity ($bn) $5.3 $5.9 $6.2 2023 2024 3Q25 $769 $883 $851 2023 2024 LTM Adjusted EBITDA1 ($mm) $7.4 LTM as of Sept. 30, 2025, unless specified. (1) See Appendix for reconciliation.
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17 17 Efficiently investing in our core homebuilding operations The investment thesis for TMHC • Diversified portfolio serves homebuyer demand across the consumer spectrum, with a growing focus on move-up and resort lifestyle buyers • Substantial opportunity to gain share within existing footprint and adjacent markets • Proven track record of successful growth via organic investment and acquisitions Drive healthy returns and cash flow by executing balanced operating strategy • Manage sales pace and pricing community- by-community to optimize performance • Leverage our best-in-class financial services team to maximize value for homebuyers with effective incentive strategies • Capture overhead and operational efficiencies through innovative technology solutions Maintain balance sheet strength, support growth and drive returns • Returns-driven allocation framework prioritizes liquidity and balance sheet health with future growth opportunities • Strategic use of land financing tools to enhance capital efficiency, improve asset turns and mitigate risk • Seek to outperform the industry through full housing cycles with a focus on return on equity and shareholder value creation
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18 Appendix
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19 Dollars in millions, unless noted. Totals may not sum due to rounding. Historical operating data by region Net Sales Orders Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Q3 2025 East 1,079 1,047 940 902 3,968 1,295 1,160 1,140 993 4,588 1,391 1,147 1,024 Central 674 808 641 602 2,725 904 815 747 784 3,250 867 731 602 West 1,101 1,168 1,011 857 4,137 1,487 1,136 943 844 4,410 1,116 855 842 TMHC 2,854 3,023 2,592 2,361 10,830 3,686 3,111 2,830 2,621 12,248 3,374 2,733 2,468 Homes Closed East 1,004 1,228 996 1,252 4,480 933 1,237 1,320 1,432 4,922 1,110 1,325 1,361 Central 731 936 709 767 3,143 832 864 932 924 3,552 883 925 749 West 806 961 934 1,171 3,872 966 1,099 1,142 1,215 4,422 1,055 1,090 1,214 TMHC 2,541 3,125 2,639 3,190 11,495 2,731 3,200 3,394 3,571 12,896 3,048 3,340 3,324 Home Closings Revenue East $602 $732 $573 $712 $2,619 $542 $691 $758 $836 $2,827 $626 $695 $740 Central $463 $613 $423 $436 $1,936 $472 $481 $516 $501 $1,969 $477 $482 $383 West $548 $652 $616 $789 $2,604 $622 $748 $755 $833 $2,959 $727 $789 $878 TMHC $1,613 $1,997 $1,612 $1,938 $7,159 $1,636 $1,920 $2,029 $2,170 $7,755 $1,830 $1,966 $2,001 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% 22.2% 22.5% Central 24.0% 26.1% 25.6% 25.8% 25.4% 26.0% 25.3% 24.6% 22.3% 24.5% 24.3% 21.9% 21.5% West 19.9% 18.3% 17.3% 20.6% 19.1% 19.9% 20.8% 22.5% 23.7% 21.9% 23.5% 22.7% 22.1% TMHC 23.9% 24.2% 23.1% 24.1% 23.9% 24.0% 23.8% 24.8% 24.8% 24.4% 24.0% 22.3% 22.1% 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 1,840 1,503 Central 1,660 1,532 1,464 1,299 1,299 1,371 1,423 1,238 1,098 1,098 1,082 888 741 West 1,949 2,156 2,233 1,919 1,919 2,440 2,477 2,278 1,907 1,907 1,968 1,733 1,361 TMHC 6,267 6,165 6,118 5,289 5,289 6,244 6,256 5,692 4,742 4,742 5,068 4,461 3,605 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 $1,180 $966 Central $1,133 $1,009 $960 $864 $864 $871 $875 $758 $669 $669 $640 $514 $424 West $1,328 $1,458 $1,524 $1,300 $1,300 $1,662 $1,682 $1,578 $1,333 $1,333 $1,435 $1,245 $948 TMHC $4,237 $4,094 $4,097 $3,645 $3,645 $4,248 $4,198 $3,830 $3,192 $3,192 $3,361 $2,939 $2,338
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20 Income statement YTD as of Sept. 30, 2025 Dollars in thousands, unless otherwise noted 2020 2021 2022 2023 2024 YTD 2025 Home closings revenue, net $5,863,652 $7,171,433 $7,889,371 $7,158,857 $7,755,219 $5,797,077 Land closings revenue 65,269 99,444 81,070 60,971 81,417 10,415 Financial services revenue, net 155,827 164,615 135,491 160,312 199,459 160,040 Amenity and other revenue 44,572 65,773 118,985 37,691 132,041 54,308 Total revenue 6,129,320 7,501,265 8,224,917 7,417,831 8,168,136 6,021,840 Cost of home closings 4,887,757 5,713,905 5,904,458 5,451,401 5,863,743 4,476,497 Cost of land closings 64,432 83,853 63,644 55,218 73,609 5,850 Financial services expenses 88,910 101,848 83,960 93,990 108,592 80,767 Amenity and other expenses 44,002 53,778 80,489 34,149 137,980 51,343 Total cost of revenue 5,085,101 5,953,384 6,132,551 5,634,758 6,183,924 4,614,457 Gross margin 1,044,219 1,547,881 2,092,366 1,783,073 1,984,212 1,407,383 Sales, commissions and other marketing costs 377,496 400,376 398,074 418,134 456,092 340,891 General and administrative expenses 194,879 267,966 245,138 280,573 314,406 199,478 Net income from unconsolidated entities (11,176) (11,130) 14,184 (8,757) (6,347) (3,554) Interest (income)/expense, net (1,606) 3,792 17,674 (12,577) 13,316 35,092 Other expense, net 23,092 23,769 38,497 87,567 50,627 21,249 Transaction and corporate reorganization expenses 127,170 — — — — — Loss/(gain) on extinguishment of debt, net 10,247 — (13,876) 295 — — Income before income taxes 324,117 863,108 1,392,675 1,017,838 1,156,118 814,227 Income tax provision 74,590 180,741 336,428 248,097 269,548 200,060 Net income before allocation to non-controlling interests 249,527 682,367 1,056,247 769,741 886,570 614,167 Net income attributable to non-controlling interests (6,088) (19,341) (3,447) (812) (3,261) (5,683) Net income $243,439 $663,026 $1,052,800 $768,929 $883,309 $608,484 Earnings per common share: Basic $1.90 $5.26 $9.16 $7.09 $8.43 $6.10 Diluted $1.88 $5.18 $9.06 $6.98 $8.27 $6.00 Weighted average number of shares of common stock: Basic 127,812 126,077 114,982 108,424 104,813 99,731 Diluted 129,170 128,019 116,221 110,145 106,846 101,377
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21 Balance sheet Dollars in thousands, unless otherwise noted 2020 2021 2022 2023 2024 3Q 2025 Assets Cash and cash equivalents $532,843 $832,821 $724,488 $798,568 $487,151 $370,591 Restricted cash 1,266 3,519 2,147 8,531 15 326 Total cash 534,109 836,340 726,635 807,099 487,166 370,917 Real estate inventory: Owned inventory 5,209,653 5,444,207 5,346,905 5,473,828 6,162,889 6,308,889 Consolidated real estate not owned 122,773 55,314 23,971 71,618 71,195 94,195 Total real estate inventory 5,332,426 5,499,521 5,370,876 5,545,446 6,234,084 6,403,084 Land deposits 125,625 229,535 263,356 203,217 299,668 360,633 Mortgage loans held for sale 201,177 467,534 346,364 193,344 207,936 198,548 Derivative assets 5,294 2,110 1,090 — — — Lease right of use assets 73,222 85,863 90,446 75,203 68,057 62,671 Prepaid expenses and other assets, net 242,744 314,986 264,302 290,925 370,642 455,017 Other receivables, net 96,241 150,864 191,504 184,518 217,703 265,970 Investments in unconsolidated entities 127,955 171,406 282,900 346,192 439,721 487,857 Deferred tax assets, net 238,078 151,240 67,656 67,825 76,248 76,248 Property and equipment, net 97,927 155,181 202,398 295,121 232,709 283,418 Goodwill 663,197 663,197 663,197 663,197 663,197 663,197 Total assets $7,737,995 $8,727,777 $8,470,724 $8,672,087 $9,297,131 $9,627,560 Liabilities Accounts payable $215,047 $253,348 $269,761 $263,481 $270,266 $285,207 Accrued expenses and other liabilities 430,067 525,209 490,253 549,074 632,250 619,036 Lease liabilities 83,240 96,172 100,174 84,999 78,998 73,048 Income taxes payable 12,841 — — — 2,243 — Customer deposits 311,257 485,705 412,092 326,087 239,151 163,433 Estimated development liabilities 40,625 38,923 43,753 27,440 4,365 4,365 Senior notes, net 2,452,365 2,452,322 1,816,303 1,468,695 1,470,454 1,471,772 Loans payable and other borrowings 348,741 404,386 361,486 394,943 475,569 568,813 Revolving credit facility borrowings — 31,529 — — — — Mortgage warehouse facilities borrowings 127,289 413,887 306,072 153,464 174,460 150,176 Liabilities attributable to consolidated real estate not owned 122,773 55,314 23,971 71,618 71,195 94,195 Total liabilities $4,144,245 $4,756,795 $3,823,865 $3,339,801 $3,418,951 $3,430,045 Stockholders’ equity Total stockholders’ equity 3,593,750 3,970,982 4,646,859 5,332,286 5,878,180 6,197,515 Total liabilities and stockholders’ equity $7,737,995 $8,727,777 $8,470,724 $8,672,087 $9,297,131 $9,627,560
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22 Adjusted net income and adjusted earnings per common share Adjusted home closings gross margin (Dollars in thousands) 2025 2024 Home closings revenue, net $2,000,909 $2,029,134 Cost of home closings 1,558,237 1,525,825 Home closings gross margin $442,672 $503,309 Inventory impairment charges 7,189 — Warranty adjustments (1,273) 3,064 Adjusted home closings gross margin $448,588 $506,373 Home closings gross margin as a percentage of home closings revenue 22.1% 24.8% Adjusted home closings gross margin as a percentage of home closings revenue 22.4% 25.0% Three Months Ended September 30, (Dollars in thousands, except per share data) 2025 2024 Net income $201,441 $251,126 Real estate and inventory impairment charges 7,189 — Pre-acquisition abandonment charges 6,651 1,851 Warranty adjustments (1,273) 3,064 Tax impact of non-GAAP reconciling items (3,135) (1,200) Adjusted net income $210,873 $254,841 Basic weighted average number of shares 98,439 104,132 Adjusted earnings per common share - Basic $2.14 $2.45 Diluted weighted average number of shares 100,048 106,089 Adjusted earnings per common share - Diluted $2.11 $2.40 Three Months Ended Sept. 30,
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23 Net homebuilding debt to capitalization ratio reconciliation As of Sept. 30, Dollars in thousands 2020 2021 2022 2023 2024 2025 Total debt $2,928,395 $3,302,124 $2,483,861 $2,017,102 $2,120,483 $2,190,761 Plus: unamortized debt issuance cost, net (2,365) (2,322) 10,767 8,375 6,616 5,298 Less: mortgage warehouse facilities borrowings (127,289) (413,887) (306,072) (153,464) (174,460) (150,176) Total homebuilding debt $2,798,741 $2,885,915 $2,188,556 $1,872,013 $1,952,639 $2,045,883 Total stockholders' equity 3,593,750 3,970,982 4,646,859 5,332,286 5,878,180 6,197,515 Total capitalization $6,392,491 $6,856,897 $6,835,415 $7,204,299 $7,830,819 $8,243,398 Total homebuilding debt to capitalization ratio 43.8% 42.1% 32.0% 26.0% 24.9% 24.8% Total homebuilding debt $2,798,741 $2,885,915 $2,188,556 $1,872,013 $1,952,639 $2,045,883 Less: cash and cash equivalents (532,843) (832,821) (724,488) (798,568) (487,151) (370,591) Net homebuilding debt $2,265,898 $2,053,094 $1,464,068 $1,073,445 $1,465,488 $1,675,292 Total stockholders' equity $3,593,750 $3,970,982 $4,646,859 $5,332,286 $5,878,180 $6,197,515 Total capitalization $5,859,648 $6,024,076 $6,110,927 $6,405,731 $7,343,668 $7,872,807 Net homebuilding debt to capitalization ratio 38.7% 34.1% 24.0% 16.8% 20.0% 21.3% As of Dec. 31,
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24 EBITDA and Adjusted EBITDA reconciliation As of Sept. 30, 2025 Certain non-GAAP adjustments in the prior year periods have been recast to conform with our current period presentation for comparability. Dollars in thousands 2023 2024 LTM 3Q25 Net income before allocation to non-controlling interests $769,741 $886,570 $858,190 Interest expense, net (12,577) 13,316 40,985 Amortization of capitalized interest 134,870 114,199 109,878 Income tax provision 248,097 269,548 263,367 Depreciation and amortization 8,976 11,535 7,630 EBITDA $1,149,107 $1,295,168 $1,280,050 Non-cash compensation expense 26,095 22,461 27,781 Real estate and inventory impairments 11,791 29,637 49,351 Warranty adjustments — 3,656 6,981 Legal reserves and/or settlements 64,665 23,682 17,392 Pre-acquisition abandonment charges 4,235 9,453 16,330 Loss on extinguishment of debt, net 295 — — Adjusted EBITDA $1,256,188 $1,384,057 $1,397,885 Total revenue $7,417,831 $8,168,136 $8,378,329 Net income before allocation to non-controlling interests as a percentage of total revenue 10.4% 10.9% 10.2% EBITDA as a percentage of total revenue 15.5% 15.9% 15.3% Adjusted EBITDA as a percentage of total revenue 16.9% 16.9% 16.7%
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25 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: (i) adjusted net income and adjusted earnings per common share, (ii) adjusted home closings gross margin, (iii) EBITDA and Adjusted EBITDA and (iv) net homebuilding debt to capitalization ratio. Adjusted net income and adjusted earnings per common share are non-GAAP financial measures that reflect the net income/(loss) available to the Company excluding, to the extent applicable in a given period, the impact of real estate and inventory impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, certain warranty charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net, and legal reserves or settlements that the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items. 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 and certain warranty charges. EBITDA and Adjusted EBITDA are non-GAAP financial measures that measure performance by adjusting net income before allocation to non-controlling interests to exclude, as applicable, interest expense/(income), net, amortization of capitalized interest, income tax provisions, depreciation and amortization (EBITDA), non-cash compensation expense, if any, real estate and inventory impairment charges, impairment of investments in unconsolidated entities, pre- acquisition abandonment charges, certain warranty charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net and legal reserves or settlements that the Company deems not to be in the ordinary course of business, in each case, as applicable in a given period. 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 facilities 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). 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 also use the net homebuilding debt to total capitalization ratio 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 in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors. We believe that adjusted net income and adjusted earnings per common share, as well as EBITDA and Adjusted EBITDA, are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted EBITDA also provides an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, or unusual items. Because we use the net homebuilding debt to total capitalization ratio 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. 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 these measures to the comparable GAAP measures is presented above. For purposes of our presentation of our non-GAAP financial measures for the three-months ended September 30, 2024, such measures have been recast to include certain adjustments being presented in the three months ended September 30, 2025 that were previously deemed immaterial in the prior period. Reconciliation of non-GAAP financial measures
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26 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 Investor relations contact Mackenzie Aron Vice President Investor Relations investor@taylormorrison.com (407) 906-6262