Taylor Morrison (NYSE:TMHC) today revealed first-quarter 2026 financial results that cleared Wall Street’s lowered hurdles, despite a double-digit decline in year-over-year revenue.
The Scottsdale, Arizona-based homebuilder demonstrated resilience through strategic share repurchases and a significant sequential increase in its construction backlog, even as higher incentives and shifts in product mix weighed on gross margins.
For the quarter ended March 31, 2026, Taylor Morrison reported total revenue of $1.39 billion, down 26.8 percent from the $1.90 billion posted in the prior-year period.
Net income for the quarter totaled $99 million, or $1.01 per diluted share.
On an adjusted basis, the company earned $1.12 per share, comfortably beating the analyst consensus estimate of $0.88.
Operational metrics highlighted the impact of a cooling housing market.
The company delivered 2,268 homes during the quarter at an average closing price of $578,000.
Adjusted home closings gross margin compressed to 20.6 percent, a 420-basis-point decline from the 24.8 percent reported in the first quarter of 2025.
Management attributed the pressure to the cost of mortgage rate buy-downs and a higher mix of entry-level deliveries.
The company's sales order backlog rose 23 percent sequentially to 3,465 homes, valued at approximately $2.3 billion.
On the capital front, Taylor Morrison remained aggressive, investing $503 million in land and development and repurchasing roughly 2.5 million shares for $150 million.
The firm ended the quarter with a strong liquidity position of $1.6 billion, including $653 million in cash.
Looking forward, Taylor Morrison reaffirmed its full-year 2026 guidance, projecting approximately 11,000 home closings with an average closing price between $580,000 and $590,000.
For the second quarter, the company expects to deliver between 2,500 and 2,600 homes with a gross margin of at least 20 percent.