Taylor Morrison (NYSE:TMHC) signaled a commitment to aggressive shareholder returns, more than doubling its share repurchase authorization to $1 billion even as the housing market shifts into a lower gear.
The Scottsdale-based builder reported fourth-quarter net income of $174 million, or $1.76 per diluted share, meeting analyst expectations despite a seasonal slowdown in deliveries.
For the full year 2025, the company delivered nearly 13,000 homes, generating $7.76 billion in home closings revenue.
While the quarterly gross margin of 21.8% reflected the impact of broader industry incentives, the full-year adjusted gross margin remained robust at 23%.
Management attributed this resilience to its "asset-light" land strategy; the company currently controls over 78,800 lots, with 54% of them held off-balance sheet through options, a tactic that limits capital risk.
The company’s buyer mix continues to provide a defensive moat.
With roughly one-third of its sales coming from move-up and active adult segments, Taylor Morrison has been less exposed to the rate sensitivity plaguing entry-level builders.
This stability allowed the company to return $381 million to shareholders via buybacks in 2025 alone, retiring approximately 6% of its outstanding shares.