(Disclosure: Rose Law Group represents Taylor Morrison.)
By Vincent Salandro
Stabilizing market dynamics helped Taylor Morrison outperform expectations “across all key metrics” in the home builder’s first quarter. Chairman and CEO Sheryl Palmer said the company’s operational enhancements and balanced approach to to-be-built and spec home sales contributed to an 80 basis point improvement to home closings gross margin during the quarter.
The boost in operating margins drove strong profits per share in the first quarter, which improved 20% to $1.74 per share. The company also reported 32% growth in its book value to $44 per share.
“Following a strong early start to the year, positive sales momentum accelerated further into March, consistent with typical seasonal patterns despite the uncertainties facing the market,” Palmer said.
In the quarter, gross sales orders improved to a pace of 3.4 per community, the highest level since the third quarter of 2021. The builder’s cancellation rate declined to a “more normalized” level of 14% of gross orders during the quarter.
