Taylor Morrison named America's Most Trusted Home Builder for 11th year
Taylor Morrison Home Corp's stock surged by 7.90% and reached a 20-day high, reflecting strong investor interest in the company.
This increase is attributed to Taylor Morrison being recognized as America's Most Trusted Home Builder for the 11th consecutive year, demonstrating its reliability and consistency in consumer perception. The company achieved a Net Trust Score of 115.7, surpassing the national average, which indicates effective customer relationship management and brand loyalty. This recognition, along with accolades from Forbes and Newsweek, solidifies its leadership position in the industry.
The implications of this recognition are significant, as it enhances Taylor Morrison's brand image and could lead to increased sales and market share. The strong consumer trust may attract more investors, further boosting the stock's performance.
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- Revenue Performance: Taylor Morrison delivered 2,268 homes in Q1 at an average price of $578,000, generating approximately $1.3 billion in revenue, indicating stable performance in the market.
- Margin Exceeds Expectations: The adjusted home closings gross margin reached 20.6%, surpassing the company's guidance of 20%, reflecting positive progress in cost control and pricing strategies.
- Order and Backlog Growth: The company increased its backlog by 23% to 3,465 homes, indicating strong demand for to-be-built homes, despite a 14% year-over-year decline in net orders.
- Strong Liquidity Position: At the end of the quarter, Taylor Morrison had $1.6 billion in liquidity, including $653 million in cash and no outstanding borrowings, ensuring financial stability amid uncertain market conditions.
- Earnings Highlights: Taylor Morrison reported a Q1 GAAP EPS of $1.01, beating expectations by $0.15, indicating strong profitability despite a 26.8% year-over-year revenue decline to $1.39 billion, which still surpassed market expectations by $60 million.
- Delivery and Sales Performance: The company closed 2,268 homes in Q1, generating $1.3 billion in revenue with an average sales price of $578,000, demonstrating resilience in sales amid market challenges.
- Sales Orders and Backlog: Net sales orders totaled 2,914 homes at an average selling price of $603,000, with a backlog of 3,465 homes valued at $2.3 billion, indicating significant sales potential in the coming months.
- Future Guidance: The company anticipates around 370 communities by Q2 2026, with home closings projected between 2,500 and 2,600, and an expected average closing price of approximately $575,000, reflecting confidence in market recovery.
- Profit Decline: Taylor Morrison reported a net profit of $98.62 million for Q1, translating to earnings per share of $1.01, which is a significant drop from $2.07 in the same period last year, indicating challenges in market conditions and weakened profitability.
- Adjusted Earnings: Excluding certain items, the adjusted earnings stood at $109.21 million, or $1.12 per share, showing some resilience despite the overall decline in profitability during a tough market environment.
- Revenue Drop: The company's revenue fell by 26.8% to $1.387 billion from $1.896 billion last year, highlighting the significant impact of weak market demand on sales performance.
- Uncertain Market Outlook: With both revenue and profit declining, Taylor Morrison faces increased market pressure, necessitating effective strategies to navigate industry challenges and restore profitability moving forward.
- Financial Performance: In Q1 2026, Taylor Morrison reported a net income of $99 million and diluted earnings per share of $1.01, with adjusted net income reaching $109 million, reflecting robust growth under its diversified strategy.
- Deliveries and Sales: The company delivered 2,268 homes at an average price of $578,000, achieving an adjusted gross margin of 20.6%, despite a 26.8% decline in revenue year-over-year, indicating strong profitability.
- Market Demand: The proportion of to-be-built orders increased to 38% from 28% in the previous quarter, signaling a recovery in market demand, while backlog grew 23% to 3,465 homes, suggesting future sales potential.
- Strategic Investment: The company invested $503 million in land and development, with plans for approximately $2 billion in land investments in 2026, aiming to drive long-term growth by optimizing its product offerings and target consumer segments.
- Earnings Announcement: Taylor Morrison Home Corporation is set to release its Q1 2023 earnings on April 22 before market open, with consensus EPS estimated at $0.84 and revenue expected at $1.33 billion, reflecting a 30% year-over-year decline.
- Historical Performance: Over the past two years, TMHC has exceeded EPS estimates 88% of the time and revenue estimates 100% of the time, indicating strong profitability and market adaptability.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates have experienced one upward and three downward revisions, suggesting a cautious market outlook on the company's future performance.
- Industry Context: While Taylor Morrison is considered a solid candidate for seasonal trades among homebuilders, recent downgrades in ratings due to slower housing activity may impact its short-term performance.
- Target Price Adjustment: Barclays has reduced the target price for Taylor Morrison Home Corp. from $70 to $68.
- Market Impact: This adjustment reflects Barclays' updated outlook on the company's performance and market conditions.









