Why did TMHC outperform forecasts in 2024?

Taylor Morrison Home Corp (TMHC) outperformed forecasts in 2024 due to several key factors: 1. **Strong Revenue Growth**: Taylor Morrison's revenue exceeded expectations with a reported $2.36 billion for the fourth quarter, reflecting a 16.7% year-on-year increase. This growth was driven by strategic land investments and a focus on capital-efficient growth. 2. **Effective Cost Management**: The company maintained stable margins despite market volatility, thanks to its diversified consumer segments and strategic focus on quality locations. This diversification has allowed Taylor Morrison to navigate challenging housing market conditions effectively. 3. **Increased Home Closings and Orders**: Taylor Morrison delivered 3,571 homes in Q4, marking a significant contribution to its revenue. Net orders increased by 11% year-over-year, with an absorption pace of 2.6 per community. This indicates healthy demand trends and effective sales strategies. 4. **Gross Margin Improvement**: The adjusted home closings gross margin improved to 24.9% in Q4, reflecting efficient cost management and strong operational performance. This improvement is a testament to the company's strategic focus on cost discipline and operational efficiency. 5. **Share Repurchases and Financial Health**: Taylor Morrison's share repurchase program and strong financial health, with a current ratio of 7.46 and liquidity of approximately $1.4 billion, further underscore its robustness and ability to return value to shareholders. In summary, Taylor Morrison's outperformance in 2024 can be attributed to its strategic growth initiatives, effective cost management, strong home closings and orders, improved gross margins, and robust financial health. These factors combined to enable the company to surpass market expectations and deliver strong financial results.