What drove TMHC's earnings growth in 2024?

Taylor Morrison Home Corp (TMHC) experienced notable earnings growth in 2024, driven by several key factors:

1. **Revenue Growth**: Taylor Morrison delivered strong revenue results, with over $2 billion generated in the third quarter alone. This was fueled by a 27% increase in revenue compared to the same period in the previous year. The company's diversified consumer and geographic strategy effectively countered interest rate volatility, maintaining robust gross margins of 24.8%.
2. **Home Closings and Average Price**: The company delivered 3,394 homes at an average price of $598,000, significantly contributing to revenue growth. Home closings revenue reached $1.92 billion, though there was a slight decrease from the previous year, it remained a substantial contributor to overall earnings.
3. **Gross Margin Improvement**: Taylor Morrison improved its gross margin to 24.8%, up from the previous year's 24.0%. This increase, although slight, reflects enhanced operational efficiency and pricing power in the market.
4. **Earnings Per Diluted Share (EPS) Growth**: The company reported an EPS of $2.41 for the third quarter, a significant increase from $1.57 in the same period the previous year. This indicates improved profitability and returns for shareholders.
5. **Strategic Resilience**: Despite facing challenges such as hurricane-related disruptions and affordability issues, Taylor Morrison's strategic focus on personalized finance incentives and a diversified market approach helped maintain stable incentive levels and overall performance.

In summary, Taylor Morrison's earnings growth in 2024 was driven by robust revenue generation, improved gross margins, strategic market positioning, and effective cost management.