Berkshire Hathaway acquires Taylor Morrison for $8.5 billion
The homebuilder reported a 28% year-over-year decline in home closings revenue to $1.3 billion in the first quarter of 2026.
Taylor Morrison Home (TMHC), the residential homebuilder, was acquired by Berkshire Hathaway on July 24, 2026. Berkshire Hathaway paid $72.50 per common share in cash, valuing the company at approximately $8.5 billion in total enterprise value.
The acquisition integrates Taylor Morrison with Berkshire Hathaway's Clayton Properties Group. The combined entity ranks as the fourth largest homebuilding operation in the U.S., having delivered nearly 23,000 site-built home closings in 2025.
Financial results for the first quarter of 2026 showed a decline in core activity. Home closings revenue fell approximately 28% year-over-year to $1.3 billion, attributed to a 26% decline in closings volume to 2,268 homes.
Profitability and pricing also trended lower during the period. Home closings gross margin compressed to 20.0% in the first quarter, down from 21.8% in the fourth quarter of 2025. The average home closing price declined to $578,000 from $596,000 in the prior quarter.
Performance varied across consumer segments. The resort lifestyle segment, Esplanade, was the only consumer segment to grow year-over-year in the first quarter, supported by a 9% increase in sales.
Operational metrics indicated a shift toward future deliveries. The sales order backlog grew 23% sequentially to 3,465 homes, as net orders of 2,914 outpaced the 2,268 closings. The mix of to-be-built orders rose to 38% from 28% in the fourth quarter of 2025, while the finished spec count declined 30% to 863 homes.
Operating expenses rose relative to revenue. SG&A as a percentage of home closings revenue increased to 11.4% in the first quarter from 9.9% in the fourth quarter of 2025.