Toll Brothers Reports FY 2025 First Quarter Results
Toll Brothers (NYSE:TOL) reported mixed first quarter FY 2025 results. Net income decreased to $177.7 million ($1.75 per share) from $239.6 million ($2.25 per share) year-over-year. Home sales revenues declined 5% to $1.84 billion, though delivered homes increased 3% to 1,991 units.
Net signed contracts showed strength, increasing 12% in value to $2.31 billion and 13% in units to 2,307. However, backlog value decreased 2% to $6.94 billion. The company's adjusted home sales gross margin declined to 26.9% from 28.9% year-over-year, while SG&A expenses increased to 13.1% of revenues from 11.9%.
The company reaffirmed its full-year guidance and reported mixed results in the spring selling season, with healthy demand in many markets but pressure at the lower end due to affordability constraints. Toll Brothers maintained strong liquidity, extending credit facilities to 2030 and increasing revolving credit capacity by nearly $400 million.
Toll Brothers (NYSE:TOL) ha riportato risultati misti per il primo trimestre dell'anno fiscale 2025. L'utile netto è diminuito a 177,7 milioni di dollari (1,75 dollari per azione) rispetto ai 239,6 milioni di dollari (2,25 dollari per azione) dell'anno precedente. I ricavi delle vendite di case sono calati del 5% a 1,84 miliardi di dollari, sebbene le case consegnate siano aumentate del 3% a 1.991 unità.
I contratti firmati netti hanno mostrato forza, aumentando del 12% in valore a 2,31 miliardi di dollari e del 13% in unità a 2.307. Tuttavia, il valore del backlog è diminuito del 2% a 6,94 miliardi di dollari. Il margine lordo delle vendite di case aggiustato dell'azienda è sceso al 26,9% rispetto al 28,9% dell'anno precedente, mentre le spese SG&A sono aumentate al 13,1% dei ricavi rispetto all'11,9%.
L'azienda ha confermato le sue previsioni per l'intero anno e ha riportato risultati misti nella stagione di vendita primaverile, con una domanda sana in molti mercati ma pressioni nella fascia bassa a causa di vincoli di accessibilità. Toll Brothers ha mantenuto una forte liquidità, estendendo le linee di credito fino al 2030 e aumentando la capacità di credito revolving di quasi 400 milioni di dollari.
Toll Brothers (NYSE:TOL) reportó resultados mixtos para el primer trimestre del año fiscal 2025. La utilidad neta disminuyó a 177,7 millones de dólares (1,75 dólares por acción) desde 239,6 millones de dólares (2,25 dólares por acción) en comparación con el año anterior. Los ingresos por ventas de casas cayeron un 5% a 1,84 mil millones de dólares, aunque las casas entregadas aumentaron un 3% a 1,991 unidades.
Los contratos firmados netos mostraron fortaleza, aumentando un 12% en valor a 2,31 mil millones de dólares y un 13% en unidades a 2,307. Sin embargo, el valor del backlog disminuyó un 2% a 6,94 mil millones de dólares. El margen bruto ajustado de ventas de casas de la empresa cayó al 26,9% desde el 28,9% del año anterior, mientras que los gastos SG&A aumentaron al 13,1% de los ingresos desde el 11,9%.
La empresa reafirmó su guía para todo el año y reportó resultados mixtos en la temporada de ventas de primavera, con una demanda saludable en muchos mercados pero presión en el extremo inferior debido a restricciones de asequibilidad. Toll Brothers mantuvo una fuerte liquidez, extendiendo las líneas de crédito hasta 2030 y aumentando la capacidad de crédito revolvente en casi 400 millones de dólares.
Toll Brothers (NYSE:TOL)는 2025 회계연도 1분기 혼합 실적을 보고했습니다. 순이익은 작년 대비 1억 7,770만 달러 (주당 1.75달러)로 감소했으며, 작년의 2억 3,960만 달러 (주당 2.25달러)에서 줄어들었습니다. 주택 판매 수익은 5% 감소하여 18억 4,000만 달러에 이르렀으며, 인도된 주택 수는 3% 증가하여 1,991채에 달했습니다.
순 계약서 서명은 강세를 보이며, 가치가 23억 1,000만 달러로 12% 증가하고, 유닛 수는 2,307로 13% 증가했습니다. 그러나 백로그 가치는 2% 감소하여 69억 4,000만 달러에 이릅니다. 회사의 조정된 주택 판매 총 마진은 작년 대비 28.9%에서 26.9%로 감소했으며, SG&A 비용은 수익의 11.9%에서 13.1%로 증가했습니다.
회사는 연간 가이던스를 재확인하고 봄 판매 시즌에서 혼합 실적을 보고했으며, 많은 시장에서 건강한 수요를 보였지만 저렴한 가격대에서의 압박이 있었습니다. Toll Brothers는 2030년까지 신용 시설을 연장하고, 회전 신용 한도를 거의 4억 달러 증가시켜 강력한 유동성을 유지했습니다.
Toll Brothers (NYSE:TOL) a annoncé des résultats mitigés pour le premier trimestre de l'exercice 2025. Le bénéfice net a diminué à 177,7 millions de dollars (1,75 dollar par action) contre 239,6 millions de dollars (2,25 dollars par action) l'année précédente. Les revenus des ventes de maisons ont baissé de 5% à 1,84 milliard de dollars, bien que le nombre de maisons livrées ait augmenté de 3% pour atteindre 1 991 unités.
Les contrats signés nets ont montré de la force, augmentant de 12% en valeur à 2,31 milliards de dollars et de 13% en unités à 2 307. Cependant, la valeur des arriérés a diminué de 2% pour atteindre 6,94 milliards de dollars. La marge brute ajustée des ventes de maisons de l'entreprise a chuté à 26,9% contre 28,9% l'année précédente, tandis que les dépenses SG&A ont augmenté à 13,1% des revenus contre 11,9%.
L'entreprise a réaffirmé ses prévisions annuelles et a rapporté des résultats mitigés au cours de la saison des ventes de printemps, avec une demande saine dans de nombreux marchés mais une pression sur le segment inférieur en raison des contraintes d'accessibilité. Toll Brothers a maintenu une forte liquidité, prolongeant les lignes de crédit jusqu'en 2030 et augmentant la capacité de crédit renouvelable de près de 400 millions de dollars.
Toll Brothers (NYSE:TOL) hat gemischte Ergebnisse für das erste Quartal des Geschäftsjahres 2025 gemeldet. Der Nettogewinn sank auf 177,7 Millionen Dollar (1,75 Dollar pro Aktie) im Vergleich zu 239,6 Millionen Dollar (2,25 Dollar pro Aktie) im Vorjahr. Die Einnahmen aus dem Hausverkauf fielen um 5% auf 1,84 Milliarden Dollar, obwohl die gelieferten Häuser um 3% auf 1.991 Einheiten zunahmen.
Die netto unterzeichneten Verträge zeigten Stärke und stiegen im Wert um 12% auf 2,31 Milliarden Dollar und in den Einheiten um 13% auf 2.307. Der Auftragsbestandwert fiel jedoch um 2% auf 6,94 Milliarden Dollar. Die angepasste Bruttomarge aus dem Hausverkauf des Unternehmens sank von 28,9% auf 26,9% im Jahresvergleich, während die SG&A-Ausgaben auf 13,1% der Einnahmen von 11,9% anstiegen.
Das Unternehmen bestätigte seine Jahresprognose und berichtete von gemischten Ergebnissen in der Frühjahrsverkaufsaison, mit gesunder Nachfrage in vielen Märkten, jedoch Druck im unteren Segment aufgrund von Erschwinglichkeitsbeschränkungen. Toll Brothers hielt eine starke Liquidität aufrecht, indem es die Kreditlinien bis 2030 verlängerte und die revolvierende Kreditlinie um fast 400 Millionen Dollar erhöhte.
- Net signed contracts increased 12% in value to $2.31 billion and 13% in units
- Delivered homes increased 3% to 1,991 units
- Credit facility capacity increased by $400 million with extended maturity to 2030
- Strong liquidity position with $574.8 million in cash and $1.77 billion available credit
- Net income decreased 26% to $177.7 million from $239.6 million YoY
- Home sales revenues declined 5% to $1.84 billion
- Adjusted home sales gross margin decreased to 26.9% from 28.9%
- SG&A expenses increased to 13.1% of revenues from 11.9%
- Impairments increased to $22.6 million from $1.5 million YoY
Insights
Toll Brothers' Q1 FY2025 results reveal significant pressures on profitability despite resilient sales momentum. The
The
However, several positive indicators suggest underlying strength:
- Net signed contracts increased
12% in value to$2.31 billion , demonstrating sustained demand in the luxury segment - The company's strategic land position expanded to 77,700 lots, with
56% controlled rather than owned, providing flexibility while limiting risk - Balance sheet remains robust with a reduced debt-to-capital ratio of
26.0% and extended credit facilities totaling$2.35 billion
The divergence between lower-end and higher-end market performance suggests a strategic opportunity to shift focus toward the more resilient upper luxury segment. The maintenance of full-year guidance, despite Q1 challenges, indicates management's confidence in operational improvements and pricing power in premium locations.
FORT WASHINGTON, Pa., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its first quarter ended January 31, 2025.
FY 2025’s First Quarter Financial Highlights (Compared to FY 2024’s First Quarter):
- Net income and earnings per share were
$177.7 million and$1.75 per diluted share, compared to net income of$239.6 million and$2.25 per diluted share in FY 2024’s first quarter. - Pre-tax income was
$221.4 million , compared to$311.2 million in FY 2024’s first quarter. - Home sales revenues were
$1.84 billion , down5% compared to FY 2024’s first quarter; delivered homes were 1,991, up3% . - Net signed contract value was
$2.31 billion , up12% compared to FY 2024’s first quarter; contracted homes were 2,307, up13% . - Backlog value was
$6.94 billion at first quarter end, down2% compared to FY 2024’s first quarter; homes in backlog were 6,312, down6% . - Home sales gross margin was
25.0% , compared to FY 2024’s first quarter end home sales gross margin of27.6% . - Adjusted home sales gross margin, which excludes interest and inventory write-downs, was
26.9% , compared to FY 2024’s first quarter adjusted home sales gross margin of28.9% . - SG&A, as a percentage of home sales revenues, was
13.1% , compared to11.9% in FY 2024’s first quarter. - Income from operations was
$219.1 million . - Other income, loss from unconsolidated entities, and gross margin from land sales and other was
$2.5 million . - Overall, impairments were
$22.6 million compared to$1.5 million in FY 2024's first quarter. Impairments included in home sales cost of sales, land sales and other cost of sales and in other income - net were$16.4 million ,$1.8 million and$4.4 million , respectively. - The Company repurchased approximately 0.2 million shares at an average price of
$127.02 per share for a total purchase price of$23.7 million .
Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “In our first quarter, we delivered 1,991 homes at an average price of approximately
“We signed 2,307 net contracts for
“At the end of our first quarter we owned or controlled approximately 77,700 lots,
“We believe the long-term outlook for the new home market remains very positive and continues to be supported by strong fundamentals. These include favorable demographics, the structural undersupply of millions of homes in the U.S., the aging stock of existing homes, and the accumulated wealth built up from years of stock market and home price appreciation. With our industry leading brand, well-located communities at the corner of Main & Main, and our affluent customer base, our unique niche in the luxury market positions us well for continued success.”
| Second Quarter and FY 2025 Financial Guidance: | |||
| Second Quarter | Full Fiscal Year | ||
| Deliveries | 2,500 - 2,700 units | 11,200 - 11,600 units | |
| Average Delivered Price per Home | |||
| Adjusted Home Sales Gross Margin | |||
| SG&A, as a Percentage of Home Sales Revenues | |||
| Period-End Community Count | 415 | 440 - 450 | |
| Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other | $— million | ||
| Tax Rate | |||
| Financial Highlights for the three months ended January 31, 2025 and 2024 (unaudited): | |||
| 2025 | 2024 | ||
| Net Income | |||
| Pre-Tax Income | |||
| Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues | |||
| Home Sales Revenues | |||
| Net Signed Contracts | |||
| Net Signed Contracts per Community | 5.7 units | 5.6 units | |
| Quarter-End Backlog | |||
| Average Price per Home in Backlog | |||
| Home Sales Gross Margin | |||
| Adjusted Home Sales Gross Margin | |||
| Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues | |||
| SG&A, as a percentage of Home Sales Revenues | |||
| Income from Operations | |||
| Other Income, Loss from Unconsolidated Entities, and Gross Margin from Land Sales and Other | |||
| Pre-Tax Land and Other Impairments included in Land Sales and Other Costs of Revenues | — | ||
| Pre-tax Other Asset Write-offs included in Other Income - net | — | ||
| Quarterly Cancellations as a Percentage of Beginning-Quarter Backlog | |||
| Quarterly Cancellations as a Percentage of Signed Contracts in Quarter | |||
Additional Information:
- The Company ended its FY 2025 first quarter with
$574.8 million in cash and cash equivalents, compared to$1.30 billion at FYE 2024 and$754.8 million at FY 2024’s first quarter. At FY 2025 first quarter end, the Company also had$1.77 billion available under its$1.96 billion senior unsecured revolving credit facility. - On February 7, 2025, the Company extended the maturity date of the senior unsecured revolving credit facility from February 14, 2028 to February 7, 2030 and increased the total amount of revolving loans and commitments available under the facility from
$1.96 billion to$2.35 billion . The Company also extended the maturity of all$650 million of loans outstanding under its term loan credit facility to February 7, 2030. - On January 24, 2025, the Company paid its quarterly dividend of
$0.23 per share to shareholders of record at the close of business on January 10, 2025. - Stockholders’ equity at FY 2025 first quarter end was
$7.80 billion , compared to$7.67 billion at FYE 2024. - FY 2025’s first quarter-end book value per share was
$77.98 per share, compared to$76.87 at FYE 2024. - The Company ended its FY 2025’s first quarter with a debt-to-capital ratio of
26.0% , compared to27.0% at FY 2024’s fourth quarter end and28.0% at FY 2024’s first quarter end. The Company ended FY 2025’s first quarter with a net debt-to-capital ratio(1) of21.1% , compared to15.2% at FY 2024’s fourth quarter end, and21.4% at FY 2024’s first quarter end. - The Company ended FY 2025’s first quarter with approximately 77,700 lots owned and optioned, compared to 74,700 one quarter earlier, and 70,400 one year earlier. Approximately
44% or 33,900, of these lots were owned, of which approximately 20,300 lots, including those in backlog, were substantially improved. - In the first quarter of FY 2025, the Company spent approximately
$360.6 million on land to purchase approximately 2,307 lots. - The Company ended FY 2025’s first quarter with 406 selling communities, compared to 408 at FY 2024’s fourth quarter end and 377 at FY 2024’s first quarter end.
| (1) | See “Reconciliation of Non-GAAP Measures” below for more information on the calculation of the Company’s net debt-to-capital ratio. |
Toll Brothers will be broadcasting live via the Investor Relations section of its website, investors.TollBrothers.com, a conference call hosted by chairman and chief executive officer Douglas C. Yearley, Jr. at 8:30 a.m. (ET) Wednesday, February 19, 2025, to discuss these results and its outlook for the second quarter and FY 2025. To access the call, enter the Toll Brothers website, click on the Investor Relations page, and select “Events & Presentations.” Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software.
The call can be heard live with an online replay which will follow.
ABOUT TOLL BROTHERS
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 58 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.
Toll Brothers has been one of Fortune magazine's World’s Most Admired Companies™ for 10+ years in a row, and in 2024 the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).
From Fortune, ©2025 Fortune Media IP Limited. All rights reserved. Used under license.
FORWARD-LOOKING STATEMENTS
Information presented herein for the first quarter ended January 31, 2025 is subject to finalization of the Company’s regulatory filings, related financial and accounting reporting procedures and external auditor procedures.
This release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” “likely,” “will,” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: expectations regarding inflation and interest rates; the markets in which we operate or may operate; our strategic priorities; our land acquisition, land development and capital allocation priorities; market conditions; demand for our homes; our build-to-order and spec home strategy; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues; changes in profitability; changes in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.
Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:
- the effect of general economic conditions, including employment rates, housing starts, inflation rates, interest and mortgage rates, availability of financing for home mortgages and strength of the U.S. dollar;
- market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
- the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land;
- access to adequate capital on acceptable terms;
- geographic concentration of our operations;
- levels of competition;
- the price and availability of lumber, other raw materials, home components and labor;
- the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;
- the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, unavailability of insurance, and shortages and price increases in labor or materials associated with such natural disasters;
- risks arising from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19;
- federal and state tax policies;
- transportation costs;
- the effect of land use, environment and other governmental laws and regulations;
- legal proceedings or disputes and the adequacy of reserves;
- risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;
- the effect of potential loss of key management personnel;
- changes in accounting principles;
- risks related to unauthorized access to our computer systems, theft of our and our homebuyers’ confidential information or other forms of cyber-attack; and
- other factors described in “Risk Factors” included in our Annual Report on Form 10-K for the year ended October 31, 2024 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).
Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.
Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.
| TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) | |||||||
| January 31, 2025 | October 31, 2024 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 574,834 | $ | 1,303,039 | |||
| Inventory | 10,677,502 | 9,712,925 | |||||
| Property, construction and office equipment - net | 455,208 | 453,007 | |||||
| Receivables, prepaid expenses and other assets | 595,692 | 590,611 | |||||
| Mortgage loans held for sale | 99,620 | 191,242 | |||||
| Customer deposits held in escrow | 112,671 | 109,691 | |||||
| Investments in unconsolidated entities | 1,106,576 | 1,007,417 | |||||
| $ | 13,622,103 | $ | 13,367,932 | ||||
| LIABILITIES AND EQUITY | |||||||
| Liabilities: | |||||||
| Loans payable | $ | 1,058,765 | $ | 1,085,817 | |||
| Senior notes | 1,597,316 | 1,597,102 | |||||
| Mortgage company loan facility | 89,958 | 150,000 | |||||
| Customer deposits | 518,200 | 488,690 | |||||
| Accounts payable | 650,714 | 492,213 | |||||
| Accrued expenses | 1,830,701 | 1,752,848 | |||||
| Income taxes payable | 64,955 | 114,547 | |||||
| Total liabilities | 5,810,609 | 5,681,217 | |||||
| Equity: | |||||||
| Stockholders’ Equity | |||||||
| Common stock, 112,937 shares issued at January 31, 2025 and October 31, 2024 | 1,129 | 1,129 | |||||
| Additional paid-in capital | 674,492 | 694,713 | |||||
| Retained earnings | 8,307,555 | 8,153,356 | |||||
| Treasury stock, at cost — 12,969 and 13,149 shares at January 31, 2025 and October 31, 2024, respectively | (1,217,942 | ) | (1,209,547 | ) | |||
| Accumulated other comprehensive income | 30,372 | 31,277 | |||||
| Total stockholders’ equity | 7,795,606 | 7,670,928 | |||||
| Noncontrolling interest | 15,888 | 15,787 | |||||
| Total equity | 7,811,494 | 7,686,715 | |||||
| $ | 13,622,103 | $ | 13,367,932 | ||||
| TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data and percentages) (Unaudited) | |||||||||||
| Three Months Ended January 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| $ | % | $ | % | ||||||||
| Revenues: | |||||||||||
| Home sales | $ | 1,840,776 | $ | 1,931,836 | |||||||
| Land sales and other | 18,355 | 16,012 | |||||||||
| 1,859,131 | 1,947,848 | ||||||||||
| Cost of revenues: | |||||||||||
| Home sales | 1,381,480 | 75.0 | % | 1,399,226 | 72.4 | % | |||||
| Land sales and other | 18,106 | 98.6 | % | 10,161 | 63.5 | % | |||||
| 1,399,586 | 1,409,387 | ||||||||||
| Gross margin - home sales | 459,296 | 25.0 | % | 532,610 | 27.6 | % | |||||
| Gross margin - land sales and other | 249 | 1.4 | % | 5,851 | 36.5 | % | |||||
| Selling, general and administrative expenses | 240,414 | 13.1 | % | 230,046 | 11.9 | % | |||||
| Income from operations | 219,131 | 308,415 | |||||||||
| Other: | |||||||||||
| Loss from unconsolidated entities | (8,743 | ) | (9,172 | ) | |||||||
| Other income - net | 10,994 | 11,918 | |||||||||
| Income before income taxes | 221,382 | 311,161 | |||||||||
| Income tax provision | 43,679 | 71,603 | |||||||||
| Net income | $ | 177,703 | $ | 239,558 | |||||||
| Per share: | |||||||||||
| Basic earnings | $ | 1.76 | $ | 2.28 | |||||||
| Diluted earnings | $ | 1.75 | $ | 2.25 | |||||||
| Cash dividend declared | $ | 0.23 | $ | 0.21 | |||||||
| Weighted-average number of shares: | |||||||||||
| Basic | 100,830 | 105,122 | |||||||||
| Diluted | 101,830 | 106,265 | |||||||||
| Effective tax rate | 19.7 | % | 23.0 | % | |||||||
| TOLL BROTHERS, INC. AND SUBSIDIARIES SUPPLEMENTAL DATA (Amounts in thousands) (unaudited) | |||||
| Three Months Ended January 31, | |||||
| 2025 | 2024 | ||||
| Inventory impairments and write-offs included in home sales cost of revenues: | |||||
| Pre-development costs and option write offs | $ | 3,957 | $ | 1,471 | |
| Land owned for operating communities | 12,460 | — | |||
| $ | 16,417 | $ | 1,471 | ||
| Land and other impairments included in land sales and other cost of revenues | $ | 1,841 | $ | — | |
| Other asset write-offs included in Other income - net | $ | 4,447 | $ | — | |
| Depreciation and amortization | $ | 17,165 | $ | 15,693 | |
| Interest incurred | $ | 29,835 | $ | 28,759 | |
| Interest expense: | |||||
| Charged to home sales cost of revenues | $ | 20,076 | $ | 23,578 | |
| Charged to land sales and other cost of revenues | 15 | 294 | |||
| $ | 20,091 | $ | 23,872 | ||
| Home sites controlled: | January 31, 2025 | January 31, 2024 | |||
| Owned | 33,871 | 36,014 | |||
| Optioned | 43,843 | 34,435 | |||
| 77,714 | 70,449 | ||||
Inventory at January 31, 2025 and October 31, 2024 consisted of the following (amounts in thousands):
| January 31, 2025 | October 31, 2024 | ||||
| Land deposits and costs of future communities | $ | 734,671 | $ | 620,040 | |
| Land and land development costs | 2,587,654 | 2,532,221 | |||
| Land and land development costs associated with homes under construction | 3,956,943 | 3,617,266 | |||
| Total land and land development costs | 7,279,268 | 6,769,527 | |||
| Homes under construction | 2,901,900 | 2,458,541 | |||
| Model homes (1) | 496,334 | 484,857 | |||
| $ | 10,677,502 | $ | 9,712,925 | ||
| (1) | Includes the allocated land and land development costs associated with each of our model homes in operation. |
Toll Brothers operates in the following five geographic segments, with operations generally located in the states listed below:
- North: Connecticut, Delaware, Illinois, Massachusetts, Michigan, New Jersey, New York and Pennsylvania
- Mid-Atlantic: Georgia, Maryland, North Carolina, Tennessee and Virginia
- South: Florida, South Carolina and Texas
- Mountain: Arizona, Colorado, Idaho, Nevada and Utah
- Pacific: California, Oregon and Washington
| Three Months Ended January 31, | |||||||||||||||||
| Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| REVENUES | |||||||||||||||||
| North | 247 | 289 | $ | 254.7 | $ | 272.6 | $ | 1,031,200 | $ | 943,500 | |||||||
| Mid-Atlantic | 266 | 277 | 236.2 | 264.1 | $ | 888,100 | $ | 953,600 | |||||||||
| South | 596 | 631 | 506.3 | 532.9 | $ | 849,500 | $ | 844,500 | |||||||||
| Mountain | 663 | 485 | 556.7 | 453.4 | $ | 839,700 | $ | 934,800 | |||||||||
| Pacific | 219 | 245 | 287.1 | 409.0 | $ | 1,311,200 | $ | 1,669,400 | |||||||||
| Home Building | 1,991 | 1,927 | 1,841.0 | 1,932.0 | $ | 924,700 | $ | 1,002,600 | |||||||||
| Corporate and other | (0.3 | ) | (0.2 | ) | |||||||||||||
| Total home sales | 1,991 | 1,927 | 1,840.7 | 1,931.8 | $ | 924,600 | $ | 1,002,500 | |||||||||
| Land sales and other | 18.4 | 16.0 | |||||||||||||||
| Total Consolidated | $ | 1,859.1 | $ | 1,947.8 | |||||||||||||
| CONTRACTS | |||||||||||||||||
| North | 318 | 325 | $ | 336.8 | $ | 328.8 | $ | 1,059,100 | $ | 1,011,700 | |||||||
| Mid-Atlantic | 358 | 246 | 341.5 | 238.6 | $ | 953,900 | $ | 970,000 | |||||||||
| South | 700 | 575 | 593.1 | 469.9 | $ | 847,300 | $ | 817,200 | |||||||||
| Mountain | 628 | 541 | 534.1 | 498.9 | $ | 850,500 | $ | 922,200 | |||||||||
| Pacific | 303 | 355 | 501.7 | 528.6 | $ | 1,655,800 | $ | 1,488,900 | |||||||||
| Total Consolidated | 2,307 | 2,042 | $ | 2,307.2 | $ | 2,064.8 | $ | 1,000,100 | $ | 1,011,200 | |||||||
| BACKLOG | |||||||||||||||||
| North | 926 | 992 | $ | 1,019.7 | $ | 1,020.5 | $ | 1,101,200 | $ | 1,028,700 | |||||||
| Mid-Atlantic | 878 | 914 | 930.1 | 928.1 | $ | 1,059,400 | $ | 1,015,400 | |||||||||
| South | 2,107 | 2,256 | 1,895.4 | 2,030.8 | $ | 899,600 | $ | 900,200 | |||||||||
| Mountain | 1,560 | 1,633 | 1,623.7 | 1,624.2 | $ | 1,040,800 | $ | 994,600 | |||||||||
| Pacific | 841 | 898 | 1,469.5 | 1,477.5 | $ | 1,747,300 | $ | 1,645,300 | |||||||||
| Total Consolidated | 6,312 | 6,693 | $ | 6,938.4 | $ | 7,081.1 | $ | 1,099,200 | $ | 1,058,000 | |||||||
Note: Due to rounding, amounts may not add.
Unconsolidated entities:
Information related to revenues and contracts of entities in which we have an interest for the three-month periods ended January 31, 2025 and 2024, and for backlog at January 31, 2025 and 2024 is as follows:
| Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||
| Three months ended January 31, | |||||||||||||||
| Revenues | 15 | — | $ | 21.0 | $ | — | $ | 1,398,200 | $ | — | |||||
| Contracts | 18 | 22 | $ | 25.9 | $ | 21.6 | $ | 1,439,800 | $ | 980,900 | |||||
| Backlog at January 31, | 15 | 171 | $ | 22.3 | $ | 181.5 | $ | 1,488,500 | $ | 1,061,700 | |||||
RECONCILIATION OF NON-GAAP MEASURES
This press release contains, and Company management’s discussion of the results presented in this press release may include, information about the Company’s adjusted home sales gross margin and the Company’s net debt-to-capital ratio.
These two measures are non-GAAP financial measures which are not calculated in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures should not be considered a substitute for, or superior to, the comparable GAAP financial measures, and may be different from non-GAAP measures used by other companies in the home building business.
The Company’s management considers these non-GAAP financial measures as we make operating and strategic decisions and evaluate our performance, including against other home builders that may use similar non-GAAP financial measures. The Company’s management believes these non-GAAP financial measures are useful to investors in understanding our operations and leverage and may be helpful in comparing the Company to other home builders to the extent they provide similar information.
Adjusted Home Sales Gross Margin
The following table reconciles the Company’s home sales gross margin as a percentage of home sales revenues (calculated in accordance with GAAP) to the Company’s adjusted home sales gross margin (a non-GAAP financial measure). Adjusted home sales gross margin is calculated as (i) home sales gross margin plus interest recognized in home sales cost of revenues plus inventory write-downs recognized in home sales cost of revenues divided by (ii) home sales revenues.
| Adjusted Home Sales Gross Margin Reconciliation (Amounts in thousands, except percentages) | ||||||||
| Three Months Ended January 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues - home sales | $ | 1,840,776 | $ | 1,931,836 | ||||
| Cost of revenues - home sales | 1,381,480 | 1,399,226 | ||||||
| Home sales gross margin | 459,296 | 532,610 | ||||||
| Add: | Interest recognized in cost of revenues - home sales | 20,076 | 23,578 | |||||
| Inventory impairments and write-offs in cost of revenues - home sales | 16,417 | 1,471 | ||||||
| Adjusted home sales gross margin | $ | 495,789 | $ | 557,659 | ||||
| Home sales gross margin as a percentage of home sale revenues | 25.0 | % | 27.6 | % | ||||
| Adjusted home sales gross margin as a percentage of home sale revenues | 26.9 | % | 28.9 | % | ||||
The Company’s management believes adjusted home sales gross margin is a useful financial measure to investors because it allows them to evaluate the performance of our home building operations without the often varying effects of capitalized interest costs and inventory impairments. The use of adjusted home sales gross margin also assists the Company’s management in assessing the profitability of our home building operations and making strategic decisions regarding community location and product mix.
Forward-looking Adjusted Home Sales Gross Margin
The Company has not provided projected second quarter and full FY 2025 home sales gross margin or a GAAP reconciliation for forward-looking adjusted home sales gross margin because such measure cannot be provided without unreasonable efforts on a forward-looking basis, since inventory write-downs are based on future activity and observation and therefore cannot be projected for the second quarter and full FY 2025. The variability of these charges may have a potentially unpredictable, and potentially significant, impact on our second quarter and full FY 2025 home sales gross margin.
Net Debt-to-Capital Ratio
The following table reconciles the Company’s ratio of debt to capital (calculated in accordance with GAAP) to the Company’s net debt-to-capital ratio (a non-GAAP financial measure). The net debt-to-capital ratio is calculated as (i) total debt minus mortgage warehouse loans minus cash and cash equivalents divided by (ii) total debt minus mortgage warehouse loans minus cash and cash equivalents plus stockholders’ equity.
| Net Debt-to-Capital Ratio Reconciliation (Amounts in thousands, except percentages) | ||||||||||||
| January 31, 2025 | October 31, 2024 | January 31, 2024 | ||||||||||
| Loans payable | $ | 1,058,765 | $ | 1,085,817 | $ | 1,064,149 | ||||||
| Senior notes | 1,597,316 | 1,597,102 | 1,596,414 | |||||||||
| Mortgage company loan facility | 89,958 | 150,000 | 63,194 | |||||||||
| Total debt | 2,746,039 | 2,832,919 | 2,723,757 | |||||||||
| Total stockholders’ equity | 7,795,606 | 7,670,928 | 7,019,271 | |||||||||
| Total capital | $ | 10,541,645 | $ | 10,503,847 | $ | 9,743,028 | ||||||
| Ratio of debt-to-capital | 26.0 | % | 27.0 | % | 28.0 | % | ||||||
| Total debt | $ | 2,746,039 | $ | 2,832,919 | $ | 2,723,757 | ||||||
| Less: | Mortgage company loan facility | (89,958 | ) | (150,000 | ) | (63,194 | ) | |||||
| Cash and cash equivalents | (574,834 | ) | (1,303,039 | ) | (754,793 | ) | ||||||
| Total net debt | 2,081,247 | 1,379,880 | 1,905,770 | |||||||||
| Total stockholders’ equity | 7,795,606 | 7,670,928 | 7,019,271 | |||||||||
| Total net capital | $ | 9,876,853 | $ | 9,050,808 | $ | 8,925,041 | ||||||
| Net debt-to-capital ratio | 21.1 | % | 15.2 | % | 21.4 | % | ||||||
The Company’s management uses the net debt-to-capital ratio as an indicator of its overall leverage and believes it is a useful financial measure to investors in understanding the leverage employed in the Company’s operations.
| CONTACT: Gregg Ziegler (215) 478-3820 |
| gziegler@tollbrothers.com |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e7dc1e7d-89ea-4bee-9658-4dd3e03f8389
FAQ
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