Toll Brothers Reports FY 2024 Results

Toll Brothers, Inc. (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its fourth quarter ended October 31, 2024.

FY 2024’s Fourth Quarter Financial Highlights (Compared to FY 2023’s Fourth Quarter):

• Net income and earnings per share were $475.4 million and $4.63 per diluted share, compared to net income of $445.5 million and $4.11 per diluted share in FY 2023’s fourth quarter.
• Pre-tax income was $621.1 million, compared to $605.0 million in FY 2023’s fourth quarter.
• Home sales revenues were $3.26 billion, up 10% compared to FY 2023’s fourth quarter; delivered homes were 3,431, up 25%.
• Net signed contract value was $2.66 billion, up 32% compared to FY 2023’s fourth quarter; contracted homes were 2,658, up 30%.
• Backlog value was $6.47 billion at fourth quarter end, down 7% compared to FY 2023’s fourth quarter; homes in backlog were 5,996, down 9%.
• Home sales gross margin was 26.0%, compared to FY 2023’s fourth quarter home sales gross margin of 27.5%.
• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 27.9%, compared to FY 2023’s fourth quarter adjusted home sales gross margin of 29.1%.
• SG&A, as a percentage of home sales revenues, was 8.3%, compared to 8.2% in FY 2023’s fourth quarter.
• Income from operations was $611.1 million.
• Other income, income from unconsolidated entities, and gross margin from land sales and other was $44.5 million.
• The Company repurchased approximately 1.3 million shares at an average price of $150.19 per share for a total purchase price of $200.9 million.

Full FY 2024 Financial Highlights (Compared to Full FY 2023):

• Net income was $1.57 billion, and earnings per share were $15.01 diluted, compared to net income of $1.37 billion and $12.36 per share diluted in FY 2023.
• Net income and earnings per share included $124.1 million and $1.19, respectively, related to the sale of a parcel of land to a commercial developer in our second quarter. Excluding this gain, net income and earnings per share were $1.45 billion and $13.82 per diluted share in FY 2024.
• Pre-tax income was $2.09 billion, compared to $1.84 billion in FY 2023.
• Home sales revenues were $10.56 billion, up 7% compared to FY 2023; delivered homes were 10,813, up 13%.
• Net signed contract value was $10.07 billion, up 27% compared to FY 2023; contracted homes were 10,231, up 27%.
• Home sales gross margin was 26.6%, compared to FY 2023’s home sales gross margin of 26.9%.
• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 28.4%, compared to FY 2023’s adjusted home sales gross margin of 28.7%.
• SG&A, as a percentage of home sales revenues, was 9.3%, compared to 9.2% in FY 2023.
• Income from operations was $2.04 billion.
• Other income, income from unconsolidated entities, and gross margin from land sales and other was $258.0 million.
• The Company repurchased approximately 4.9 million shares at an average price of $127.79 per share for a total purchase price of $627.9 million

Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “I am very pleased with our fourth quarter results, which cap the strongest year ever for Toll Brothers. For the full year, we generated a record $10.6 billion of home sales revenue, earned $15.01 per diluted share and grew contracts by 27% in both units and dollars. In the fourth quarter, we delivered 3,431 homes and generated $3.3 billion in home sales revenues, up 25% in units and 10% in dollars compared to last year’s fourth quarter. Our fourth quarter adjusted gross margin was 27.9%, beating guidance by 40 basis points, and our SG&A expense was 8.3% of home sales revenues, or 30 basis points better than guidance. Our strong margin performance and better than projected home sales revenues drove earnings of $4.63 per diluted share in the quarter, up 13% compared to last year. We also signed 2,658 net contracts at an average price of $1,000,000, up 30% in units and 32% in dollars compared to last year’s fourth quarter. Our performance this year and in the fourth quarter demonstrates the power of our luxury brand, the financial strength of our buyers, and the success of our strategies of increasing our spec home production and widening our geographies, price points and product lines.

“Since the start of our fiscal 2025 six weeks ago we have seen strong demand, which is encouraging as we approach the beginning of the spring selling season in mid-January. We are well positioned with communities in over 60 markets across 24 states featuring the widest offering of luxury homes and serving the most affluent customers in our industry. Last year, we increased community count by 10% and are targeting a similar increase in fiscal 2025. We also owned or controlled approximately 74,700 lots at year end, providing sufficient land for further growth in fiscal 2026 and beyond.

“In fiscal 2024, we generated a return on beginning equity of 23.1%, driven by our record earnings and strong cash flows that allowed us to return approximately $720 million of capital to shareholders. Our healthy balance sheet, low leverage, and ample liquidity, including significant projected cash flows from operations in fiscal 2025, should allow us to continue investing in our business while returning cash to shareholders well into the future.”

For the full press release, click here.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 57 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.

In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World’s Most Admired Companies™ list and 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).

Source: Toll Brothers, Inc.