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Jan 31, 2025
Toll Brothers Q1 2025 Earnings Report
Toll Brothers Q1 2025 Earnings Report showed a decline in net income and revenue but strong contract growth.
Key Takeaways
Toll Brothers reported a decrease in revenue and net income for Q1 2025, impacted by impairments and delayed joint venture sales. Despite these challenges, contract signings grew significantly, reflecting ongoing demand for luxury homes.
Revenue declined 4.71% YoY to $1.84 billion.
Net income dropped 25.84% YoY to $177.7 million.
Net signed contracts increased by 12% YoY to $2.31 billion.
Operating margin fell from 15.8% to 11.8% YoY.
Revenue by Segment
Forward Guidance
Toll Brothers reaffirmed its full-year guidance, expecting stable home deliveries and adjusted gross margin.
Positive Outlook
- Full-year home deliveries expected to be 11,200 - 11,600 units.
- Average home price guidance maintained at $945K - $965K.
- Adjusted home sales gross margin projected at 27.25%.
- SG&A as a percentage of revenue expected to decline to 9.4% - 9.5%.
- Strong backlog provides revenue visibility for the upcoming quarters.
Challenges Ahead
- Affordability constraints and growing inventories affecting lower-end sales.
- Higher SG&A expenses increased 40 basis points above guidance.
- Rising impairments, up from $1.5M to $16.4M in home sales costs.
- Market volatility affecting pricing strategy across regions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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