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Toll Brothers
🇺🇸 NYSE:TOL
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Apr 30, 2024

Toll Brothers Q2 2024 Earnings Report

Toll Brothers reported increased home sales revenues and net signed contract value, but a decrease in backlog value. Record second quarter earnings were achieved, driven by strong home building results and a significant land sale gain.

Key Takeaways

Toll Brothers reported strong second quarter results for fiscal year 2024, with a 6% increase in home sales revenues to $2.65 billion and a 29% increase in net signed contract value to $2.94 billion. Net income was $481.6 million, or $4.55 per diluted share, which included a $124.1 million gain from the sale of land. The company is increasing its full year revenue and earnings guidance.

Home sales revenues increased by 6% to $2.65 billion with 2,641 homes delivered, also up 6%.

Net signed contract value increased by 29% to $2.94 billion, with contracted homes up 30% to 3,041 units.

Backlog value decreased by 12% to $7.38 billion, with homes in backlog down 6% to 7,093 units.

Net income was $481.6 million, or $4.55 per diluted share, including a $124.1 million gain from a land sale.

Total Revenue
$2.84B
Previous year: $2.51B
+13.2%
EPS
$3.38
Previous year: $2.85
+18.6%
Backlog Value
$7.38B
Previous year: $8.38B
-11.9%
Net Contracts Signed Value
$2.94B
Previous year: $2.28B
+28.9%
Backlog Number of Units
7.09K
Previous year: 7.57K
-6.4%
Gross Profit
$861M
Previous year: $653M
+31.8%
Cash and Equivalents
$1.03B
Previous year: $762M
+35.2%
Free Cash Flow
$443M
Previous year: $484M
-8.4%
Total Assets
$13.3B
Previous year: $12B
+10.5%

Toll Brothers

Toll Brothers

Toll Brothers Revenue by Segment

Toll Brothers Revenue by Geographic Location

Forward Guidance

Toll Brothers provided financial guidance for the third quarter and full fiscal year 2024.

Positive Outlook

  • Deliveries are expected to be between 2,750 and 2,850 units for Q3 and 10,400 to 10,800 units for the full year.
  • The average delivered price per home is projected to be $950,000 - $960,000 for Q3 and $960,000 - $970,000 for the full year.
  • Adjusted home sales gross margin is expected to be 27.7% for Q3 and 28.0% for the full year.
  • Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $260 million for the full year.
  • The tax rate is projected to be 26.0% for Q3 and 25.5% for the full year.

Challenges Ahead

  • SG&A, as a percentage of home sales revenues, is expected to be 9.2% for Q3 and 9.6% for the full year.
  • Period-end community count is expected to be 400 for Q3 and 410 for the full year.
  • Other income, income from unconsolidated entities, and gross margin from land sales and other is expected to be $0 for Q3.
  • No specific negative guidance was provided for deliveries.
  • No specific negative guidance was provided for average delivered price per home.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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