Toll Brothers Q4 2024 Earnings Report
Key Takeaways
Toll Brothers reported strong Q4 2024 results, with net income of $475.4 million and earnings per share of $4.63. Home sales revenues increased by 10% to $3.26 billion, and net signed contract value rose by 32% to $2.66 billion. The company's performance was driven by its luxury brand, financially strong buyers, and strategies to increase spec home production and expand geographically.
Net income and EPS increased to $475.4 million and $4.63 per diluted share, respectively.
Home sales revenues rose 10% to $3.26 billion on 3,431 units delivered.
Net signed contract value increased 32% to $2.66 billion, with 2,658 homes contracted.
Adjusted home sales gross margin was 27.9%, exceeding guidance.
Toll Brothers
Toll Brothers
Toll Brothers Revenue by Segment
Forward Guidance
Toll Brothers provided financial guidance for the first quarter and full fiscal year 2025.
Positive Outlook
- Deliveries are expected to be between 1,900 and 2,100 units for Q1 2025 and between 11,200 and 11,600 units for FY 2025.
- The average delivered price per home is projected to be between $925,000 and $945,000 for Q1 2025 and between $945,000 and $965,000 for FY 2025.
- Adjusted home sales gross margin is anticipated to be 26.25% for Q1 2025 and 27.25% for FY 2025.
- The period-end community count is expected to be 410 for Q1 2025 and between 440 and 450 for FY 2025.
- Other income, income from unconsolidated entities, and gross margin from land sales and other is estimated to be $33 million for Q1 2025 and $110 million for FY 2025.
Challenges Ahead
- SG&A, as a percentage of home sales revenues, is projected to be 12.7% for Q1 2025 and between 9.4% and 9.5% for FY 2025.
- The tax rate is expected to be 22.0% for Q1 2025 and 25.5% for FY 2025.
- The company has not provided projected first 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 first quarter and full FY 2025.
- The variability of inventory write-down charges may have a potentially unpredictable, and potentially significant, impact on our first quarter and full FY 2025 home sales gross margin.
- Forward-looking statements are not guarantees of future performance and may turn out to be inaccurate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income