Toll Brothers Inc. ( (TOL) ) has released its Q1 earnings. Here is a breakdown of the information Toll Brothers Inc. presented to its investors.
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Toll Brothers, Inc. is a leading American home construction company, renowned for building luxury homes across 60 markets in 24 states, and is recognized for its comprehensive in-house architectural, mortgage, and construction services.
In its first quarter of fiscal year 2025, Toll Brothers reported a decline in net income to $177.7 million from $239.6 million in the same period of the previous year, with earnings per share decreasing to $1.75 from $2.25. Despite a decrease in home sales revenue by 5% to $1.84 billion, the company saw a 12% increase in net signed contract value to $2.31 billion.
Key performance indicators showcased a mixed bag of results; while the company delivered 1,991 homes, a 3% increase from the prior year, the home sales gross margin fell to 25% from 27.6%. Toll Brothers also reported an increase in SG&A expenses as a percentage of home sales revenues to 13.1% from 11.9%. Notably, the company’s backlog value dropped slightly to $6.94 billion.
The management remains optimistic about the future, reaffirming its full-year guidance on deliveries, average prices, and adjusted gross margin, despite acknowledging challenges such as affordability constraints in certain markets. With a solid balance sheet and strategic management of pricing and incentives, Toll Brothers is confident about its position in the luxury market.
Looking ahead, Toll Brothers anticipates sustained growth, driven by favorable demographics and a structural undersupply of homes in the U.S., and aims to continue leveraging its strong brand and affluent customer base to maintain its leadership in the luxury home market.
