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The Toll Brothers Q1 2025 earnings call provided a comprehensive overview of the company's financial performance, operational strategies, and market trends. Toll Brothers reported first-quarter revenue of $1.84 billion, driven by the delivery of 1,991 homes. Despite a net income of $177.7 million missing expectations due to joint venture sale delays, the company maintained its full-year guidance on key metrics, benefiting from a robust gross margin performance and strong demand in the North and Mid-Atlantic regions. Management highlighted a mixed market environment due to affordability pressures and varied regional demand but expressed optimism about luxury and affluent buyer segments, which continue to display financial strength with a high percentage of cash buyers. Toll Brothers affirmed its strategic focus on managing inventories and pricing to optimize market conditions. They also emphasized operational improvements and a disciplined land acquisition strategy, supporting their growth and margin guidance for fiscal 2025. The analyst Q&A session focused on inventory levels, margin sustainability, and the company's ability to navigate the current market dynamics. Toll Brothers' management showed confidence in achieving their full-year objectives while acknowledging the need for strategic flexibility in response to market changes.
First quarter deliveries totaled 1,991 homes with $1.84 billion in revenue, exceeding gross margin guidance.
Toll Brothers maintains all key home building guidance for FY2025 despite mixed spring season trends.
Q1 net income was $177.7 million or $1.75 per share, below expectations due to joint venture sale delays.
Toll Brothers' cancellation rate remains low at 2.4%, indicating strong buyer commitment.
Approximately 26% of buyers paid all cash in Q1, reflecting buyer financial strength.
Northeast Mid-Atlantic regions strong, partly due to lack of new home spec inventory, increasing resale values.
Revenue
$1.84 billion
Adjusted Gross Margin
26.9%
65 basis points better than guidance
SG&A Expense
13.1%
40 basis points above guidance
Net Income
$177.7 million
EPS
$1.75
Net Contracts
2,307
Up 13% in units and 12% in dollars