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Toll Brothers presented strong financial results for Q4 2024, delivering 3,431 homes and generating $3.3 billion in sales revenue, marking a 10% year-over-year increase. The company reported impressive margins, beating guidance with an adjusted gross margin of 27.9% and earnings per share of $4.63. These results were attributed to the firm's strategic expansion across geographies and price points, as well as a robust spec home supply. Management shared an optimistic outlook for fiscal year 2025, with expectations of continued demand and strong performance despite high interest rates. Strategic focus remains on affluent buyers, many of whom pay cash or have significant equity. Forward guidance for Q1 includes delivering 1,900 to 2,100 homes at an average price between $925,000 and $945,000, while maintaining a record home delivery target for the full year. During the Q&A, analysts inquired about margin expectations, share repurchase strategies, and market impacts. The management expressed confidence in managing margin pressure, crediting operational efficiency and strategic land acquisitions. The call concluded with management's assurance of maintaining strategic course and adaptability to market conditions.
Toll Brothers delivered 3,431 homes and generated $3.3 billion in sales revenue, up 10% YoY, with a margin beating guidance.
Strong demand continues in early Q1 2025 with positive traffic, deposits, and agreements seen post-election.
About 28% of Toll Brothers' buyers paid all cash in Q4, marking financial strength of their customer base.
SG&A expenses were 8.3% of revenues, better than guidance due to higher revenue leverage and efficient cost management.
First quarter deliveries in FY2025 projected at 1,900 to 2,100 homes, with strong full-year guidance for sales and margins.
Home sales revenues
$3.3 billion
+10% YoY
Adjusted gross margin
27.9%
40 basis points above guidance
Earnings per share (EPS)
$4.63
+13% YoY
Net income
$475 million
+7% YoY
Full year home sales revenue
$10.6 billion
Record