Toll Brothers (TOL) investor relations material

Executive summary

• Delivered 2,959 homes in Q3 FY25, up 5% year-over-year, with record home sales revenues of $2.95 billion, an increase of 6–8% year-over-year.

• Net income for Q3 FY25 was $369.6 million ($3.73 per diluted share), slightly down from the prior year; FY 2024 net income was $1.57 billion, up 14% year-over-year.

• Backlog at quarter end was 5,492 homes valued at $6.38 billion, down 10% in value and 19% in units year-over-year, with average backlog price up 11%.

• Maintained a national footprint across 24 states and 60+ markets, positioning for continued growth.

• Focused on capital efficiency, shareholder returns, and operational improvements.

Financial highlights

• FY 2024 revenue reached $10.56 billion, up 7% year-over-year; Q3 home sales revenue was $2.88–$2.95 billion, up 6–8%.

• Diluted EPS for FY 2024 was $15.01, a 21% increase; Q3 FY25 EPS was $3.73.

• Adjusted gross margin for FY 2024 was 28.4%; Q3 adjusted gross margin was 27.5%, down from 28.8% prior year.

• SG&A as a percentage of home sales revenue improved to 8.8% in Q3 FY25, better than guidance and prior year.

• Cash and equivalents at Q3 end were $852.3 million, with $2.19 billion available under the revolver.

Outlook and guidance

• Q4 FY25 guidance: 3,350 deliveries at $970,000–$980,000 average price, adjusted gross margin 27.0%, SG&A 8.3%.

• Full FY25 guidance: 11,200 deliveries at $950,000–$960,000 average price, adjusted gross margin 27.25%, SG&A 9.4–9.5%.

• Management expects near-term demand softness due to affordability and economic uncertainty, but long-term outlook remains positive, supported by favorable demographics and structural undersupply.

• Period-end community count expected at 440–450, with 8–10% year-over-year growth.

• Projected FY25 EPS: ~$13.75; return on beginning equity: ~18%; year-end book value: ~$88/share.