Toll Brothers (TOL) Q4 2024 earnings summary

Executive summary

• Delivered 3,431 homes and $3.3B in home sales revenue in Q4 2024, up 25% in units and 10% in dollars year-over-year.

• Full-year home sales revenue reached $10.6B, with net income over $1.5B and EPS of $15.01.

• Contracts grew over 30% in Q4, and community count increased 10% to 408 at year-end.

• Repurchased 4.9M shares in FY24 for $627.9M, returning ~$720M to shareholders.

• Maintained strong performance despite election uncertainty and rising mortgage rates.

Financial highlights

• Q4 adjusted gross margin was 27.9%, beating guidance by 40 bps; SG&A was 8.3% of home sales revenue.

• Q4 net income was $475M ($4.63 per diluted share), up 7% and 13% year-over-year, respectively.

• Full-year net income was $1.57B ($15.01/share), up from $1.37B ($12.36/share) in FY 2023.

• Average price of homes delivered in Q4 was $950,000, down 11.3% year-over-year.

• Excluding a $124M land sale gain, full-year net income was $1.45B ($13.82/share).

Outlook and guidance

• Projecting FY25 deliveries of 11,200–11,600 homes at an average price of $945,000–$965,000.

• Q1 2025 deliveries expected to be 1,900–2,100 homes, with Q1 as the seasonal low point.

• FY25 adjusted gross margin guidance is 27.25%, with Q1 at 26.25% due to mix and incentives.

• SG&A for FY25 projected at 9.4%–9.5% of home sales revenue.

• Community count expected to grow 8%–10% to 440–450 by year-end.