Toll Brothers (TOL) Q4 2024 earnings summary

Executive summary

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

• Full-year home sales revenue reached a record $10.6 billion, with over $1.5 billion in net income and $15.01 EPS.

• Contracts grew 27% for the year and over 30% in Q4, with community count up 10% to 408.

• Backlog value at Q4 end was $6.47 billion (5,996 homes), down 7% from prior year.

• Repurchased 4.9 million shares in FY2024 for $627.9 million; returned ~$720 million to shareholders.

Financial highlights

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

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

• Full-year operating margin was 18.8%; return on beginning equity was 23.1%.

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

• Excluding a $124 million land sale gain, full-year net income was $1.45 billion ($13.82 per share).

Outlook and guidance

• FY2025 guidance: 11,200–11,600 home deliveries, average price $945,000–$965,000.

• Adjusted gross margin expected at 27.25% for FY2025; Q1 margin projected at 26.25%.

• Q1 deliveries projected at 1,900–2,100 homes, average price $925,000–$945,000.

• SG&A for FY2025 expected at 9.4%–9.5% of home sales revenue; tax rate: 25.5%.

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