Fri, Feb 28, 9:04 PM (58 days ago)
For the quarter ending January 31, 2025, Toll Brothers, Inc. (TOL) reported revenues of $1.86 billion, down 5% from $1.95 billion in the prior year, with net income decreasing 26% to $177.7 million. Home sales revenue fell to $1.84 billion due to an 8% decline in average home prices, despite a 3% increase in unit deliveries to 1,991 homes. The backlog value decreased by 2% to $6.94 billion, driven by a 6% drop in units. The company signed net contracts worth $2.31 billion, a 12% increase from the previous year, reflecting a strong demand particularly in higher-end markets. Toll Brothers ended the quarter with $574.8 million in cash and approximately $1.77 billion available under its revolving credit facility. Inventory levels rose to $10.68 billion, prompting a cash outflow of $420.8 million in operations. The company’s debt-to-capitalization ratio stood at 26%. Notably, the effective tax rate improved to 19.7%, down from 23.0% a year prior. The outlook remains cautiously optimistic, with management adjusting strategies to align with market conditions and addressing rising inflation and interest rates impacting buyer affordability.