Toll Brothers, Inc. (NYSE: TOL), a leading builder of luxury homes, announced its financial results for the fourth quarter ended October 31, 2024.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YOY Change |
|---|---|---|---|
| Net Income (millions) | $475.4 | $445.5 | +6.7% |
| Earnings per Share (EPS) | $4.63 | $4.11 | +12.7% |
| Home Sales Revenue (billions) | $3.26 | $2.96 | +10% |
| Pre-tax Income (millions) | $621.1 | $605.0 | +2.7% |
In the fourth quarter of FY 2024, Toll Brothers reported a significant increase in both revenue and earnings per share compared to the previous year, reflecting strong operational performance despite economic headwinds. The company's revenue growth was primarily fueled by a 25% increase in delivered homes, outpacing broader market trends.
Revenue Performance by Segment
| Segment | Revenue (millions) | Average Price Per Home |
|---|---|---|
| Home Sales | $3,260 | $1,000,000 |
| Contract Value | $2,660 | $1,000,000 |
| Backlog Value | $6,470 | Not provided |
Toll Brothers' diverse geographical presence enabled it to deliver robust quarterly performance, with revenues from net signed contracts up 32% year-over-year. However, a decrease in backlog value indicates potential challenges in maintaining this momentum.
Key Developments and Operational Highlights
- Repurchased approximately 1.3 million shares at an average price of $150.19, totaling $200.9 million.
- Ended Q4 with $1.3 billion in cash and equivalents, maintaining stable liquidity.
- Paid a quarterly dividend of $0.23 per share on October 25, 2024.
- Book value per share rose to $76.87 from $65.49 at the end of the previous fiscal year.
- Land acquisitions of $258.6 million, acquiring approximately 1,910 lots.
Comments from the CEO
Douglas C. Yearley, Jr., CEO, attributed the company's record performance to its strategic initiatives, highlighting Toll Brothers' expansion of product lines and geographic footprint. Yearley expressed optimism for FY 2025, underpinned by continued strong demand and strategic positioning across over 60 markets.
Share Repurchase Program
Toll Brothers actively engaged in its share repurchase program, acquiring 4.9 million shares throughout FY 2024, reflecting confidence in its financial health and growth prospects.
Forward Guidance
The company did not provide specific guidance for future quarters but indicated an optimistic outlook for the upcoming year, citing strong demand and expansive land holdings supporting future growth.
At the conclusion of FY 2024, Toll Brothers demonstrated strong financial results underscoring its effectiveness in navigating a competitive housing market, while strategic investments and land acquisition underscore its readiness for sustained growth in the coming year.
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