Toll Brothers Reports FY 2025 Second Quarter Results

Toll Brothers, Inc. (TollBrothers.com), the nation’s leading builder of luxury homes, announced results for its second quarter ended April 30, 2025.

FY 2025’s Second Quarter Financial Highlights

(Compared to FY 2024’s Second Quarter):

• Net income and earnings per share were $352.4 million and $3.50 per diluted share, compared to net income of $481.6 million and $4.55 per diluted share in FY 2024’s second quarter. Fiscal 2024 net income and earnings per diluted share included $124.1 million and $1.17, respectively, related to the sale of a parcel of land to a commercial developer. Excluding these gains, net income was $357.5 million and earnings per diluted share were $3.38 in FY 2024’s second quarter.
• Pre-tax income was $477.5 million, compared to $649.8 million in FY 2024’s second quarter.
• Home sales revenues were $2.71 billion, up 2% compared to FY 2024’s second quarter; delivered homes were 2,899, up 10%.
• Net signed contract value was $2.60 billion, down 11% compared to FY 2024’s second quarter; contracted homes were 2,650, down 13%.
• Backlog value was $6.84 billion at second quarter end, down 7% compared to FY 2024’s second quarter; homes in backlog were 6,063, down 15%.
• Home sales gross margin was 26.0%, compared to FY 2024’s second quarter home sales gross margin of 25.8%.
• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 27.5%, compared to FY 2024’s second quarter adjusted home sales gross margin of 28.2%.
• SG&A, as a percentage of home sales revenues, was 9.5%, compared to 9.0% in FY 2024’s second quarter.
• Income from operations was $449.7 million.
• Other income, income from unconsolidated entities, and gross margin from land sales and other was $29.0 million.
• The Company repurchased approximately 1.6 million shares at an average price of $107.84 per share for a total purchase price of $177.4 million.
  

Douglas C. Yearley , Jr., chairman and chief executive officer, stated: “We are pleased with our second quarter results, as we delivered earnings that significantly exceeded expectations. Despite a softer demand environment, we generated record second quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion, and beat both our adjusted gross margin and SG&A guidance. We believe these results highlight the strength of our broadly diversified luxury product offerings, price points and geographies, our balanced portfolio of build-to-order and spec homes, and our strategy of prioritizing sales price and margin over pace in the current environment. Based on our first half results and the strength of our backlog, we are reaffirming our full year guidance.

“Given the shortage of housing and favorable demographics, we continue to believe the long-term outlook for the new home market remains positive, particularly for our luxury niche. With our balanced operating platform, disciplined underwriting, financial strength and healthy cash flows, we are well positioned to adapt to changing market conditions and to continue delivering value to our stockholders.”

Additional Information:

• The Company ended its FY 2025 second quarter with $686.5 million in cash and cash equivalents, compared to $1.30 billion at FYE 2024 and $574.8 million at FY 2025’s first quarter. At FY 2025 second quarter end, the Company also had $2.19 billion available under its $2.35 billion senior unsecured revolving credit facility.
• On February 7, 2025, the Company extended the maturity date of the senior unsecured revolving credit facility from February 14, 2028 to February 7, 2030 and increased the total amount of revolving loans and commitments available under the facility from $1.96 billion to $2.35 billion. The Company also extended the maturity of all $650 million of loans outstanding under its term loan credit facility to February 7, 2030.
• On March 11, 2025, the Company announced a 9% increase in its quarterly cash dividend from $0.23 to $0.25 per share. On April 25, 2025, the Company paid its quarterly dividend of $0.25 per share to shareholders of record at the close of business on April 11, 2025.
• Stockholders’ equity at FY 2025 second quarter end was $7.95 billion, compared to $7.67 billion at FYE 2024.
• FY 2025’s second quarter-end book value per share was $80.84 per share, compared to $76.87 at FYE 2024.
• The Company ended its FY 2025’s second quarter with a debt-to-capital ratio of 26.1%, compared to 26.0% at FY 2025’s first quarter end and 27.0% at FYE 2024. The Company ended FY 2025’s second quarter with a net debt-to-capital ratio⁽¹⁾ of 19.8%, compared to 21.1% at FY 2025’s first quarter end, and 15.2% at FYE 2024.
• The Company ended FY 2025’s second quarter with approximately 78,600 lots owned and optioned, compared to 77,700 one quarter earlier, and 71,800 one year earlier. Approximately 42% or 32,800, of these lots were owned, of which approximately 19,300 lots, including those in backlog, were substantially improved.
• In the second quarter of FY 2025, the Company spent approximately $362.4 million on land to purchase approximately 2,073 lots.*
• The Company ended FY 2025’s second quarter with 421 selling communities, compared to 406 at FY 2025’s first quarter end and 386 at FY 2024’s second quarter end.

For full results click here.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 57 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware,
Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.

In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World’s Most Admired Companies™ list and the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).

Source: Toll Brothers, Inc.