Toll Brothers Posts 10% Revenue Growth

Toll Brothers, a renowned luxury homebuilder in the United States, has recently released its 10-Q report, providing a comprehensive overview of its financial performance and operations. The company, founded in 1967 and headquartered in Fort Washington, Pennsylvania, specializes in designing, building, marketing, and selling detached and attached homes in luxury residential communities. It also offers condominiums through its Toll Brothers City Living division and provides various interior fit-out options, as well as apartment development, operation, and rental services.

In the 10-Q report, Toll Brothers discussed its financial and operational highlights for the three-month period ended January 31, 2024. The company reported $1.95 billion in revenues, comprising $1.93 billion from home sales and $16.0 million from land sales and other revenue, representing a 10% increase compared to the same period in the previous year. Net income for the period was $239.6 million, up from $191.5 million in the corresponding period in 2023.

During the same period, Toll Brothers signed 2,042 net contracts with an aggregate value of $2.06 billion, marking a 39.8% increase in units and a 42.0% increase in dollars year-over-year. The backlog at January 31, 2024, stood at $7.08 billion, representing 6,693 homes, compared to $8.58 billion (7,733 homes) at January 31, 2023. The company also had $754.8 million of cash and cash equivalents on hand at January 31, 2024, with approximately $1.76 billion available under its $1.905 billion senior unsecured revolving credit facility.

In terms of its real estate portfolio, Toll Brothers owned or controlled approximately 70,400 home sites at January 31, 2024, compared to approximately 70,700 at October 31, 2023, and approximately 76,000 at October 31, 2022. The company was selling from 377 communities at January 31, 2024, compared to 370 at October 31, 2023, and 328 at January 31, 2023.

The report also provided a detailed breakdown of the company's revenues, cost of revenues, selling, general, and administrative expenses, as well as income from unconsolidated entities and other income.

Toll Brothers' financial performance and operational metrics outlined in the 10-Q report reflect its solid demand for homes, increased net contracts signed, and a healthy backlog, indicating a positive outlook for the company in the luxury residential real estate market. Today the company's shares have moved 1.1% to a price of $115.87. For more information, read the company's full 10-Q submission here.

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