Toll Brothers, Inc. has recently released its 10-Q report, revealing a robust performance in the luxury residential market. The company, which designs, builds, and sells luxury detached and attached homes, as well as condominiums, reported a strong demand for new homes in the second quarter of fiscal 2024.
In the three months ended April 30, 2024, Toll Brothers signed 3,041 net contracts with an aggregate value of $2.94 billion, representing a 30% increase in units and a 29% increase in dollars compared to the same period in 2023. The company attributed this growth to a resilient economy, favorable demographic trends, and the continued imbalance in the supply and demand of for-sale homes. Toll Brothers also noted that its focus on the luxury segment of the market has contributed to the solid demand, as its home buyers are generally less sensitive to the affordability pressures caused by higher mortgage rates.
During the same period, home sales revenue increased by 6%, with Toll Brothers delivering 2,641 homes at an average price of $1,002,300. Notably, 54% of the net signed contracts were for quick move-in homes, reflecting the company's strategic response to compete more effectively with existing homes available in the market.
Financially, in the three-month period ended April 30, 2024, Toll Brothers recognized $2.84 billion of revenues and reported a net income of $481.6 million, compared to $2.51 billion of revenues and a net income of $320.2 million in the same period in 2023. The value of net contracts signed in the six-month period ended April 30, 2024, was $5.01 billion, representing a significant increase from $3.73 billion in the same period in 2023.
Toll Brothers' backlog at April 30, 2024, was $7.38 billion, consisting of 7,093 homes, compared to a backlog of $8.38 billion with 7,574 homes at April 30, 2023. The company also reported having $1.03 billion of cash and cash equivalents on hand and approximately $1.74 billion available under its $1.905 billion revolving credit facility at April 30, 2024.
The company's total stockholders' equity and debt to total capitalization ratio at April 30, 2024, were $7.31 billion and 0.28 to 1.00, respectively. Toll Brothers owned or controlled approximately 71,800 home sites at April 30, 2024, compared to approximately 70,700 at October 31, 2023.
Toll Brothers' financial and operational highlights for the three and six months ended April 30, 2024, compared to the same periods in 2023, reflect a strong performance, demonstrating the company's resilience and growth in the luxury residential market. The market has reacted to these announcements by moving the company's shares 0.8% to a price of $121.64. For more information, read the company's full 10-Q submission here.
