Toll Brothers, a leading luxury homebuilder in the United States, has recently released its 10-Q report. The company, founded in 1967 and headquartered in Fort Washington, Pennsylvania, designs, builds, and sells a range of detached and attached homes in luxury residential communities. Toll Brothers also develops single-story living and first-floor primary bedroom suite home designs, operates rental apartments, and provides various interior fit-out options and services.
In the three months ended April 30, 2025, Toll Brothers signed 2,650 net contracts for an aggregate value of $2.60 billion, representing a decrease of 13% in units and 11% in dollars compared to the prior-year period. The company delivered 2,899 homes with an average delivered price of $933,600, a decrease from the average price of $1,002,300 in the same period of the previous year. Toll Brothers recognized $2.74 billion of revenues and reported a net income of $352.4 million in the three-month period ended April 30, 2025, down from $2.84 billion of revenues and a net income of $481.6 million in the same period of 2024.
In the six-month period ended April 30, 2025, Toll Brothers recognized $4.60 billion of revenues, consisting of $4.55 billion of home sales revenues and $51.0 million of land sales and other revenues. The net income for this period was $530.2 million, compared to $4.79 billion of revenues and a net income of $721.2 million in the six-month period ended April 30, 2024.
At April 30, 2025, Toll Brothers had $686.5 million of cash and cash equivalents and approximately $2.19 billion available under its $2.35 billion revolving credit facility. The company owned or controlled through options approximately 78,600 home sites, an increase from approximately 74,700 at October 31, 2024. Toll Brothers was selling from 421 communities at April 30, 2025, compared to 408 at October 31, 2024.
The company's backlog at April 30, 2025, was $6.84 billion (6,063 homes), a decrease from $7.38 billion (7,093 homes) at April 30, 2024. Toll Brothers' total stockholders’ equity and its debt to total capitalization ratio were $7.95 billion and 0.26 to 1.00, respectively, at April 30, 2025.
In the three months ended April 30, 2025, home sales revenues increased primarily due to a 10% increase in the number of homes delivered, offset by a 7% decrease in the average price of homes delivered. The increase in the number of homes delivered was primarily due to an increase in operating communities, more deliveries of spec homes, and a higher backlog conversion. The company also experienced a decrease in the number of homes in backlog at October 31, 2024, compared to the number of homes in backlog at October 31, 2023, particularly in the Mountain and Pacific regions.
Toll Brothers' land sales and other revenues decreased during the three and six months ended April 30, 2025, primarily due to the sale of a land parcel in the fiscal 2024 periods to a commercial developer, which did not recur in the fiscal 2025 periods.
Selling, general and administrative expenses (SG&A) increased in both the three-month and six-month periods ended April 30, 2025, primarily due to higher internal commissions, marketing spend from increased community count, and higher payroll costs.
As a result of these announcements, the company's shares have moved 0.83% on the market, and are now trading at a price of $105.05. For more information, read the company's full 10-Q submission here.
