Toll Brothers, Inc. announced its financial results for the third quarter of FY 2025, showcasing a 6% increase in home sales revenues compared to the previous year.
The company reported net income of $369.6 million and earnings per share of $3.73, reflecting a slight improvement from the same period in FY 2024.
Despite challenges like declining contracted homes, Toll Brothers maintained a solid financial position and focused on maximizing profitability.
Solid Financial Performance
Net income of $369.6 million and earnings per share of $3.73, showing a consistent performance compared to the previous year's third quarter.
Contracted Homes and Backlog
Contracted homes were 2,388, down 4% from FY 2024, while backlog value declined by 10%, indicating a shift in market dynamics.
Strategic Pricing Balancing
Focused on strategically balancing price and pace to maximize profitability and returns, demonstrating resilience in the luxury housing market.
- Toll Brothers achieved record third-quarter home sales revenues of $2.9 billion, driven by delivering 2,959 homes at an average price of $974,000.
- Adjusted home sales gross margin stood at 27.5%, outperforming guidance by 25 basis points, showcasing operational efficiency.
- The company's approach to managing spec starts and its financial stability position it well for future success and growth.
Toll Brothers' performance in the third quarter of FY 2025 reflects its ability to navigate market challenges and sustain profitability. With a focus on strategic pricing and operational efficiency, the company remains poised for continued success in the luxury homebuilding sector.