Toll Brothers, Inc. announced its financial results for the second quarter ended April 30, 2025, on May 20, 2025. The company reported strong performance, exceeding its guidance across all key metrics, including deliveries, home sales revenue, adjusted gross margin, and SG&A.
The company delivered 2,899 homes, a 10% increase compared to the prior year, generating a record second-quarter home sales revenue of $2.71 billion. Adjusted gross margin reached 27.5%, surpassing guidance by 25 basis points, and SG&A as a percentage of home sales revenues was 9.5%, 80 basis points better than guidance.
Net income for the quarter was $352.4 million, or $3.50 per diluted share, significantly exceeding expectations. Excluding a large land sale gain from the prior year, this quarter's earnings per share were a record.
Despite experiencing softer demand in the second quarter due to increased economic uncertainty, Toll Brothers reaffirmed its full-year fiscal 2025 guidance. The company continues to project deliveries between 11,200 and 11,600 homes, an average price of $945,000 to $965,000, and an adjusted gross margin of 27.25%.
The company's confidence stems from the strength of its backlog, operational efficiencies, and a strategic focus on prioritizing price and margin over sales pace. Toll Brothers expects to generate approximately $1 billion in operating cash flow for fiscal 2025.
Toll Brothers also increased its fiscal 2025 share repurchase target from $500 million to $600 million and recently raised its quarterly cash dividend by 9% to $0.25 per share. The company ended the quarter with a healthy balance sheet, including $686.5 million in cash and $2.19 billion available under its revolving credit facility.
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