Toll Brothers, Inc. announced its financial results for the first quarter ended January 31, 2025, on February 18, 2025. The company delivered 1,991 homes at an average price of approximately $925,000, generating home sales revenues of $1.84 billion.
The adjusted gross margin for the quarter was 26.9%, exceeding guidance by 65 basis points, reflecting strong performance in core homebuilding operations. However, net income of $177.7 million and diluted earnings per share of $1.75 came in below expectations.
The miss on net income and EPS was primarily attributed to impairments and a delay in the sale of a stabilized apartment property in one of its joint ventures, rather than core homebuilding performance. Net signed contracts increased by 13% in units and 12% in dollars compared to the prior year's first quarter.
Toll Brothers reaffirmed all key homebuilding guidance for the full fiscal year 2025, including deliveries, average price, adjusted gross margin, and community count growth. This signals confidence in its backlog and anticipated market trends.
The company also strengthened its balance sheet and liquidity in February 2025 by extending the maturity dates of its term loan and revolving credit facilities to February 2030. The capacity of its revolving credit facility was increased by nearly $400 million, providing long-term financial flexibility.
At the end of the first quarter, Toll Brothers owned or controlled approximately 77,700 lots, with 56% held under options, supporting future growth. The company expects to generate strong operating cash flows in fiscal 2025 and plans to continue returning cash to stockholders.
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