Toll Brothers(TOL) - 2024 Q4 - Annual Results

Financial Performance - Net income for FY 2024 was $1.57 billion, or $15.01 per diluted share, compared to $1.37 billion and $12.36 per share in FY 2023, representing a 14.6% increase in net income and a 21.3% increase in earnings per share [4]. - Net income for Q4 2024 was $475,409, compared to $445,536 in Q4 2023, reflecting a 6.7% increase [36]. - The net income for the year ending October 31, 2024, was reported at $1,571,195, up from $1,372,071 for the year ending October 31, 2023, indicating a growth of 14.5% [56]. - Basic earnings per share increased to $4.67 in Q4 2024 from $4.15 in Q4 2023 [36]. - Diluted earnings per share for October 2024 were $4.63, an increase from $4.11 in October 2023, representing a rise of 12.7% [56]. Revenue and Sales - Home sales revenues for FY 2024 reached $10.56 billion, up 7% from $9.87 billion in FY 2023, with delivered homes increasing by 13% to 10,813 units [4]. - Home sales revenue for Q4 2024 reached $3,260,004, a 10.4% increase from $2,951,904 in Q4 2023 [36]. - Total revenues for the twelve months ended October 31, 2024, were $10,846,740, up from $9,994,937 in the previous year [36]. - Home building revenues increased to $10,563.3 million in 2024 from $9,866.0 million in 2023, reflecting a growth of about 7.0% [43]. - Total contracts for 2024 amounted to $10,072.6 million, significantly higher than $7,907.8 million in 2023, showing an increase of about 27.5% [43]. Margins and Expenses - The adjusted home sales gross margin for FY 2024 was 28.4%, slightly down from 28.7% in FY 2023, while the home sales gross margin was 26.6%, compared to 26.9% in FY 2023 [4]. - Gross margin for home sales was 26.0% in Q4 2024, down from 27.5% in Q4 2023 [36]. - Selling, general and administrative expenses as a percentage of total revenue were 9.3% for the twelve months ended October 31, 2024, compared to 9.2% in the previous year [36]. - SG&A as a percentage of home sales revenues was 9.3% for FY 2024, compared to 9.2% in FY 2023 [4]. Assets and Liabilities - Total assets reached $13,367,932,000, up from $12,527,018,000, indicating a growth of about 6.7% [34]. - Total liabilities decreased to $5,681,217,000 from $5,713,816,000, a reduction of approximately 0.6% [34]. - The total debt as of October 31, 2024, was $2,832,919, slightly up from $2,860,467 in October 2023, showing a decrease of 1.0% [59]. - The net debt-to-capital ratio improved to 15.2% in October 2024 from 17.7% in October 2023, indicating a reduction in leverage [59]. Backlog and Contracts - The backlog value at the end of FY 2024 was $6.47 billion, down 7% from $6.95 billion in FY 2023, with homes in backlog decreasing by 9% to 5,996 units [3]. - The backlog at the end of October 2024 was $6,467.8 million, down from $6,945.3 million in 2023, indicating a decrease of approximately 6.9% [43]. - Net signed contract value for FY 2024 was $10.07 billion, a 27% increase compared to $7.91 billion in FY 2023, with contracted homes also up 27% to 10,231 units [4]. Inventory and Land - Inventory increased to $9,712,925,000 from $9,057,578,000, reflecting a growth of approximately 7.2% year-over-year [34]. - The company owned or controlled approximately 74,700 lots at the end of FY 2024, an increase from 70,700 lots at the end of FY 2023, indicating potential for future growth [15]. - Homes under construction amounted to $2,458,541 as of October 31, 2024, compared to $2,515,484 in the previous year [39]. - Inventory at October 31, 2024, included land deposits and costs of future communities totaling $620,040, up from $549,035 in the previous year [39]. Cash and Shareholder Returns - The company ended FY 2024 with $1.30 billion in cash and cash equivalents, maintaining the same level as at the end of FY 2023 [11]. - The company repurchased approximately 4.9 million shares at an average price of $127.79 per share for a total purchase price of $627.9 million during FY 2024 [4]. - Cash dividend declared increased to $0.23 per share in Q4 2024 from $0.21 in Q4 2023 [36]. Market Position and Outlook - The company anticipates continued demand for homes despite economic uncertainties, focusing on strategic land acquisitions and market expansion [26]. - Toll Brothers has been recognized as one of Fortune's Most Admired Companies for 10 consecutive years, highlighting its strong market position and reputation [21].