Toll Brothers(US:TOL)2025-12-08 21:47Financial Performance - Net income for FY 2025 was $1.35 billion, or $13.49 per diluted share, compared to $1.57 billion, or $15.01 per diluted share in FY 2024[5] - Total revenues for the year ended October 31, 2025, were $10,966,723, compared to $10,846,740 for the previous year, reflecting a growth of 1.1%[29] - Net income for Q4 2025 was $446,716, a decrease of 6.0% from $475,409 in Q4 2024[29] - Adjusted net income for the year ended October 31, 2025, was $1,346,486, a decrease from $1,447,076 in 2024, reflecting a decline of 6.9%[45] - The effective tax rate for the year ended October 31, 2025, was 24.8%, compared to 24.7% in the previous year[29] Home Sales and Revenue - Home sales revenues for FY 2025 reached $10.84 billion, an increase from $10.56 billion in FY 2024, with delivered homes totaling 11,292 compared to 10,813[5] - Home sales revenue for Q4 2025 reached $3,413,999, an increase of 4.7% from $3,260,004 in Q4 2024[29] - Home sales for the three months ended October 31, 2025, totaled 3,443 units, slightly up from 3,431 units in the same period of 2024, with an average price per unit of $991,400, compared to $950,100 in 2024, reflecting a 4.3% increase[32] - Home sales revenues for the three months ended October 31, 2025, were $3,413,999, an increase from $3,260,004 in the same period of 2024, representing a growth of 4.7%[41] Backlog and Inventory - The backlog value at the end of FY 2025 was $5.5 billion, down from $6.5 billion at the end of FY 2024, with homes in backlog decreasing to 4,647 from 5,996[5] - The backlog of homes as of October 31, 2025, was 4,647 units, down from 5,996 units in 2024, with a total backlog value of $5,494.4 million, compared to $6,467.8 million in 2024, indicating a decrease of 15%[32] - Inventory increased to $10,678,460 as of October 31, 2025, compared to $9,712,925 in the previous year, indicating a rise of 9.9%[27] - Inventory at October 31, 2025, was $10,678.5 million, an increase from $9,712.9 million in 2024, representing an increase of 9.9%[31] Margins and Expenses - The adjusted home sales gross margin for FY 2025 was 27.3%, compared to 28.4% in FY 2024[6] - Gross margin for home sales in Q4 2025 was 25.5%, slightly down from 26.0% in Q4 2024[29] - Selling, general and administrative expenses for the year ended October 31, 2025, were $1,033,622, up from $982,291 in 2024, representing a 5.2% increase[29] - Home sales gross margin as a percentage of home sale revenues decreased to 25.5% in Q4 2025 from 26.0% in Q4 2024[41] Shareholder Actions and Equity - The company repurchased approximately 1.8 million shares at an average price of $139.39 per share for a total of $249.1 million in FY 2025[5] - Total stockholders' equity increased to $8,270,663 as of October 31, 2025, compared to $8,095,572 in July 2025, showing a growth of 2.2%[48] Debt and Capital Structure - The company ended FY 2025 with a debt-to-capital ratio of 26.0%, down from 27.0% at the end of FY 2024[14] - Total liabilities as of October 31, 2025, were $6,233,802, an increase from $5,681,217 in the previous year[27] - Total debt as of October 31, 2025, was $2,902,167, slightly down from $2,942,519 in July 2025[48] - The net debt-to-capital ratio improved to 15.3% as of October 31, 2025, compared to 19.3% in July 2025, indicating a reduction in leverage[48] Future Outlook - For FY 2026, the company expects deliveries between 10,300 and 10,700 units, with an average delivered price per home of $970,000 to $990,000[10] - The company plans to grow its community count by 8% to 10% in FY 2026, maintaining a disciplined approach to land acquisition[8] - The company has not provided projected home sales gross margin for FY 2026 due to the unpredictability of inventory write-downs[42]