Toll Brothers Reports FY 2025 Third Quarter Results

Core Insights - Toll Brothers, Inc. reported strong financial results for the third quarter of FY 2025, with home sales revenues reaching $2.9 billion, a 6% increase compared to the same period in FY 2024 [3][6] - The company delivered 2,959 homes at an average price of $974,000, reflecting a resilient luxury market despite economic pressures [3][4] - The adjusted gross margin was 27.5%, slightly above guidance, while the SG&A margin improved to 8.8% [3][6] Financial Performance - Net income for the third quarter was $369.6 million, or $3.73 per diluted share, compared to $374.6 million, or $3.60 per diluted share in the same quarter last year [6][10] - Home sales revenues increased to $2.88 billion, up from $2.72 billion, with delivered homes rising by 5% [6][10] - The backlog value at the end of the quarter was $6.38 billion, down 10% year-over-year, with homes in backlog decreasing by 19% [6][10] Sales and Contracts - The company signed 2,388 net contracts valued at $2.4 billion, with an average sales price of $1.0 million, a 4.5% increase year-over-year [4][10] - Contracted homes decreased by 4% compared to the previous year, indicating challenges in unit sales despite stable contract dollar value [4][10] Guidance and Outlook - For the fourth quarter, Toll Brothers expects to deliver 3,350 units at an average price between $970,000 and $980,000, with an adjusted home sales gross margin of 27.00% [9] - The company maintains a solid financial position with significant cash flows and liquidity, controlling sufficient land for future growth [5][16] Shareholder Returns - The company returned $226 million to shareholders through share repurchases and dividends, indicating a commitment to shareholder value [3][6] - Approximately 1.8 million shares were repurchased at an average price of $112.40 per share [6][10]