Core Viewpoint - The escalation of trade tensions due to new tariffs imposed by the U.S. on Canada, Mexico, and China is expected to significantly impact various sectors, leading to increased costs for consumers and potential disruptions in the global economy [1][4]. Automobiles - The automobile sector will be heavily affected, with Canada and Mexico accounting for approximately 47% of U.S. auto imports and 54% of car part imports [6]. - U.S. carmakers could see a reduction of 10-25% in their annual EBITDA due to the new tariffs, with potential increases of up to $12,000 in the price of new cars [7]. - ETFs like First Trust S-Network Future Vehicles & Technology ETF (CARZ) are likely to face pressure [7]. Agriculture - The agricultural export sector, valued at $191 billion, is threatened by the tariffs, particularly affecting imports of grains, meats, and dairy products from Canada and Mexico [8]. - The tariffs are expected to increase grocery prices, especially since Mexico is a key supplier of various produce to the U.S. [9]. - The Invesco DB Agriculture Fund (DBA) is anticipated to experience rough trading conditions [9]. Homebuilding - Tariffs will raise the costs of building materials, leading to a projected increase of 4-6% in homebuilding costs over the next year, which will negatively impact profitability [10]. - Companies like D.R. Horton (DHI), Toll Brothers (TOL), and Lennar (LEN), along with ETFs such as iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB), will be affected [10][11]. Aerospace - The aerospace industry will face increased production costs due to retaliatory tariffs from major buyers like China, Mexico, and Canada [12]. - Companies such as Boeing (BA) and Airbus, along with suppliers like Spirit AeroSystems and Hexcel, will see higher raw material costs [12]. - The iShares U.S. Aerospace & Defense ETF (ITA) is likely to be negatively impacted [12]. Retail - Major retailers, including Walmart (WMT), Target (TGT), Best Buy (BBY), and Costco (COST), are expected to face higher prices due to tariffs on consumer goods sourced from China and Mexico [13]. - Over 80% of toys sold in the U.S. are made in China, making retailers vulnerable to increased costs [14]. - Walmart's grocery business could also see rising costs, as Mexico supplies a significant portion of U.S. fruit and vegetable imports [14]. Energy - The energy sector will experience increased costs due to a 10% tariff on Canadian energy exports, which could raise prices for heating, electricity, and fuel for American consumers [15]. - ETFs like United States Natural Gas Fund (UNG) and Energy Select Sector SPDR Fund (XLE) are expected to be adversely affected [15].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended January 31, 2025 (215) 938-8000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 00 ...

Financial Data and Key Metrics Changes - The company reported first quarter deliveries of 1,991 homes at an average price of $925,000, generating home sales revenue of $1.84 billion [6][27] - Adjusted gross margin was 26.9%, exceeding guidance by 65 basis points, while SG&A expense as a percentage of home sales revenue was 13.1%, 40 basis points above guidance [6][34] - Net income was $177.7 million or $1.75 per share diluted, below expectations primarily due to impairments and delays in joint venture land sales [26][27] Business Line Data and Key Metrics Changes - The company signed 2,307 net contracts for $2.3 billion in the first quarter, up 13% in units and 12% in dollars compared to the previous year [7][30] - The average sales price of orders remained flat compared to the fourth quarter of 2024, with a healthy deposit conversion ratio of 82% [8][10] - Spec homes represented approximately 55% of sales and 52% of deliveries, with about 3,200 spec homes in inventory at quarter end [15][18] Market Data and Key Metrics Changes - Demand was strongest in the North and Mid-Atlantic regions, with solid performance in markets like Houston, Dallas, and California [9][10] - The company noted mixed results in the spring selling season, with affordability constraints and growing inventories affecting sales, particularly at the lower end [10][12] - Approximately 26% of buyers paid all cash, with loan-to-value ratios for mortgage buyers at about 68% [14][37] Company Strategy and Development Direction - The company is maintaining its full-year guidance for deliveries, average price, adjusted gross margin, SG&A margin, and community count growth [11][39] - The long-term outlook for the new home market remains positive, particularly for the luxury niche, which constitutes over 70% of the business [12][13] - The company is actively managing spec starts based on local market conditions, expecting to reduce overall spec starts in the near term [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sales activity, noting that while demand remains healthy, mixed results have been observed in certain markets [10][12] - The company plans to adjust land spend conservatively if the mixed market conditions persist, while still being selective in land acquisitions [63][64] - Management highlighted the importance of balancing pace and price to generate higher returns, indicating a willingness to adjust strategies based on market conditions [135][136] Other Important Information - The company ended the first quarter with over $2.3 billion in liquidity, including approximately $575 million in cash [36][37] - The company has extended the maturities of its credit facilities to February 2030 and upsized its revolver to $2.35 billion [25][37] - The company is targeting community count growth of 8% to 10% in fiscal 2025, aiming for 440 to 450 communities by year-end [19][43] Q&A Session Summary Question: Inventory levels and construction stages - Management noted that higher inventory levels were due to more specs under construction and at further stages of completion, aimed at meeting delivery guidance [51][53] Question: Spring selling season and production pipeline - If the spring selling season remains mixed, the company plans to reduce land spend and be more conservative in certain markets [62][64] Question: Gross margin outlook and pricing incentives - The company expects second quarter gross margin to be 27.25%, driven by a favorable mix of higher-margin products [68][70] Question: Demand trends in specific markets - Management indicated that while some markets are experiencing pressure, others are performing well, and recent activity has shown signs of improvement [78][79] Question: Land cost inflation and deal flow - The company is experiencing low to mid-single digit land cost inflation and is finding unique opportunities in the land market, particularly in suburban areas [117][120]

Financial Performance - In the first quarter of FY 2025, Toll Brothers delivered 1,991 homes at an average price of approximately $925,000, generating home sales revenues of $1.84 billion, a 5% decrease compared to FY 2024's first quarter[4][6]. - Net income for the first quarter was $177.7 million, or $1.75 per diluted share, down from $239.6 million, or $2.25 per diluted share, in FY 2024's first quarter[6][11]. - Home sales revenue for the three months ended January 31, 2025, was $1,840,776, a decrease of 4.7% from $1,931,836 in the same period of 2024[29]. - Total consolidated revenues for the three months ended January 31, 2025, were $1,859.1 million, a decrease of 4.5% from $1,947.8 million in the same period of 2024[32]. - Basic earnings per share decreased to $1.76 in Q1 2025 from $2.28 in Q1 2024, representing a decline of 22.8%[29]. Sales and Contracts - Net signed contracts for the first quarter totaled $2.31 billion, representing a 12% increase in dollar value and a 13% increase in units compared to the same period last year[5][6]. - Total contracts for the three months ended January 31, 2025, increased to $2,307.2 million, up 11.7% from $2,064.8 million in Q1 2024[32]. - Total home sales units increased to 1,991 in Q1 2025 from 1,927 in Q1 2024, representing a growth of 3.3%[32]. Backlog and Inventory - The backlog value at the end of the first quarter was $6.94 billion, down 2% year-over-year, with homes in backlog decreasing by 6% to 6,312 units[6][11]. - The backlog of homes as of January 31, 2025, was valued at $6,938.4 million, a decrease of 2.0% from $7,081.1 million in January 2024[32]. - Total inventory increased to $10,677,502 as of January 31, 2025, compared to $9,712,925 as of October 31, 2024, reflecting a rise of 9.9%[27]. Margins and Expenses - The adjusted home sales gross margin for the quarter was 26.9%, down from 28.9% in FY 2024's first quarter, while the home sales gross margin was 25.0% compared to 27.6% in the prior year[6][11]. - Gross margin for home sales decreased to 25.0% in Q1 2025 from 27.6% in Q1 2024, reflecting increased costs[29]. - SG&A expenses as a percentage of home sales revenues increased to 13.1%, compared to 11.9% in FY 2024's first quarter[6][11]. Financial Position and Debt - The company ended the first quarter with approximately 77,700 lots owned or controlled, with 56% of these lots controlled, ensuring sufficient land for growth[7][13]. - The net debt-to-capital ratio improved to 21.1% as of January 31, 2025, compared to 15.2% on October 31, 2024[44]. - The company has extended the maturity dates of its term loan and revolving credit facilities to February 2030, increasing the capacity of its revolving credit by nearly $400 million[7][13]. Other Financial Metrics - Customer deposits held in escrow increased to $112,671 as of January 31, 2025, from $109,691 as of October 31, 2024[27]. - Interest expense charged to home sales cost of revenues was $20,076 for the three months ended January 31, 2025, compared to $23,578 in the same period of 2024[31]. - The effective tax rate for the three months ended January 31, 2025, was 19.7%, down from 23.0% in the same period of 2024[29]. - The company reported a loss from unconsolidated entities of $8,743 for the three months ended January 31, 2025, slightly improved from a loss of $9,172 in the same period of 2024[29]. Regional Performance - The South region reported revenues of $506.3 million in Q1 2025, a decrease of 5.0% from $532.9 million in Q1 2024[32]. - The Mountain region saw a significant increase in units sold, rising to 663 in Q1 2025 from 485 in Q1 2024, representing a growth of 36.7%[32]. Share Repurchase - The company repurchased approximately 0.2 million shares at an average price of $127.02 per share, totaling $23.7 million[6].

Financial Performance - In fiscal year 2024, the company signed net contracts worth $10.07 billion for 10,231 homes, compared to $7.91 billion for 8,077 homes in fiscal year 2023, and $9.07 billion for 8,255 homes in fiscal year 2022[50]. - The backlog at October 31, 2024, was $6.47 billion, representing 5,996 homes, with approximately 97% expected to be delivered by October 31, 2025[81]. - The company experienced a loss before income taxes of $204.6 million in fiscal 2024, compared to a loss of $142.4 million in fiscal 2023[101]. Land and Home Sites - As of October 31, 2024, the company owned 11,268 home sites and controlled an additional 31,863 through options and purchase agreements, totaling 43,131 planned home sites[42]. - The company acquired control of approximately 14,900 home sites in fiscal 2024, compared to 4,200 in fiscal 2023, with a total of approximately 74,700 home sites controlled as of October 31, 2024[68]. - The aggregate purchase price of land parcels under option and purchase agreements was approximately $6.10 billion as of October 31, 2024, with $549.2 million paid or deposited[70]. Construction and Development - The company has 3,526 spec homes in its communities, with 2,664 under construction and 862 completed as of October 31, 2024[62]. - The company expects to pay an additional $5.55 billion for land parcels over the next several years, with some option contracts written off or written down[44]. - The company controlled 67 land parcels for rental projects, containing approximately 21,300 units, with investments totaling $549.2 million in 40 Rental Property Joint Ventures[99]. Financing and Mortgage - The average cash down payment from home buyers in fiscal year 2024 was approximately 8% of the total purchase price of a home[50]. - The company had commitments to fund $1.84 billion of mortgage loans as of October 31, 2024, with $168.8 million of these loans having locked-in interest rates[53]. - The gross capture rate for mortgage financing increased to 38.0% in fiscal 2024 from 32.5% in fiscal 2023[90]. - A 1% increase in interest rates would increase the interest incurred by approximately $9.1 million per year based on the variable-rate debt outstanding as of October 31, 2024[695]. Market Position and Strategy - The company believes that the demographics supporting the luxury and affordable luxury markets will provide growth opportunities in the future[59]. - The company competes primarily on price, location, design, quality, service, and reputation in a highly competitive home building market[54]. - The company has not made any acquisitions in fiscal years 2024 and 2023, focusing instead on expanding its footprint through existing operations[37]. Investments and Commitments - The company had investments of $1.01 billion in unconsolidated entities as of October 31, 2024, with additional funding commitments of up to $312.8 million[94]. - The company had $388.6 million invested in Land Development Joint Ventures, with funding commitments of $243.0 million to six of these ventures[83]. Leadership and Governance - Douglas C. Yearley, Jr. has been with the company since 1990 and became CEO in June 2010, later appointed Chairman of the Board in November 2018[700]. - The company has an insider trading policy that applies to all personnel and is designed to comply with applicable laws and regulations[702]. - The information regarding executive compensation will be included in the 2025 Proxy Statement[704].

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].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended July 31, 2024 (Mark One) or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-09186 Toll Brothers, Inc. (Exact name of registrant as specified in its charter) Delaware 23-2416878 (State or other jurisdiction ...

RICHMOND, Texas, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced its newest community, Toll Brothers at StoneCreek, is now open for sale in Richmond, Texas, offering a variety of home designs set within a tranquil setting in an ideal location. The Toll Brothers Sales Center and professionally decorated model home are now open daily for tours at 5318 Gilded Estates Drive in Richmond. Situated in the desirable StoneCreek Estates m ...

Financial Data and Key Metrics Changes - The company delivered 2,814 homes at an average price of $968,000, generating record third-quarter home sale revenues of $2.72 billion, an increase of 2% year-over-year [4][15] - Adjusted gross margin was 28.8%, exceeding guidance by 110 basis points, while SG&A expense was 9.0% of home sale revenues, 20 basis points better than guidance [4][18] - Earnings per diluted share were $3.60, significantly above previous guidance [15][22] Business Line Data and Key Metrics Changes - The company signed 2,490 net contracts for $2.4 billion, up approximately 11% in both units and dollars compared to the previous year [4][16] - Spec homes represented approximately 54% of orders and 49% of deliveries in the third quarter, with a target of about 50% of the business as spec homes [8][10] Market Data and Key Metrics Changes - Demand was uneven throughout the quarter, with strong performance in July and continued strength into August [5] - Key markets showing strength included New Jersey, Pennsylvania, Metro D.C., South Carolina, Atlanta, Boise, Las Vegas, and all of California [5][6] Company Strategy and Development Direction - The company is focusing on widening geographies and price points to include more affordable homes, which has helped meet demand and improve efficiency [8] - The strategy includes maintaining a balance of 50% spec and 50% build-to-order homes, with a long-term gross margin target of 27% to 28% [24][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand trends due to favorable demographics and a balanced supply-demand situation in the housing market [5][7] - The company expects to deliver between 10,650 and 10,750 homes for the full year, raising guidance based on strong third-quarter results [16][22] Other Important Information - The company plans to continue growing community count, targeting 410 communities by fiscal year-end, representing an 11% growth [20][21] - The net debt-to-capital ratio was 19.6%, with $893 million in cash and equivalents, providing ample flexibility for growth and capital return [21] Q&A Session Summary Question: Can you elaborate on the greater efficiency in homebuilding operations and the sustainability of the operating margin? - Management believes the operating margin is sustainable, targeting a long-term gross margin in the 27% to 28% range [24] Question: What was the actual number of specs in the quarter? - The company had around 3,400 specs, with approximately 750 at completion or beyond [26] Question: How confident is the company that improved cycle times and increased spec levels can drive delivery growth into 2025? - Management is very confident that improved cycle times and the spec strategy will continue to drive delivery growth [34] Question: What is driving the expected decline in fourth-quarter gross margin? - The decline is attributed to a mix of lower high-margin homes delivering in the fourth quarter compared to the third quarter [36] Question: Has the company seen any ability to dial back incentives or raise prices? - Management noted that while pricing was flat, they are seeing improved traffic and potential pricing power as rates decline [40][42] Question: How does the company view the balance between deliveries and orders going forward? - Management anticipates that deliveries will reach equilibrium with orders soon, but does not expect spec to outgrow the build-to-order business in terms of deliveries [76][78]

EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: Gregg Ziegler (215) 478-3820 August 20, 2024 gziegler@tollbrothers.com Toll Brothers Reports FY 2024 3rd Quarter Results FORT WASHINGTON, PA, August 20, 2024 -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation's leading builder of luxury homes, today announced results for its third quarter ended July 31, 2024. FY 2024's Third Quarter Financial Highlights (Compared to FY 2023's Third Quarter): Douglas C. Yearley, Jr., chairman and chief executive offic ...