The earnings call presented a mixed outlook with several positive aspects such as an increase in net contracts, low cancellation rates, and strong adjusted gross margin. However, these were offset by challenges such as net income below expectations, higher SG&A expenses, and market-specific challenges. The company's strategic approach to managing spec homes and land acquisitions reflects a cautious yet optimistic outlook. This balance of positive and negative factors indicates a neutral sentiment overall.

Company Guidance

During the Toll Brothers First Quarter Fiscal Year 2025 Conference Call, several key metrics were highlighted. The company reported deliveries of 1,991 homes at an average price of $925,000, generating home sales revenue of $1.84 billion. The adjusted gross margin was 26.9%, which was 65 basis points better than expected. However, the SG&A expense ratio was 13.1%, surpassing guidance by 40 basis points. The company signed 2,307 net contracts valued at $2.3 billion, marking a 13% increase in units and a 12% rise in dollar value compared to the previous year. The contract cancellation rate was low at 2.4%. Toll Brothers maintained its full-year guidance, expecting deliveries between 11,200 and 11,600 homes, with an average price ranging from $945,000 to $965,000, and an adjusted gross margin of 27.25%. Additionally, the company projected SG&A expenses to account for 9.4% to 9.5% of home sales revenue for the full year. The company's balance sheet remains healthy, with $2.3 billion in liquidity and a net debt to capital ratio of 21.1%. They also plan to repurchase $500 million in shares throughout the year.

Increase in Net Contracts

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 last year.

Low Contract Cancellation Rate

The contract cancellation rate remained low at 2.4% of the beginning backlog, indicating strong buyer commitment.

Strong Adjusted Gross Margin

The first quarter adjusted gross margin was 26.9%, which was 65 basis points better than guidance.

Healthy Deposit Conversion Ratio

The deposit conversion ratio was 82%, significantly higher than the five-year average of 70%.

Solid Land Position

The company owned or controlled approximately 56,000 lots, with 56% optioned, providing flexibility and selectivity in land acquisition.

Extended Credit Facility

The company extended the maturities of its credit facilities to February 2030 and upsized its revolver to $2.35 billion.

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Toll Brothers (TOL) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TOL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 27, 2025	2025 (Q2)	2.98 / -	4.55	―	―	―
Feb 18, 2025	2025 (Q1)	2.04 / 1.75	2.25	-22.22% (-0.50)	―
Dec 09, 2024	2024 (Q4)	4.34 / 4.63	4.11	12.65% (+0.52)	―
Aug 20, 2024	2024 (Q3)	3.31 / 3.60	3.73	-3.49% (-0.13)	―
May 21, 2024	2024 (Q2)	4.16 / 4.55	2.85	59.65% (+1.70)	―
Feb 20, 2024	2024 (Q1)	1.78 / 2.25	1.7	32.35% (+0.55)	―
Dec 05, 2023	2023 (Q4)	3.72 / 4.11	5.63	-27.00% (-1.52)	―
Aug 22, 2023	2023 (Q3)	2.85 / 3.73	2.35	58.72% (+1.38)	―
May 23, 2023	2023 (Q2)	1.91 / 2.85	1.85	54.05% (+1.00)	―
Feb 21, 2023	2023 (Q1)	1.38 / 1.70	1.24	37.10% (+0.46)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TOL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 18, 2025	$122.05	$114.88	-5.87%
Dec 09, 2024	$156.19	$145.34	-6.95%
Aug 20, 2024	$133.07	$140.56	+5.63%
May 21, 2024	$129.52	$118.56	-8.46%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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