Toll Brothers Reports Decline in Revenue and Net Income for Q2 Fiscal 2025

Toll Brothers, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a decline in both revenue and net income compared to the same period last year. For the three months ended April 30, 2025, the company generated total revenues of $2.74 billion, a decrease of 3% from $2.84 billion in the prior year. Home sales revenue increased slightly by 2% to $2.71 billion, while land sales and other revenues plummeted by 83% to $32.6 million, largely due to the absence of a significant land sale that occurred in the previous year. Net income for the quarter was $352.4 million, down 27% from $481.6 million in the same quarter of 2024.

In the six-month period ending April 30, 2025, Toll Brothers reported total revenues of $4.60 billion, a decrease of 4% from $4.79 billion in the prior year. Home sales revenue remained relatively stable at $4.55 billion, while land sales and other revenues fell to $51 million from $206.5 million. The company’s net income for the first half of fiscal 2025 was $530.2 million, down 26% from $721.2 million in the same period last year. The decline in net income was attributed to lower land sales and increased selling, general, and administrative expenses.

Operationally, Toll Brothers signed 2,650 net contracts for an aggregate value of $2.60 billion during the second quarter, reflecting a decrease of 13% in units and 11% in dollars compared to the previous year. The company delivered 2,899 homes at an average price of $933,600, compared to 2,641 homes at an average price of $1,002,300 in the prior year. The increase in deliveries was primarily due to a higher backlog conversion ratio and an increase in the number of communities operated. However, the average delivered price decreased due to a shift in the mix of products and locations.

Toll Brothers continues to expand its geographic footprint, operating from 421 communities as of April 30, 2025, up from 408 at the end of fiscal 2024. The company also reported a backlog of 6,063 homes valued at $6.84 billion, down 7% from the previous year. The company’s cash and cash equivalents stood at $686.5 million, with approximately $2.19 billion available under its revolving credit facility. Looking ahead, Toll Brothers anticipates a challenging demand environment due to elevated mortgage rates and economic uncertainty but remains optimistic about long-term market fundamentals, including favorable demographics and a structural undersupply of homes in the U.S.