FORT WASHINGTON, PA — Luxury home builder, Toll Brothers, Inc. (NYSE: TOL), this week announced its financial results for the fourth quarter and full fiscal year ended October 31, 2023.
In the fourth quarter, the Fort Washington, Pennsylvania-based company reported a net income of $445.5 million, translating to earnings per share of $4.11, diluted. This is a decrease from the fourth quarter of FY 2022, which saw a net income of $640.5 million and earnings per share at $5.63 on a diluted basis. The previous year’s fourth-quarter net income included a net after-tax benefit of approximately $103 million related to a litigation settlement.
Pre-tax income for the fourth quarter was $605.0 million, down from $841.1 million in the same period the previous year. Home sales revenues stood at $2.95 billion, marking an 18% decrease compared to the fourth quarter of FY 2022. The number of delivered homes also fell by 27%, with 2,755 homes delivered.
Despite these declines, Toll Brothers reported a 53% increase in its net signed contract value, amounting to $2.01 billion. The number of contracted homes rose by a significant 72%, totaling 2,038 homes. However, the backlog value and the number of homes in the backlog dropped by 22% and 19% respectively, compared to the fourth quarter of FY 2022.
The adjusted home sales gross margin for the fourth quarter was slightly up at 29.1% compared to FY 2022’s fourth quarter adjusted home sales gross margin of 29.0%. The company also repurchased approximately 4.3 million shares at an average price of $75.70 per share, totaling about $325.5 million.
For the full fiscal year, Toll Brothers reported a net income of $1.37 billion and earnings per share of $12.36, diluted. This is an increase compared to FY 2022, which saw a net income of $1.29 billion and earnings per share at $10.90 on a diluted basis. The pre-tax income also increased to $1.84 billion from $1.70 billion in FY 2022.
Home sales revenues for FY 2023 were $9.87 billion, marking a 2% rise compared to FY 2022. However, the number of delivered homes decreased by 9%, with 9,597 homes delivered. The net signed contract value was $7.91 billion, down 13% compared to FY 2022, while the number of contracted homes fell slightly by 2%, totaling 8,077 homes.
The adjusted home sales gross margin for the full year was 28.7%, up from 27.5% in FY 2022. The company also repurchased approximately 7.9 million shares at an average price of $72.00 per share, totaling about $565.9 million.
Toll Brothers provides additional information about its business and financial performance on the Investor Relations section of its website.
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