Fort Washington’s Toll Brothers experienced a slowdown in growth during the first quarter of fiscal 2025, marking only the second year-over-year revenue drop since 2021, writes Paul Schwedelson for the Philadelphia Business Journal.
The company reported $1.84 billion in home sales revenue for the quarter ending January 31, a 5% decrease from the same period in 2024. Despite this dip, Toll Brothers achieved a record $10.6 billion in home sales revenue for the entire 2024 fiscal year.
Net income fell 26% to $177.7 million, down from $239.6 million in the first quarter of fiscal 2024. CEO Douglas Yearley Jr. acknowledged a challenging September and October, with mixed results since then. The company plans to be strategic about land acquisitions and will slow construction starts on speculative homes, which made up 55% of first-quarter sales.
Speculative homes are sold after the foundation is poured, allowing buyers to customize features through Toll Brothers’ design studio. The average design studio upgrade added $200,000 to the $925,000 average sale price.
The company aims to reduce its owned land share from 44% to 40% to mitigate risk if the market cools further. Toll Brothers’ stock closed down nearly 6% at $114.88 per share, its lowest since last July.
Read more about Toll Brothers in the Philadelphia Business Journal.
