(Disclosure: Rose Law Group represents Toll Brothers.)
By Vincent Salandro | Builder
Toll Brothers benefited from a “meaningful uptick in demand” that helped deliver positive results in the home builder’s fiscal first quarter.
In the fiscal first quarter, ended Jan. 31, Toll Brothers delivered 1,826 homes and generated revenue of $1.75 billion, a 3.7% increase on a year-over-year basis. Chief financial officer Martin Connor said the net earnings results represented a first quarter record for Toll Brothers.
The home builder’s adjusted gross margin in the first quarter, 27.5%, outperformed guidance by 50 basis points and represented a 190-bp improvement compared with the prior-year period.
CEO Douglas Yearley said while Toll Brothers experienced order declines by over 50% on a unit basis over the past three quarters, backlog value is only down 21% in dollars on a year-over-year basis. Additionally, Connor said January net agreements exceeded both November and December levels combined, signaling positive demand momentum.