Toll Brothers, Inc. (NYSE:TOL) Q4 2024 Earnings Call December 10, 2024 8:30 AM ET
Company Participants
Douglas C. Yearley, Jr. - Chairman and CEO
Martin P. Connor - CFO
Conference Call Participants
Stephen Kim - Evercore ISI
John Lovallo - UBS
Trevor Allinson - Wolfe Research
Christopher Kalata - RBC Capital Markets
Michael Rehaut - J.P. Morgan
Rafe Jadrosich - Bank of America Securities
Alan Ratner - Zelman & Associates
Alex Barrón - Housing Research
Operator
Good morning, and welcome to the Toll Brothers Fourth Quarter Fiscal Year 2024 Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation there will be an opportunity to ask questions. [Operator Instructions]. The company is planning to end the call at 9:30 when the market opens. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Douglas Yearley, CEO. Please go ahead.
Douglas C. Yearley, Jr.
Thank you, Drew. Good morning. Welcome and thank you all for joining us. With me today are Marty Connor, Chief Financial Officer; Rob Parahus, President and Chief Operating Officer; Wendy Marlett, Chief Marketing Officer; and Gregg Ziegler, Senior VP, Treasurer and Head of Investor Relations.
As usual, I caution you that many statements on this call are forward-looking based on assumptions about the economy, world events, housing and financial markets, interest rates, the availability of labor and materials, inflation and many other factors beyond our control that could significantly affect future results. Please read our statement on forward-looking information in our earnings release of last night and on our website to better understand the risks associated with our forward-looking statements.
I am incredibly proud of our company's performance in fiscal 2024. We ended the year on a high note with a very strong fourth quarter. In the quarter, we delivered 3,431 homes and generated $3.3 billion of home sales revenues of 25% in units and 10% in dollars compared to the fourth quarter of 2023. Our adjusted gross margin of 27.9% beating our guidance by 40 basis points and our SG&A was 8.3% of home sales revenues or 30 basis points better than guidance. Both top line and margin outperformance contributed to earnings of $475 million or $4.63 per diluted share of 7% and 13% respectively compared to last year's fourth quarter. In addition, contracts were up over 30% in both dollars and units in the quarter.