TOL - NYSE

Toll Brothers, Inc.

Toll Brothers, Inc.

TOL·NYSE

$137.38

-1.5%
Consumer CyclicalResidential Construction

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. The company operates in two segments, Traditional Home Building and City Living. It also designs, builds, markets, and sells condominiums through Toll Brothers City Living. In addition, the company develops, owns, and operates golf courses and country clubs; develops and sells land; and develops, operates, and rents apartments, as well as provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, it owns and operates architectural, engineering, mortgage, title, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and manufacturing operations. The company serves move-up, empty-nester, active-adult, and second-home buyers. It has a strategic partnership with Equity Residential to develop new rental apartment communities in the United States markets. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

StatementsValue Model

At a Glance

Live Snapshot
Market Cap$12.84B
EPS13.6000
P/E Ratio10.10
Earnings Date08/18/2026

Earnings Call Transcript

TOL • 2024 • Q4

Operator
Thank you. [Operator Instructions]. The first question comes from Stephen Kim with Evercore ISI. Please go ahead.
Stephen Kim
Got you, appreciate that color. I didn't catch a cash flow guide for 2025. I was wondering if you could give us that and is it also, I think I asked you this question maybe a quarter or two ago about what you think the long-term sustainable operating margin range might be and I think at that time you had mentioned something in the neighborhood of 17%, 18% or 17.5%, is that something that you still believe that general range is where you could sustain your operating margin, longer term, you think?
Martin P. Connor
Stephen, we are comfortable with the 17% to 18% range of our operating margin. And as it relates to the cash flow, we did $1 billion approximately in 2024 and we project a similar amount in 2025.
Operator
The next question comes from John Lovallo with UBS. Please go ahead.
Martin P. Connor
Yes. And as it relates to the margin cadence, I think, 27.5 on average through the last quarter without much deviation -- the last three quarters without much deviation from that is a good set of assumptions to use.
Operator
The next question comes from Trevor Allinson with Wolfe Research. Please go ahead.
Operator
The next question comes from Mike Dahl with RBC Capital Markets. Please go ahead.
Christopher Kalata
Okay. And then you just plan to operate at that level for the remainder of the year, correct at this time?
Operator
The next question comes from Michael Rehaut with J.P. Morgan. Please go ahead.
Operator
The next question comes from Rafe Jadrosich with Bank of America. Please go ahead.
Operator
The next question comes from Alan Ratner with
Alan Ratner
Great. Appreciate the thoughts there, Doug. This one might be for Marty, but obviously, a huge focus on ROE across the company, and it's pretty visible, the steps you are taking there to keep that ROE high. I wanted to just touch quickly on the joint venture line on the balance sheet. You've got about $1 billion investment there and if I look back historically, the joint venture line on the P&L has traditionally been a pretty solid contributor of earnings this past year, it wasn't. And I know the composition of your entries have changed, I think, historically it might have been a bit more city living projects and now maybe it's some land JVs. So I was hoping you could just give a little bit more color on what's embedded in that investment and how we should expect to see that flow through the P&L and the returns going forward?
Martin P. Connor
Yes. So our JV line includes an investment in a couple of city living buildings. It's relatively small. It includes investment in our apartment projects that are stabilized or in development. Generally, we absorbed a bit of an operating loss during the development period of time and then show a gain on sale. So that's a bit lumpy through the income statement. And then a lot of our JV is what I'm going to call breakeven land development joint ventures with other builders where it's designed to hold the land off balance sheet, feed the land to each of the builders at cost, and generate higher gross margins on balance sheet on the income statement.
Transcript from December 10, 2024

Other Transcripts

 

tol Earnings Call Transcripts

TOL
View Financials All Transcripts

Related Guides

Blog Categories

Continue your TOL research with focused valuation guides.

Forecasting

Compare management guidance with modeled outcomes.

Risk Analysis

Track estimate risk, misses, and downside scenarios.

Reference

Review analyst process and transcript interpretation.

Value Investing

Anchor quarterly narrative to intrinsic value discipline.

Research Paths

Pick your next lens
1

Snapshot

Start with context, operating signals, and key market metrics.

2

Value Model

Stress test fair value across bear, base, and bull assumptions.

3

Statements

Validate revenue quality, margins, and balance sheet durability.

4

Earnings Call

Read management commentary and compare it with reported outcomes.

5

Dividends

Check payout sustainability and long-term distribution behavior.

6

Analyst Expectations

Review consensus spread and where estimate risk is concentrated.