Toll Brothers Reports Record Year, but Shares Dip 2% on Backlog Decline

Toll Brothers (NYSE:TOL) wrapped up its strongest fiscal year to date with impressive fourth-quarter earnings, yet its stock slipped 2% in after-hours trading yesterday. Despite beating estimates, concerns over a backlog decline appeared to weigh on investor sentiment.

For the quarter, the company reported earnings per share of $4.63, exceeding analyst expectations of $4.34. Revenue also came in above forecasts, rising to $3.33 billion compared to the $3.17 billion estimate. Toll Brothers delivered 3,431 homes during the quarter, marking a 25% increase year-over-year. Home sales revenue climbed 10% from the prior year to $3.26 billion.

However, the company’s backlog showed signs of contraction. By the end of the quarter, the backlog value fell 7% year-over-year to $6.47 billion, with the number of homes in backlog dropping 9% to 5,996 units.

For fiscal 2025, Toll Brothers projected deliveries of 11,200 to 11,600 homes at an average price ranging from $945,000 to $965,000.