Mission Statement, Vision, & Core Values (2024) of Toll Brothers, Inc. (TOL).

An Overview of Toll Brothers, Inc. (TOL)

General Summary of Toll Brothers, Inc.

Toll Brothers, Inc. (TOL), founded in 1967, is a leading American luxury homebuilder known for its commitment to quality and design. The company specializes in the construction of upscale residential communities, primarily targeting affluent buyers. Toll Brothers operates in various segments, including single-family homes, townhomes, and condominiums, with a focus on both build-to-order and spec homes. As of 2024, the company is actively selling from 404 communities, a significant increase from 345 communities in 2023.

In 2024, Toll Brothers reported sales revenues of $7.51 billion for the nine-month period ending July 31, 2024, which includes $7.30 billion from home sales and $210 million from land sales and other revenues. The company has recognized a growing demand for its products, underscoring its status as a prominent player in the luxury homebuilding market.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of fiscal 2024, Toll Brothers achieved revenues of $2.73 billion, compared to $2.69 billion in the same quarter of the previous year, reflecting a 1% increase. For the nine months ended July 31, 2024, the company reported a net income of $1.10 billion, up from $926.5 million in the prior year, marking an 18% increase. The net income for the third quarter was $374.6 million, down from $414.8 million a year earlier, reflecting a 10% decrease.

The value of net contracts signed in the nine-month period reached $7.41 billion, representing a 25.8% increase compared to $5.89 billion in the prior year. The average contracted price per home was approximately $978,900, showing stability in pricing amid fluctuating market conditions.

As of July 31, 2024, the company's backlog stood at $7.07 billion, comprising 6,769 homes, which is a decrease of 10% from the previous year. This decrease is attributed to a shift towards more spec homes, which now represent a larger portion of the company's offerings.

Introduction to Toll Brothers as an Industry Leader

Toll Brothers has established itself as a leader in the luxury homebuilding industry, consistently recognized for its innovative designs and high-quality construction. The company's strategic expansion into various markets and its diverse product offerings have positioned it favorably against competitors. With a commitment to sustainability and customer satisfaction, Toll Brothers continues to adapt to market demands, ensuring its long-term success and growth within the industry.

Investors and analysts are encouraged to explore further details about Toll Brothers' operational strategies and market positioning to understand the factors contributing to its sustained leadership in the luxury homebuilding sector.

Mission Statement of Toll Brothers, Inc. (TOL)

Mission Statement of Toll Brothers, Inc. (TOL)

Toll Brothers, Inc. (TOL) operates with a clear mission statement that emphasizes its commitment to delivering high-quality homes and exceptional customer service. The mission statement serves as a guiding principle for the company's long-term goals and strategic initiatives, ensuring alignment across all levels of the organization.

Core Component 1: Quality

The first core component of Toll Brothers' mission statement is a strong emphasis on quality. The company strives to build homes that exemplify superior craftsmanship and innovative design. In 2024, Toll Brothers reported home sales revenues of approximately $7.30 billion, reflecting their dedication to quality and customer satisfaction. This is supported by their average delivered price of homes, which was $968,200 in the third quarter of fiscal 2024.

Core Component 2: Customer Satisfaction

The second core component is a commitment to customer satisfaction. Toll Brothers aims to provide an exceptional home-buying experience. In the nine-month period ending July 31, 2024, the company recognized net income of $1.10 billion, demonstrating its ability to meet customer expectations while achieving financial success. The company also reported a 25.8% increase in net contracts signed, amounting to $7.41 billion, indicating strong demand and customer trust.

Core Component 3: Innovation

The third core component of the mission statement is a focus on innovation. Toll Brothers invests in new technologies and building practices to enhance the sustainability and efficiency of its homes. As of July 31, 2024, the company controlled approximately 72,700 home sites, reflecting its ongoing expansion and innovative approaches to homebuilding. In addition, the company has embraced quick move-in (spec) homes, with 54% of net signed contracts in the third quarter being spec homes, allowing for faster delivery to customers.

Toll Brothers' mission statement and its core components of quality, customer satisfaction, and innovation are central to its operations and strategic direction as of 2024. The company's strong financial performance and market presence reflect its commitment to these principles.

Vision Statement of Toll Brothers, Inc. (TOL)

Vision Statement Overview

The vision statement of Toll Brothers, Inc. emphasizes the commitment to building the finest homes and communities while providing exceptional customer service and value.

Commitment to Quality

Toll Brothers aims to be recognized as the leading builder of luxury homes. In fiscal 2024, the company reported home sales revenues of $7.30 billion from 7,382 units delivered, reflecting a robust demand for high-quality homes.

Customer Satisfaction

The company places significant emphasis on customer satisfaction, intending to exceed expectations throughout the home buying process. According to the 2024 financial results, Toll Brothers' net income for the nine months ended July 31, 2024, reached $1.10 billion, showcasing the effectiveness of their customer-focused approach.

Innovation in Homebuilding

Toll Brothers is committed to innovation, integrating advanced building techniques and sustainable practices. The average contracted price for homes sold in the first nine months of 2024 was approximately $978,900, indicating a shift towards higher value and more innovative housing solutions.

Community Engagement

The vision statement includes a focus on community engagement and responsible development. Toll Brothers operates in 404 communities as of July 31, 2024, a 17% increase from the previous year, reflecting its growth strategy and commitment to community building.

Financial Strength

The company's financial health supports its vision. As of July 31, 2024, Toll Brothers reported cash and cash equivalents of $893.4 million, with additional borrowing capacity of approximately $1.77 billion under its revolving credit facility.

Core Values of Toll Brothers, Inc. (TOL)

Integrity

The core value of integrity at Toll Brothers, Inc. emphasizes honesty and ethical behavior in all business practices. This principle is crucial for maintaining trust with customers, partners, and employees.

Toll Brothers has demonstrated its commitment to integrity through transparent reporting practices and adherence to regulatory standards. In the nine-month period ended July 31, 2024, the company reported a net income of $1.10 billion, reflecting its commitment to ethical financial practices.

Quality

Quality is a fundamental value for Toll Brothers, ensuring that homes are built to the highest standards. This commitment is evident in their customer satisfaction ratings and the quality of materials used in construction.

In fiscal 2024, the average delivered price of homes was $968,200, indicating a focus on high-quality, premium homes. The company also reported delivering 2,814 homes in the third quarter of 2024, showcasing its dedication to quality and craftsmanship.

Customer Commitment

Toll Brothers places a strong emphasis on customer commitment, ensuring that client needs are prioritized throughout the home-buying process. This value is crucial for building long-term relationships and fostering loyalty.

In the nine-month period ended July 31, 2024, Toll Brothers signed 7,573 net contracts valued at $7.41 billion, reflecting a robust demand for their homes driven by customer-centric strategies. The company actively engages with customers to gather feedback and improve services continuously.

Teamwork

Teamwork at Toll Brothers is about collaboration across all levels of the organization. This value enhances productivity and fosters a positive work environment, essential for achieving corporate goals.

As of July 31, 2024, Toll Brothers operated from 404 communities, a 17% increase from the previous year, highlighting the effectiveness of teamwork in expanding operations. The company’s organizational structure encourages cross-department collaboration to ensure project success.

Innovation

Innovation drives Toll Brothers to explore new technologies and design trends in home building, ensuring they remain competitive in the market.

In fiscal 2024, the company reported a significant rise in net contracts signed, increasing by 25% in both units and dollars compared to the previous year. This growth reflects the company’s innovative approach to product development and market responsiveness.