🔹 Revenues: $2.00B (Est. $1.987B) 🟢; UP +19% YoY
🔹 EPS: $2.52 (Est. $2.45) 🟢; UP +36% YoY
🔹 Homes Delivered: 3,978 (Est. 3,894) 🟢; UP +17% YoY
🔹 Average Selling Price: $501,000 (Est. $510.28) 🔴; UP +3% YoY
🔹 Homebuilding Operating Income: $229.1M
🔹 Housing Gross Profit Margin: 20.9% (Prev. 20.7%)
🔹 Net Income: $190.6M (Est. $185.7M) 🟢; UP +27% YoY
🔹 SG&A Expenses as % of Housing Revenues: 9.4% (Improved by 50 bps)
🔹 Financial Services Pretax Income: $13.1M; UP +8% YoY
Backlog and Net Orders:
🔹 Net Orders: 2,688
🔹 Net Order Value: $1.32B
🔹 Ending Backlog Value: $2.24B (Prev. $2.67B)
🔹 Ending Backlog Units: 4,434 (Prev. 5,510)
🔹 Cancellation Rate: 17% (Improved from 28%)
FY 2025 Guidance:
🔹 Housing Revenues: $7.00B–$7.50B (Est. $7.25B) 😑
🔹 Average Selling Price: $488,000–$498,000
🔹 Homebuilding Operating Income Margin: ~10.7%
🔹 Housing Gross Profit Margin: 20.0%–21.0%
🔹 SG&A Expenses as % of Housing Revenues: 9.6%–10.0%
🔹 Effective Tax Rate: ~24%
🔹 Ending Community Count: ~250
CEO Jeffrey Mezger’s Commentary:
🔸 "We had a strong finish to 2024, driven by faster build times and increased deliveries. Our performance reflects buyers' desire for homeownership and improved housing market conditions, despite ongoing mortgage rate challenges."
🔸 "We’re poised for growth in 2025, investing over $2.8B in land acquisition to support future community count growth and meet buyer demand."
Shareholder Returns:
🔹 Share Repurchases: $350.0M in FY 2024, representing ~6% of outstanding shares.
🔹 Dividends: Continued balanced capital allocation.
🔹 Book Value per Share: $56.27; UP +12%.
🔹 Return on Equity: 16.6% (Prev. 15.7%).