Toll Brothers Inc
NYSE:TOL

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Toll Brothers Inc
NYSE:TOL
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Price: 136.15 USD 0.42% Market Closed
Market Cap: 13.1B USD

Toll Brothers Inc
Investor Relations

Toll Brothers Inc., an emblem of luxury and sophistication in the homebuilding industry, has carved out a distinctive niche as America’s leading builder of luxury homes. Founded in 1967 by Robert and Bruce Toll in Pennsylvania, the company has grown dramatically, standing as a paragon of upscale residential construction. Over the decades, Toll Brothers has perfected the art of transforming raw land into luxurious havens, primarily focusing on affluent markets across the United States. Their portfolio extends from single-family detached homes and townhomes to urban high-rise condominiums, each project meticulously designed to cater to the tastes of discerning customers. By directly engaging in the construction and sale of these properties, Toll Brothers ensures quality control and brand consistency, which are crucial in sustaining its premium reputation.

The company generates revenue primarily through the sale of residential properties, but its business model is underpinned by a vast array of complementary operations. Land acquisition and development play pivotal roles in their strategy, allowing them to control costs and ensure steady availability of building sites. Moreover, their integration of architectural, engineering, and design services provides an appeal that extends beyond mere construction. Toll Brothers also leverages its national footprint to tap into ancillary services, such as mortgage financing and title insurance, enhancing customer experience and adding layers of profitability. This holistic approach not only diversifies their revenue streams but also fortifies their position against market volatility, an essential strategy in the cyclical real estate sector.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Dec 9, 2025
AI Summary
Q4 2025

Record Revenue: Toll Brothers delivered record home sales revenue of $10.8 billion in 2025, up 2.6% from last year, despite a soft housing market.

Delivery Guidance: The company expects to deliver 10,300 to 10,700 homes in 2026 with an average price of $970,000 to $990,000, citing a lower starting backlog as the main reason for fewer expected closings.

Gross Margin Outlook: Gross margin guidance for 2026 is 26%, lower than 2025 due to higher incentives, especially for spec homes in the latter part of the year.

Conservative Approach: Management emphasized a cautious outlook for 2026, with no assumed market improvement and guidance viewed as conservative.

Affluent Buyer Base: Toll Brothers targets wealthier, older buyers less sensitive to mortgage rates and affordability pressures; 26% of Q4 buyers paid all cash.

Capital Allocation: Company plans $650 million in share repurchases for 2026 and will use proceeds from the multifamily exit for both growth and shareholder returns.

Multifamily Exit: The sale of a major portion of the Apartment Living business is expected to close in Q1 2026, with a full exit planned over the next few years.

Key Financials
Home Sales Revenue
$10.8 billion
Homes Delivered
11,292
Average Price of Homes Delivered
$992,000 (Q4), $960,000 (full year)
Net Income
$1.35 billion (full year), $446.7 million (Q4)
EPS
$13.49 (full year), $4.58 (Q4)
Adjusted Gross Margin
27.3% (full year), 27.1% (Q4)
SG&A Margin
9.5% (full year), 8.3% (Q4)
Operating Cash Flow
$1.1 billion
Return on Beginning Equity
17.6%
Community Count Growth
9% in 2025
Share Repurchases
$652 million (2025), $249 million (Q4)
Dividends Paid
$97 million
Net Contracts Signed (Q4)
2,598 for $2.5 billion
Backlog
$5.5 billion (4,647 homes at year-end)
Contract Cancellation Rate
4.3% of beginning backlog (Q4)
Cash and Liquidity
$1.3 billion cash, $3.5 billion liquidity at year-end
Net Debt-to-Capital Ratio
15.3% at year-end
Land Controlled
76,000 lots (57% optioned)
Average Design Studio Spend per Home
$206,000 per home (Q4), 24% of base price
All Cash Buyers (Q4)
26% of buyers
LTV of Buyers Taking Mortgages (Q4)
69%
Other Earnings Calls

Management

Mr. Douglas C. Yearley Jr.
Chairman & CEO
No Bio Available
Mr. Robert Parahus
President & COO
No Bio Available
Mr. Martin P. Connor CPA
Senior VP & CFO
No Bio Available
Mr. Michael J. Grubb
Senior VP & Chief Accounting Officer
No Bio Available
John Critikos
Chief Information Officer & Senior VP
No Bio Available
Mr. Gregg L. Ziegler
Senior VP of Investor Relations & Treasurer
No Bio Available
Mr. Timothy J. Hoban J.D.
Chief Compliance Officer, General Counsel & Senior VP
No Bio Available
Ms. Wendy L. Marlett
Executive VP & Chief Marketing Officer
No Bio Available
Ms. Kellie Hall
Chief Human Resources Officer
No Bio Available
Mr. Frederick N. Cooper
Senior Vice President of Strategic Partnerships
No Bio Available

Contacts

Address
PENNSYLVANIA
Fort Washington
1140 Virginia Drive
Contacts
+12159388000.0
www.tollbrothers.com