Toll Brothers (TOL) Q2 2025 Earnings
How Did TOL Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +4.10%.
Did TOL Beat Earnings? Q2 2025 Results
Yes. Toll Brothers reported Q2 2025 earnings of $3.50 a share on May 20, 2025, beating the $2.86 consensus estimate by 22.4%. Revenue was $2.7B against a $2.5B estimate.
Toll Brothers delivered a standout fiscal second quarter, posting adjusted diluted EPS of $3.50 against a consensus estimate of $2.86, a 22.36% beat, while revenue of $2.74 billion topped expectations of $2.49 billion by 9.92%, even as total revenue slipped 3.5% from a year ago. The luxury homebuilder's <a href="https://247wallst.com/investing/2025/05/20/toll-brothers-tol-q2-fy25-earnings-live-coverage/">record second quarter results</a> were fueled by home sales revenues of $2.71 billion, well above the company's own guidance of $2.47 billion, with CEO Douglas Yearley crediting Toll Brothers' strategy of prioritizing price and margin over pace across its diversified luxury product lineup. Home sales gross margin edged up 20 basis points to 26.0%, even as softening demand weighed on contract activity, with net signed contract value falling 11% to $2.60 billion and backlog declining 7% to $6.84 billion. Despite that demand pressure, management reaffirmed full-year guidance of 11,200 to 11,600 deliveries at an average price of $945,000 to $965,000, expressing confidence in long-term housing fundamentals, particularly within the luxury segment.
- Record second quarter home sales revenues of $2.71 billion, well above guidance of $2.47 billion
- Diversified luxury product offerings across price points and geographies
- Balanced portfolio of build-to-order and spec homes
- Strategy of prioritizing sales price and margin over pace
- Home deliveries up 10% year-over-year to 2,899 units
- Home sales gross margin improved to 26.0% from 25.8%
“We are pleased with our second quarter results, as we delivered earnings that significantly exceeded expectations. Despite a softer demand environment, we generated record second quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion, and beat both our adjusted gross margin and SG&A guidance. We believe these results highlight the strength of our broadly diversified luxury product offerings, price points and geographies, our balanced portfolio of build-to-order and spec homes, and our strategy of prioritizing sales price and margin over pace in the current environment. Based on our first half results and the strength of our backlog, we are reaffirming our full year guidance.”
Toll Brothers CEO, on the earnings call
What Was Toll Brothers's Outlook in Q2 2025?
Toll Brothers reaffirmed its full-year FY 2025 guidance: 11,200 to 11,600 deliveries at an average delivered price of $945,000 to $965,000, adjusted home sales gross margin of 27.25%, SG&A as a percentage of home sales revenues of 9.4% to 9.5%, 440 to 450 period-end communities, other income/unconsolidated entities/land sales margin of $110 million, and a tax rate of 25.5%. For Q3 FY 2025, guidance calls for 2,800 to 3,000 deliveries at an average delivered price of $965,000 to $985,000, adjusted home sales gross margin of 27.25%, SG&A of 9.2%, approximately 430 period-end communities, and a tax rate of 26.0%.
TOL YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.7B | $2.8B | −3.5% |
| Gross Profit | $705.4M | $859.7M | −17.9% |
| Operating Income | $449.7M | $623.5M | −27.9% |
| Net Income | $352.4M | $481.6M | −26.8% |
TOL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.