Toll Brothers Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.77%.
Did TOL Beat Earnings? Q4 2025 Results
Toll Brothers delivered a mixed fourth quarter for fiscal 2025, beating on revenue while falling short on the bottom line in what CEO Douglas Yearley described as a challenging demand environment. The luxury homebuilder posted revenue of $3.42 billion, up 2.7% year over year and above the $3.32 billion consensus estimate, but diluted EPS of $4.58 missed the $4.89 analyst expectation by 6.34%, as home sales gross margin contracted 50 basis points to 25.5% and pre-tax land and other impairments of $24.30 million weighed on profitability. The delayed closing of the company's Apartment Living business sale to Kennedy Wilson, now expected in Q1 FY2026 at $380 million, also held back results. For the full year, Toll Brothers achieved record home sales revenues of $10.84 billion across 11,292 homes, and the company declared a quarterly dividend of $0.25 per share, underscoring its commitment to shareholder returns. Looking ahead, FY2026 guidance targets 10,300 to 10,700 deliveries at average prices of $970,000 to $990,000, with adjusted gross margin of 26.00% and community count growth of 8% to 10%.
- Record home sales revenues of $10.84 billion for FY2025
- 9% community count growth to 446 selling communities
- Luxury market differentiation serving affluent customers less impacted by affordability pressures
- Balance of build-to-order and spec homes strategy
- Broad geographic footprint across 24 states and 60+ markets
- Strong operating cash flows of approximately $1.1 billion for FY2025
- Return on beginning equity of 17.6%
“Fiscal 2025 proved to be another strong year for Toll Brothers, as we executed well in a choppy environment. We delivered 11,292 homes at an average price of $960,000, generating a record $10.8 billion of home sales revenues, and posted an adjusted gross margin of 27.3%, an SG&A margin of 9.5%, and earnings of $13.49 per diluted share. We grew our community count by 9%, continued to produce strong operating cash flows of $1.1 billion, returned approximately $750 million to stockholders through share repurchases and dividends, and generated a return on beginning equity of 17.6%.”
Toll Brothers CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2026, Toll Brothers guides 1,800-1,900 deliveries at average prices of $985,000-$995,000, adjusted home sales gross margin of 26.25%, SG&A of 14.2% of home sales revenues, 445 period-end communities, $70 million in other income/unconsolidated entities/land sales, and a 23.2% tax rate. For full FY2026, guidance calls for 10,300-10,700 deliveries at $970,000-$990,000 average price, adjusted home sales gross margin of 26.00%, SG&A of 10.25%, 480-490 period-end communities, $130 million in other income/unconsolidated entities/land sales, and a 25.5% tax rate. Community count growth is projected at 8%-10% in FY2026. Management noted soft demand across many markets and is actively managing spec starts and inventory on a community-by-community basis.
TOL YoY Financials
TOL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.