What does Toll Brothers do and what are its main business segments?

What factors drove the changes in Toll Brothers's revenue and profit?

What were the key takeaways from Toll Brothers's earnings call?

What is Toll Brothers's gross profit margin?

What is the market's earnings forecast for Toll Brothers next quarter?

Did Toll Brothers beat or miss consensus estimates last quarter?

What were the key takeaways from Toll Brothers’s earnings call?

What guidance did Toll Brothers's management provide for the next earnings period?

- **Revenue beat**: $1.85B (+$24M vs. midpoint), $2.19 EPS (25% YoY growth).
- **Margin resilience**: 26.5% adj. gross margin (25bps beat), 13.9% SG&A margin.
- **Strategic balance**: 50-50 build-to-order/spec mix, 8% incentives stable QoQ.
- **Luxury focus**: 70%+ business in high-margin luxury segments, 25% affluent first-time buyers.
- **Growth pipeline**: 75,000 lots controlled, targeting 8-10% annual community count growth.
- **Q2 guidance**: 25.5% adj. gross margin, rising to 26.0% in H2 with North/Pacific deliveries.

**【CEO Summary Section】**
- Exceeded Q1 guidance across key metrics: 1,899 homes delivered, $1.85B revenue, $2.19 EPS (25% YoY increase). 
- Signed 2,303 contracts ($2.4B) flat in units but +3% in dollars, with average price up 3% to $1.03M.
- Maintained 8% incentives (flat QoQ), balancing build-to-order (30%+ margin) and spec homes (50-50 mix).
- 70%+ business in luxury move-up/down, 25% affluent first-time buyers ($670K avg price).
- 75,000 lots controlled (55% optioned), targeting 8-10% community count growth (455 → 480-490 by end-2026).
- Healthy balance sheet: $3.4B liquidity, 14.2% net debt-to-capital.

**【CFO Financial Commentary】**
- Q1 homebuilding revenue $1.85B (+$24M vs. midpoint), adj. gross margin 26.5% (25bps vs. guidance).
- SG&A margin 13.9% (30bps beat), driven by revenue leverage.
- Other income $72M (vs. $2.5M prior year), including $330M from Apartment Living sale.
- FY26 guidance: 10,300-10,700 homes, $970-990K avg price, 26.0% adj. gross margin.
- Q2 adj. gross margin 25.5%, rising in H2 with North/Pacific deliveries.
- Free cash flow expected to support $650M buyback (late 2026).

**【Q&A Key Highlights】**
- **Gross margin trends**: Q2 down 100bps to 25.5% due to less Pacific region mix, but Q4 expected to rebound with luxury deliveries.
- **Spec strategy**: 50-50 mix maintained, prioritizing build-to-order in softening markets.
- **Incentives**: 8% flat QoQ, no plans to increase despite industry trends.
- **Spring selling season**: Modest + in traffic/deposits vs. 2025, but early stage.
- **Labor costs**: Flat QoQ, no immediate pressure despite lumber price uptick.
- **Land strategy**: Focused on high-margin luxury markets, 30-40% communities with price increases in Q1.
- **Community pipeline**: 75,000 lots controlled (2.7 years of owned land), targeting 8-10% annual growth.

Toll Brothers, Inc. (TOL) Q1 2026 Earnings Call Transcript

- **Record Revenue Growth**: $10.8 billion in 2025, up 3% YoY, driven by luxury homebuyers (70% of sales) with average age 60.
- **Profitability**: 27.3% adjusted gross margin and $1.1 billion operating cash flow, with $750 million returned to shareholders.
- **Strategic Shift**: Exited multifamily business with $380 million sale, positioning for core homebuilding growth.
- **2026 Outlook**: 10,500-10,700 deliveries, 26.0% gross margin, and $650 million buybacks, supported by strong liquidity.

**【CEO Summary Section】**
- Fiscal 2025 revenue reached $10.8 billion, up 3% year-over-year, with 11,292 homes delivered at an average price of $960,000. Adjusted gross margin was 27.3%, and operating cash flow was $1.1 billion.
- The company exited the multifamily business, selling a significant portion to Kennedy Wilson for $380 million, with the remaining assets to be sold over the next few years.
- The luxury homebuyer segment (move-up and move-down buyers) accounts for 70% of revenue, with buyers aged 60 on average, showing resilience to market downturns.
- Spec homes made up 54% of deliveries in 2025, with 8% incentives and $206,000 in design upgrades per home, benefiting margins.
- Community count is expected to grow 8-10% in 2026, targeting 480-490 communities.

**【CFO Financial Commentary】**
- Q4 2025 net income was $446.7 million ($4.58 per share), below guidance due to delayed Apartment Living sale closure. Full year net income was $1.35 billion ($13.49 per share).
- 2026 guidance: 10,500-10,700 home deliveries, average price $970,000-$990,000, adjusted gross margin 26.0%, and SG&A margin 10.25%.
- Cash flow from operations is projected to be modestly lower in 2026, with $650 million in share buybacks planned.
- Liquidity remains strong at $3.5 billion, with no significant debt maturities until 2027.

**【Q&A Highlights】**
- **Buyer Trends**: 70% of sales from move-up/down buyers, 17% from active adult buyers. First-time buyers are older (average 40) and affluent, less impacted by affordability.
- **Land Strategy**: 57% of 76,000 controlled lots are optioned, targeting 60% optioned long-term. Land costs are flat, with opportunities in softer markets.
- **Margins**: 2026 gross margin guide of 26.0% reflects higher spec deliveries and incentives, while SG&A margin is 10.25% due to lower revenue leverage.
- **Share Buybacks**: $650 million planned for 2026, aligned with cash flow generation in the second half.
- **Multifamily Exit**: Proceeds will fund core homebuilding growth and shareholder returns, with no new capital committed to multifamily.

Toll Brothers, Inc.(TOL)-20251209-2025 Q4 Earnings call transcript

- **CFO Transition**: Marty Connor retiring, Gregg Ziegler to lead finance
- **Q3 Performance**: $2.9B revenue, 27.5% gross margin, $3.73 EPS
- **Backlog Strength**: $6.376B at $1.16M ASP, 3.2% cancellations
- **FY25 Guidance**: 11,200 deliveries, 27.25% gross margin, $13.75 EPS
- **Liquidity**: $852M cash, $2.2B revolver, $1B+ annual cash flow
- **Market Trends**: ASP +4.5% YoY, 26% cash buyers, 70% LTV
- **Spec Strategy**: 3,200 specs in pipeline, 1,800 permits ready

**【CEO Opening Remarks】**
- Announced CFO transition: Marty Connor retiring in October, Gregg Ziegler stepping up as CFO in November.
- Q3 2025 highlights: 
  - 2,959 homes delivered, $2.9B revenue (5% units, 6% dollars YoY)
  - Adjusted gross margin 27.5% (vs. 27.0% guidance)
  - Earnings $3.73/share, $370M net income
  - Backlog $6.376B at $1.16M ASP
- Full year guidance: 11,200 deliveries, 27.25% gross margin
- Strategy: Balance price/margin over pace; 3,200 specs in pipeline, 1,800 permits ready
- Market trends: ASP up 4.5% YoY, cancellation rate 3.2% (industry-leading)
- Liquidity: $852M cash, $2.2B revolver availability

**【CFO Financial Commentary】**
- Q3 results: 
  - Net income $370M ($3.73/share)
  - SG&A 8.8% of revenue (vs. 9.2% guidance)
  - Other income $15M (vs. breakeven guidance)
- Full year outlook: 
  - $13.75/share EPS
  - 18% ROE
  - $88/share book value
- Capital allocation: 
  - $402M share buybacks YTD
  - $1B+ annual cash flow
- Balance sheet: 
  - Net debt-to-capital 19.3%
  - 5.6% coupon on $500M 10-year notes
  - No debt maturities until 2027

**【Q&A Key Highlights】**
1. **Cash Flow & Construction Costs**
   - YTD cash flow ~$400M, expecting $1B+ for FY25
   - Build costs flat to modestly down due to trade contract renewals
2. **Sales Pace & Incentives**
   - Q3 ASP $1.01M, backlog ASP $1.16M
   - Incentives 8% (up from 7% Q2), driven by finished specs
   - August traffic up 5-10% YoY, conversion rate 80%
3. **Community Growth**
   - Q4 openings: 25+ new communities (420 → 445 total)
   - FY26 guidance: 8-10% community count growth
   - 35% communities with 8-month cycle time
4. **Market Sentiment**
   - 26% cash buyers, 70% LTV ratio
   - 5,500 homes in backlog with $234K upgrades
   - Spec homes sold at design studio stage for margin efficiency

Toll Brothers, Inc. (TOL) Q3 2025 Earnings Call Transcript

- **Revenue Beat**: Q2 home sales revenue of $2.71B (+10% YoY) exceeded guidance, driven by 2,899 homes delivered at $934K ASP.
- **Margin Expansion**: Adjusted gross margin of 27.5% (vs. 27.25% guidance) and SG&A margin of 9.5% reflect strong cost control.
- **Shareholder Returns**: $600M share buyback program announced, up from $500M, with $177M executed in Q2.
- **Strategic Focus**: Prioritizing luxury homes (70% move-up/empty nester buyers) and 8-10% community growth to 440-450 by year-end.
- **Resilience in Soft Market**: 24% all-cash buyers, 70% LTV for financed homes, and 2.8% cancellation rate highlight customer strength.


**【CEO Summary Section】**
- Q2 2025 home sales revenue reached $2.71 billion, surpassing the midpoint of guidance by $236 million, with a 10% increase in units delivered year-over-year.
- Adjusted gross margin improved to 27.5%, up 25 basis points from guidance, driven by strong cost control and revenue leverage.
- Earnings per diluted share were $3.50, with a record $14 per diluted share projected for FY 2025.
- Company reaffirmed FY 2025 guidance, including home sales revenue of $10.9 billion and a 27.25% adjusted gross margin.
- Emphasized strategic focus on price and margin over pace in a challenging market, with 70% of business tied to move-up and empty nester segments.
- Community count expected to grow 8-10% to 440-450 by year-end, supporting long-term growth.

**【CFO Financial Commentary】**
- GAAP net income was $352.4 million, with Non-GAAP EPS of $3.50, exceeding expectations.
- SG&A margin improved to 9.5%, 80 basis points better than guidance, reflecting cost efficiency.
- Operating cash flow projected at $1 billion for FY 2025, supporting $600 million in share repurchases.
- Liquidity remained strong at $2.8 billion, with a net debt-to-capital ratio of 19.8%.
- Land spend for FY 2025 was $362 million in Q2, with a focus on capital-efficient option agreements (58% of total lots).

**【Q&A Key Highlights】**
- **Spec Inventory Management**: 1,028 completed specs and 2,400 under construction, with 900+ projected to sell/settle by Q4. Incentives at 7% of ASP, up from 5-6%, but margins remain stable due to luxury mix.
- **Market Trends**: Soft demand in Q2 (-13% units, -11% dollars YoY) driven by economic uncertainty, but 70% of buyers are move-up/empty nester with 24% all-cash purchases.
- **Future Outlook**: FY 2026 community count growth of 8-10%, with cautious land spend in FY 2026 due to macro volatility.
- **Tariffs Impact**: No significant impact expected in FY 2025, but monitoring potential effects on building costs.
- **Backlog Sustainability**: $6.84 billion backlog at Q2 end, down 7% YoY, but 70% of homes sold at higher margins in build-to-order segment.


Toll Brothers, Inc. (TOL) Q2 2025 Earnings Call Transcript

- **Q1 Strong Core Performance**: Home sales revenue up 15% YoY, adjusted gross margin 26.9% (65bps above guide), despite $177.7M net income miss due to joint venture delays.
- **Demand Resilience**: 13% unit growth in contracts, 82% deposit conversion rate, and $1M avg. contract price reflect affluent buyer strength.
- **Gross Margin Guidance Maintained**: 27.25% for FY 2025, driven by luxury mix and strategic spec management.
- **Liquidity & Capital Efficiency**: $2.3B liquidity, extended credit facilities, and $500M share buybacks highlight financial strength.
- **Market Differentiation**: 70% of business in luxury segments, 26% all-cash buyers, and 68% LTVs underscore financial discipline.
- **Spec Inventory Strategy**: 3,200 specs in inventory, with 1,600 on hold in weaker markets, balanced by selective starts in strong regions.
- **Land Position**: 30% of land bank priced pre-COVID, with low single-digit cost inflation expected in 2025.

**【CEO Summary Section】**
- **Q1 Deliveries & Revenue**: 1,991 homes delivered at $925,000 average price, generating $1.84B in home sales revenue. Adjusted gross margin of 26.9% (65bps above guidance). Core homebuilding operations met expectations despite $177.7M net income below expectations due to joint venture delays.
- **Demand Metrics**: 2,307 net contracts ($2.3B) signed, +13% in units and +12% in dollars YoY. 82% deposit conversion rate (vs. 5-year avg. 70%). Average contract price of $1M, flat QoQ. Move-up and first-time luxury buyers drove 2% per-community growth.
- **Market Performance**: Strong demand in North & Mid-Atlantic, Houston, Dallas, Boise, Denver, Las Vegas, and California. Challenges in Jacksonville, Tampa, San Antonio, Phoenix, Reno, Salt Lake City, and Portland due to affordability and inventory pressures.
- **Inventory Management**: 3,200 specs in inventory (55% of sales). Strategic spec starts adjusted by community, with 1,600 specs at permit stage on hold. 26% buyers paid all cash; LTVs at 68% reflect financial strength.
- **Backlog & Guidance**: 6,300 homes in backlog. Full-year guidance maintained: 11,200-11,600 deliveries, $945K-$965K avg. price, 27.25% adjusted gross margin.

**【CFO Financial Commentary】**
- **Q1 Financials**: Net income $177.7M ($1.75 EPS), below expectations due to $16.4M pre-development write-offs and delayed joint venture sale. Core homebuilding metrics beat expectations.
- **Gross Margin**: 26.9% (65bps above guidance) driven by mix, efficiency, and spec home performance. Full-year 27.25% gross margin maintained.
- **SG&A**: 13.1% of revenue (40bps above guidance) due to lower-than-expected revenue and higher selling expenses. Q2 guide: 10.3%; full-year 9.4%-9.5%.
- **Liquidity & Capital**: $2.3B liquidity, $575M cash, $1.8B revolver. Extended credit facilities to 2030 with $2.35B revolver. $500M share buybacks reaffirmed.
- **Community Growth**: 406 communities (vs. 410 guide). Target 8%-10% growth to 440-450 communities by FYE 2025.

**【Q&A Key Takeaways】**
- **Spec Inventory Strategy**: 3,200 specs in inventory, with 1,600 at permit stage on hold. Spec starts will be reduced in weaker markets (e.g., Jacksonville, Tampa) but increased in strong markets (e.g., Boston-Atlanta corridor).
- **Spring Selling Season**: Mixed results with softness in Florida, Texas, and Phoenix, but encouraging signs in previously weak markets. 82% deposit conversion rate reflects buyer commitment.
- **Gross Margin Outlook**: 27.25% for Q2 and FY 2025. Spec margins 200-250bps below average but improving with better pricing and incentives.
- **Land Costs**: 30% of land bank priced pre-COVID. Land cost inflation expected to be low (single-digit) in 2025.
- **Incentives Management**: Q1 incentives $62K (down from $68K in Q4). Q2 started at $55K but may increase in weaker markets to balance pace and price.
- **Competitive Position**: 70% of business in luxury move-up/empty-nester segments. 25%-30% in first-time luxury buyers (older millennials with higher incomes).
- **Balance Sheet Strength**: 21.1% net debt to capital ratio. No significant debt maturities until 2026. Strong cash flow generation ($500M buybacks planned).

Actual											0.41	0.59	0.9	1.55	0.76	1.01	1.87	3.02	1.24	1.85	2.35	5.63	1.7	2.85	3.73	4.11	2.25	4.55	3.6	4.63	1.75	3.5	3.73	4.58	2.19
Forecast											0.4579	0.4256	0.6943	1.2385	0.473	0.7991	1.5437	2.4797	1.1515	1.502	2.3015	4.0192	1.3841	1.909	2.8468	3.7209	1.7809	4.1594	3.3096	4.3373	2.0402	2.8126	3.6038	4.8815	2.1123
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-10.46%	+38.63%	+29.63%	+25.15%	+60.68%	+26.39%	+21.14%	+21.79%	+7.69%	+23.17%	+2.11%	+40.08%	+22.82%	+49.29%	+31.02%	+10.46%	+26.34%	+9.39%	+8.77%	+6.75%	-14.22%	+24.44%	+3.50%	-6.18%	+3.68%

TOL

TOL fundamentals

TOL Q1 2026 Earnings

Earnings Call

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TOL

TOL fundamentals

TOL Q1 2026 Earnings

Earnings Call

TOL Earnings Call Summary for Q1/20268:30 AM on Feb 18, 2026

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TOL Earnings Call Summary for Q3/20258:30 AM on Aug 20, 2025

TOL Earnings Call Summary for Q2/20258:30 AM on May 21, 2025

TOL Earnings Call Summary for Q1/20258:30 AM on Feb 19, 2025

You can ask Aime