Toll Brothers, Inc. · NYSE:TOL
Toll Brothers — Q4 2025 Earnings Presentation
27 slides from Toll Brothers's earnings presentation, January 2026
Slide 1: Fourth Quarter 2025 Company Overview
TOLISBROTHERS AT TESORO HIGHLANDS | VALENCIA, CA FOURTH QUARTER 2025 COMPANY OVERVIEW Toll Brothers AMERICA'S LUXURY HOME BUILDER
Slide 2: Forward-looking statements disclaimer
Information presented herein for the fourth quarter ended October 31, 2025 is subject to finalization of the Company's regulatory’ filings, related financial and accounting reporting procedures and external auditor procedures. This document contains or may contain forward-looking statements within t
Slide 3: Fundamentals Supporting Demand
FUNDAMENTALS SUPPORTING DEMAND * Constrained supply of new & resale homes on the market * Buyers have benefited from a decade of solid stock market * Boomers making lifestyle changes * Largest wealth transfer from Boomers to Millennials ¢ Millennials in prime home buying years * Increased desire for
Slide 4: Evolution of the Homebuilding Industry
EVOLUTION OF THE HOMEBUILDING INDUSTRY 4 LARGEST BETTER BUSINESS FOCUSED ON CAPITAL DEMAND FOR SPEC UNDERVALUED PLAYERS ARE MODEL EFFICIENCY IN LAND FAVORS LARGE «Public homebuilders TAKING SHARE, Gesteraccesstocapita) ACQUISITION PLAYERS are producing * Public homebuilders & labor * Reduces land ri
Slide 5: Public Builders Are Gaining Market Share
PUBLIC BUILDERS ARE GAINING MARKET SHARE PUBLIC BUILDERS HAVE TAKEN SHARE FROM THE PRIVATE BUILDERS AND IN 2025 REPRESENTED GREATER THAN 55% OF NEW HOME SETTLEMENTS NEW HOME SALES - MARKET SHARE OF LARGE PUBLIC & PRIVATE HOMEBUILDERS 450,000 400,000 55.9% 57.7% 350,000 300,000 250,000 200,000 150,00
Slide 6: Industry Is Undersupplied as Households Increase
INDUSTRY IS UNDERSUPPLIED AS HOUSEHOLDS INCREASE HOUSING STARTS HAVE NOT KEPT PACE WITH HOUSEHOLD GROWTH 1970-1979 1980-1989 1990-1999 2000-2007 2008-2024 Average Annual Average Annual Average Annual Average Annual Average Annual Housing Starts Housing Starts Housing Starts Housing Starts Housing St
Slide 7: New Home Price Premium
40% NEW HOME PRICE PREMIUM 1969 - 2025 35% 30% 25% 20% 15% 10% 5% 0% 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021 2025
Slide 8: Existing Housing Stock Is Aging
EXISTING HOUSING STOCK IS AGING THE MEDIAN AGE OF OWNER-OCCUPIED U.S. HOMES IS OVER 40 YEARS, ACCORDING TO THE LATEST DATA, COMPARED TO A MEDIAN AGE OF 32 YEARS IN 2005. MEDIAN AGE OF OWNER-OCCUPIED HOUSING (IN YEARS) 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 SOURCE: Wolfe Research and Censu
Slide 9: National Footprint Positions Toll Brothers for Growth
NATIONAL FOOTPRINT POSITIONS TOLL BROTHERS FOR GROWTH 24. STATES 60+ markets Portland @ Boise Sacramento Ve} Pacific san Frencisco @) San Jose 12% of Communities 13% of Lots Controlled 20% of Revenue Los Angeles “@) Commi Regions | COmmUnY | Lot count Mountain 27% of Revenue NOTE: Data as of October
Slide 10: Prestigious Locations, Distinctive Architecture, Unrivaled Choice
10 al 4 a PRESTIGIOUS DISTINCTIVE UNRIVALED EXTRAORDINARY CUSTOMER LOCATIONS ARCHITECTURE CHOICE EXPERIENCE
Slide 11: Strategy Focused on Driving Shareholder Returns
STRATEGY FOCUSED ON DRIVING HAREHOLDER RETUR LAND ACQUISITION BUYBACKS & DIVIDENDS IMPROVED OPERATIONS * Focus on increasing optioned land * Consistent repurchaser of shares * — Optimizing product + Using land banking, JVs, rolling ~53% since 2016 + Expanded product & price points takedowns, & selle
Slide 12: Book Value Per Share
BOOK VALUE PER SHARE $38.53 $35.99 $32.57 $28.82 $22.02 $24.15 $26.14 $19.68 © 2013 2014 2015 2016 2017 2018 2019 2020 2021 $87.41 2022 2023 2024 2025 REGENCY AT TEN RAILS | BLACK DIAMOND, WA 12
Slide 13: Return on Beginning Equity
RETURN ON BEGINNING EQUITY OMPANY OVERVIEW 24.3% 22.8% 23.1% 17.6% 12.7% 12.4% 10.2% 94% 9.0% 8.8% i 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 a4 2025 ¢ 13 TOLL BROTHERS AT DIX HILLS | DIX HILLS, NM
Slide 14: Earnings Per Share
EARNINGS PER SHARE $15.01 $13.49 $6.63 $4.85 $4.03 $317 $3.40 gisa $197 $218 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TRES LAGOS | HOWSION, TX
Slide 15: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 314% 294% 99% 238% 223% 124% 101% 83% 84% Ll || Th 139% 1-Year 3-Year 5-Year 10-Year moll Brothers (TOL) m Home Construction (ITB) S&P 500 (SPY) NOTE: As of October 31, 2025, rounded to the nearest whole number OMPANY OVERVIEW a4 2025 ¢ 15 HERS BRO TOLL
Slide 16: Revenue Per Share Growth - A Case for Revaluation
REVENUE PER SHARE GROWTH - A CASE FOR REVALUATION P/E: 9.9x 24x 20x 17% 16% 10% 10% 10% 10% 10% 4% 2% TollBrothers — fS coat: | iss Revenue Per Share - 3 Year CAGR SOURCE: Bloomberg, FY 2025 18x 16x 13% 11% 6% Gy 5% l ] 0% NVR) MASCO mRevenue Per Share - 5 Year CAGR 19x 25x 18% 15% 12% 7% 6% 3% Trex
Slide 17: Earnings Per Share Growth - A Case for Revaluation
EARNINGS PER SHARE GROWTH - A CASE FOR REVALUATION P/E: 9.9x 24x 20x 18x 16x 19x 25x 26x 27% 23% 21% 19% 7% 16% 17% 16% 12% 13% 13% 10% ox 10% fmm 10% 7% 8% 8% % 2% 1% MASCO —@F IBP _sapsoo Toll Brothers [AMERICA'S LOXURY HOME BUILDER Earnings Per Share - 3 Year CAGR @ Earnings Per Share - 5 Year CA
Slide 18: Lower Net Debt to EBITDA - A Case for Revaluation
LOWER NET DEBT TO EBITDA - A CASE FOR REVALUATION FY 2025 P/E: 9.9x 24x 20x 18x 16x 19x 2.9x 2.3x 17x 0.7x o 0.5x SOURCE: Bloomberg 25x 11x 26x 1.5x S&P 500 Q4 2025 COMPANY OVERVIEW 3 TOLL BROTHERS
Slide 19: Stock Repurchase / Dividend Summary
STOCK REPURCHASE / DIVIDEND SUMMARY Dollars ($MM) -200 FY ™ Cash Flow from Operations m Share Repurchases @ Dividends = Debt Retirement (Refinancing) Hl | | — | = 2020 2021 2022 2023 2024 2025 TAL MCLEAN | MCLEAN, VA
Slide 20: Consistent Growth & Profitability
CONSISTENT GROWTH & PROFITABILITY FENTON’S CORNER | DOYLESTOWN, PA *NOTE: Numbers are non-GAAP, see reconciliation on page 27 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 IRevenue - Homes Sales (000s) $6,937,357 $8,431,746 $9,711,170 $9,866,026 $10,563,332 $10,842,203 pre-tax income (000s) $586,9
Slide 21: Solid Land Positions for Growth
SOLID LAND POSITIONS US FOR GROWTH FOCUSED ON CAPITAL EFFICIENCY PERCENTAGE OF LOTS OPTIONED VS. OWNED 18,300 Finished Lots at 10/31/25 80,867 76,049 74,9 76,102 70,664 63,182 59,230 51% 2019 2020 2021 2022 2023 2024 2025 m Owned Optioned AT FYE LEGACY AT SEVILLE | MESA, AZ
Slide 22: Total Addressable Market
TT TOTAL ADDRESSABLE MARK $200K HOUSEHOLD INCOME PROJECTED ANNUAL TOL HOMES TOTAL ADDRESSABLE 575,000 MARKET TOL ANNUALLY REACHES 2.0% of TAM BORELLO RANCH ESTATES | MORGAN HILL, CA
Slide 23: Debt Maturity Profile
DEBT MATURITY PROFILE AS OF OCTOBER 31, 2025 SUPERIOR ACCESS CAPITAL MARKET Senior/Corporate Credit Ratings Moody’s Baa2 (Stable) Standard & Poor’s BBB (Stable) Fitch Inc. BBB+ (Stable) FYE 2026 Cash & Equivalents Revolver Availability TOTAL LIQUIDITY $1.26 BN $2.19 BN $3.45 BN 2029 2030 2031 2032 2
Slide 24: Appendix
Slide 25: Toll Brothers Financial Highlights
TOLL BROTHERS FINANCIAL HIGHLIGHTS CONTRACTS Units 10,231 9,943 8,077 a = 27% -3% 2023 2024 2025 Dollars ($MM) $10,073 $9,850 $7,908 a Ss 27% -2% 2023 2024 2025 *NOTE: FY 2024 includes ~$124 million, or $1.19 per share, from the sale of a parcel of land to a commercial developer in Q2 2024. Units 11
Slide 26: Homes Under Construction
HOMES UNDER CONSTRUCTION Q1 2025 2 2025 Q3 2025 Q4 2025 Specs: Completed 778 671 745 862 981 1,028 1,088 1,260 Incomplete 2,256 2,342 2,489 2,664 2,225 2,396 2,127 1,783 Total Specs 3,034 3,013 3,234 3,526 3,206 3,424 3,215 3,043 Future Homesites, Pre-Footing 1,345 1,499 1,656 1,908 2,663 1,952 1,83
Slide 27: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED GROSS MARGIN & EBITDA FY FY 2 FY 2022 FY 2023 FY 2024 FY 2025 Revenues — home sales 6,937,357 8,431,746 9,711,170 9,866,026 10,563,332 10,842,203 Cost of Revenues 5,534,103 6,538,454 7,237,409 7,207,279 7,753,351 8,069,742 Gross Margin 1,403,254 1,893,292 2,473,761 2