Toll Brothers, Inc. · NYSE:TOL
Toll Brothers — Q2 2025 Earnings Presentation
25 slides from Toll Brothers's earnings presentation, June 2025
Slide 1: Second Quarter 2025 Company Overview
TOLISBROTHERS AT TESORO HIGHLANDS | VALENCIA, CA SECOND QUARTER 2025 COMPANY OVERVIEW Toll Brothers AMERICA'S LUXURY HOME BUILDER
Slide 2: Forward-looking statements disclaimer
Information presented herein for the second quarter ended April 30, 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 the
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 LARGEST PLAYERS ARE TAKING SHARE * Public homebuilders have gone from 27% market share in 2012 to ~53% for 2024* *Source: Zonda BETTER BUSINESS MODEL Greater access to capital & labor Higher bargaining power with suppliers FOCUSED ON CAPITAL EFFICIENCY IN LAND
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 2024 REPRESENTED GREATER THAN 50% OF NEW HOME SETTLEMENTS 1,600,000 1,400,000 1,200,000 1,000,000 800,000 Closings 600,000 400,000 200,000 (0) Source: Zonda PUBLIC AND PRIVATE HOMEBUILDER CLOSI
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: 40% 35% 30% 25% 20% 15% 10% 5% 0% 1968 1972 1976 1980 1984
40% 35% 30% 25% 20% 15% 10% 5% 0% 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024
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 13% of Communities 12% of Lots Controlled 18% of Revenue Los Angeles Commi Regions | COmmUnY | Lot count Mountain 28% of Revenue Note: Data as of April 30, 2
Slide 10: Prestigious Locations, Distinctive Architecture, Unrivaled Choice
10 A VY DY PRESTIGIOUS DISTINCTIVE UNRIVALED EXTRAORDINARY CUSTOMER LOCATIONS ARCHITECTURE CHOICE EXPERIENCE
Slide 11: Strategy Focused on Driving Shareholder Returns
STRATEGY FOCUSED ON DRIVING SHAREHOLDER RETURNS LAND ACQUISITION BUYBACKS & DIVIDENDS IMPROVED OPERATIONS * Focus on increasing optioned land * Consistent repurchaser of shares * Optimizing product + Using land banking, JVs, rolling ~51% since 2016 * — Expanded product & price points takedowns, & se
Slide 12: Book Value Per Share
BOOK VALUE PER SHARE $19.68 2013 $22.02 2014 $24.15 2015 $26.14 2016 $28.82 2017 $32.57 2018 2019 2020 2021 $76.87 2022 2023 2024 REGENCY AT TEN RAILS | BLACK DIAMOND, WA 12
Slide 13: Return on Beginning Equity
RETURN ON BEGINNING EQUITY 5.5% 2013 12.7% 10.2% : 9.4% 9.0% 2014 2015 «2016 = 2017 2018 12.4% 2019 171% 8.8% 2020 = 2021 24.3% | 22.8% 23.1% 2022 2023 2024 TOLL BROTHERS AT DIX HILLS | DIX HILLS, NAM COMPANY OVERVIEW Q2 2025
Slide 14: Earnings Per Share
EARNINGS PER SHARE $15.01 $12.36 $10.90 $6.63 $4.85 $4.03 $317 $3.40 gisa $1.97 $218 2013) 2014 «2015 «2016 «62017. «2018 §=2019 2020 2021 2022 2023 2024 4 TRES LAGOS | HOWSION, TX 14
Slide 15: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 345% 161% 125% 105% 63% A1% 12% == -159% 10% 1-Year 3-Year 5-Year moll Brothers (TOL) m Home Construction (ITB) NOTE: As of April 30, 2025, rounded to the nearest whole number 277% 10-Year S&P 500 (SPY) COMPANY OVERVIEW a22 — an HERS TOLL
Slide 16: Stock Repurchase / Dividend Summary
STOCK REPURCHASE / DIVIDEND SUMMARY q \ tea “Y | | 1,400 | — N | 1,200 : 1,000 = 800 6 2 Ss 3 600 a 400 200 0) FY 2020 2021 2022 2023 2024 m= Cash Flow from Operations mShare Repurchases mDividends ms Debt Retirement RETREATAAT MCLEAN | MCLEAN, VA 16
Slide 17: Since 2016 We Have Repurchased ~51% of Our Shares
SINCE 2016 WE HAVE REPURCHASED Ea ~51% OF OUR SHARES WHICH IS fa f 89 MILLION SHARES AT A $49 9 AVERAGE PRICE. WE HAVE ALSO PAID : 44 / ~$620 MILLION OF DIVIDENDS.
Slide 18: Consistent Growth & Profitability
CON FENTON’S CORNER | DOYLESTOWN, PA *NOTE: Numbers are non-GAAP, see reconciliation on page 25 TENT GROWTH & PROFITABILITY [Equity FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenue - Homes Sales (000s) $6,937,357 $8,431,746 $971,170 $9,866,026 $10,563,332 pre-tax income (000s) $586,901 $110,315 $1,70
Slide 19: Solid Land Positions Set Us Up for Growth
SOLID LAND POSITIONS US FOR GROWTH FOCUSED ON CAPITAL EFFICIENCY PERCENTAGE OF LOTS OPTIONED VS. OWNED 19,300 Finished Lots at 4/30/25 80,867 76,049 74,719 78,606 70,664 63,182 59,230 2019 2020 2021 2022 2023 2024 Q2 2025 m Owned Optioned ATFYE LEGACY AT SEVILLE | MESA, AZ
Slide 20: Total Addressable Market
TT TOTAL ADDRESSABLE MARK $200K HOUSEHOLD INCOME PROJECTED ANNUAL TOL HOMES TOTAL ADDRESSABLE 575,000 MARKET 20 TOL ANNUALLY REACHES 2.0% of TAM BORELLO RANCH ESTATES | MORGAN HILL, CA
Slide 21: Debt Maturity Profile
DEBT MATURITY PROFILE AS OF JUNE 5, 2025 SUPERIOR ACCESS CAPITAL MARKET Cash & Equivalents $0.69 BN Senior/Corporate Credit Ratings Moody’s Baa2 (Stable) Revolver Availability $2.19 BN Standard & Poor’s BBB- (Positive) Fitch Inc. BBB (Positive) TOTAL LIQUIDITY $2.88 BN $650 $400MM fixed at 1.25%; $2
Slide 22: Appendix
Slide 23: Toll Brothers Financial Highlights
TOLL BROTHERS FINANCIAL HIGHLIGHTS Units 10,231 8,077 5,083 4,957 a = 27% 2% 2023 2024 2024YTD 2025 YTD Dollars ($MM). 10,073 7,908 5,006 4,912 2 os 27% 2% 2023 2024 2024YTD 2025 YTD REVENUE 10,813 4,568 4,890 a 7% 2024 2024YTD 2025 YTD Dollars ($MM) 2023 10,563 2024 4,580 4,548 = 1% 2024YTD 2025 YT
Slide 24: Homes Under Construction
HOMES UNDER CONSTRUCTION Ql Q4 2024 Q12025 2025 Specs: Completed 778 671 745 862 981 1,028 Incomplete 2,256 2,342 2,489 2,664 2,225 2,396 [Total Specs. 3,034 3,013 3,234 3,526 3,206 3,424 Future Homesites, Pre-Footing 1,345 1,499 1,656 1,908 2,663 1,952 Backlog: Pre-footing 1,555 1,416 1,314 1,546 1
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED GROSS MARGIN & EBITDA FY FY 2 FY 2022 FY 2023 FY 2024 YTD FY 2025 Revenues — home sales 6,937,357 8,431,746 9,711,170 9,866,026 10,563,332 4,547,229 Cost of Revenues 5,534,103 6,538,454 7,237,409 7,207,279 7,753,351 3,383,698 Gross Margin 1,403,254 1,893,292 2,473,76