Toll Brothers, Inc. · NYSE:TOL
Toll Brothers — Investor Presentation (February 2025)
25 slides from Toll Brothers's investor presentation, February 2025
Slide 1: 2025 Company Overview
2025 COMPANY OVERVIEW Toll Brothers AMERICA'S LUXURY HOME BUILDER
Slide 2: Forward-Looking Statements
Information presented herein for the first quarter ended January 31, 2025 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures. This release contains or may contain forward-looking statements within the
Slide 3: Factors Supporting Demand
FACTORS 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 high
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 FY 2024* *Source: Zonda BETTER BUSINESS MODEL * Greater access to capital & labor * Higher bargaining power with suppliers FOCUSED ON CAPITAL EFFICIENCY I
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 PUBLIC AND PRIVATE HOMEBUILDER CLOSINGS AND PUBLIC HOMEBUILDER SHARE, 2005-2024 1,600,000 cox 53% 1,400,000 50% 50% 1,200,000 , - 2 37%
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 North 9% of Communities 12% of Lots Controlled 14% of Revenue 24. STATES 60+ markets Portland m > > z < a = @ Boise Boston e © Hartfora Detroit @q.New York City - ad Long Island o 0 Philadelphia Princeton Sacramento Ve) ° South Ba Pacific San Fra
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 * — Optimized product + Using land banking, JVs, rolling ~50% since 2016 * — Expanded product & price points takedowns, & s
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 Q1 2025
Slide 14: Earnings Per Share
EARNINGS PER SHARE 4 $15.01 = ” WY i> $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 TRES LAGOS | HOWSION, TX
Slide 15: Total Shareholder Return
TOTAL SHAREHOLDER RETURN & 346% . 330% z a = 260% sl 225% 3 15 139% 133% 102% 55% 38% 40% 2 26% wi 8% a 1-Year 3-Year 5-Year 10-Year “ TOLL =Toll Brothers (TOL) | ™ Home Construction (ITB) S&P 500 (SPY) *NOTE: As of January 31, 2025, rounded to the nearest whole number
Slide 16: Stock Repurchase / Dividend Summary
STOCK REPURCHASE / DIVIDEND SUMMARY q \ tee | | 1,400 “Y — N | 1200 : 1,000 = 800 & 2 8 % 600 a 400 200 0) 2020 2021 2022 2023 2024 m= Cash Flow from Operations mShare Repurchases mDividends ms Debt Retirement RETREATAAT MCLEAN | MCLEAN, VA
Slide 17: Since 2016 We Have Repurchased ~50% of Our Shares
SINCE 2016 WE HAVE REPURCHASED ~50% OF OUR SHARES WHICH IS 88 MILLION SHARES AT A $48 9 AVERAGE PRICE. WE HAVE ALSO PAID 2 7 $595 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 Us for Growth
SOLID LAND POSITIONS US FOR GROWTH FOCUSED ON CAPITAL EFFICIENCY IN OUR OWNED PORTFOLIO PERCENTAGE OF LOTS OPTIONED VS. OWNED 80,867 76,049 7a.n9 77.74 70,664 63,182 59,230 2019 2020 2021 2022 2023 2024 Q1 2025 ms Owned Optioned = + -Avg. Owned AT FYE LEGACY AT SEVILLE | MESA, AZ
Slide 20: Total Addressable Market
TOTAL ADDRESSABLE MARK $200K HOUSEHOLD INCOME TT 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 FEBRUARY 7, 2025 SUPERIOR ACCESS CAPITAL MARKET Senior/Corporate Credit Ratings Moody’s Baa3_ (Positive) Standard & Poor’s BBB- (Positive) Fitch Inc. BBB (Positive) FYE 2025 2026 2027 2028 mPublic Debt = Bank Debt* *NOTE: Bank debt includes our $650MM term loan due Februa
Slide 22: Appendix
Slide 23: Toll Brothers Financial Highlights
TOLL BROTHERS FINANCIAL HIGHLIGHTS CONTRACTS REVENUE PROFITABILITY* Units Units Net Income ($MM) 10,813 10,231 9,597 1571 8,077 1,372 ” ad | od a = 27% 13% 13% 3% 15% -26% 2,307 2,042 1927. 1,991 240 ve | _| |_| | | i = 2023 2024 2024 YTD 2025 YTD 2023 2024 2024 YTD 2025 YTD 2023 2024 2024 YTD 2025
Slide 24: Spec Inventory
SPEC INVENTORY Q12023. =Q2 2023 Q3 2023 Q42023 Q12024 @22024 Q32024 Q42024 Specs: Under Construction 1,999 1,837 1,951 2,158 2,256 2,342 2,489 2,664 2,225 Completed AI6 353 474 663 778 671 745 862 981 [Total Specs 2,415 2,190 2,425 2,821 3,034 3,013 3,234 3,526 3,206 Pre-Footing 812 1,248 1,258 1,57
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ADJUSTED GROSS MARGIN & EBITDA FY FY 2 FY 2022 FY 2023 FY 2024 QI FY 2025 Revenues — home sales 6,937,357 8,431,746 9,711,170 9,866,026 10,563,332 1,840,776 Cost of Revenues 5,534,103 6,538,454 7,237,409 7,207,279 7,753,351 1,381,480 Gross Margin 1,403,254 1,893,292 2,473,761
Toll Brothers — Investor Presentation (February 2025) on 6ix