Toll Brothers, Inc. · NYSE:TOL
Toll Brothers — Q4 2025 Earnings Presentation
27 slides from Toll Brothers's earnings presentation, 2025
Slide 1: Fourth Quarter 2025 Company Overview
TOLL BROTHERS AT TESORO HIGHLANDS | VALENCIA, CA FOURTH QUARTER 2025 COMPANY OVERVIEW
Slide 2: Statement of Forward-Looking Information
STATEMENT OF FORWARD-LOOKING INFORMATION FINANCE & Q4 2025 COMPANY OVERVIEW INVESTOR RELATIONS Information presented herein for the fourth quarter ended October 31, 2025 is subject to finalization of the Company's Any or all of the forward-looking statements included in this release are not guarante
Slide 3: Fundamentals: Supporting Demand
FUNDAMENTALS Q4 2025 COMPANY OVERVIEW 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 yea
Slide 4: Evolution of the Homebuilding Industry
EVOLUTION OF THE HOMEBUILDING INDUSTRY Q4 2025 COMPANY OVERVIEW 4 LARGEST BETTER BUSINESS FOCUSED ON CAPITAL DEMAND FOR SPEC UNDERVALUED PLAYERS ARE MODEL EFFICIENCY IN LAND FAVORS LARGE • Public homebuilders TAKING SHARE ACQUISITION PLAYERS are producing • Greater access to capital • Public homebui
Slide 5: Public Builders Are Gaining Market Share
PUBLIC BUILDERS ARE GAINING MARKET SHARE Q4 2025 COMPANY OVERVIEW 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 70.0% 400,000 55.9% 57.7% 60.0% 5
Slide 6: Industry Is Undersupplied as Households Increase
INDUSTRY IS UNDERSUPPLIED AS HOUSEHOLDS INCREASE Q4 2025 COMPANY OVERVIEW 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
Slide 7: New Home Premium
NEW HOME PREMIUM Q4 2025 COMPANY OVERVIEW THE NEW HOME PREMIUM HAS COMPRESSED FROM HISTORICAL 17% TO 0% IN 2025, MAKING THE VALUE PROPOSITION OF A NEW HOME COMPELLING COMPARED TO A USED HOME 40% NEW HOME PRICE PREMIUM 1969 - 2025 35% 30% 25% 7 20% 15% 10% TOLL BROTHERS 5% 0% 1969 1973 1977 1981 1985
Slide 8: Existing Housing Stock Is Aging
EXISTING HOUSING STOCK IS AGING Q4 2025 COMPANY OVERVIEW 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) 44 42 41 40 8 39 38 37 35 34 TOLL BROTHERS 32 2005 2007 2
Slide 9: National Footprint Positions Toll Brothers for Growth
NATIONAL FOOTPRINT POSITIONS TOLL BROTHERS FOR GROWTH Q4 2025 COMPANY OVERVIEW North 12% of Communities 24 STATES Seattle 15% of Lots Controlled 15% of Revenue 60+ MARKETS Portland Boise Boston Hartford Detroit New York City Long Island Reno Philadelphia Princeton South Bend Sacramento Pacific Salt
Slide 10: America's Luxury Homebuilder: Brand Experience
REGENCY AT AVENIR | PALM BEACH GARDENS, FL Q4 2025 COMPANY OVERVIEW 10 TOLL BROTHERS AMERICA’S LUXURY HOMEBUILDER BRAND EXPERIENCE P R OT E C T I N G , M A I N TA I N I N G , & G R OW I N G T H E TO L L B R OT H E R S B R A N D B U I LT OV E R 5 8 Y E A R S TOLL BROTHERS PRESTIGIOUS DISTINCTIVE U N
Slide 11: Strategy Focused on Driving Shareholder Returns
STRATEGY FOCUSED ON DRIVING SHAREHOLDER RETURNS Q4 2025 COMPANY OVERVIEW 11 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 & pr
Slide 12: Book Value Per Share
BOOK VALUE PER SHARE Q4 2025 COMPANY OVERVIEW $87.41 $76.87 $65.49 $54.79 12 $44.08 $38.53 $35.99 $32.57 $28.82 $26.14 $24.15 $22.02 $19.68 TOLL BROTHERS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 REGENCY AT TEN TRAILS | BLACK DIAMOND, WA PALMETTO COVE | PONTE VEDRA BEACH, FL
Slide 13: Return on Beginning Equity
RETURN ON BEGINNING EQUITY Q4 2025 COMPANY OVERVIEW 24.3% 22.8% 23.1% 17.1% 17.6% 16.5% 13 12.7% 12.4% 10.2% 9.4% 9.0% 8.8% 5.5% TOLL BROTHERS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOLL BROTHERS AT DIX HILLS | DIX HILLS, NY PALMETTO COVE | PONTE VEDRA BEACH, FL
Slide 14: Earnings Per Share
EARNINGS PER SHARE Q4 2025 COMPANY OVERVIEW $15.01 $13.49 $12.36 $10.90 14 $6.63 $4.85 $4.03 $3.17 $3.40 $2.18 TOLL BROTHERS $1.84 $1.97 $0.97 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TRES LAGOS | HOUSTON, TX
Slide 15: Total Shareholder Return
TOTAL SHAREHOLDER RETURN Q4 2025 COMPANY OVERVIEW 314% 294%289% 238% 223% 15 124% 101% 83% 84% 21% TOLL BROTHERS -7% -13% 1-Year 3-Year 5-Year 10-Year Toll Brothers (TOL) Home Construction (ITB) S&P 500 (SPY) TOLL BROTHERS AT MONTAINE | ENGLEWOOD, CO NOTE: As of October 31, 2025, rounded to the near
Slide 16: Revenue Per Share Growth – A Case for Revaluation
REVENUE PER SHARE GROWTH – A CASE FOR REVALUATION Q4 2025 COMPANY OVERVIEW P/E: 9.9x 24x 20x 18x 16x 19x 25x 26x 18% 17% 16% 15% 13% 12% 11% 10% 10% 10% 10% 10% 9% 7% 16 6% 6% 7% 6% 6% 5% 4% 3% 2% 0% TOLL BROTHERS S&P 500 Revenue Per Share - 3 Year CAGR Revenue Per Share - 5 Year CAGR Revenue Per Sh
Slide 17: Earnings Per Share Growth – A Case for Revaluation
EARNINGS PER SHARE GROWTH – A CASE FOR REVALUATION Q4 2025 COMPANY OVERVIEW P/E: 9.9x 24x 20x 18x 16x 19x 25x 26x 32% 27% 23% 21% 19% 17% 17% 16% 16% 12% 13% 13% 17 10% 10% 10% 7% 8% 8% 8% 2% 1% -1% -3% TOLL BROTHERS -5% S&P 500 Earnings Per Share - 3 Year CAGR Earnings Per Share - 5 Year CAGR Earni
Slide 18: Lower Net Debt to EBITDA – A Case for Revaluation
LOWER NET DEBT TO EBITDA – A CASE FOR REVALUATION Q4 2025 COMPANY OVERVIEW FY 2024 P/E: 9.9x 24x 20x 18x 16x 19x 25x 26x 2.9x 2.3x 1.7x 1.5x 1.1x 18 0.7x 0.5x TOLL BROTHERS -0.7x S&P 500 SOURCE: Bloomberg
Slide 19: Stock Repurchase / Dividend Summary
STOCK REPURCHASE / DIVIDEND SUMMARY Q4 2025 COMPANY OVERVIEW 1,400 1,200 1,000 800 Dollars ($MM) 600 19 400 200 0 TOLL BROTHERS -200 202020202020 202120212021 202220222022 202320232023 202420242024 202520252025 FY 2020 2021 2022 2023 2024 2025 Cash Flow from Operations Share Repurchases Dividends De
Slide 20: Consistent Growth & Profitability
CONSISTENT GROWTH & PROFITABILITY Q4 2025 COMPANY OVERVIEW FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenue – 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) $586,901 $1,100,315 $1,703,726 $1,842,371 $2,085,640 $1,791,371 Net Income
Slide 21: Solid Land Positions for Growth
SOLID LAND POSITIONS US FOR GROWTH Q4 2025 COMPANY OVERVIEW FOCUSED ON CAPITAL EFFICIENCY PERCENTAGE OF LOTS OPTIONED VS. OWNED 18,300 Finished Lots at 10/31/25 80,867 76,049 74,719 76,102 70,664 63,182 59,230 55% 50% 21 49% 55% 57% 38% 43% 62% 57% 45% 50% 51% 45% 43% TOLL BROTHERS 2019 2020 2021 20
Slide 22: Total Addressable Market (TAM)
TOTAL ADDRESSABLE MARKET (TAM) Q4 2025 COMPANY OVERVIEW $200K HOUSEHOLD INCOME PROJECTED ANNUAL TOL 11,200 ~575K HOMES Housing transactions with buyers > $200K TOTAL ADDRESSABLE 575 ,0 0 0 MARKET 22 16MM With Income > $200K TOL ANNUALLY 68% growth since 2012 REACHES 2 .0 % o f TA M TOLL BROTHERS BOR
Slide 23: Debt Maturity Profile
DEBT MATURITY PROFILE Q4 2025 COMPANY OVERVIEW AS OF OCTOBER 31, 2025 SUPERIOR ACCESS CAPITAL MARKET Cash & Equivalents $1.26 BN Senior/Corporate Credit Ratings Moody’s Baa2 (Stable) Revolver Availability $2.19 BN Standard & Poor’s BBB (Stable) Fitch Inc. BBB+ (Stable) TOTAL LIQUIDITY $3.45 BN $650
Slide 24: Appendix
APPENDIX
Slide 25: Toll Brothers Financial Highlights
TOLL BROTHERS FINANCIAL HIGHLIGHTS Q4 2024 COMPANY OVERVIEW CONTRACTS REVENUE PROFITABILITY* Units Units Net Income ($MM) 11,292 1,571 10,231 9,943 10,813 8,077 1,372 9,597 1,346 25 27% -3% 13% 4% 15% -14% 2023 2024 2025 2023 2024 2025 2023 2024 2025 Dollars ($MM) Dollars ($MM) Earnings Per Share $1
Slide 26: Homes Under Construction
HOMES UNDER CONSTRUCTION Q4 2025 COMPANY OVERVIEW Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 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 Homes
Slide 27: Non-GAAP Reconciliation: Adjusted Gross Margin & EBITDA
NON-GAAP RECONCILIATION Q4 2025 COMPANY OVERVIEW ADJUSTED GROSS MARGIN & EBITDA FY 2020 FY 2021 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 Margi