Toll Brothers Reports FY 2025 Fourth Quarter Results

Skyline by Toll Brothers in Summit at Orchard Hills

FORT WASHINGTON, Pa., Dec. 08, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its fourth quarter ended October 31, 2025.

FY 2025’s Fourth Quarter Financial Highlights (Compared to FY 2024’s Fourth Quarter):

• Net income was $446.7 million and earnings per diluted share were $4.58 compared to net income of $475.4 million and earnings of $4.63 per diluted share in FY 2024’s fourth quarter.

• Pre-tax income was $593.0 million compared to $621.1 million in FY 2024’s fourth quarter.

• Home sales revenues were $3.41 billion compared to $3.26 billion in FY 2024’s fourth quarter; delivered homes were 3,443 compared to 3,431 in FY 2024’s fourth quarter.

• Net signed contract value was $2.53 billion compared to $2.66 billion in FY 2024’s fourth quarter; contracted homes were 2,598 compared to 2,658.

• Backlog value was $5.5 billion at fourth quarter end compared to $6.5 billion at FY 2024’s fourth quarter end; homes in backlog were 4,647 compared to 5,996.

• Home sales gross margin was 25.5%, compared to FY 2024’s fourth quarter home sales gross margin of 26.0%.

• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 27.1% compared to FY 2024’s fourth quarter adjusted home sales gross margin of 27.9%.

• SG&A, as a percentage of home sales revenues, was 8.3% compared to 8.3% in FY 2024’s fourth quarter.

• Income from operations was $564.1 million.

• Other income, income from unconsolidated entities, and gross margin from land sales and other was $6.0 million.

• The Company repurchased approximately 1.8 million shares at an average price of $139.39 per share for a total purchase price of $249.1 million.

• On September 18, 2025, the Company announced an agreement to sell its interests in approximately half of its Apartment Living portfolio, along with its operating platform, to Kennedy Wilson. The purchase price for the acquired assets is now $380 million, reflecting ongoing investments since the September announcement. As part of the transaction, which is now expected to be completed in the first quarter of FY 2026, Kennedy Wilson has agreed to assume the Company’s management responsibilities for its retained interests. The Company intends to sell these remaining interests and exit the multifamily development business.

Full FY 2025 Financial Highlights (Compared to Full FY 2024):

• Net income was $1.35 billion and earnings per diluted share were $13.49, compared to net income of $1.57 billion and earnings of $15.01 per diluted share in FY 2024.

• FY 2024 net income and earnings per diluted share included $124.1 million and $1.19, respectively, related to the sale of a parcel of land to a commercial developer. Excluding this gain, net income and earnings per diluted share were $1.45 billion and $13.82 in FY 2024.

• Pre-tax income was $1.79 billion, compared to $2.09 billion in FY 2024.

• Home sales revenues were $10.84 billion compared to $10.56 billion in FY 2024; delivered homes were 11,292 compared to 10,813.

• Net signed contract value was $9.85 billion compared to $10.07 billion in FY 2024; contracted homes were 9,943 compared to 10,231.

• Home sales gross margin was 25.6%, compared to FY 2024’s home sales gross margin of 26.6%.

• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 27.3%, compared to FY 2024’s adjusted home sales gross margin of 28.4%.

• SG&A, as a percentage of home sales revenues, was 9.5% compared to 9.3% in FY 2024.

• Income from operations was $1.72 billion.

• Other income, income from unconsolidated entities, and gross margin from land sales and other was $52.5 million.

• The Company repurchased approximately 5.4 million shares at an average price of $120.44 per share for a total purchase price of $651.6 million.
  

Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “Fiscal 2025 proved to be another strong year for Toll Brothers, as we executed well in a choppy environment. We delivered 11,292 homes at an average price of $960,000, generating a record $10.8 billion of home sales revenues, and posted an adjusted gross margin of 27.3%, an SG&A margin of 9.5%, and earnings of $13.49 per diluted share. We grew our community count by 9%, continued to produce strong operating cash flows of $1.1 billion, returned approximately $750 million to stockholders through share repurchases and dividends, and generated a return on beginning equity of 17.6%. In our fourth quarter, we met or exceeded guidance across all of our core home building metrics, generating $3.4 billion in home sales revenue with an adjusted gross margin of 27.1% and an SG&A margin of 8.3%. We earned $4.58 per diluted share, which was modestly below guidance due to the delayed closing of the sale of our Apartment Living business that we announced in September.

“Given soft demand across many markets, we remain focused on running our business in a disciplined manner and consistent with our long-term strategic objective of maximizing returns for stockholders. We continue to balance price and pace and are actively managing our spec starts and inventory on a community-by-community basis to best match local demand conditions. We control sufficient land to support continued community count growth over the next several years, including 8% to 10% growth in fiscal 2026, and we remain highly disciplined and selective in new land acquisition as we continue to focus on capital efficiency.

“Our fourth quarter and full year results demonstrate that our luxury business is differentiated, as we serve a more affluent customer who is less impacted by affordability pressures. These results also underscore the resilience of our business model, which includes a healthy balance of build-to-order and spec homes, a broad geographic footprint, the widest variety of home offerings and price points in the industry, and improved operating efficiency. Combined with our tremendous luxury brand, solid balance sheet, healthy liquidity and premier land holdings, we are well positioned to deliver strong financial results, achieve long-term growth and continue returning capital to stockholders.”

Additional Information:

• The Company ended its FY 2025 fourth quarter with $1.26 billion in cash and cash equivalents, compared to $1.30 billion at FYE 2024 and $852.3 million at FY 2025’s third quarter. At FY 2025 fourth quarter end, the Company also had $2.19 billion available under its $2.35 billion senior unsecured revolving credit facility.

• In June 2025, the Company issued $500.0 million of 5.600% senior notes due June 15, 2035 and, in July 2025, redeemed its $350.0 million of 4.875% senior notes due November 15, 2025.

• On October 24, 2025, the Company paid its quarterly dividend of $0.25 per share to shareholders of record at the close of business on October 10, 2025.

• Stockholders’ equity at FY 2025 fourth quarter end was $8.27 billion, compared to $7.67 billion at FYE 2024.

• FY 2025’s fourth quarter-end book value per share was $87.25 per share, compared to $76.87 at FYE 2024.

• The Company ended its FY 2025’s fourth quarter with a debt-to-capital ratio of 26.0%, compared to 26.7% at FY 2025’s third quarter end and 27.0% at FYE 2024. The Company ended FY 2025’s fourth quarter with a net debt-to-capital ratio⁽¹⁾ of 15.3%, compared to 19.3% at FY 2025’s third quarter end, and 15.2% at FYE 2024.

• The Company ended FY 2025’s fourth quarter with approximately 76,100 lots owned and optioned, compared to 76,800 one quarter earlier, and 74,700 one year earlier. Approximately 43% or 33,000, of these lots were owned, of which approximately 18,300 lots, including those in backlog, were substantially improved.

• In the fourth quarter ended October 31, 2025, the Company spent approximately $580.0 million on land to purchase approximately 3,214 lots.

• The Company ended FY 2025’s fourth quarter with 446 selling communities, compared to 420 at FY 2025’s third quarter end and 408 at FY 2024’s fourth quarter end.
  

(1) See “Reconciliation of Non-GAAP Measures” below for more information on the calculation of the Company’s net debt-to-capital ratio.

Toll Brothers will be broadcasting live via the Investor Relations section of its website, investors.TollBrothers.com, a conference call hosted by chairman and chief executive officer Douglas C. Yearley, Jr. at 8:30 a.m. (ET) Tuesday, December 9, 2025, to discuss these results and its outlook for the first quarter and FY 2026. To access the call, enter the Toll Brothers website, click on the Investor Relations page, and select “Events & Presentations.” Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software.

The call can be heard live with an online replay which will follow.

ABOUT TOLL BROTHERS
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 58 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.

Toll Brothers has been one of Fortune magazine's World’s Most Admired Companies™ for 10+ years in a row, and in 2024 the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).

From Fortune, ©2025 Fortune Media IP Limited. All rights reserved. Used under license.

FORWARD-LOOKING STATEMENTS

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 release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” “likely,” “will,” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: market conditions; mortgage rates; inflation rates; demand for our homes; our build- to-order and quick move-in home strategy; sales paces and prices; effects of home buyer cancellations; our strategic priorities; growth and expansion; our land acquisition, land development and capital allocation priorities; anticipated operating results; home deliveries; financial resources and condition; changes in revenues, profitability, margins and returns; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; selling, general and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; the outcome of legal proceedings, investigations, and claims; management succession plans; and the impact of public health or other emergencies.

Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:

• the effect of general economic conditions, including employment rates, housing starts, inflation rates, interest and mortgage rates, availability of financing for home mortgages and strength of the U.S. dollar;

• market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;

• the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land;

• access to adequate capital on acceptable terms;

• geographic concentration of our operations;

• levels of competition;

• the price and availability of lumber, other raw materials, home components and labor;

• the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;

• the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, unavailability of insurance, and shortages and price increases in labor or materials associated with such natural disasters;

• risks arising from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19;

• federal and state tax policies;

• transportation costs;

• the effect of land use, environment and other governmental laws and regulations;

• legal proceedings or disputes and the adequacy of reserves;

• risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;

• the effect of potential loss of key management personnel or unsuccessful management transitions;

• changes in accounting principles;

• risks related to unauthorized access to our computer systems, theft of our and our homebuyers’ confidential information or other forms of cyber-attack; and

• other factors described in “Risk Factors” included in our Annual Report on Form 10-K for the year ended October 31, 2024 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).
  

Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

Inventory at October 31, 2025 and October 31, 2024 consisted of the following (amounts in thousands)

(1) Includes the allocated land and land development costs associated with each of our model homes in operation.

Toll Brothers operates in the following five geographic segments, with operations generally located in the states listed below:

• North: Connecticut, Delaware, Massachusetts, Michigan, New Jersey, New York and Pennsylvania

• Mid-Atlantic: Georgia, Maryland, North Carolina, Tennessee and Virginia

• South: Florida, South Carolina and Texas

• Mountain: Arizona, Colorado, Idaho, Nevada and Utah

• Pacific: California, Oregon and Washington
  
  

Note: Due to rounding, amounts in the geographic tables may not add.

RECONCILIATION OF NON-GAAP MEASURES

This press release contains, and Company management’s discussion of the results presented in this press release may include, information about the Company’s adjusted home sales gross margin, adjusted net income, adjusted diluted earnings per share and the Company’s net debt-to-capital ratio.

These four measures are non-GAAP financial measures which are not calculated in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures should not be considered a substitute for, or superior to, the comparable GAAP financial measures, and may be different from non-GAAP measures used by other companies in the home building business.

The Company’s management considers these non-GAAP financial measures as we make operating and strategic decisions and evaluate our performance, including against other home builders that may use similar non-GAAP financial measures. The Company’s management believes these non-GAAP financial measures are useful to investors in understanding our operations and leverage and may be helpful in comparing the Company to other home builders to the extent they provide similar information.

Adjusted Home Sales Gross Margin
The following table reconciles the Company’s home sales gross margin as a percentage of home sales revenues (calculated in accordance with GAAP) to the Company’s adjusted home sales gross margin (a non-GAAP financial measure). Adjusted home sales gross margin is calculated as (i) home sales gross margin plus interest recognized in home sales cost of revenues plus inventory write-downs recognized in home sales cost of revenues divided by (ii) home sales revenues.

The Company’s management believes adjusted home sales gross margin is a useful financial measure to investors because it allows them to evaluate the performance of our home building operations without the often varying effects of capitalized interest costs and inventory impairments. The use of adjusted home sales gross margin also assists the Company’s management in assessing the profitability of our home building operations and making strategic decisions regarding community location and product mix.

Forward-looking Adjusted Home Sales Gross Margin
The Company has not provided projected first quarter and full FY 2026 home sales gross margin or a GAAP reconciliation for forward-looking adjusted home sales gross margin because such measure cannot be provided without unreasonable efforts on a forward-looking basis, since inventory write-downs are based on future activity and observation and therefore cannot be projected for the first quarter and full FY 2026. The variability of these charges may have a potentially unpredictable, and potentially significant, impact on our first quarter and full FY 2026 home sales gross margin.

Adjusted Net Income and Diluted Earnings Per Share Reconciliation

The following table reconciles the Company’s net income and earnings per share (calculated in accordance with GAAP) to the Company’s adjusted net income and diluted earnings per share (a non-GAAP financial measure).

Net Debt-to-Capital Ratio
The following table reconciles the Company’s ratio of debt to capital (calculated in accordance with GAAP) to the Company’s net debt-to-capital ratio (a non-GAAP financial measure). The net debt-to-capital ratio is calculated as (i) total debt minus mortgage warehouse loans minus cash and cash equivalents divided by (ii) total debt minus mortgage warehouse loans minus cash and cash equivalents plus stockholders’ equity.

Net Debt-to-Capital Ratio Reconciliation
(Amounts in thousands, except percentages)

The Company’s management uses the net debt-to-capital ratio as an indicator of its overall leverage and believes it is a useful financial measure to investors in understanding the leverage employed in the Company’s operations.

CONTACT: Gregg Ziegler (215) 478-3820
gziegler@tollbrothers.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ce9da094-db46-4d95-a4cf-dab836fdb08e