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Toll Brothers reported solid financial results for Q4 2025, delivering 3,443 homes and generating $3.4 billion in revenue, flat in units but up 5% in dollars YoY. For the full year, the company delivered 11,292 homes, driving $10.8 billion in home sales revenue. Despite softer market conditions, Toll Brothers maintained a robust adjusted gross margin and operating margin. Strategic initiatives include the planned exit from the multifamily sector, reflecting a focus on core homebuilding. The company provided cautious guidance for FY2026, projecting 10,300 to 10,700 home deliveries, with an average sales price between $970,000 and $990,000. While market uncertainties linger, Toll Brothers remains focused on serving affluent buyers and optimizing operational efficiencies through speculative home builds. During the Q&A session, analysts questioned the company's assumptions around land strategy and speculative builds. Management reaffirmed commitment to cautious land acquisitions and highlighted the strength in their active adult segment, indicating strategic resilience despite broader market challenges.
Toll Brothers delivered 11,292 homes at an average price of $960,000, generating $10.8 billion in home sales revenue.
Toll Brothers met or exceeded guidance with $3.4 billion in home sales revenue in Q4, despite a challenging sales environment.
Toll Brothers achieved a record year despite starting with fewer homes in backlog, demonstrating business resilience.
Average spend on design upgrades in Q4 was $206,000 per home, boosting margins.
Toll Brothers repurchased 5% of its shares in FY2025, a part of its capital allocation strategy.
Home Sales Revenue
$3.4 billion
+5% YoY
Homes Delivered
3,443 homes
flat YoY
Net Income
$446.7 million
-6% YoY
Earnings Per Diluted Share
$4.58
compared to $4.63 YoY
Home Sales Revenue FY2025
$10.8 billion
+2.6% YoY