Toll Brothers Reports FY 2025 Third Quarter Results

Toll Brothers, Inc. (TollBrothers.com), the nation’s leading builder of luxury homes, announced results for its third quarter ended July 31, 2025.

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

• Net income and earnings per share were $369.6 million and $3.73 per diluted share, compared to net income of $374.6 million and $3.60 per diluted share in FY 2024’s third quarter.
• Pre-tax income was $499.5 million, compared to $503.6 million in FY 2024’s third quarter.
• Home sales revenues were $2.88 billion, up 6% compared to FY 2024’s third quarter; delivered homes were 2,959, up 5%.
• Net signed contract value was $2.41 billion, flat compared to FY 2024’s third quarter; contracted homes were 2,388, down 4%.
• Backlog value was $6.38 billion at third quarter end, down 10% compared to FY 2024’s third quarter; homes in backlog were 5,492, down 19%.
• Home sales gross margin was 25.6%, compared to FY 2024’s third quarter home sales gross margin of 27.4%.
• Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 27.5%, compared to FY 2024’s third quarter adjusted home sales gross margin of 28.8%.
• SG&A, as a percentage of home sales revenues, was 8.8%, compared to 9.0% in FY 2024’s third quarter.
• Income from operations was $487.7 million.
• Other income, income from unconsolidated entities, and gross margin from land sales and other was $15.0 million.
• The Company repurchased approximately 1.8 million shares at an average price of $112.40 per share for a total purchase price of $201.4 million.

Douglas C. Yearley, Jr., chairman and chief executive officer, stated: “We are pleased to report another strong quarter. We delivered 2,959 homes at an average price of $974,000, generating record third quarter home sales revenues of $2.9 billion, a 6% increase over last year. We achieved an adjusted gross margin of 27.5%, or 25 basis points above guidance, and our SG&A margin of 8.8% was 40 basis points better than guidance. We earned $370 million after taxes, or $3.73 per diluted share, and returned $226 million to stockholders through share repurchases and dividends, positioning us for another year of healthy profitability and solid returns.

“We signed 2,388 net contracts for $2.4 billion in our third quarter. The average sales price of new contracts was $1.0 million, up 4.5% year-over-year. Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base. In this environment, we continue to focus on strategically balancing price and pace in order to maximize profitability and returns. Additionally, we are actively managing our spec starts on a community-by-community basis to best match local demand.

“Our financial position remains solid, with significant cash flows and liquidity and a strong balance sheet. We also control sufficient land to support continued community count growth over the next several years, allowing us to be highly selective and disciplined in our land acquisition. As we enter the fourth quarter, we remain focused on executing at a high level, delivering value to our stockholders, and positioning our Company for success in fiscal 2026 and beyond.”

Additional Information:

• The Company ended its FY 2025 third quarter with $852.3 million in cash and cash equivalents, compared to $1.30 billion at FYE 2024 and $686.5 million at FY 2025’s second quarter. At FY 2025 third 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 July 25, 2025, the Company paid its quarterly dividend of $0.25 per share to shareholders of record at the close of business on July 11, 2025.
• Stockholders’ equity at FY 2025 third quarter end was $8.10 billion, compared to $7.67 billion at FYE 2024.
• FY 2025’s third quarter-end book value per share was $83.85 per share, compared to $76.87 at FYE 2024.
• The Company ended its FY 2025’s third quarter with a debt-to-capital ratio of 26.7%, compared to 26.1% at FY 2025’s second quarter end and 27.0% at FYE 2024. The Company ended FY 2025’s third quarter with a net debt-to-capital ratio⁽¹⁾ of 19.3%, compared to 19.8% at FY 2025’s second quarter end, and 15.2% at FYE 2024.
• The Company ended FY 2025’s third quarter with approximately 76,800 lots owned and optioned, compared to 78,600 one quarter earlier, and 72,700 one year earlier. Approximately 43% or 32,800, of these lots were owned, of which approximately 19,000 lots, including those in backlog, were substantially improved.
• In the third quarter ended July 31, 2025, the Company spent approximately $432.7 million on land to purchase approximately 2,755 lots.
• The Company ended FY 2025’s third quarter with 420 selling communities, compared to 421 at FY 2025’s second quarter end and 404 at FY 2024’s third quarter end.

For full results click here.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 57 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.

In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World’s Most Admired Companies™ list and 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).

Source: Toll Brothers, Inc.