Toll Brothers shares rose 8.4% following a quarter that beat expectations on orders, revenue, and margins, driven by continued strength in their luxury home segment and successful geographic expansion despite a challenging broader market.
- Reported revenue of $2.5 billion, approximately $110 million above the midpoint of guidance.
- Adjusted gross margin improved 70 basis points versus guidance to 26.2%.
- Signed 2,834 net agreements, up 7% in units and 8% in dollar value year-over-year.
- Expanded selling communities to 459, up from 421 a year ago, with plans for further growth including the recent acquisition of Buffington Homes in Northwest Arkansas.
- Geographic demand mixed: Florida, Boston, and several Mountain and Southern markets performed well; weaker demand noted in Atlanta, San Antonio, Seattle, Portland, and San Francisco.
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