Toll Brothers, Inc. Q4 2025 Earnings Recap

Toll Brothers achieved strong fiscal year 2025 results, delivering 11,292 homes and generating record home sales revenue of $10.8 billion, despite a challenging sales environment.

Key Takeaways

• Delivered homes grew by 4% in units and 3% in revenue compared to the prior year, with an average home price of $960,000.
• Adjusted gross margin remained robust at 27.3%, with earnings of $13.49 per diluted share.
• Sales fundamentals remain solid, with 2,598 net agreements signed in Q4 and favorable demographic trends supporting long-term housing demand.
• Strong liquidity position with $1.1 billion in operating cash flows and $750 million returned to shareholders via buybacks and dividends.
• Spec homes accounted for approximately 54% of deliveries, enhancing appeal and flexibility for buyers.