Toll Brothers (TOL) investor relations material

Executive summary

• Q2 FY 2026 net income was $260.6 million ($2.72 per diluted share), down from $352.4 million ($3.50 per share) year-over-year, with revenues of $2.51–$2.53 billion on 2,491 homes delivered, compared to $2.71 billion and 2,899 homes in Q2 FY 2025.

• Net signed contract value rose to $2.81 billion (2,834 homes), up from $2.60 billion (2,650 homes) year-over-year, with orders increasing 7% in units and 8% in dollars.

• Backlog at April 30, 2026 was $6.32 billion (5,394 homes), down 8% in value and 11% in units year-over-year, but average backlog price per home increased 4%.

• Maintained a national footprint with 459 communities and 76,804 lots controlled as of April 30, 2026.

• Focused on affluent, resilient luxury home buyers, leveraging nearly 60 years of expertise and capital efficiency.

Financial highlights

• Q2 2026 home sales revenue was $2.51 billion, down 7% year-over-year; adjusted gross margin was 26.2%, down from 27.5% year-over-year.

• SG&A as a percentage of home sales revenue was 10.3%, up from 9.5% year-over-year.

• Net income for Q2 2026 was $260.6 million, with diluted EPS of $2.72, compared to $3.50 in Q2 2025.

• FY 2025 home sales revenue was $10.84 billion, net income $1.35 billion, EBITDA $1.99 billion, and diluted EPS $13.49.

• Book value per share at quarter-end was $90.51, up from $87.25 at FYE 2025.

Outlook and guidance

• Raised full-year FY 2026 guidance: 10,400–10,700 deliveries, average price $985,000–$1,000,000, adjusted gross margin 26.10%, SG&A 10.10%.

• Q3 FY 2026 guidance: 2,600–2,700 deliveries, average price $965,000–$985,000, adjusted gross margin 25.25%, SG&A 10.0%.

• Management expects near-term softness in new home demand due to affordability pressures and weak consumer confidence, but long-term outlook remains positive due to favorable demographics and structural undersupply.

• Full-year adjusted gross margin guidance increased to 26.1%; SG&A margin guidance improved to 10.1%.

• Targeting $650 million in share repurchases for fiscal 2026.