Toll Brothers
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Toll Brothers (TOL) investor relations material

Toll Brothers Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary18 Feb, 2026

Executive summary

  • Q1 2026 net income rose 19% to $210.9 million ($2.19 per diluted share), with revenues of $2.15 billion, up 15% year-over-year, driven by higher home prices and a major asset sale.

  • Home sales revenue was $1.85 billion on 1,899 homes delivered, with net contracts flat in units but up 3% in value and average sales price increasing to $1,033,000.

  • Backlog value declined 13% to $6.02 billion (5,051 homes), but average price per home rose 8%.

  • Completed sale of about half the Apartment Living portfolio for $330 million, with plans to exit multifamily development.

  • Leadership transition announced: Karl Mistry to become CEO, Douglas Yearley moving to executive chairman.

Financial highlights

  • Adjusted gross margin was 26.5%, with SG&A at 13.9% of home sales revenue; effective tax rate was 22.9%.

  • Joint venture, land sales, and other income reached $72 million, including gains from the Apartment Living sale.

  • Cash and cash equivalents at quarter-end were $1.2 billion, with $2.2 billion available under the revolving credit facility.

  • Debt-to-capital ratio improved to 24.4%, net debt-to-capital to 14.2%.

  • Book value per share at quarter-end was $88.73.

Outlook and guidance

  • Q2 deliveries projected at 2,400–2,500 homes, average price $975,000–$985,000; full-year deliveries 10,300–10,700 homes, average price $970,000–$990,000.

  • Adjusted gross margin guidance: 25.5% for Q2, 26.0% for full year; SG&A expected at 10.7% for Q2, 10.25% for full year.

  • Community count expected to grow to 480–490 by year-end.

  • Management expects subdued near-term demand due to affordability, with normal seasonal trends anticipated to lift Q2 demand; long-term outlook remains positive.

Future impact of Apartment Living exit
Explain 'Other Income' guidance variability
Backlog decline despite stable contracts?
Spec strategy if demand softens
Homebuilding innovation challenges
Land opportunities in strong regions
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Frequently asked questions

Toll Brothers, Inc., designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities throughout the United States. The company offers luxury single-family homes designed with architectural distinction for leisure-time pursuits, including golf and boating. It also offers high-rise condominium buildings in urban neighborhoods; as well as residences in suburban planned developments and active adult communities. In addition, the company provides home warranty services to buyers; and sells home furnishings through a network of independent furniture stores. Toll Brothers, Inc is based in Fort Washington, Pennsylvania.

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