Toll Brothers (TOL) investor relations material

Executive summary

• Delivered strong Q2 results, exceeding guidance on revenue and EPS, with robust margins despite a challenging demand environment.

• Net income for Q2 FY 2026 was $260.6 million ($2.72 per diluted share), down from $352.4 million ($3.50 per share) year-over-year.

• Orders increased 7% year-over-year, with net signed contract value rising to $2.81 billion (2,834 homes).

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

• Leadership transition announced, with Seth Ring succeeding Rob Parahus as President and COO.

Financial highlights

• Q2 2026 home sales revenue was $2.51 billion on 2,491 homes delivered, with an average price of $1,009,000.

• Adjusted gross margin for Q2 2026 was 26.2%, with SG&A expense at 10.3% of revenue.

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

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

• Cancellation rate was 2.9% of beginning backlog, industry-low and stable year-over-year.

Outlook and guidance

• Raised full-year FY 2026 guidance for all key home building metrics based on year-to-date performance.

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

• 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%.

• Full-year adjusted gross margin guidance increased to 26.1%; Q3 margin projected at 25.25%, Q4 at 26.3%.

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