Toll Brothers (TOL) Q1 2026 earnings summary

Executive summary

• Net income rose to $210.9 million ($2.19 per diluted share), up 19% year-over-year, with EPS surpassing guidance by $0.05.

• Home sales revenues were $1.85 billion on 1,899 homes delivered, exceeding guidance by $24 million and nearly flat versus prior year.

• Net signed contract value increased 3% to $2.38 billion, with average sales price up to $1,033,000; units flat year-over-year.

• Backlog value declined to $6.02 billion (5,051 homes), down from $6.94 billion (6,312 homes) year-over-year.

• Leadership transition announced: Karl Mistry to become CEO on March 30, with Douglas Yearley moving to executive chairman.

Financial highlights

• Adjusted gross margin was 26.5%, 25 bps above guidance; SG&A margin was 13.9%, 30 bps better than guidance.

• Pre-tax income was $273.6 million, up from $221.4 million year-over-year.

• Joint venture, land sales, and other income reached $72 million, driven by a major apartment portfolio sale.

• Average delivered home price was $977,000, below guidance due to mix shift toward lower-priced specs.

• Ended quarter with $1.20 billion in cash and $2.20 billion available under revolving credit facility.

Outlook and guidance

• Q2 2026 deliveries projected at 2,400–2,500 homes, average price $975,000–$985,000.

• Full-year 2026 guidance: 10,300–10,700 deliveries, average price $970,000–$990,000, adjusted gross margin 26.0%.

• SG&A expected at 10.7% of revenue in Q2 and 10.25% for the year.

• Community count targeted to grow 8%-10% by year-end, reaching 480–490 communities.

• Management expects near-term housing demand to remain subdued due to affordability challenges, with normal seasonal trends anticipated to lift demand in Q2.