Toll Brothers (TOL) Q1 2026 earnings summary

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.