Toll Brothers (TOL) Q4 2025 earnings summary

Executive summary

• Delivered 11,292 homes in fiscal 2025, a 4% increase year-over-year, with record home sales revenue of $10.84 billion, up from $10.56 billion in FY 2024.

• Adjusted gross margin for the year was 27.3%, with an SG&A margin of 9.5% and earnings of $13.49 per diluted share.

• Fourth quarter home sales revenue reached $3.41 billion, with an adjusted gross margin of 27.1% and SG&A margin of 8.3%.

• Backlog value at Q4 end was $5.5 billion (4,647 homes), down from $6.5 billion (5,996 homes) a year ago.

• Exited the multifamily business, with proceeds to be used for core home building growth and shareholder returns.

Financial highlights

• Fourth quarter net income was $446.7 million ($4.58 per diluted share), compared to $475.4 million ($4.63 per share) a year ago.

• Full-year net income was $1.35 billion ($13.49 per share), down from $1.57 billion ($15.01 per share) last year; prior year included a $124 million one-time gain.

• Generated $1.1 billion in operating cash flow and ended the year with $3.5 billion in liquidity.

• Repurchased $652 million in shares and paid $97 million in dividends in fiscal 2025.

• Income from operations was $1.72 billion for FY 2025.

Outlook and guidance

• Fiscal 2026 guidance: 10,300–10,700 home deliveries at an average price of $970,000–$990,000.

• Adjusted gross margin expected at 26% for the year; SG&A projected at 10.25% of home sales revenue.

• $650 million in share repurchases planned for 2026, mostly in the second half.

• Community count expected to grow 8–10% by year-end 2026, with period-end count of 480–490.

• Q1 FY 2026 guidance: 1,800–1,900 deliveries at $985,000–$995,000 average price; adjusted gross margin of 26.25%; SG&A at 14.2%.