Toll Brothers (TOL) Q4 2025 earnings summary

Executive summary

• Delivered 11,292 homes in fiscal 2025, a record, with $10.84 billion in home sales revenue, up 4% in units and 3% in dollars year-over-year; Q4 home sales revenue was $3.41 billion.

• Adjusted gross margin was 27.3% for the year, with an SG&A margin of 9.5% and EPS of $13.49; Q4 adjusted gross margin was 27.1% and SG&A margin was 8.3%.

• Exited the multifamily business, selling about half of the Apartment Living portfolio to Kennedy Wilson for $380 million, with plans for a full exit over several years.

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

Financial highlights

• Full-year net income was $1.35 billion and $13.49 per diluted share, down from $1.57 billion and $15.01 last year; Q4 net income was $446.7 million ($4.58 per share), down from $475.4 million ($4.63 per share) a year ago.

• Operating cash flow was $1.1 billion for the year; liquidity at year-end was over $3.5 billion, including $1.3 billion in cash.

• Net debt-to-capital ratio was 15.3% at year-end; Q4 debt-to-capital ratio was 26.0%.

• Book value per share at Q4 end was $87.25, up from $76.87 a year ago.

Outlook and guidance

• Fiscal 2026 guidance: 10,300–10,700 home deliveries, average price $970,000–$990,000; adjusted gross margin expected at 26.0%; SG&A projected at 10.25% of revenue.

• 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%.

• $650 million in share repurchases planned for 2026, mostly in the second half; community count expected to grow 8%-10% by year-end 2026.