1. Toll Brothers' Q4 net income fell to $446.7 million from $475.4 million. 2. Home sales revenue rose to $3.41 billion, marking a year-over-year increase. 3. Backlog decreased to $5.5 billion, indicating potential future revenue challenges. 4. Significant share repurchase of 1.8 million shares reinforces capital return strategy. 5. Toll Brothers remains positive for FY 2026, targeting 8% to 10% growth.
FAQ
Why Neutral?
While earnings reflect solid revenue, declining backlogs suggest future sales uncertainties.
How important is it?
Given the mixed results, investors may reassess TOL's growth potential, affecting market sentiment.
Why Long Term?
Continuing declining backlogs will influence revenue for upcoming quarters and years.
Toll Brothers Reports Strong FY 2025 Fourth Quarter Results
FORT WASHINGTON, Pa., Dec. 08, 2025 — Toll Brothers, Inc. (NYSE: TOL), the leading builder of luxury homes in the United States, has announced its financial results for the fourth quarter ended October 31, 2025. The data reflects a robust performance for the company, despite market challenges.
Fourth Quarter Financial Highlights
- Pre-tax income: $593.0 million (FY 2025) vs. $621.1 million (FY 2024)
- Home sales revenues: $3.41 billion (FY 2025) vs. $3.26 billion (FY 2024)
- Delivered homes: 3,443 units (FY 2025) vs. 3,431 units (FY 2024)
- Net signed contract value: $2.53 billion (FY 2025) vs. $2.66 billion (FY 2024)
- Backlog value: $5.5 billion vs. $6.5 billion at FY 2024 end
- Homes in backlog: 4,647 (FY 2025) vs. 5,996 (FY 2024)
- Home sales gross margin: 25.5% (FY 2025) vs. 26.0% (FY 2024)
- Adjusted home sales gross margin: 27.1% (FY 2025) vs. 27.9% (FY 2024)
Full FY 2025 Financial Overview
For the entirety of FY 2025, Toll Brothers reported net income of $1.35 billion, translating to earnings per diluted share of $13.49. In comparison, FY 2024 figures were $1.57 billion in net income with earnings of $15.01 per diluted share. Notable comparisons include:
- Pre-tax income: $1.79 billion (FY 2025) vs. $2.09 billion (FY 2024)
- Home sales revenues: $10.84 billion (FY 2025) vs. $10.56 billion (FY 2024)
- Delivered homes: 11,292 units (FY 2025) vs. 10,813 units (FY 2024)
- Net signed contract value: $9.85 billion (FY 2025) vs. $10.07 billion (FY 2024)
- Home sales gross margin: 25.6% (FY 2025) vs. 26.6% (FY 2024)
- Adjusted home sales gross margin: 27.3% (FY 2025) vs. 28.4% (FY 2024)
Strategic Sale and Future Guidance
In a strategic move, Toll Brothers announced on September 18, 2025, an agreement to sell approximately half of its Apartment Living portfolio to Kennedy Wilson for $380 million. This agreement seeks to enhance capital efficiency as the company exits the multifamily development sector.
Douglas C. Yearley, Jr., chairman and CEO, commented on the results, stating: “Fiscal 2025 proved to be another strong year for Toll Brothers. We delivered 11,292 homes at an average price of $960,000, generating a record $10.8 billion of home sales revenues.” Looking forward, the company anticipates deliveries of between 1,800 - 1,900 units for the first quarter and 10,300 - 10,700 units for the full fiscal year of 2026.
Conclusion and Investor Confidence
Toll Brothers continues to demonstrate resilience in a fluctuating market with a robust portfolio and disciplined business practices. With a focus on maximizing shareholder returns and a healthy liquidity position, the company is set to navigate through potential market challenges effectively.
For further information, please visit TollBrothers.com and stay updated with the stock symbol TOL.