Toll Brothers Reports Strong Q2 2025 Results

Toll Brothers Inc. ( (TOL) ) has released its Q2 earnings. Here is a breakdown of the information Toll Brothers Inc. presented to its investors.

Toll Brothers, Inc., a leading builder of luxury homes in the United States, operates in the residential construction industry, offering a diverse range of luxury homes and communities across 24 states. The company is known for its high-end homes and has been recognized as one of Fortune magazine’s World’s Most Admired Companies.

In its fiscal year 2025 second-quarter earnings report, Toll Brothers reported a net income of $352.4 million, or $3.50 per diluted share, which is a decrease from the previous year’s second quarter. Despite a challenging demand environment, the company achieved record home sales revenues of $2.71 billion, surpassing its guidance. The company attributes its success to its diversified luxury product offerings and strategic focus on sales price and margin.

Key financial highlights include a 2% increase in home sales revenues to $2.71 billion and a 10% increase in delivered homes to 2,899 units. However, the net signed contract value decreased by 11% to $2.60 billion, and the backlog value fell by 7% to $6.84 billion. The home sales gross margin slightly improved to 26.0%, while the adjusted home sales gross margin decreased to 27.5%. The company also repurchased 1.6 million shares for $177.4 million.

Looking ahead, Toll Brothers remains optimistic about the long-term outlook for the luxury home market, driven by favorable demographics and a housing shortage. The company is reaffirming its full-year guidance, citing its strong backlog and balanced operating platform as key strengths to adapt to changing market conditions and continue delivering value to shareholders.