The earnings call highlighted strong financial performance and strategic positioning despite market challenges. The company achieved record revenues and maintained a healthy backlog with a low cancellation rate. However, there were concerns about declining sales volumes and increased incentives impacting margins. Overall, the company appears well-positioned for future growth with strong community count expansion and a solid financial foundation.

Company Guidance

During the Toll Brothers Third Quarter Fiscal Year 2025 Conference Call, the company reported delivering 2,959 homes at an average price of $974,000, achieving record third-quarter home sale revenues of $2.9 billion. The adjusted gross margin stood at 27.5%, surpassing guidance by 25 basis points, while SG&A expenses were 8.8% of home sales revenues, bettering guidance by 40 basis points. Earnings for the quarter reached $370 million, equivalent to $3.73 per diluted share. The company signed 2,388 net contracts valued at $2.4 billion, with an average sales price increase to just over $1 million, despite a 4% year-over-year decline in units. The cancellation rate was 3.2%, and approximately 26% of buyers paid all cash. The company ended the quarter with 420 active communities and expects to reach 440-450 by year-end, reflecting 8% to 10% annual community count growth. For the full year, they anticipate delivering approximately 11,200 homes, maintaining a full-year adjusted gross margin of 27.25%, and achieving earnings per diluted share of about $13.75.

Record Third Quarter Home Sale Revenues

Delivered 2,959 homes at an average price of $974,000, generating record third quarter home sale revenues of $2.9 billion.

Strong Financial Performance

Third quarter earnings of $370 million or $3.73 per diluted share, with an adjusted gross margin of 27.5%.

Resilience in Luxury Business

Average sales price was up 4.5% year-over-year and showed strong performance despite a softer market.

Healthy Backlog and Low Cancellation Rate

Backlog of 5,492 homes valued at $6.376 billion with a low cancellation rate of 3.2%.

Strong Balance Sheet and Liquidity Position

Finished the third quarter with a net debt-to-capital ratio of 19.3% and $852 million in cash and equivalents.

Community Count Growth

Ended the third quarter with 420 active selling communities, expecting to reach 440 to 450 by fiscal year-end.

Toll Brothers (TOL) Earnings, Revenues Date & History

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TOL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Dec 15, 2025	2025 (Q4)	4.91 / -	4.63	―	―	―
Aug 19, 2025	2025 (Q3)	3.60 / 3.73	3.6	3.61% (+0.13)
May 20, 2025	2025 (Q2)	2.81 / 3.50	4.55	-23.08% (-1.05)	―
Feb 18, 2025	2025 (Q1)	2.04 / 1.75	2.25	-22.22% (-0.50)	―
Dec 09, 2024	2024 (Q4)	4.34 / 4.63	4.11	12.65% (+0.52)	―
Aug 20, 2024	2024 (Q3)	3.31 / 3.60	3.73	-3.49% (-0.13)	―
May 21, 2024	2024 (Q2)	4.16 / 4.55	2.85	59.65% (+1.70)	―
Feb 20, 2024	2024 (Q1)	1.78 / 2.25	1.7	32.35% (+0.55)	―
Dec 05, 2023	2023 (Q4)	3.72 / 4.11	5.63	-27.00% (-1.52)	―
Aug 22, 2023	2023 (Q3)	2.85 / 3.73	2.35	58.72% (+1.38)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

TOL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 19, 2025	$132.18	$131.43	-0.57%
May 20, 2025	$104.30	$103.80	-0.48%
Feb 18, 2025	$121.47	$114.34	-5.87%
Dec 09, 2024	$155.45	$144.65	-6.95%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.