Toll Brothers (TOL) Tops Q2 EPS by 15c
Toll Brothers (NYSE: TOL) reported Q2 EPS of $2.72, $0.15 better than the analyst estimate of $2.57. Revenue for the quarter came in at $2.53 billion versus the consensus estimate of $2.42 billion.
| Third Quarter and FY 2026 Financial Guidance: | |||||
| Third Quarter | Full Fiscal Year | ||||
| Deliveries | 2,600 - 2,700 units | 10,400 - 10,700 units | |||
| Average Delivered Price per Home | $965,000 -$985,000 | $985,000 -$1,000,000 | |||
| Adjusted Home Sales Gross Margin | 25.25 | % | 26.10 | % | |
| SG&A, as a Percentage of Home Sales Revenues | 10.0 | % | 10.10 | % | |
| Period-End Community Count | 475 | 480 - 490 | |||
| Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other | $5 million | $120 million | |||
| Tax Rate | 26.0 | % | 25.5 | % | |
| Financial Highlights for the three months ended April 30, 2026 and 2025 (unaudited): | |||||
| 2026 | 2025 | ||||
| Net Income | $260.6 million, or $2.72 per share diluted | $352.4 million, or $3.50 per share diluted | |||
| Pre-Tax Income | $350.4 million | $477.5 million | |||
| Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues | $32.5 million | $9.8 million | |||
| Home Sales Revenues | $2.51 billion and 2,491 units | $2.71 billion and 2,899 units | |||
| Net Signed Contracts | $2.81 billion and 2,834 units | $2.60 billion and 2,650 units | |||
| Net Signed Contracts per Community | 6.3 units | 6.4 units | |||
| Quarter-End Backlog | $6.32 billion and 5,394 units | $6.84 billion and 6,063 units | |||
| Average Price per Home in Backlog | $1,171,800 | $1,128,100 | |||
| Home Sales Gross Margin | 23.9 | % | 26.0 | % | |
| Adjusted Home Sales Gross Margin | 26.2 | % | 27.5 | % | |
| Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues | 1.1 | % | 1.1 | % | |
| SG&A, as a percentage of Home Sales Revenues | 10.3 | % | 9.5 | % | |
| Income from Operations | $346.6 million, or 13.7% of total revenues | $449.7 million, or 16.4% of total revenues | |||
| Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other | $9.3 million | $29.0 million | |||
| Other Pre-Tax Impairments: | |||||
| Included in Land Sales and Other Cost of Revenues | $2.3 million | $— million | |||
| Included in Income (loss) from Unconsolidated Entities | $13.5 million | $— million | |||
| Quarterly Cancellations as a Percentage of Beginning-Quarter Backlog | 2.9 | % | 2.8 | % | |
| Quarterly Cancellations as a Percentage of Signed Contracts in Quarter | 4.8 | % | 6.2 | % | |
| Financial Highlights for the six months ended April 30, 2026 and 2025 (unaudited): | |||||
| 2026 | 2025 | ||||
| Net Income | $471.5 million, or $4.91 per share diluted | $530.2 million, or $5.24 per share diluted | |||
| Pre-Tax Income | $623.9 million | $698.9 million | |||
| Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues | $44.2 million | $26.2 million | |||
| Home Sales Revenues | $4.37 billion and 4,390 units | $4.55 billion and 4,890 units | |||
| Net Signed Contracts | $5.19 billion and 5,137 units | $4.91 billion and 4,957 units | |||
| Home Sales Gross Margin | 24.2 | % | 25.6 | % | |
| Adjusted Home Sales Gross Margin | 26.3 | % | 27.3 | % | |
| Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues | 1.1 | % | 1.1 | % | |
| SG&A, as a percentage of Home Sales Revenues | 11.8 | % | 10.9 | % | |
| Income from Operations | $565.7 million, or 12.1% of total revenues | $668.8 million, or 14.5% of total revenues | |||
| Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other | $81.3 million | $31.5 million | |||
| Other Pre-Tax Impairments: | |||||
| Included in Land Sales and Other Cost of Revenues | $3.7 million | $1.8 million | |||
| Included in Other Income - Net | $— million | $4.4 million | |||
| Included in Income (loss) from Unconsolidated Entities | $57.8 million | $— million | |||
For earnings history and earnings-related data on Toll Brothers (TOL) click here.