Executive Summary & Highlights Toll Brothers reported strong Q2 FY2025 results with record home sales revenues and reaffirmed full-year guidance, despite a softer demand environment Second Quarter FY2025 Performance Overview Toll Brothers reported strong second-quarter FY2025 results, exceeding expectations with record home sales revenues of $2.71 billion, up 2% YoY. Despite a softer demand environment, the company achieved a 10% increase in delivered homes and maintained a healthy gross margin, reaffirming its full-year guidance - CEO Douglas C. Yearley, Jr. stated that the company delivered earnings significantly exceeding expectations, with record second quarter home sales revenues of $2.71 billion, well above guidance, and beat both adjusted gross margin and SG&A guidance, reaffirming its full-year guidance based on first-half results and backlog strength4 Q2 FY2025 Financial Highlights (YoY Comparison) | Metric | FY2025 Q2 | FY2024 Q2 | Change | | :-------------------------------- | :---------- | :---------- | :----- | | Net Income ($M) | $352.4M | $481.6M | -26.8% | | EPS (diluted) ($) | $3.50 | $4.55 | -23.1% | | Pre-tax Income ($M) | $477.5M | $649.8M | -26.5% | | Home Sales Revenues ($B) | $2.71B | $2.65B | +2.3% | | Delivered Homes (Units) | 2,899 | 2,641 | +9.8% | | Net Signed Contract Value ($B) | $2.60B | $2.94B | -11.6% | | Contracted Homes (Units) | 2,650 | 3,041 | -12.8% | | Backlog Value (end of Q2) ($B) | $6.84B | $7.38B | -7.4% | | Homes in Backlog (end of Q2) (Units) | 6,063 | 7,093 | -14.5% | | Home Sales Gross Margin (%) | 26.0% | 25.8% | +0.2 pp | | Adjusted Home Sales Gross Margin (%) | 27.5% | 28.2% | -0.7 pp | | SG&A as % of Home Sales Revenues (%) | 9.5% | 9.0% | +0.5 pp | | Income from Operations ($M) | $449.7M | $623.5M | -27.9% | | Other Income, etc. ($M) | $29.0M | $203.7M | -85.7% | | Shares Repurchased (Shares) | 1.6M shares | N/A | N/A | | Total Purchase Price (Repurchases) ($M) | $177.4M | N/A | N/A | FY2024 Q2 Adjusted Net Income/EPS (Excluding Land Sale) | Metric | FY2024 Q2 (Reported) ($M) | Land Sale Impact ($M) | FY2024 Q2 (Adjusted) ($M) | | :-------------------- | :------------------- | :----------------- | :------------------- | | Net Income | $481.6M | -$124.1M | $357.5M | | EPS (diluted) ($) | $4.55 | -$1.17 | $3.38 | Financial Guidance Toll Brothers reaffirmed its full-year FY2025 guidance, projecting 11,200 to 11,600 home deliveries at an average price of $945,000 to $965,000, with an adjusted home sales gross margin of 27.25% Third Quarter and Full Fiscal Year 2025 Guidance | Metric | Third Quarter | Full Fiscal Year | | :------------------------------------ | :-------------------- | :-------------------- | | Deliveries (Units) | 2,800 to 3,000 units | 11,200 to 11,600 units | | Average Delivered Price per Home ($) | $965,000 to $985,000 | $945,000 to $965,000 | | Adjusted Home Sales Gross Margin (%) | 27.25 % | 27.25 % | | SG&A, as a Percentage of Home Sales Revenues (%) | 9.2 % | 9.4% to 9.5% | | Period-End Community Count (Units) | 430 | 440 to 450 | | Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other ($M) | $—M | $110M | | Tax Rate (%) | 26.0 % | 25.5 % | Company Overview Toll Brothers, a Fortune 500 luxury home builder, operates across 24 states and faces various economic, market, and regulatory risks About Toll Brothers Toll Brothers, Inc. is a Fortune 500 company and the nation's leading builder of luxury homes, operating in over 60 markets across 24 states. The company offers a diversified product range and operates various subsidiaries, including architectural, engineering, mortgage, and land development - Toll Brothers, Inc. is a Fortune 500 Company and the nation's leading builder of luxury homes, founded 58 years ago in 1967 and became a public company in 1986 (NYSE: TOL)12 - The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters, building in over 60 markets in 24 states and the District of Columbia, operating its own architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscape subsidiaries, and also develops master-planned and golf course communities12 - Toll Brothers has been recognized as one of Fortune magazine's World's Most Admired Companies™ for 10+ years in a row, and its Chairman and CEO was named one of 25 Top CEOs by Barron's magazine in 202413 Forward-Looking Statements & Risk Factors This section outlines the nature of forward-looking statements, which are not guarantees of future performance, and details various risks and uncertainties that could cause actual results to differ materially from expectations, including economic conditions, market demand, land availability, and regulatory changes - Forward-looking statements are not guarantees of future performance and may turn out to be inaccurate due to incorrect assumptions or known/unknown risks and uncertainties17 - Major risks and uncertainties include general economic conditions (employment, inflation, interest rates, financing), market demand, availability of desirable land, access to capital, competition, price and availability of materials and labor, U.S. trade policies, weather and natural disasters, acts of war/terrorism/diseases, federal and state tax policies, land use/environmental regulations, legal proceedings, unforeseen changes to liabilities/expenses, loss of key management, changes in accounting principles, and cyber-attacks1720 Financial Statements Toll Brothers' balance sheet shows increased assets and liabilities, while the income statement reflects a decline in net income despite a rise in home sales revenue for Q2 FY2025 Condensed Consolidated Balance Sheets As of April 30, 2025, Toll Brothers reported total assets of $14.20 billion, an increase from $13.37 billion at FYE 2024, primarily driven by an increase in inventory. Total liabilities also increased to $6.23 billion, while stockholders' equity grew to $7.95 billion Condensed Consolidated Balance Sheets (Amounts in thousands) | Metric | April 30, 2025 | October 31, 2024 | Change | | :-------------------------------- | :--------------- | :--------------- | :------- | | ASSETS | | | | | Cash and cash equivalents ($M) | $686.5M | $1.30B | -$616.6M | | Inventory ($B) | $10.99B | $9.71B | +$1.28B | | Investments in unconsolidated entities ($B) | $1.17B | $1.01B | +$164.9M | | Total Assets ($B) | $14.20B | $13.37B | +$827.9M | | LIABILITIES | | | | | Loans payable ($B) | $1.05B | $1.09B | -$33.1M | | Senior notes ($B) | $1.60B | $1.60B | +$0.4M | | Accrued expenses ($B) | $2.09B | $1.75B | +$335.7M | | Total Liabilities ($B) | $6.23B | $5.68B | +$550.2M | | EQUITY | | | | | Total Stockholders' Equity ($B) | $7.95B | $7.67B | +$277.8M | | Total Equity ($B) | $7.96B | $7.69B | +$277.7M | Condensed Consolidated Statements of Operations For the three months ended April 30, 2025, home sales revenue increased by 2.3% to $2.71 billion, while net income decreased by 26.8% to $352.4 million, largely due to a significant reduction in land sales and other income compared to the prior year. For the six months, home sales revenue slightly decreased, and net income was down 26.4% Three Months Ended April 30 (Amounts in thousands, except per share data) | Metric | 2025 | % of Revenue | 2024 | % of Revenue | Change (2025 vs 2024) | | :------------------------------------ | :--------- | :----------- | :--------- | :----------- | :-------------------- | | Home sales revenues ($B) | $2.71B | | $2.65B | | +2.3% | | Land sales and other ($M) | $32.6M | | $190.5M | | -82.8% | | Total Revenues ($B) | $2.74B | | $2.84B | | -3.5% | | Home sales gross margin ($M) | $704.2M | 26.0% | $683.7M | 25.8% | +2.9% | | Land sales and other gross margin ($M) | $1.2M | 3.7% | $177.5M | 93.2% | -99.3% | | SG&A expenses ($M) | $255.8M | 9.5% | $237.7M | 9.0% | +7.6% | | Income from operations ($M) | $449.7M | | $623.5M | | -27.9% | | Income before income taxes ($M) | $477.5M | | $649.8M | | -26.5% | | Net income ($M) | $352.4M | | $481.6M | | -26.8% | | Diluted earnings per share ($) | $3.50 | | $4.55 | | -23.1% | Six Months Ended April 30 (Amounts in thousands, except per share data) | Metric | 2025 | % of Revenue | 2024 | % of Revenue | Change (2025 vs 2024) | | :------------------------------------ | :--------- | :----------- | :--------- | :----------- | :-------------------- | | Home sales revenues ($B) | $4.55B | | $4.58B | | -0.7% | | Land sales and other ($M) | $51.0M | | $206.5M | | -75.3% | | Total Revenues ($B) | $4.60B | | $4.79B | | -3.9% | | Home sales gross margin ($B) | $1.16B | 25.6% | $1.22B | 26.6% | -4.3% | | Land sales and other gross margin ($M) | $1.5M | 2.8% | $183.3M | 88.8% | -99.2% | | SG&A expenses ($M) | $496.2M | 10.9% | $467.7M | 10.2% | +6.1% | | Income from operations ($M) | $668.8M | | $931.9M | | -28.2% | | Income before income taxes ($M) | $698.9M | | $960.9M | | -27.2% | | Net income ($M) | $530.2M | | $721.2M | | -26.4% | | Diluted earnings per share ($) | $5.24 | | $6.80 | | -22.9% | Supplemental Financial Data This section provides detailed quarterly and six-month operating metrics, insights into liquidity and capital structure, land development activities, and geographic segment performance Detailed Quarterly Financial Highlights For Q2 FY2025, home sales revenues increased by 2.3% to $2.71 billion with 2,899 units delivered. Net signed contracts decreased by 11.6% in value and 12.8% in units, while backlog value decreased by 7.4%. Home sales gross margin improved slightly to 26.0% Key Operating Metrics (Three Months Ended April 30) | Metric | 2025 | 2024 | Change | | :------------------------------------ | :--------- | :--------- | :----- | | Home Sales Revenues | $2.71B (2,899 units) | $2.65B (2,641 units) | +2.3% (units +9.8%) | | Net Signed Contracts | $2.60B (2,650 units) | $2.94B (3,041 units) | -11.6% (units -12.8%) | | Net Signed Contracts per Community (Units) | 6.4 units | 8.0 units | -20.0% | | Quarter-End Backlog | $6.84B (6,063 units) | $7.38B (7,093 units) | -7.4% (units -14.5%) | | Average Price per Home in Backlog ($) | $1.13M | $1.04M | +8.5% | | Home Sales Gross Margin (%) | 26.0% | 25.8% | +0.2 pp | | Adjusted Home Sales Gross Margin (%) | 27.5% | 28.2% | -0.7 pp | | SG&A, as a percentage of Home Sales Revenues (%) | 9.5% | 9.0% | +0.5 pp | | Income from Operations ($M) | $449.7M (16.4% of total revenues) | $623.5M (22.0% of total revenues) | -27.9% | | Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other ($M) | $29.0M | $203.7M | -85.7% | | Quarterly Cancellations as a Percentage of Beginning Quarter Backlog (%) | 2.8% | 2.8% | 0.0 pp | | Quarterly Cancellations as a Percentage of Signed Contracts in Quarter (%) | 6.2% | 5.7% | +0.5 pp | Detailed Six-Month Financial Highlights For the six months ended April 30, 2025, home sales revenues slightly decreased by 0.7% to $4.55 billion, with a 7.0% increase in delivered units. Net signed contracts also saw a slight decline. Home sales gross margin was 25.6%, down from 26.6% in the prior year Key Operating Metrics (Six Months Ended April 30) | Metric | 2025 | 2024 | Change | | :------------------------------------ | :--------- | :--------- | :----- | | Home Sales Revenues | $4.55B (4,890 units) | $4.58B (4,568 units) | -0.7% (units +7.0%) | | Net Signed Contracts | $4.91B (4,957 units) | $5.01B (5,083 units) | -2.0% (units -2.5%) | | Home Sales Gross Margin (%) | 25.6% | 26.6% | -1.0 pp | | Adjusted Home Sales Gross Margin (%) | 27.3% | 28.5% | -1.2 pp | | SG&A, as a percentage of Home Sales Revenues (%) | 10.9% | 10.2% | +0.7 pp | | Income from Operations ($M) | $668.8M (14.5% of total revenues) | $931.9M (19.5% of total revenues) | -28.2% | | Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other ($M) | $31.5M | $212.3M | -85.2% | Liquidity, Capital, and Debt Toll Brothers ended Q2 FY2025 with $686.5 million in cash, a decrease from FYE 2024 but an increase from Q1 FY2025. The company extended its revolving credit facility to $2.35 billion and increased its quarterly cash dividend by 9% to $0.25 per share. Stockholders' equity grew to $7.95 billion, and the net debt-to-capital ratio improved to 19.8% from 21.1% in Q1 FY2025 - Cash and cash equivalents were $686.5 million at Q2 FY2025 end, compared to $1.30 billion at FYE 2024 and $574.8 million at Q1 FY20259 - The company extended the maturity date of its senior unsecured revolving credit facility from February 14, 2028, to February 7, 2030, and increased the total available amount from $1.96 billion to $2.35 billion, also extending the maturity of all $650 million of loans outstanding under its term loan credit facility to February 7, 20309 - The quarterly cash dividend was increased by 9% from $0.23 to $0.25 per share on March 11, 2025, and paid on April 25, 2025, with stockholders' equity at Q2 FY2025 end at $7.95 billion and book value per share at $80.849 - The debt-to-capital ratio was 26.1% at Q2 FY2025 end (vs. 26.0% at Q1 FY2025 and 27.0% at FYE 2024), and the net debt-to-capital ratio was 19.8% (vs. 21.1% at Q1 FY2025 and 15.2% at FYE 2024)9 Land and Community Development Toll Brothers increased its controlled home sites to approximately 78,600 at Q2 FY2025 end, with 42% owned. The company spent $723.0 million on land to acquire 4,380 lots during the quarter and increased its selling communities to 421 Home Sites Controlled | Metric | April 30, 2025 | April 30, 2024 | Change | | :---------- | :------------- | :------------- | :----- | | Owned (Units) | 32,763 | 36,985 | -11.4% | | Optioned (Units) | 45,843 | 34,779 | +31.8% | | Total (Units) | 78,606 | 71,764 | +9.5% | - In Q2 FY2025, the Company spent approximately $723.0 million on land to purchase approximately 4,380 lots9 - The Company ended FY 2025's second quarter with 421 selling communities, compared to 406 at FY 2025's first quarter end and 386 at FY 2024's second quarter end9 Inventory Composition (Amounts in thousands) | Inventory Category | April 30, 2025 | October 31, 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Land deposits and costs of future communities ($M) | $781.3M | $620.0M | | Land and land development costs ($B) | $2.99B | $2.53B | | Land and land development costs associated with homes under construction ($B) | $3.79B | $3.62B | | Total land and land development costs ($B) | $7.56B | $6.77B | | Homes under construction ($B) | $2.95B | $2.46B | | Model homes ($M) | $489.9M | $484.9M | | Total Inventory ($B) | $10.99B | $9.71B | Geographic Segment Performance In Q2 FY2025, the Mountain region saw the highest growth in home sales revenues (+25.2%) and delivered units (+24.8%), while the Pacific region experienced significant declines in both revenues (-27.1%) and average price per unit. For the six months, the Mountain region also led in revenue growth, whereas the Pacific region continued to show declines Home Sales Revenues by Segment (Three Months Ended April 30) | Segment | 2025 Units | 2024 Units | 2025 Revenue ($M) | 2024 Revenue ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :---------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | North | 389 | 349 | $378.5M | $335.2M | $973,000 | $960,500 | | Mid-Atlantic | 379 | 378 | $321.8M | $376.1M | $849,000 | $995,000 | | South | 928 | 804 | $758.6M | $658.4M | $817,500 | $818,900 | | Mountain | 856 | 686 | $755.9M | $603.6M | $883,000 | $879,800 | | Pacific | 347 | 424 | $492.2M | $674.7M | $1.42M | $1.59M | | Total | 2,899 | 2,641 | $2.71B | $2.65B | $933,700 | $1.00M | Net Signed Contracts by Segment (Three Months Ended April 30) | Segment | 2025 Units | 2024 Units | 2025 Value ($M) | 2024 Value ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :---------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | North | 372 | 412 | $386.9M | $422.1M | $1.04M | $1.02M | | Mid-Atlantic | 407 | 376 | $378.7M | $348.9M | $930,500 | $928,000 | | South | 753 | 892 | $636.8M | $746.8M | $845,700 | $837,200 | | Mountain | 776 | 944 | $695.5M | $814.6M | $896,300 | $862,900 | | Pacific | 342 | 417 | $506.5M | $608.6M | $1.48M | $1.46M | | Total | 2,650 | 3,041 | $2.60B | $2.94B | $982,800 | $967,100 | Backlog by Segment (April 30) | Segment | 2025 Units | 2024 Units | 2025 Value ($M) | 2024 Value ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :---------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | North | 909 | 1,055 | $1.03B | $1.11B | $1.13M | $1.05M | | Mid-Atlantic | 906 | 912 | $987.4M | $900.8M | $1.09M | $987,700 | | South | 1,932 | 2,344 | $1.77B | $2.12B | $918,600 | $904,500 | | Mountain | 1,480 | 1,891 | $1.56B | $1.84B | $1.06M | $971,000 | | Pacific | 836 | 891 | $1.48B | $1.41B | $1.78M | $1.59M | | Total | 6,063 | 7,093 | $6.84B | $7.38B | $1.13M | $1.04M | Home Sales Revenues by Segment (Six Months Ended April 30) | Segment | 2025 Units | 2024 Units | 2025 Revenue ($M) | 2024 Revenue ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :---------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | North | 636 | 638 | $633.2M | $607.9M | $995,600 | $952,800 | | Mid-Atlantic | 645 | 655 | $558.0M | $640.3M | $865,100 | $977,600 | | South | 1,524 | 1,435 | $1.26B | $1.19B | $830,000 | $830,200 | | Mountain | 1,519 | 1,171 | $1.31B | $1.06B | $864,100 | $902,600 | | Pacific | 566 | 669 | $779.3M | $1.08B | $1.38M | $1.62M | | Total | 4,890 | 4,568 | $4.55B | $4.58B | $930,100 | $1.00M | Net Signed Contracts by Segment (Six Months Ended April 30) | Segment | 2025 Units | 2024 Units | 2025 Value ($M) | 2024 Value ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :---------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | North | 690 | 737 | $723.6M | $751.0M | $1.05M | $1.02M | | Mid-Atlantic | 765 | 622 | $720.2M | $587.6M | $941,400 | $944,700 | | South | 1,453 | 1,467 | $1.23B | $1.22B | $846,500 | $829,400 | | Mountain | 1,404 | 1,485 | $1.23B | $1.31B | $875,800 | $884,400 | | Pacific | 645 | 772 | $1.01B | $1.14B | $1.56M | $1.47M | | Total | 4,957 | 5,083 | $4.91B | $5.01B | $990,800 | $984,800 | Unconsolidated Entities Performance Revenues from unconsolidated entities decreased for the three months ended April 30, 2025, but increased for the six-month period. Contracts and backlog for these entities saw significant declines compared to the prior year Unconsolidated Entities Performance | Metric | 2025 Units | 2024 Units | 2025 Value ($M) | 2024 Value ($M) | 2025 Avg Price ($) | 2024 Avg Price ($) | | :-------------------------- | :--------- | :--------- | :---------------- | :---------------- | :----------------- | :----------------- | | Three months ended April 30, | | | | | | | | Revenues | 24 | 40 | $36.9M | $40.9M | $1.54M | $1.02M | | Contracts | 18 | 33 | $27.5M | $43.9M | $1.53M | $1.33M | | Six months ended April 30, | | | | | | | | Revenues | 39 | 40 | $57.8M | $40.9M | $1.48M | $1.02M | | Contracts | 36 | 55 | $53.4M | $65.4M | $1.48M | $1.19M | | Backlog at April 30, | 9 | 164 | $13.0M | $184.5M | $1.44M | $1.13M | Non-GAAP Reconciliations This section provides reconciliations for non-GAAP financial measures, including adjusted home sales gross margin, adjusted net income and EPS, and the net debt-to-capital ratio, offering alternative views of financial performance and leverage Adjusted Home Sales Gross Margin The adjusted home sales gross margin, a non-GAAP measure excluding interest and inventory write-downs, was 27.5% for Q2 FY2025, down from 28.2% in Q2 FY2024. This metric is used by management to evaluate home building operations performance - Adjusted home sales gross margin is a non-GAAP financial measure calculated as (i) home sales gross margin plus interest recognized in home sales cost of revenues plus inventory write-downs recognized in home sales cost of revenues divided by (ii) home sales revenues35 - Management uses this measure to evaluate the performance of home building operations without the varying effects of capitalized interest costs and inventory impairments, aiding in assessing profitability and making strategic decisions37 Adjusted Home Sales Gross Margin Reconciliation (Amounts in thousands, except percentages) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :---------------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Home sales gross margin ($M) | $704.2M | $683.7M | $1.16B | $1.22B | | Add: Interest recognized in cost of revenues - home sales ($M) | $30.3M | $34.7M | $50.4M | $58.3M | | Inventory impairments and write-offs in cost of revenues - home sales ($M) | $9.8M | $28.4M | $26.2M | $29.9M | | Adjusted home sales gross margin ($M) | $744.3M | $746.9M | $1.24B | $1.30B | | Home sales gross margin as a percentage of home sale revenues (%) | 26.0 % | 25.8 % | 25.6 % | 26.6 % | | Adjusted home sales gross margin as a percentage of home sale revenues (%) | 27.5 % | 28.2 % | 27.3 % | 28.5 % | Adjusted Net Income and Diluted EPS Adjusted net income for Q2 FY2025 was $352.4 million ($3.50 per diluted share), compared to an adjusted $357.5 million ($3.38 per diluted share) in Q2 FY2024, after excluding a significant gain from a land sale in the prior year Adjusted Net Income and Diluted Per Share Reconciliation (Amounts in thousands, except per share data) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :-------------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income ($M) | $352.4M | $481.6M | $530.2M | $721.2M | | Subtract: Net income resulting from the sale of a parcel of land to a commercial developer ($M) | — | ($124.1M) | — | ($124.1M) | | Adjusted net income ($M) | $352.4M | $357.5M | $530.2M | $597.1M | | Diluted earnings per share ($) | $3.50 | $4.55 | $5.24 | $6.80 | | Subtract: Diluted earnings per share resulting from the sale of a parcel of land to a commercial developer ($) | — | ($1.17) | — | ($1.17) | | Adjusted diluted earnings per share ($) | $3.50 | $3.38 | $5.24 | $5.63 | Net Debt-to-Capital Ratio The net debt-to-capital ratio, a non-GAAP measure indicating overall leverage, was 19.8% at April 30, 2025, an improvement from 21.1% at January 31, 2025, but higher than 15.2% at October 31, 2024 - The net debt-to-capital ratio is a non-GAAP financial measure calculated as (i) total debt minus mortgage warehouse loans minus cash and cash equivalents divided by (ii) total debt minus mortgage warehouse loans minus cash and cash equivalents plus stockholders' equity42 - Management uses the net debt-to-capital ratio as an indicator of its overall leverage and believes it is a useful financial measure for investors to understand the leverage employed in the Company's operations44 Net Debt-to-Capital Ratio Reconciliation (Amounts in thousands, except percentages) | Metric | April 30, 2025 | January 31, 2025 | October 31, 2024 | | :------------------------------------ | :--------------- | :--------------- | :--------------- | | Total debt ($B) | $2.80B | $2.75B | $2.83B | | Total stockholders' equity ($B) | $7.95B | $7.80B | $7.67B | | Total capital ($B) | $10.75B | $10.54B | $10.50B | | Ratio of debt-to-capital (%) | 26.1 % | 26.0 % | 27.0 % | | Total net debt ($B) | $1.96B | $2.08B | $1.38B | | Total net capital ($B) | $9.91B | $9.88B | $9.05B | | Net debt-to-capital ratio (%) | 19.8 % | 21.1 % | 15.2 % |
Toll Brothers(TOL) - 2025 Q2 - Quarterly Results