CARY, N.C., Sept. 25, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced limited opportunities remain to build a new Toll Brothers home in its prestigious Millstone community located in Cary, North Carolina. Only eight home sites remain available in this luxury community in sought-after Cary, an area known for being the perfect blend of small-town charm and metropolitan convenience. Expansive home designs feature unique architectural design ...

Core Insights - Toll Brothers, Inc. is launching a new luxury home community named Toll Brothers at Windborne in Schertz, Texas, expected to open for sale in fall 2025 [1][2] - The community will feature modern single-family homes on 100-foot-wide lots, with prices starting from the low $500,000s [2][4] Company Overview - Toll Brothers, Inc. is recognized as the nation's leading builder of luxury homes and is a Fortune 500 Company, founded in 1967 and publicly traded since 1986 [8] - The company operates in over 60 markets across 24 states and the District of Columbia, offering a variety of housing options for different buyer demographics [8] Community Features - Toll Brothers at Windborne will offer one- and two-story floor plans with 3 to 5 bedrooms, including first-floor primary suites and outdoor living spaces [2][4] - The community will include amenities such as a park, walking trails, and a playground, and is conveniently located near military bases and local shops [5]

Core Viewpoint - The home building sector, particularly KB Home, is facing challenges with declining sales and margins, leading to a negative outlook for earnings in the near term, with expectations for a turnaround not anticipated until 2026 at the earliest [3][6][7]. Company Summary - KB Home is expected to report adjusted EPS of $1.50 for Q3, with revenue projected at $1.6 billion [1]. - The company has struggled with sales pace and has overbuilt spec supply, resulting in a year-to-date price decline of approximately 10% [3]. - The earnings and orders for KB Home are expected to be down year-over-year due to these challenges [3][6]. Industry Summary - The home building industry has been negatively impacted by high mortgage rates, with most builders, including KB Home, experiencing margin compression [3][11]. - Builders have been competing by cutting prices and offering incentives, such as below-market mortgage rates, to attract buyers [7][8]. - The recent Fed rate cut of 25 basis points has not significantly affected the market, as many builders have already been offering lower rates throughout the year [8][9]. - Builders focused on build-to-order rather than spec homes are better positioned to manage margin pressures, with those serving entry-level markets facing the greatest challenges [11][12][13].

Core Insights - Toll Brothers (TOL) and D.R. Horton (DHI) are leading U.S. homebuilders with different market focuses, with TOL specializing in luxury homes and DHI dominating the entry-level and affordable housing segment [1][9] - Both companies have shown solid performance despite high mortgage rates and cautious consumer sentiment, with their stocks rallying sharply in recent months [2][14] - A comparison of the fundamentals of TOL and DHI is essential to determine the better investment opportunity [3] Toll Brothers Overview - Toll Brothers has maintained steady momentum due to its luxury niche, with 26% of buyers in the fiscal third quarter paying cash and financed buyers averaging a 70% loan-to-value ratio [4][6] - The average selling prices (ASPs) exceed $1 million, with backlog ASP at $1.16 million, providing stability amid fluctuating housing demand [4][6] - A strategic shift to a 50/50 mix of spec and build-to-order homes has improved flexibility, with 3,200 spec homes under construction and 1,800 permits in hand [5] - Backlog support includes 5,492 homes valued at $6.4 billion, with plans to increase active communities from 420 to 440-450 by year-end [6] - The balance sheet is stable, with a net debt-to-capital ratio of 19.3%, $852 million in cash, and $2.2 billion in available credit [7] D.R. Horton Overview - D.R. Horton benefits from unmatched scale, operating in 36 states and over 120 markets, which provides cost advantages and better lot control [9][10] - The company closed 23,160 homes in the fiscal third quarter, achieving a gross margin of 21.8% while maintaining a low cancellation rate [11] - D.R. Horton has increased its community count by 12% year-over-year and introduced smaller homes to meet affordability needs [11][12] - The company has a strong liquidity position of $5.5 billion and a leverage ratio of 23.2%, with a book value per share of $80.46 [12] Share Price Performance - TOL stock has increased by approximately 11% year-to-date, while DHI stock has risen about 20.4%, outperforming both the industry and the S&P 500 index [14] - In the last three months, DHI stock surged roughly 30.8%, compared to TOL's rally of 24.2% [14] Valuation and Earnings Estimates - TOL's forward 12-month P/E ratio is 9.96, lower than DHI's 13.98, indicating a premium for DHI due to its market leadership [18] - The Zacks Consensus Estimate for TOL's fiscal 2025 EPS has decreased to $13.82, reflecting a 7.9% decline from the previous year [20] - Conversely, DHI's fiscal 2025 EPS estimate has increased to $11.79, indicating a positive shift in sentiment despite a 17.8% year-over-year decline [22] Investment Outlook - While both companies have shown resilience, the near-term risk-reward appears more favorable for Toll Brothers due to its affluent customer base and pricing strength [25][26] - D.R. Horton's reliance on incentives and shrinking ASPs may temper its upside in the current market [26][27] - Toll Brothers is better positioned to capture incremental gains as mortgage rates ease and demand stabilizes, offering stronger near-term upside potential compared to D.R. Horton [27]

Core Insights - Toll Brothers, Inc. has announced the grand opening of Montrose at Innisbrook - Townes Collection, a luxury townhome community in Palm Harbor, Florida [1][4] - The community features spacious two-story townhomes ranging from 1,800 to 2,281 square feet, with prices starting from the mid-$500,000s [3][4] Company Overview - Toll Brothers is recognized as the nation's leading builder of luxury homes and operates in over 60 markets across 24 states [10] - The company has been listed on the New York Stock Exchange under the symbol "TOL" since becoming public in 1986 [10] - Toll Brothers has received multiple accolades, including being named one of Fortune magazine's World's Most Admired Companies for over 10 years [11] Product Offering - The Montrose at Innisbrook - Townes Collection includes townhomes with 2 to 4 bedrooms and 2.5 to 4.5 bathrooms, along with 2-car garages [3] - Select homes offer views of the renowned Copperhead golf course and access to resort-style amenities such as golf courses, tennis facilities, and swimming pools [3][4] Location and Accessibility - The community is conveniently located near top-rated schools, Gulf Coast beaches, parks, shopping, and major commuter highways in Greater Tampa Bay [7] Customer Experience - Toll Brothers provides a one-stop shopping experience at its Design Studio, allowing customers to personalize their homes with professional design consultants [6]

Core Insights - Toll Brothers, Inc. (TOL) is experiencing challenges due to affordability pressures stemming from elevated mortgage rates and construction costs, which have negatively impacted buyer sentiment and slowed activity across various regions [1][2] - In Q3 of fiscal 2025, TOL reported a 4% year-over-year decline in net signed contracts and a 19% decrease in backlog, indicating a softer outlook ahead [2] - The Federal Reserve's recent 25 basis points rate cut may alleviate some affordability constraints, potentially encouraging more buyers to enter the market [3] Company Performance - TOL's adjusted home sales gross margin decreased to 27.5%, down 130 basis points from the previous year, due to higher incentives and a slower sales pace [2] - Approximately 35% of TOL's communities can now deliver homes in eight months or less, improving flexibility to meet demand and potentially converting interest into closings more efficiently [4][10] - TOL's shares have increased by 24.2% over the past three months, outperforming the Zacks Building Products - Home Builders industry and the broader S&P 500 [8] Industry Context - Other homebuilders, such as Lennar Corporation (LEN) and D.R. Horton, Inc. (DHI), are also facing similar sales volume challenges due to high mortgage rates and affordability pressures [5] - Lennar has utilized price incentives and mortgage buydowns to maintain sales volumes, although this has negatively impacted margins [6] - D.R. Horton reported that 81% of buyers in Q3 relied on incentive programs, which has pressured profitability but the company continues to benefit from its lot acquisition strategy [7] Valuation and Estimates - TOL's forward 12-month price-to-earnings ratio is currently at 10.24, lower than the industry average of 12.33 [12] - The Zacks Consensus Estimate for TOL's 2025 earnings per share has decreased to $13.82, reflecting a 7.9% decline from the previous year's profit level [13]

Core Insights - Toll Brothers, Inc. has announced the grand opening of The Ranch at Uptown Celina, a new luxury home community located north of Dallas, Texas [1][4] - The community features four collections of single-family homes with sizes ranging from approximately 1,500 to over 5,000 square feet, priced from the upper $300,000s to the low $700,000s [2][4] Company Overview - Toll Brothers is recognized as the nation's leading builder of luxury homes and operates in over 60 markets across 22 states [8][9] - The company was founded in 1967 and became publicly traded in 1986, listed on the New York Stock Exchange under the symbol "TOL" [8] Community Features - The Ranch at Uptown Celina offers a variety of amenities including an outdoor pool, biking trails, and open green spaces, enhancing the living experience for residents [2][5] - The community is located within the Celina Independent School District, providing access to quality educational institutions [5] Customer Experience - Toll Brothers provides a Design Studio for customers to personalize their homes with a wide selection of options, supported by professional Design Consultants [4]

Company Overview - Lenar experienced a challenging Q3, with stock down over 3% due to revenue missing estimates and lower delivery guidance [1] - The company's home building gross margins fell to 17.5%, down from 29% in 2022 during the housing boom [1] Market Conditions - The housing market is facing continued softening, impacting sales volume and requiring additional incentives to maintain expected pace [1][2] - Average selling prices declined by 9%, indicating widespread affordability issues across the industry [3] Industry Insights - Major builders are responding to market conditions by lowering prices, offering incentives, and buying down mortgage rates to improve affordability [4] - The only builder expressing optimism for the future was Toll Brothers, a luxury home builder, highlighting a divergence in market sentiment among builders [4]

Core Viewpoint - Lennar Corporation (NYSE:LEN) is recognized as a strong operator in the homebuilding sector, but there is hesitancy in recommending the stock due to the uncertainty surrounding long-term interest rates [1] Company Overview - Lennar Corporation is a U.S.-based homebuilder that focuses on constructing and selling single-family homes, developing residential land, and managing multifamily rental properties [1] Market Conditions - The company has performed well amid recent bond market turmoil, but the necessity for long-term interest rates to remain low is crucial for justifying investments in homebuilders [1] - Mortgage rates are decreasing significantly, which could positively impact homebuilders like Lennar [1] Investment Sentiment - Jim Cramer suggests that as mortgage rates decline, capital may shift from other sectors, such as technology, to homebuilders like Lennar and Toll Brothers [1] - Despite the potential of Lennar as an investment, there are AI stocks that may offer greater upside potential with less downside risk [1]

Core Viewpoint - Toll Brothers reported strong Q3 fiscal 2025 earnings and revenues, surpassing estimates and showing year-over-year growth despite economic challenges [2][4]. Financial Performance - Adjusted earnings per share (EPS) for Q3 were $3.73, exceeding the Zacks Consensus Estimate of $3.59 by 3.9% and increasing 3.6% year-over-year [4]. - Total revenues reached $2,945.1 million, beating the consensus mark of $2,852 million and reflecting an 8% year-over-year increase [4]. Sales and Deliveries - Home sales revenues increased by 6% year-over-year to $2.9 billion, with home deliveries rising by 5% to 2,959 units [5]. - The average selling price (ASP) of homes delivered was $973,600, up 0.5% from the previous year [5]. Contracts and Backlog - Net-signed contracts decreased to 2,388 units from 2,490 units year-over-year, with a constant value of $2.4 billion [5]. - The backlog at the end of Q3 was 5,492 homes, down 19% year-over-year, with potential revenues from the backlog declining 10% to $6.38 billion [6]. Margins and Expenses - Adjusted home sales gross margin was 27.5%, a contraction of 130 basis points [7]. - Selling, general and administrative (SG&A) expenses as a percentage of home sales revenues were 8.8%, down 20 basis points from the previous year [7]. Balance Sheet and Cash Flow - Cash and cash equivalents stood at $852.3 million, down from $1.3 billion at the end of fiscal 2024 [8]. - The debt-to-capital ratio improved to 26.7% from 27% at the end of fiscal 2024 [8]. Future Guidance - For Q4, home deliveries are expected to be 3,350 units at an average price of $970,000-$980,000 [11]. - For fiscal 2025, home deliveries are anticipated to be around 11,200 units, reflecting growth from fiscal 2024 [12]. Market Sentiment - Estimates for the stock have trended downward, with a consensus estimate shift of -6.3% [14]. - Toll Brothers currently holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [16].