Core Viewpoint - Toll Brothers has experienced a significant stock rebound, driven by a strong performance in the luxury housing market and a less interest-sensitive affluent customer base [1][2]. Financial Performance - Toll Brothers reported record Q3 sales of $2.94 billion, surpassing estimates of $2.85 billion, and reflecting an 8% increase from $2.72 billion a year ago [4]. - Q3 earnings per share (EPS) were $3.73, up from $3.60 in the same quarter last year, exceeding expectations of $3.59 by nearly 4% [4]. - The company delivered 2,959 homes at an average price of $974,000, achieving an adjusted gross margin of 27.5% [6]. Market Position and Strategy - Despite a softer overall housing market, Toll Brothers attributes its strong results to a balanced operating model and a diversified luxury business strategy that prioritizes price and margin over sales pace [5]. - The company signed 2,388 net contracts worth $2.4 billion during Q3, resulting in a total backlog of 5,492 homes valued at $6.37 billion, with an average sales price of $1.16 million [7]. Guidance and Future Outlook - Toll Brothers expects to deliver approximately 11,200 homes for the full year, at the lower end of its previous guidance range [7]. - The company maintained its full-year adjusted gross margin forecast at 27.25% and expects other income from unconsolidated entities and land sales gross profit of $110 million [8]. Valuation Metrics - TOL shares trade at 9.4X forward earnings, which is below the Zacks Building Products-Home Builders Industry average of 12.4X, indicating a potential investment opportunity [9]. - The stock is also trading well under the preferred level of less than 2X sales [9]. Dividend Information - Toll Brothers has increased its dividend for five consecutive years, with an annualized growth rate of 16.31% [11]. - The current annual yield is 0.76%, which is below the S&P 500 average of 1.16%, but the 7% payout ratio suggests room for future increases [11]. Overall Assessment - Toll Brothers appears well-positioned to navigate the housing market slowdown due to its luxury clientele, although it faces challenges in a tougher operating environment [12].

Toll Brothers at Tesoro Highlands Valencia, CA FORT WASHINGTON, Pa., Aug. 19, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its third quarter ended July 31, 2025. FY 2025’s Third Quarter Financial Highlights (Compared to FY 2024’s Third Quarter): Net income and earnings per share were $369.6 million and $3.73 per diluted share, compared to net income of $374.6 million and $3.60 per diluted share in FY ...

Key Takeaways Toll Brothers expects Q3 deliveries of 2,800-3,000 homes at an ASP of $965K-$985K.Higher spec home incentives may pressure margins, with Q3 gross margin seen at 27.25%.Affluent buyers and a strong backlog help TOL stay resilient despite macro headwinds.Toll Brothers, Inc. (TOL) is set to report its third-quarter fiscal 2025 results on Aug. 19, 2025, after market close. The key focus will be on the company’s ability to sustain strong margins and steady deliveries amid an uncertain housing marke ...

Core Points - Toll Brothers, Inc. has received multiple awards for its New Jersey division, including the prestigious Townhome Community of the Year for Middletown Walk [1][4] - The awards were presented at the Sales and Marketing Awards (SAM) and the Fabulous Achievements in Marketing Excellence (FAME) Awards, recognizing significant contributions to the home building industry [2][3] - The company has been acknowledged for excellence in various categories, including design, marketing, and sales achievements [2][5] Awards Summary - **SAM Awards**: Toll Brothers won several categories, showcasing their leadership in home building [2] - **FAME Awards**: 14 sales representatives were recognized for their professional sales achievements, earning Million Dollar Club honors [3] - **Specific Awards**: Notable awards include Grand Award, Best Design Center, Best Sales Office, and multiple awards for Middletown Walk in various categories [5] Company Overview - Toll Brothers, Inc. is a Fortune 500 Company and the leading builder of luxury homes in the United States, founded in 1967 and publicly traded since 1986 [8] - The company operates in over 60 markets across 24 states and offers a wide range of housing options for various buyer segments [8] - Toll Brothers has been recognized as one of Fortune magazine's World's Most Admired Companies for over 10 years and has received multiple accolades for its leadership and quality in the industry [9]

Core Viewpoint - Toll Brothers, Inc. has announced a public offering of $500 million in 5.600% Senior Notes due 2035, with settlement expected on June 10, 2025, subject to customary closing conditions [1][2]. Group 1: Offering Details - The Notes will have a coupon rate of 5.600% and will pay interest semi-annually on June 15 and December 15, starting from December 15, 2025 [2]. - The net proceeds from the Offering are expected to be used for general corporate purposes, which may include the repayment of existing 4.875% Senior Notes due 2025 [2]. Group 2: Underwriters and Managers - A consortium of financial institutions, including BofA Securities, Inc., BBVA Securities, Inc., and Goldman Sachs & Co. LLC, are acting as Joint Book-Running Managers for the Offering [3]. - Additional firms are participating as Lead Managers and Co-Managers in the Offering [3]. Group 3: Company Overview - Toll Brothers, Inc. is recognized as the leading builder of luxury homes in the United States, founded in 1967 and publicly traded since 1986 [6]. - The company operates in over 60 markets across 24 states and serves various buyer segments, including first-time buyers and active adults [6].

Core Insights - Toll Brothers, Inc. reported strong second quarter results for FY 2025, with home sales revenues reaching a record $2.71 billion, exceeding guidance and reflecting the strength of its diversified luxury offerings [3][4][5] - The company reaffirmed its full-year guidance based on robust first-half results and a strong backlog, despite a softer demand environment [3][4] Financial Performance - Net income for the second quarter was $352.4 million, or $3.50 per diluted share, down from $481.6 million, or $4.55 per diluted share in the same quarter of FY 2024 [5][8] - Home sales revenues increased by 2% year-over-year, with 2,899 homes delivered, a 10% increase from the previous year [5][8] - The backlog value at the end of the quarter was $6.84 billion, down 7% from the previous year, with 6,063 homes in backlog, a 15% decrease [5][8] Margins and Costs - Home sales gross margin improved to 26.0%, compared to 25.8% in FY 2024's second quarter, while adjusted home sales gross margin was 27.5%, down from 28.2% [5][8] - Selling, general, and administrative expenses as a percentage of home sales revenues increased to 9.5% from 9.0% in the prior year [5][8] Guidance and Outlook - For the third quarter, the company expects deliveries between 2,800 to 3,000 units and an average delivered price per home of $965,000 to $985,000 [4] - Full fiscal year guidance remains at 11,200 to 11,600 units delivered, with an average delivered price of $945,000 to $965,000 [4] Cash and Capital Structure - The company ended the quarter with $686.5 million in cash and cash equivalents, down from $1.30 billion at the end of FY 2024 [19] - Stockholders' equity increased to $7.95 billion from $7.67 billion at the end of FY 2024, with a book value per share of $80.84 [19][27] Market Position and Strategy - The company maintains a positive long-term outlook for the new home market, particularly in the luxury segment, supported by favorable demographics and a housing shortage [4] - Toll Brothers continues to adapt to changing market conditions with a balanced operating platform and disciplined underwriting [4]