Core Viewpoint - Toll Brothers, Inc. is undergoing a leadership transition with Douglas C. Yearley, Jr. moving to the role of Executive Chairman and Karl K. Mistry being appointed as the new Chief Executive Officer effective March 30, 2026 [1][2] Leadership Transition - Douglas C. Yearley, Jr. has been with Toll Brothers since 1990 and has served as CEO since 2010, leading the company through significant growth and value creation [2][3] - Karl K. Mistry, a 22-year veteran of Toll Brothers, will succeed Yearley as CEO, demonstrating the company's strong internal talent and succession planning [1][2] - Yearley will continue to play a significant management role as Executive Chairman, guiding strategic initiatives and supporting Mistry's transition [1][2] Company Background - Toll Brothers, Inc. is recognized as the nation's leading builder of luxury homes, operating in over 60 markets across 24 states [4][5] - The company was founded in 1967 and became publicly traded in 1986, listed on the New York Stock Exchange under the symbol "TOL" [4] - Toll Brothers has been acknowledged as one of Fortune magazine's World's Most Admired Companies for over 10 years and has received multiple Builder of the Year awards [5] Karl K. Mistry's Experience - Mistry joined Toll Brothers in 2004 and has held various leadership positions, including Division President and Regional President, before becoming Executive Vice President in 2021 [3] - He has managed homebuilding operations across 15 states in the Eastern U.S. and holds degrees in Economics and Real Estate Finance & Development [3] Strategic Vision - Both Yearley and Mistry emphasize the importance of continuing to build on the strong legacy of the company while focusing on customer service and brand development [2][3]

Industry Overview - The housing market is struggling as high mortgage rates deter potential buyers, leading sellers to refrain from lowering asking prices [1] - Additional challenges include aggressive immigration enforcement affecting the construction labor force and high tariffs on building materials like lumber, aluminum, and steel [1] Company Analysis: Lennar Corp. - Lennar reported a nearly 6% year-over-year revenue decline in Q4 2025, with shrinking margins [3][4] - Gross margins fell to 17% in Q4, with expectations of further declines to 15-16% in Q1 2026 [4] - The company projects full-year 2026 deliveries of approximately 85,000, significantly below market expectations [4] - LEN shares have dropped over 20% year-to-date, with bearish indicators suggesting further downside [5] Company Analysis: Meritage Homes Corp. - Meritage Homes, with a market cap of $4.6 billion, reported a Q3 2025 revenue of $1.4 billion, missing estimates by over 6% [6][7] - Margins fell from 21.4% to 20.1% in Q3, and the company's spec business model may lead to increased liabilities in a slowing market [7] - Despite a brief share price increase, MTH shares have since declined, indicating collapsing momentum [9] Company Analysis: D.R. Horton - D.R. Horton, with a market cap of $42.5 billion, reported a revenue decline of only 3% year-over-year, outperforming many competitors [11] - The entry-level housing market remains stagnant, with many potential buyers unable to make down payments or unwilling to move from low-rate mortgages [13] - The company's fiscal Q4 2025 margin dropped to 20%, and the stock has decreased by 15% since early December [13][14] Company Analysis: NVR Inc. - NVR operates an asset-light business model and has seen a revenue decline of 4.5% year-over-year in Q3 2025 [16][18] - Although NVR shares are down only 10% year-to-date, bearish momentum is building, with technical indicators suggesting a potential dip [18] Company Analysis: Tri Pointe Homes Inc. - Tri Pointe focuses on high-net-worth areas but faces challenges as high mortgage rates prevent homeowners from moving up [19][20] - Despite beating recent earnings projections, revenue is declining year-over-year, and management has lowered margin guidance [21]

Core Viewpoint - Toll Brothers, Inc. reported fourth-quarter earnings that fell short of Wall Street expectations despite revenue exceeding forecasts, leading to a more than 2% decline in share price intra-day [1]. Financial Performance - The company reported earnings of $4.58 per share for the quarter ended October 31, 2025, missing the consensus estimate of $4.89 [2]. - Revenue increased to $3.42 billion, surpassing the projected $3.31 billion and reflecting a 4.7% increase from $3.26 billion a year earlier [2]. Home Deliveries and Contracts - Toll Brothers delivered 3,443 homes in the quarter, slightly exceeding the 3,431 units completed in the prior-year period [2]. - Net signed contracts totaled $2.53 billion for 2,598 homes, compared to $2.66 billion for 2,658 homes in last year's fourth quarter, indicating ongoing market challenges [3]. Future Outlook - For fiscal 2026, the company forecasts home deliveries of 10,300 to 10,700 units, a decrease from 11,292 in fiscal 2025 [3]. - First-quarter deliveries are expected to range between 1,800 and 1,900 units [3].

Toll Brothers Inc (NYSE:TOL) reported financial results for the fourth quarter of fiscal 2025 after the market close on Monday. Here’s a look at the key details from the print.Toll Brothers shares are experiencing downward pressure. Why is TOL stock trading lower?Q4 Highlights: Toll Brothers posted fourth-quarter revenue of $3.42 billion, beating the consensus estimate of $3.30 billion, according to Benzinga Pro. The luxury homebuilder reported fourth-quarter earnings of $4.58 per share, missing analyst est ...

Core Insights - The upper middle class often faces unexpected financial challenges that hinder wealth accumulation despite high incomes [1] Spending Habits Impacting Wealth - Real estate spending is a significant drain, with mortgages consuming 35% to 40% of income, limiting investment opportunities. For instance, a $6,000 monthly mortgage could have generated $720,000 in returns over 10 years if invested [2] - New luxury vehicles are another major wealth drain, with clients spending $800 to $1,200 monthly on car payments. One client spent over $175,000 on luxury car payments and depreciation over eight years, which could have been invested instead [3] - Leasing or owning multiple high-end vehicles, costing $1,500 to $2,000 monthly in payments, insurance, and maintenance, further detracts from potential investments [4] - Private school tuition, ranging from $30,000 to $50,000 annually per child, creates a financial burden that can prevent families from adequately funding retirement accounts and investment portfolios, potentially draining millions from long-term wealth accumulation [5]

Market Position and Strategy - Public homebuilders have increased their market share from 27% in 2012 to approximately 53% in 2024[15] - The company focuses on capital efficiency in land acquisition through optioned land, land banking, joint ventures, rolling takedowns, and seller financing[45] - The company is strategically focused on driving shareholder returns through land acquisition, improved operations, and buybacks & dividends[39] Financial Performance - The company's diluted earnings per share (EPS) has grown at a compound annual growth rate (CAGR) of 28%, reaching $1501 in FY 2024[54] - The company has repurchased approximately 52% of its shares since 2016, totaling 91 million shares at an average price of $50, and has paid approximately $644 million in dividends[63] - The company's revenue from home sales increased from $6937357000 in FY 2020 to $10563332000 in FY 2024[66] - The company's return on beginning equity was 231% in FY 2024[66] Industry Trends - The new home premium has compressed from a historical 17% to 3% in 2025, making the value proposition of a new home compelling compared to a used home[23] - The median age of owner-occupied U S homes is over 40 years, compared to 32 years in 2005[27] - Housing starts have not kept pace with household growth, indicating an undersupplied market[20] Land and Operations - The company operates in 24 states and over 60 markets[33] - The company's total addressable market (TAM) consists of approximately 575000 housing transactions with buyers having income greater than $200K[73]

Core Viewpoint - Toll Brothers, Inc. announces the appointment of Gregg Ziegler as the new Chief Financial Officer, succeeding Marty Connor, effective at the end of the fiscal year on October 31, 2025. Connor will remain as a senior advisor for one year to ensure a smooth transition and provide strategic support [1][2][3]. Company Overview - Toll Brothers, Inc. is a leading builder of luxury homes in the United States, founded in 1967 and publicly traded since 1986. The company operates in over 60 markets across 24 states and serves various buyer segments, including first-time and second-home buyers [5][6]. - The company has been recognized as one of Fortune magazine's World's Most Admired Companies for over 10 years and has received multiple awards, including Builder of the Year [6]. Leadership Transition - Gregg Ziegler, who has been with Toll Brothers for 23 years, will report directly to Chairman and CEO Douglas C. Yearley, Jr. and will oversee multiple functions including accounting, treasury, finance, tax, investor relations, risk management, internal audit, mortgage, title, and IT [2][4]. - Ziegler has held various roles within the company, including Senior Vice President and Treasurer, and has extensive experience in investor relations and corporate strategy [4].

Core Viewpoint - Toll Brothers, Inc. reported second-quarter fiscal 2025 results with adjusted earnings and total revenues exceeding the Zacks Consensus Estimate, although the top line experienced a year-over-year decline [1][5]. Financial Performance - Adjusted earnings per share (EPS) were $3.50, surpassing the Zacks Consensus Estimate of $2.86 by 22.4% and reflecting a 3.6% increase from the previous year [5]. - Total revenues amounted to $2.74 billion, exceeding the consensus mark of $2.5 billion by 9.5%, but decreased 3.5% year over year [5]. - Home sales revenues increased by 2% year over year to $2.71 billion, contrary to expectations of a 5% decline [5]. - Homes delivered rose by 10% to 2,899 units, surpassing the projected growth of 0.1% [5]. - The average selling price (ASP) of homes delivered was $933,600, down 6.9% from $1,002,300 a year ago [5]. Market Conditions - The quarterly performance was impacted by weak contributions from land sales and other segments, while home sales revenues showed growth [2]. - Ongoing uncertainties in the housing market are anticipated to increase, particularly with the potential implementation of a new tax regime affecting homebuilding costs [2]. Strategic Outlook - The company remains optimistic about long-term growth, supported by a housing shortage and favorable demographics [2]. - Toll Brothers' diversified luxury product offerings and balanced portfolio of build-to-order and spec homes are expected to help navigate challenging market conditions [3]. Shareholder Returns - Following the earnings release, shares rose by 5.1% in after-hours trading, likely driven by a 9% increase in the quarterly dividend to 25 cents per share ($1 annually) [4]. Backlog and Contracts - At the end of the fiscal second quarter, the backlog consisted of 6,063 homes, down 14.5% year over year, with potential revenues from backlog declining 7.3% to $6.84 billion [7]. - Net-signed contracts totaled 2,650 units, a decrease from 3,041 units year over year, with a contract value of $2.6 billion, reflecting an 11.6% decline [6]. Cost Structure - The adjusted home sales gross margin was 27.5%, contracting by 70 basis points [8]. - Selling, general and administrative (SG&A) expenses as a percentage of home sales revenues increased to 9.5%, up 50 basis points from the previous year [8]. Balance Sheet - Cash and cash equivalents stood at $686.5 million, down from $1.3 billion at the end of fiscal 2024 [9]. - The debt-to-capital ratio improved to 26.1% from 27% at the end of fiscal 2024 [9]. Future Guidance - For fiscal Q3, home deliveries are expected to be between 2,800 and 3,000 units, with an average price of $965,000 to $985,000 [11]. - For fiscal 2025, home deliveries are anticipated to range from 11,200 to 11,600 units, with an average price of delivered homes expected to be $945,000 to $965,000 [13].

Core Viewpoint - Toll Brothers, Inc. will hold a conference call to discuss its second quarter results for FY 2025 on May 21, 2025, following the announcement of its financial results on May 20, 2025 [1]. Company Overview - Toll Brothers, Inc. is the leading builder of luxury homes in the United States, founded in 1967 and publicly traded since 1986 under the NYSE symbol "TOL" [3]. - The company operates in over 60 markets across 24 states and the District of Columbia, serving various buyer segments including first-time, move-up, and active-adult buyers [3]. - Toll Brothers has its own subsidiaries in architectural, engineering, mortgage, title, land development, insurance, smart home technology, and landscape services, and also develops master-planned communities [3]. Recognition and Achievements - Toll Brothers has been recognized as one of Fortune magazine's World's Most Admired Companies for over 10 years and its CEO was named one of Barron's Top 25 CEOs in 2024 [4]. - The company has received multiple accolades, including Builder of the Year from Builder magazine and is the first two-time recipient of the same award from Professional Builder magazine [4].