Toll Brothers Inc
XMUN:TLK
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Toll Brothers Inc
XMUN:TLK
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Bentley Systems Inc
F:BS81
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Toll Brothers Inc
Toll Brothers builds and sells luxury homes in the United States. It develops land, designs neighborhoods, and constructs single-family houses, townhomes, and attached homes, often in planned communities with amenities. The company also offers related services such as home design choices, financing referrals, and title and settlement services through partners. Its main customers are move-up buyers, active adults, and affluent households looking for new construction rather than resale homes. Toll Brothers makes money mainly by selling completed homes and by earning fees tied to land development, design upgrades, and closing-related services. Because it controls much of the homebuilding process, it can shape the product from land acquisition to final sale. What makes the business different is its focus on the luxury end of the housing market, where buyers care about location, design, and customization. That gives Toll Brothers a more premium product than mass-market builders, and it often sells through communities it plans and develops itself. The company sits at the end of the real estate value chain, turning raw land into finished neighborhoods and homes.
Toll Brothers builds and sells luxury homes in the United States. It develops land, designs neighborhoods, and constructs single-family houses, townhomes, and attached homes, often in planned communities with amenities. The company also offers related services such as home design choices, financing referrals, and title and settlement services through partners.
Its main customers are move-up buyers, active adults, and affluent households looking for new construction rather than resale homes. Toll Brothers makes money mainly by selling completed homes and by earning fees tied to land development, design upgrades, and closing-related services. Because it controls much of the homebuilding process, it can shape the product from land acquisition to final sale.
What makes the business different is its focus on the luxury end of the housing market, where buyers care about location, design, and customization. That gives Toll Brothers a more premium product than mass-market builders, and it often sells through communities it plans and develops itself. The company sits at the end of the real estate value chain, turning raw land into finished neighborhoods and homes.
Strong Q1 Performance: Toll Brothers met or exceeded guidance across nearly all metrics, including revenue, margins, and EPS, with $2.19 per diluted share, up 25% year-over-year and $0.05 above guidance.
Revenue & Orders: Homebuilding revenue reached $1.85 billion, $24 million above midpoint guidance. Signed 2,303 net contracts for $2.4 billion, flat in units but up 3% in dollars versus last year.
Margins & Costs: Adjusted gross margin of 26.5% beat guidance by 25 bps. SG&A margin was also better than expected. Full-year gross margin guidance remains at 26.0%. Build costs are flat.
Steady Incentives: Incentives held steady at 8% of sales price for the third straight quarter, despite some peer builders increasing incentives.
Affluent Buyer Base: Over 70% of business serves luxury move-up/move-down buyers, with 24% of buyers paying all cash and an industry-low cancellation rate of 2.8%.
Operational Outlook: Community count expected to grow 8–10% in FY26, with 75,000 lots owned/controlled and continued strong land pipeline, especially in the North and Mid-Atlantic.
Guidance Maintained: Full-year delivery and margin guidance unchanged. Q2 deliveries expected at 2,400–2,500 homes with average price $975,000–$985,000.
Leadership Transition: Karl Mistry will become CEO on March 30, while Douglas Yearley transitions to Executive Chairman.
