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Jul 31, 2025
Toll Brothers Q3 2025 Earnings Report
Toll Brothers reported higher home sales revenue and strong EPS despite lower gross margins and a decline in backlog.
Key Takeaways
Toll Brothers delivered record Q3 revenue of $2.95B, driven by strong deliveries and pricing, though margins and backlog declined YoY.
Delivered 2,959 homes with an average price of $973,600.
EPS reached $3.73, slightly up from last year.
Revenue grew to $2.95B, up from $2.73B YoY.
Backlog value fell to $6.38B with 5,492 homes, down from 6,769 units last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Management expects strong deliveries and stable margins in Q4 despite macroeconomic challenges.
Positive Outlook
- Q4 deliveries expected at 3,350 units.
- Q4 avg home price expected between $970K–$980K.
- Adjusted gross margin forecast at 27.0%.
- SG&A expected to improve to 8.3% of revenue.
- Solid balance sheet with strong liquidity.
Challenges Ahead
- Backlog continues to decline YoY.
- Gross margin under pressure compared to last year.
- Signed contracts flat amid unit decline.
- Inventory impairments rose significantly YoY.
- Affordability pressures remain due to economic uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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