Toll Brothers, Inc. (TOL)

Toll Brothers, the luxury homebuilder, reported results for its third quarter of fiscal 2026 (ended July 31) on August 18, 2026 1. It delivered 2,662 homes and booked $2.65 billion of home sales revenue, against 2,959 homes and $2.88 billion a year earlier 1. Net income was $280.1 million, or $2.97 per diluted share, against $369.6 million, or $3.73 1.

Profit fell faster than revenue because each home earned less 1. Adjusted home sales gross margin, which leaves out interest and inventory write-downs, was 25.6 percent against 27.5 percent 1. Sales and overhead costs rose to 10.0 percent of home sales revenue from 8.8 percent 1.

Orders grew 1. Net signed contracts rose to $2.52 billion from $2.41 billion, mostly because the number of communities open for sale was 12 percent higher 13. Per community, contracts fell about 5 percent, which the quarterly report ties to elevated mortgage rates and weak consumer confidence 3.

Chief executive Karl Mistry said the company is reaffirming its full-year guidance, including about $10.5 billion of home sales revenue 1. The open question is the fourth quarter, for which the company guides to 3,450 to 3,550 deliveries 1. The quarterly report says softer demand may persist in the near term 3.

Bob Toll and his brother Bruce founded the company in 1967, starting with two homes in Chester County, Pennsylvania 5. It became a public company in 1986, with its stock listed on the New York Stock Exchange under the symbol TOL 1.

Its land strategy shaped the story 5. During the Great Recession it moved aggressively to acquire land, and in 2013 it bought Shapell Industries' 5,200 California home sites for $1.6 billion, as HousingWire's Builder's Daily recounted 5.

Revenue grew from $9.99 billion in fiscal 2023 to $10.85 billion in fiscal 2024 and $10.97 billion in fiscal 2025 2. Net income was $1.57 billion in fiscal 2024 and $1.35 billion in fiscal 2025 2.

In fiscal 2025 home sales revenue rose because homes delivered were up 4 percent, partly offset by a 2 percent lower average price as more deliveries came from cheaper products and regions 2. Spec homes, which are started before a buyer signs, were about 54 percent of deliveries, up from 49 percent 2.

Margins narrowed 2. Home sales cost of revenues rose to 74.4 percent of home sales revenue from 73.4 percent, mainly because of higher incentives in soft market conditions 2. Land sales also fell, since fiscal 2024 had included a $175.2 million gain on one parcel 2.

On September 18, 2025, the company announced it would exit multifamily development, starting with a sale of about half its apartment portfolio and its operating platform to Kennedy Wilson 2. Most of that sale closed in the first quarter of fiscal 2026 for net cash proceeds of about $330.0 million 3.

In January 2026, it announced that Karl Mistry, a 22-year company veteran, would succeed Douglas Yearley as chief executive on March 30, 2026 4. Yearley became executive chairman 4.

Home building

The company designs, builds and sells luxury single-family detached homes, attached homes and city condominiums to first-time, move-up, empty-nester, active-adult and second-home buyers 2. It delivered 11,292 homes from 556 communities in fiscal 2025 and worked in 24 states and the District of Columbia 2. Home sales brought in $10.84 billion of its $10.97 billion of revenue 2.

In the third quarter the average delivered home cost the buyer $996,400, and homes in backlog averaged $1,174,400 1. The company had 471 communities open for sale at quarter end, against 420 a year earlier 1.

It also sells land, such as lots to other builders inside its master-planned communities, which brought in $124.5 million in the year ended October 31, 2025 2. It makes mortgages and title services through its own subsidiaries too 2.

Apartment Living and joint ventures

Through joint ventures the company also built for-rent apartments and student housing, under the Toll Brothers Apartment Living and Campus Living names 2. At October 31, 2025 it or its ventures controlled 73 land parcels with about 22,300 planned or completed units 2.

It had $1.03 billion invested in unconsolidated entities at that date 2. In the three months ended July 31, 2026 it booked $39.6 million of impairment charges on several rental ventures 3.

Plants, people and rivals

Its Toll Integrated Systems subsidiary makes wall panels, trusses and millwork, in owned plants of about 225,000 square feet in Morrisville, Pennsylvania and about 150,000 in Emporia, Virginia 2. The headquarters is a leased office of about 163,000 square feet in Fort Washington, Pennsylvania 2. It employed about 4,900 people full time 2.

Karl Mistry became chief executive on March 30, 2026, and Douglas Yearley is executive chairman 4. The annual report calls home building highly competitive and fragmented, with rivals from local builders to national ones, and says sales of existing homes compete as well 2. Its legal section reports only claims arising in the ordinary course of business 2.

The umbrella, in words

The brands are Toll Brothers, City Living for high-rise urban condominiums built with joint venture partners, and the Apartment Living and Campus Living rental names 2. The subsidiaries exhibit lists corporations that include Toll Brothers Mortgage Company, Philmont Insurance Company of Vermont and Shapell Homes 6.

In its ventures the company owns shares, for example 75 percent of TB-CBR Byline Venture LLC, according to the subsidiaries exhibit 6. BlackRock reported owning beneficially 9,330,227 shares, 10.1 percent of the common stock, in a Schedule 13G/A with an event date of August 31, 2026 7.

For the fourth quarter the company guides to 3,450 to 3,550 deliveries and an adjusted home sales gross margin of 26.00 percent 1. For the full fiscal year it guides to 10,500 to 10,600 deliveries and 26.10 percent 1.

It expects to end the year with 480 to 490 communities and says it is on track to grow community count by 8 to 10 percent in fiscal 2026 1. Mistry said its land position supports similar growth in fiscal 2027 and beyond 1.

The company is raising its planned fiscal 2026 share repurchases from $650 million to $700 million 1. It expects to sell its interests in the retained rental properties over time 3.

The annual report said the company expected to deliver about 98 percent of its $5.49 billion backlog at October 31, 2025 in fiscal 2026 2. The company says in its quarterly report that near-term demand may stay soft, with elevated incentives and slower sales paces likely to continue 3.