TOLNYSEOperative BuildersUS GAAP · USD

Toll Brothers, Inc.

Toll Brothers, Inc. designs, builds, markets, sells, and arranges financing for luxury residential communities in the United States. Its portfolio includes detached homes, attached homes, master-planned communities, urban low-, mid-, and high-rise communities, and select for-rent apartment and student housing projects through joint ventures.

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Revenue11.0bn USD
+1.1 %y/y
Operating profit (EBIT)1,721m USD
−15.7 %y/y
EBIT margin15.7%
−3.1 ppy/y
Net income1,346m USD
−14.3 %y/y
Free cash flow1,026m USD
+9.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0.02.55.07.510.012.5bn USD2020: 7.1 bn USD2020: EBIT 0.55 bn USD20202021: 8.8 bn USD2021: EBIT 1.0 bn USD20212022: 10.3 bn USD2022: EBIT 1.5 bn USD20222023: 10.0 bn USD2023: EBIT 1.7 bn USD20232024: 10.8 bn USD2024: EBIT 2.0 bn USD20242025: 11.0 bn USD2025: EBIT 1.7 bn USD202511.01.7
RevenueOperating profit (EBIT)

Business

Share of revenue
Luxury for-sale homes80 %

Detached, attached, and urban luxury homes sold to homebuyers.

Quick move-in homes10 %

Spec homes built before sale to shorten delivery timing.

Land and community development5 %

Master-planned communities, land development, and site preparation.

Financial and ancillary services3 %

Mortgage, title, insurance, smart home, and related services.

For-rent multifamily and student housing2 %

Apartment Living and Campus Living projects held through joint ventures.

Products

Reported · share of revenue
98.9%FY2025100 %
  • Home Building98.9 %
  • Land1.1 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Toll Brothers serves affluent U.S. homebuyers seeking luxury new construction, including first-time buyers, move-up buyers, empty-nesters, active-adult buyers, and second-home purchasers. It also sells urban luxury condominiums and participates in for-rent apartment and student housing projects through joint ventures. Demand is driven by buyers who value design, community amenities, location, and the ability to customize or quickly occupy a home.

Luxury first-time buyers

Buyers entering the luxury market who want new construction, design options, and financing support.

Move-up buyers

Households purchasing larger or newer homes in Toll Brothers communities.

Empty-nester and active-adult buyers

Older buyers seeking lower-maintenance homes and amenity-rich communities.

Second-home buyers

Customers purchasing homes in select markets for seasonal or occasional use.

Urban luxury condo buyers

Buyers of high-density condominium product in metropolitan areas.

Joint-venture multifamily users

Residents and institutional partners in apartment and student housing projects.

Strategy

Toll Brothers focuses on broadening its luxury product mix, price points, and geographic footprint while increasing the share of quick move-in homes. It also uses owned and controlled land, community development, and integrated services such as mortgage and title to support sales and customer conversion. The company has also been reducing exposure to multifamily development while retaining select interests over time.

Expand luxury product breadth and price pointsMedium term

A wider offering helps reach more buyer segments and markets.

Increase quick move-in home mixShort term

Spec homes can shorten the sales-to-delivery cycle and improve flexibility.

Maintain land pipeline and community countMedium term

Controlled land and active communities support future deliveries.

Monetize and exit multifamily developmentShort term

Reduces exposure to a non-core business and frees capital.

Geography

The company operates across 24 states and the District of Columbia, with five reporting regions: North, Mid-Atlantic, South, Mountain, and Pacific. Its footprint is concentrated in major U.S. housing markets, with operations generally located in the Northeast, Mid-Atlantic, Southeast, Southwest, Mountain West, and West Coast. Geography matters because local land supply, permitting, labor availability, and buyer demand vary materially by region.

Risks

The business is exposed to housing demand swings, land and construction cost inflation, labor shortages, and permitting or municipal delays that can lengthen build cycles. It also faces financing, interest-rate, subcontractor, brand, and technology/security risks that can affect sales, margins, and execution. Because the company relies on large inventory positions and long development cycles, changes in market conditions can quickly affect community performance and backlog conversion.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Housing demand sensitivity1Land and construction cost inflation2Labor shortages and subcontractor dependence3Interest-rate and financing risk4IT and data security failures5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Housing demand sensitivityImpact: HighLikelihood: High

    Luxury home sales depend on buyer confidence, affordability, and mortgage rates.

    ExposureNew home ordersCancellationsBacklog conversion
  2. Land and construction cost inflationImpact: HighLikelihood: High

    The company capitalizes land and construction costs into inventory, so higher costs can reduce recoverability.

    Exposure: Inventory valuation and gross margin

  3. Labor shortages and subcontractor dependenceImpact: HighLikelihood: High

    Homebuilding relies heavily on third-party contractors and skilled trades.

    ExposureConstruction cycle timingQualityWarranty claims
  4. Interest-rate and financing riskImpact: MediumLikelihood: High

    Homebuyer demand and the company's own debt costs are sensitive to credit conditions.

    ExposureSales paceRefinancingLiquidity flexibility
  5. IT and data security failuresImpact: MediumLikelihood: Low

    Sales, customer data, and operational records depend on functioning systems and third-party providers.

    ExposureOperationsReputationCustomer trust

Accounting

Judgemental items
Inventory valuation and impairment

Land and development costs are capitalized and must be written down if not recoverable.

Impact: Can materially affect earnings and asset values

Revenue recognition on home deliveries

Revenue is tied to the timing of closings and deliveries rather than contract signing.

Impact: Creates quarterly volatility and backlog-related visibility

Warranty and self-insurance reserves

Estimated future repair and claim costs depend on historical experience and project quality.

Impact: Affects cost of sales and liabilities

Investments in unconsolidated entities

Joint ventures require judgment on carrying value and equity-method results.

Impact: Can affect earnings and balance sheet carrying amounts

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Last updated: 24/09/2026