Toll Brothers Announces Chairman and CEO Doug Yearley to Become Executive Chairman; Karl Mistry to Succeed Yearley as Chief Executive Officer

Rhea-AI Summary

Toll Brothers (NYSE: TOL) announced that Chairman and CEO Douglas C. Yearley Jr. will become Executive Chairman effective March 30, 2026, and Karl K. Mistry will succeed him as Chief Executive Officer and join the board on that date. The move is described as part of long‑term succession planning; Yearley will retain a significant management role to guide strategic initiatives and support the transition. Mistry is a 22‑year company veteran who currently oversees Eastern homebuilding operations across 15 states. The leadership change continues Toll Brothers’ executive continuity after Yearley’s tenure as CEO since 2010 and chairman since 2018.

Positive

• Planned CEO succession effective March 30, 2026
• Internal successor: Karl Mistry with 22 years at Toll Brothers
• Doug Yearley to remain as Executive Chairman to guide transition

Negative

• Chief executive transition on March 30, 2026 creates short‑term execution and governance transition risk

News Market Reaction

-0.95%

1 alert

-0.95% News Effect

On the day this news was published, TOL declined 0.95%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Executive transition date: March 30, 2026 Toll tenure of new CEO: 22 years Operations footprint: 60+ markets, 24 states +5 more

8 metrics

Executive transition date March 30, 2026 Yearley becomes Executive Chairman; Mistry becomes CEO

Toll tenure of new CEO 22 years Karl Mistry described as 22-year Toll Brothers veteran

Operations footprint 60+ markets, 24 states Company scale under Yearley’s leadership

Eastern operations 15 states States overseen by Mistry in current EVP role

Dividend per share $0.25 Quarterly cash dividend announced Dec. 18, 2025

Institutional ownership 5,603,187 shares Greenhaven Associates beneficial ownership as of 12/31/2025

Ownership percentage 5.90% Portion of Toll Brothers common stock held by Greenhaven

Current share price $134.8 Price prior to announcement on Jan. 7, 2026

Market Reality Check

Price: $166.12 Vol: Volume 1,223,521 is sligh...

normal vol

$166.12 Last Close

Volume Volume 1,223,521 is slightly below the 20-day average of 1,294,588 (relative volume 0.95). normal

Technical Price 134.8 is trading above the 200-day moving average of 123.2 and about 10.01% below the 52-week high.

Peers on Argus

TOL slipped 0.04% while key peers like NVR (-1.84%), PHM (-3.77%), DHI (-3.59%),...

TOL slipped 0.04% while key peers like NVR (-1.84%), PHM (-3.77%), DHI (-3.59%), LEN (-2.69%), and TMHC (-2.47%) fell more sharply, suggesting today’s CEO succession news has a more company-specific tone versus broader sector weakness.

Historical Context

5 past events · Latest: Dec 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	Amenity grand opening	Positive	-1.0%	Opened The Cove Amenity Center at Regency at Waterset 55+ community.
Dec 23	Sales milestone update	Positive	-1.0%	Announced final opportunity to buy at The Brix at The Packing District.
Dec 22	New community launch	Positive	-0.1%	Announced Waterford Pointe luxury community coming to Piedmont, South Carolina.
Dec 22	Product expansion	Positive	-0.1%	Introduced Sawgrass home design at Regency at Babcock Ranch 55+ community.
Dec 18	Dividend declaration	Positive	+0.2%	Declared quarterly cash dividend of $0.25 per share with Jan. 23, 2026 payment.

Pattern Detected

Recent positive operational and dividend announcements often saw flat to mildly negative next-day moves, indicating good news has not consistently driven strong upside reactions.

Recent Company History

Over the past few weeks, Toll Brothers has focused on community expansion and shareholder returns. Announcements on Dec. 22–23, 2025 highlighted new luxury communities in Florida and South Carolina and new home designs in active-adult projects, yet 24-hour price reactions were modest, between about -0.98% and -0.09%. A $0.25 quarterly cash dividend declared on Dec. 18, 2025 produced only a slight 0.22% gain. Against this backdrop, today’s leadership succession news fits a pattern of strategically significant updates with contained immediate price impact.

Market Pulse Summary

This announcement details a planned leadership transition, with Doug Yearley shifting to Executive C...

Analysis

This announcement details a planned leadership transition, with Doug Yearley shifting to Executive Chairman and Karl Mistry, a 22-year company veteran, becoming CEO on March 30, 2026. Yearley maintains an active strategic role, signaling continuity as the company operates in 60+ markets across 24 states. Recent filings show ongoing equity-based compensation and a $0.25 quarterly dividend. Investors may watch execution under new leadership, capital return consistency, and operational performance across the 15 Eastern states Mistry currently oversees.

Key Terms

executive chairman, chief executive officer, quarterly cash dividend, schedule 13g/a, +4 more

8 terms

executive chairman financial

"will be transitioning to the role of Executive Chairman of the Board"

An executive chairman is the board leader who also takes an active role in running the company, combining oversight of the board with hands-on involvement in strategy and major decisions. For investors, this matters because it concentrates influence in one person—like a team captain who both sets the game plan and plays on the field—so their judgment can speed decisions but also increases governance and succession risk that can affect stock value.

chief executive officer financial

"to succeed Mr. Yearley in the role of Chief Executive Officer"

A chief executive officer (CEO) is the top leader of a company, responsible for making major decisions, setting goals, and guiding the organization’s overall direction. Think of the CEO as the captain of a ship, steering it toward success. Investors pay close attention to the CEO because their leadership and strategy can significantly influence the company's performance and future growth.

quarterly cash dividend financial

"announced a quarterly cash dividend of $0.25 per share"

A quarterly cash dividend is a payment made by a company to its shareholders four times a year, usually based on its profits. It is like a regular bonus or reward for owning the company's stock, providing shareholders with income. Many investors see these payments as a sign of the company's stability and its ability to generate consistent profits.

schedule 13g/a regulatory

"[SCHEDULE 13G/A] Toll Brothers, Inc. SEC Filing"

A Schedule 13G/A is an amended public filing with the U.S. securities regulator that updates a previous Schedule 13G, disclosing when an individual or group holds a substantial (typically over 5%) stake in a company and is claiming a passive, non‑controlling intent. Investors monitor these updates because rising or falling holdings can signal changing confidence, potential future moves, or shifts in voting power — like watching a public ledger where large shareholders quietly adjust their positions.

form 4 regulatory

"[Form 4] Toll Brothers, Inc. Insider Trading Activity"

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

beneficial ownership regulatory

"reported beneficial ownership of 5,603,187 shares"

Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.

restricted stock units financial

"received 4,851 restricted stock units linked to Toll Brothers common stock"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

performance-based restricted stock units financial

"exercise of performance-based restricted stock units"

Performance-based restricted stock units are a type of employee equity award that converts into company shares only if predefined financial or operational targets are met over a set period. Think of it like a bonus check that becomes stock only when specific goals are hit; it ties pay to results, aligning managers’ incentives with shareholders. Investors care because these awards affect future share count, executive incentives, and signal how management’s success will be measured and rewarded.

AI-generated analysis. Not financial advice.

FORT WASHINGTON, Pa., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE: TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced that, as part of its long-term succession planning process, the Company’s Chairman and Chief Executive Officer Douglas C. Yearley, Jr. will be transitioning to the role of Executive Chairman of the Board on March 30, 2026. The Board of Directors has selected Karl K. Mistry, Executive Vice President and a 22-year Toll Brothers veteran, to succeed Mr. Yearley in the role of Chief Executive Officer and to join the Toll Brothers Board of Directors on March 30, 2026. As Executive Chairman, Mr. Yearley will continue to have a significant management role at the Company including guiding strategic initiatives and supporting the smooth transition of Mr. Mistry into the CEO role.

“Having joined Toll Brothers in 1990 and in his position as CEO since 2010, Doug Yearley has expertly led the Company through a significant period of growth and value creation, and we are grateful for his leadership,” said Scott D. Stowell, Lead Independent Director of Toll Brothers. “The Board is also pleased to announce Karl Mistry will lead Toll Brothers as the Company’s next Chief Executive Officer. This succession plan demonstrates both the deep talent bench at Toll Brothers, as well as the thoughtful process that has guided this leadership transition, including Doug continuing as Executive Chairman.”

“It has been an honor to serve as Chief Executive Officer of Toll Brothers,” said Mr. Yearley. “I am truly grateful to have had the privilege to work side-by-side with so many talented people to deliver the American Dream to thousands of clients every year and expand our luxury brand into new markets and price points across the country. I am also very pleased that our Company’s strong culture of cultivating and teaching the next generation of leadership is coming full circle today with this announcement.”

Mr. Yearley continued, “Karl is an outstanding leader. His management skills are extraordinary and the breadth of experience he has gained over the past two decades at Toll Brothers has prepared him well for the CEO role. Karl has honed his skills in both strong markets and challenging ones. He has run numerous homebuilding divisions and has overseen our expansion into several major markets. Most recently, he has had responsibility for our Eastern operations across 15 states. With Karl at the helm partnering with our other seasoned leaders and operating teams, the Company's future is in excellent hands, and I am excited to continue to be a part of it in my new role as Executive Chairman.”

“I am honored to become the third CEO of Toll Brothers, and I look forward to building on the tremendous foundation and strong legacy that Doug, and Bob Toll before him, have established during the Company’s nearly 60 years in business,” said Mr. Mistry. “It’s been a privilege to work closely with Doug for nearly a decade, and I look forward to continuing to work with him and all of our Toll Brothers colleagues as we serve our customers, build our industry-leading brand, and drive value for our shareholders, employees, and homeowners.”

Mr. Yearley joined Toll Brothers in 1990 and has served as CEO since 2010 and Chairman of the Board since 2018. Under Mr. Yearley’s leadership, Toll Brothers has grown to be a leading national luxury brand with operations in 60+ markets across 24 states and offering the most diverse array of price points and product lines in the industry. He holds a Bachelor of Science degree from Cornell University in Applied Economics and Business Management and a Juris Doctor degree from Rutgers Law School. In 2024, Mr. Yearley was named one of 25 Top CEOs across all industries by Barron's magazine.

Mr. Mistry joined Toll Brothers in 2004 as an Assistant Project Manager in the Company’s executive training program. In 2012, he was named Division President for the Houston division, and in 2016 he was promoted to Group President overseeing homebuilding operations in Metro Washington, D.C. In 2019, Mr. Mistry was named Regional President of the Mid-Atlantic region. In his current role as Executive Vice President, a position he has held since 2021, Mr. Mistry manages the Company’s homebuilding operations throughout 15 states in the East. Mr. Mistry holds a Bachelor of Science degree in Economics from Texas A&M University and a Master’s degree in Real Estate Finance & Development from Cornell University.

ABOUT TOLL BROTHERS

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol “TOL.” Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.

Toll Brothers has been one of Fortune magazine's World's Most Admired Companies™ for 10+ years in a row. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

From Fortune, ©2025 Fortune Media IP Limited. All rights reserved. Used under license.

FORWARD-LOOKING STATEMENTS

This release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” “likely,” “will,” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: our ability to successfully manage leadership transitions; market conditions; mortgage rates; inflation rates; demand for our homes; our build- to-order and spec strategy; sales paces and prices; effects of home buyer cancellations; our strategic priorities; growth and expansion; our land acquisition, land development and capital allocation priorities; anticipated operating results; home deliveries; financial resources and condition; changes in revenues, profitability, margins and returns; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; impacts of tariffs; selling, general and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our plans and expectations regarding our announced exit from the multifamily development business, including the disposition of our remaining assets; our ability to acquire land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; the outcome of legal proceedings, investigations, and claims; management succession plans; and the impact of public health or other emergencies.

Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:

• the effect of general economic conditions, including employment rates, housing starts, inflation rates, interest and mortgage rates, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
• the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land;
• access to adequate capital on acceptable terms;
• geographic concentration of our operations;
• levels of competition;
• the price and availability of lumber, other raw materials, home components and labor;
• the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;
• the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, unavailability of insurance, and shortages and price increases in labor or materials associated with such natural disasters;
• risks arising from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19;
• federal and state tax policies;
• transportation costs;
• the effect of land use, environment and other governmental laws and regulations;
• legal proceedings or disputes and the adequacy of reserves;
• risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;
• the effect of potential loss of key management personnel or unsuccessful management transitions;
• changes in accounting principles;
• risks related to unauthorized access to our computer systems, theft of our and our homebuyers’ confidential information or other forms of cyber-attack; and
• other factors described in “Risk Factors” included in our Annual Report on Form 10-K for the year ended October 31, 2025 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).

Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

CONTACTS:

Investor Relations:

Gregg Ziegler (215) 478-3820

gziegler@tollbrothers.com

Media:

Heather Reeves (215) 328-7634

hreeves@tollbrothers.com

Douglas C. Yearley, Jr.
Toll Brothers, Inc.

Karl K. Mistry
Toll Brothers, Inc.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/64636179-8cac-43a4-a108-b64a126e92e4

https://www.globenewswire.com/NewsRoom/AttachmentNg/c98d7acb-60b7-43bc-ac06-9b548083fb76

FAQ

When will Toll Brothers (TOL) implement the CEO change from Doug Yearley to Karl Mistry?

The CEO transition and Yearley’s move to Executive Chairman are effective March 30, 2026.

Who is Karl Mistry and what roles has he held at Toll Brothers (TOL)?

Karl Mistry is a 22‑year Toll Brothers veteran who has led multiple divisions and currently manages Eastern homebuilding operations across 15 states.

What role will Doug Yearley hold after March 30, 2026 at Toll Brothers (TOL)?

Doug Yearley will become Executive Chairman of the Board and will continue to guide strategic initiatives and support the CEO transition.

Will Karl Mistry join the Toll Brothers board when he becomes CEO of TOL?

Yes. Karl Mistry will join the Toll Brothers Board of Directors on March 30, 2026 when he becomes CEO.

How long has Doug Yearley served as Toll Brothers CEO before transitioning?

Doug Yearley has served as CEO since 2010 and as Chairman since 2018.