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Toll Brothers (NYSE: TOL) posts Q2 2026 results and lifts full-year outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Toll Brothers, Inc. reported FY 2026 second quarter results showing lower profit and revenue versus a strong prior year, but solid operational performance and higher guidance. Net income was $260.6 million, or $2.72 per diluted share, down from $352.4 million and $3.50. Home sales revenues were $2.51 billion on 2,491 deliveries, compared with $2.71 billion on 2,899 deliveries.

Despite softer margins and higher impairments, demand stayed firm: net signed contracts rose to $2.81 billion and 2,834 homes, and quarter-end backlog was $6.32 billion and 5,394 homes. Adjusted home sales gross margin was 26.2%, SG&A was 10.3% of home sales revenues, and the company repurchased about 1.2 million shares for $175.4 million. Management raised full-year FY 2026 guidance across key homebuilding metrics and highlighted a strong balance sheet, with $1.11 billion in cash, a debt-to-capital ratio of 24.7%, and a net debt-to-capital ratio of 15.4%.

Positive

  • None.

Negative

  • None.

Insights

Results declined year-over-year but demand, cash generation and guidance remain solid.

Toll Brothers posted weaker FY 2026 Q2 earnings versus a very strong FY 2025 comparison, with net income of $260.6 million and home sales revenues of $2.51 billion. Gross margins compressed, partly due to higher inventory impairments and softer pricing mix.

Operationally, demand indicators stayed healthy: net signed contracts rose to $2.81 billion and 2,834 homes, while backlog ended at $6.32 billion and 5,394 homes. Adjusted home sales gross margin of 26.2% and SG&A at 10.3% of home sales revenues show the business remains profitable despite normalization.

Balance sheet metrics support ongoing capital returns and growth. The company held $1.11 billion in cash, reported a debt-to-capital ratio of 24.7% and net debt-to-capital of 15.4%, repurchased $175.4 million of stock, raised its quarterly dividend to $0.26 per share, and guided to FY 2026 deliveries of 10,400–10,700 homes with an adjusted home sales gross margin of about 26.1%.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 99.1 Item 99.1
Q2 2026 net income $260.6 million Three months ended April 30, 2026
Q2 2026 diluted EPS $2.72 per share Three months ended April 30, 2026
Q2 2026 home sales revenues $2.51 billion 2,491 homes delivered in the quarter
Quarter-end backlog value $6.32 billion Backlog of 5,394 homes at April 30, 2026
Adjusted home sales gross margin 26.2% Q2 2026 non-GAAP margin metric
Share repurchases Q2 2026 $175.4 million 1.2 million shares at $143.72 average price
Cash and cash equivalents $1.11 billion Balance at April 30, 2026
Net debt-to-capital ratio 15.4% As of April 30, 2026
Adjusted home sales gross margin financial
"Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 26.2%"
Adjusted home sales gross margin measures the profit a homebuilder keeps from selling homes after subtracting the direct costs of building them, then removing one‑time or unusual items (like land write‑downs, inventory gains, or settlement adjustments) so the result shows the underlying profitability. For investors, it’s like looking at a company’s operating score after taking out the noise — it reveals whether home sales are genuinely profitable and helps compare performance across periods or competitors without distortions from occasional gains or losses.
Backlog financial
"Backlog value was $6.32 billion at second quarter end compared to $6.84 billion"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Net debt-to-capital ratio financial
"The Company ended FY 2026’s second quarter with a net debt-to-capital ratio(1) of 15.4%"
Net debt-to-capital ratio measures how much of a company’s long-term funding comes from borrowed money after subtracting cash on hand, compared with the total of that net debt plus the owners’ stake. Think of it like comparing your mortgage (minus your savings) to the combined value of your mortgage and your home equity; it tells investors how leveraged the business is and how much financial risk or room to borrow it may have.
Inventory impairments financial
"Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues were $32.5 million"
Unconsolidated entities financial
"Income (loss) from unconsolidated entities was $(16,720) thousand in Q2 2026"
Forward-looking statements regulatory
"This release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Revenue $2.53 billion total revenues
Net income $260.6 million
Diluted EPS $2.72
Backlog $6.32 billion
Guidance

For FY 2026, the company targets 10,400–10,700 deliveries, average delivered price of $985,000–$1,000,000, and adjusted home sales gross margin of about 26.1%.

Understanding 8-K Material Events →
0000794170false00007941702026-05-192026-05-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 19, 2026
Toll Brothers, Inc.
(Exact Name of Registrant as Specified in Charter)
 
Delaware 001-09186 23-2416878
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
1140 Virginia DriveFort WashingtonPA19034
(Address of Principal Executive Offices)(Zip Code)
Registrant’s telephone number, including area code: (215) 938-8000
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
    ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareTOLThe New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 19, 2026, Toll Brothers, Inc. issued a press release which contained its results of operations for its three-month and six-month periods ended April 30, 2026, a copy of which is attached hereto as Exhibit 99.1, to this report.
The information hereunder shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d). Exhibits
The following Exhibits are furnished as part of this Current Report on Form 8-K:
Exhibit
No.                            Item 

99.1*    Press release of Toll Brothers, Inc. dated May 19, 2026 announcing its financial results for the three-month and six-month periods ended April 30, 2026

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed electronically herewith

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  TOLL BROTHERS, INC.
Dated:May 19, 2026 By: /s/ Erica J. Mainardi
  Erica J. Mainardi
Senior Vice President,
Chief Accounting Officer

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tollbrothersalhbblack2a04.jpg

EXHIBIT 99.1             
FOR IMMEDIATE RELEASECONTACT: Gregg Ziegler (215) 478-3820
May 19, 2026gziegler@tollbrothers.com
        
Toll Brothers Reports FY 2026 Second Quarter Results

FORT WASHINGTON, Pa., May 19, 2026 -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, today announced results for its second quarter ended April 30, 2026.

FY 2026's Second Quarter Financial Highlights (Compared to FY 2025's Second Quarter):
•Net income and earnings per share were $260.6 million and $2.72 per diluted share, compared to net income of $352.4 million and $3.50 per diluted share in FY 2025's second quarter.
•Pre-tax income was $350.4 million, compared to $477.5 million in FY 2025's second quarter.
•Home sales revenues were $2.51 billion compared to $2.71 billion in FY 2025's second quarter; delivered homes were 2,491 compared to 2,899 in FY 2025's second quarter.
•Net signed contract value was $2.81 billion compared to $2.60 billion in FY 2025's second quarter; contracted homes were 2,834 compared to 2,650.
•Backlog value was $6.32 billion at second quarter end compared to $6.84 billion at FY 2025’s second quarter end; homes in backlog were 5,394 compared to 6,063.
•Home sales gross margin was 23.9%, compared to FY 2025’s second quarter home sales gross margin of 26.0%.
•Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 26.2%, compared to FY 2025’s second quarter adjusted home sales gross margin of 27.5%.
•SG&A, as a percentage of home sales revenues, was 10.3% compared to 9.5% in FY 2025's second quarter.
•Income from operations was $346.6 million.
•Other income, income from unconsolidated entities, and gross margin from land sales and other was $9.3 million.
•The Company repurchased approximately 1.2 million shares at an average price of $143.72 per share for a total purchase price of $175.4 million.
Karl K. Mistry, chief executive officer, stated: “In the second quarter, we once again successfully navigated a challenging market and produced strong results. We delivered 2,491 homes at an average price of $1,009,000 in the quarter, generating $2.5 billion of home sales revenues, or approximately $110 million above the midpoint of our guidance. Our adjusted gross margin was 26.2%, or 70 basis points above guidance, and our SG&A expense, as a percentage of home sales revenues, was 10.3% or 40 basis points better than guidance. In addition, orders were up 7% in units and 8% in dollars year-over-year. Based on our year-to-date performance, we are raising our full year guidance across all key home building metrics.
“Our strong results continue to reflect our unique position as the nation’s leading builder of luxury homes, with operations spanning more than 60 markets across the country. The strength of our brand, broad geographic footprint, and wide variety of home offerings and price points, combined with our long history serving the luxury market and its affluent customers, continues to set us apart.
“In our second quarter, we repurchased $175 million of common stock, bringing our year-to-date total to $226 million, and we raised our quarterly dividend. In addition, we increased community count by 9% year-over-year and control sufficient land for continued 8% to 10% growth in 2027 and beyond. With a strong balance sheet, attractive margins and significant operating cash flows, we are well positioned to invest in the growth of our business and deliver strong returns to stockholders.”

Third Quarter and FY 2026 Financial Guidance:
Third Quarter
Full Fiscal Year
Deliveries
2,600 - 2,700 units
10,400 - 10,700 units
Average Delivered Price per Home$965,000 -$985,000$985,000 -$1,000,000
Adjusted Home Sales Gross Margin25.25 %26.10 %
SG&A, as a Percentage of Home Sales Revenues10.0 %10.10 %
Period-End Community Count475480 - 490
Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other
$5 million
$120 million
Tax Rate26.0 %25.5 %
Financial Highlights for the three months ended April 30, 2026 and 2025 (unaudited):
2026
2025
Net Income
$260.6 million, or $2.72 per share diluted
$352.4 million, or $3.50 per share diluted
Pre-Tax Income
$350.4 million
$477.5 million
Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues
$32.5 million
$9.8 million
Home Sales Revenues
$2.51 billion and 2,491 units
$2.71 billion and 2,899 units
Net Signed Contracts
$2.81 billion and 2,834 units
$2.60 billion and 2,650 units
Net Signed Contracts per Community
6.3 units
6.4 units
Quarter-End Backlog
$6.32 billion and 5,394 units
$6.84 billion and 6,063 units
Average Price per Home in Backlog
$1,171,800
$1,128,100
Home Sales Gross Margin
23.9%
26.0%
Adjusted Home Sales Gross Margin
26.2%
27.5%
Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues1.1 %1.1 %
SG&A, as a percentage of Home Sales Revenues
10.3%
9.5%
Income from Operations
$346.6 million, or 13.7% of total revenues
$449.7 million, or 16.4% of total revenues
Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other
$9.3 million
$29.0 million
Other Pre-Tax Impairments:
Included in Land Sales and Other Cost of Revenues
$2.3 million
$— million
Included in Income (loss) from Unconsolidated Entities
$13.5 million
$— million
Quarterly Cancellations as a Percentage of Beginning-Quarter Backlog2.9 %2.8 %
Quarterly Cancellations as a Percentage of Signed Contracts in Quarter4.8 %6.2 %
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Financial Highlights for the six months ended April 30, 2026 and 2025 (unaudited):
2026
2025
Net Income
$471.5 million, or $4.91 per share diluted
$530.2 million, or $5.24 per share diluted
Pre-Tax Income
$623.9 million
$698.9 million
Pre-Tax Inventory Impairments included in Home Sales Costs of Revenues
$44.2 million
$26.2 million
Home Sales Revenues
$4.37 billion and 4,390 units
$4.55 billion and 4,890 units
Net Signed Contracts
$5.19 billion and 5,137 units
$4.91 billion and 4,957 units
Home Sales Gross Margin24.2 %25.6 %
Adjusted Home Sales Gross Margin26.3 %27.3 %
Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues1.1 %1.1 %
SG&A, as a percentage of Home Sales Revenues
11.8%
10.9%
Income from Operations
$565.7 million, or 12.1% of total revenues
$668.8 million, or 14.5% of total revenues
Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other
$81.3 million
$31.5 million
Other Pre-Tax Impairments:
Included in Land Sales and Other Cost of Revenues
$3.7 million
$1.8 million
Included in Other Income - Net
$— million
$4.4 million
Included in Income (loss) from Unconsolidated Entities
$57.8 million
$— million
Additional Information:
•The Company ended its FY 2026 second quarter with $1.11 billion in cash and cash equivalents, compared to $1.26 billion at FYE 2025 and $1.20 billion at FY 2026’s first quarter. At FY 2026 second quarter end, the Company also had $2.24 billion available under its $2.38 billion senior unsecured revolving credit facility.
•On February 5, 2026, the Company extended the maturity date of its senior unsecured revolving facility from February 7, 2030 to February 5, 2031 and increased the total amount of revolving loans and commitments available under the facility from $2.35 billion to $2.38 billion. The Company also extended the maturity of approximately $548 million of loans outstanding under its $650 million term loan credit facility from February 7, 2030 to February 5, 2031, with the remainder continuing to mature on February 7, 2030.
•On March 10, 2026, the Company announced a 4% increase in its quarterly cash dividend from $0.25 to $0.26 per share. On April 24, 2026, the Company paid its quarterly dividend of $0.26 per share to shareholders of record at the close of business on April 10, 2026.
•Stockholders’ equity at FY 2026 second quarter end was $8.48 billion, compared to $8.27 billion at FYE 2025.
•FY 2026’s second quarter-end book value per share was $90.51 per share, compared to $87.25 at FYE 2025.
•The Company ended FY 2026's second quarter with a debt-to-capital ratio of 24.7%, compared to 24.4% at FY 2026’s first quarter end and 26.0% at FYE 2025. The Company ended FY 2026’s second quarter with a net debt-to-capital ratio(1) of 15.4%, compared to 14.2% at FY 2026’s first quarter end, and 15.3% at FYE 2025.
•The Company ended FY 2026’s second quarter with approximately 76,800 lots owned and optioned, compared to 75,000 one quarter earlier, and 78,600 one year earlier. Approximately 42% or 32,000, of these lots were owned, of which approximately 18,400 lots, including those in backlog, were substantially improved.
•In the second quarter of FY 2026, the Company spent approximately $422.0 million on land to purchase approximately 1,943 lots.
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•The Company ended FY 2026’s second quarter with 459 selling communities, compared to 445 at FY 2026’s first quarter end and 421 at FY 2025’s second quarter end.
(1)    See “Reconciliation of Non-GAAP Measures” below for more information on the calculation of the Company’s net debt-to-capital ratio.
Toll Brothers will be broadcasting live via the Investor Relations section of its website, investors.TollBrothers.com, a conference call hosted by Douglas C. Yearley, Jr., executive chairman of the board, and Karl K. Mistry, chief executive officer, at 8:30 a.m. (ET) Wednesday, May 20, 2026, to discuss these results and its outlook for the third quarter and FY 2026. To access the call, enter the Toll Brothers website, click on the Investor Relations page, and select “Events & Presentations” under the “News & Events” tab. Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software.
The call can be heard live with an online replay which will follow.
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 was named the #1 Most Admired Home Builder in Fortune magazine’s 2026 list of the World’s Most Admired Companies®, the ninth year the Company has achieved this honor. 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.
Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).
From Fortune, ©2026 Fortune Media IP Limited. All rights reserved. Used under license.

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FORWARD-LOOKING STATEMENTS
Information presented herein for the second quarter ended April 30, 2026 is subject to finalization of the Company’s regulatory filings, related financial and accounting reporting procedures and external auditor procedures.
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: market conditions; mortgage rates; inflation rates; demand for our homes; our build- to-order and quick move-in home 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; 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;
•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;
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•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.
6


TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)

April 30, 2026October 31, 2025
(Unaudited)
ASSETS
Cash and cash equivalents$1,105,511 $1,258,997 
Inventory11,377,712 10,678,460 
Property, construction and office equipment - net283,878 273,397 
Receivables, prepaid expenses and other assets543,805 554,720 
Real estate and related assets held for sale— 420,969 
Mortgage loans held for sale141,482 200,816 
Customer deposits held in escrow125,326 106,612 
Investments in unconsolidated entities955,462 1,025,895 
$14,533,176 $14,519,866 
LIABILITIES AND EQUITY
Liabilities:
Loans payable$903,336 $896,388 
Senior notes1,742,154 1,741,525 
Mortgage company loan facility138,202 150,000 
Customer deposits472,098 418,897 
Accounts payable461,439 615,771 
Accrued expenses2,158,618 2,061,919 
Liabilities related to assets held for sale— 172,186 
Income taxes payable171,337 177,116 
Total liabilities$6,047,184 $6,233,802 
Equity:
Stockholders’ Equity
Common stock, 102,937 shares issued at April 30, 2026 and October 31, 2025
1,029 1,029 
Additional paid-in capital649,556 687,123 
Retained earnings8,997,249 8,574,807 
Treasury stock, at cost — 9,297 and 8,140 shares at April 30, 2026 and October 31, 2025, respectively
(1,191,681)(1,014,568)
Accumulated other comprehensive income19,002 22,272 
Total stockholders’ equity
8,475,155 8,270,663 
Noncontrolling interest10,837 15,401 
Total equity8,485,992 8,286,064 
$14,533,176 $14,519,866 


7



TOLL BROTHERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data and percentages)
(Unaudited)

Three Months Ended
April 30,		Six Months Ended
April 30,
 2026202520262025
$%$%$%$%
Revenues:
Home sales$2,512,464 $2,706,453 $4,367,449 $4,547,229 
Land sales and other18,766 32,624 309,408 50,979 
2,531,230 2,739,077 4,676,857 4,598,208 
Cost of revenues:
Home sales1,913,162 76.1 %2,002,218 74.0 %3,308,624 75.8 %3,383,698 74.4 %
Land sales and other13,178 70.2 %31,421 96.3 %286,352 92.5 %49,527 97.2 %
1,926,340 2,033,639 3,594,976 3,433,225 
Gross margin - home sales599,302 23.9 %704,235 26.0 %1,058,825 24.2 %1,163,531 25.6 %
Gross margin - land sales and other5,588 29.8 %1,203 3.7 %23,056 7.5 %1,452 2.8 %
Selling, general and administrative expenses258,253 10.3 %255,760 9.5 %516,189 11.8 %496,174 10.9 %
Income from operations346,637 449,678 565,692 668,809 
Other:
 Income (loss) from unconsolidated entities(16,720)11,489 18,724 2,746 
Other income - net20,441 16,336 39,517 27,330 
Income before income taxes350,358 477,503 623,933 698,885 
Income tax provision89,767 125,056 152,410 168,735 
Net income$260,591 $352,447 $471,523 $530,150 
Per share:
Basic earnings$2.74 $3.53 $4.94 $5.28 
Diluted earnings$2.72 $3.50 $4.91 $5.24 
Cash dividend declared$0.26 $0.25 $0.51 $0.48 
Weighted-average number of shares:
Basic95,144 99,890 95,422 100,360 
Diluted95,755 100,585 96,130 101,208 
Effective tax rate25.6%26.2%24.4%24.1%
8


TOLL BROTHERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
(Amounts in thousands)
(unaudited)
Three Months Ended
April 30,		Six Months Ended
April 30,
 2026202520262025
Inventory impairments and write-offs included in home sales cost of revenues:
Pre-development costs and option write offs
$20,077 $1,674 $24,751 $5,631 
Land owned for operating communities
12,400 8,125 19,400 20,585 
$32,477 $9,799 $44,151 $26,216 
Land and other impairments included in land sales and other cost of revenues$2,300 $— $3,692 $1,841 
Joint venture impairments included in income (loss) from unconsolidated entities$13,500 $— $57,800 $— 
Other asset write-offs (recoveries) included in Other income - net$— $(42)$— $4,405 
Depreciation and amortization$17,259 $20,775 $33,495 $37,940 
Interest incurred$29,372 $31,603 $58,919 $61,438 
Interest expense:
Charged to home sales cost of revenues$27,416 $30,311 $47,496 $50,387 
Charged to land sales and other cost of revenues207 623 207 638 
Charged to other income - net1,959 482 2,942 482 
$29,582 $31,416 $50,645 $51,507 
Home sites controlled:April 30, 2026April 30, 2025
Owned32,025 32,763 
Optioned44,779 45,843 
76,804 78,606 
Inventory at April 30, 2026 and October 31, 2025 consisted of the following (amounts in thousands):
April 30, 2026October 31, 2025
Land deposits and costs of future communities$947,963 $843,110 
Land and land development costs3,286,410 3,018,179 
Land and land development costs associated with homes under construction3,967,014 3,738,695 
Total land and land development costs8,201,387 7,599,984 
Homes under construction2,577,971 2,535,219 
Model homes (1)
598,354 543,257 
$11,377,712 $10,678,460 
(1)    Includes the allocated land and land development costs associated with each of our model homes in operation.
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Toll Brothers operates in the following five geographic segments, with operations generally located in the states listed below:
•North: Connecticut, Delaware, Massachusetts, Michigan, New Jersey, New York and Pennsylvania
•Mid-Atlantic: Georgia, Maryland, North Carolina, Tennessee and Virginia
•South: Florida, South Carolina and Texas
•Mountain: Arizona, Colorado, Idaho, Nevada and Utah
•Pacific: California, Oregon and Washington

Three Months Ended
April 30,
Units$ (Millions)Average Price Per Unit $
202620252026202520262025
REVENUES
North374 389 $388.5 $378.5 $1,038,800 $973,000 
Mid-Atlantic401 379 413.3 321.8 $1,030,700 $849,000 
South791 928 661.5 758.6 $836,200 $817,500 
Mountain638 856 565.1 755.9 $885,800 $883,000 
Pacific287 347 484.9 492.2 $1,689,500 $1,418,400 
Home Building2,491 2,899 2,513.3 2,707.0 $1,008,900 $933,700 
Corporate and other(0.8)(0.5)
Total home sales2,491 2,899 2,512.5 2,706.5 $1,008,600 $933,600 
Land sales and other18.7 32.6 
Total Consolidated$2,531.2 $2,739.1 
CONTRACTS
North468 372 $496.4 $386.9 $1,060,700 $1,039,900 
Mid-Atlantic384 407 347.6 378.7 $905,300 $930,500 
South937 753 818.4 636.8 $873,400 $845,700 
Mountain738 776 645.6 695.5 $874,700 $896,300 
Pacific307 342 499.3 506.5 $1,626,500 $1,480,900 
Total Consolidated2,834 2,650 $2,807.3 $2,604.4 $990,600 $982,800 
BACKLOG
North1,052 909 $1,234.2 $1,028.5 $1,173,200 $1,131,500 
Mid-Atlantic740 906 797.0 987.4 $1,077,000 $1,089,900 
South1,783 1,932 1,671.4 1,774.7 $937,400 $918,600 
Mountain1,241 1,480 1,297.5 1,563.9 $1,045,500 $1,056,700 
Pacific578 836 1,320.8 1,484.9 $2,285,200 $1,776,100 
Total Consolidated5,394 6,063 $6,320.9 $6,839.4 $1,171,800 $1,128,100 

Note: Due to rounding, amounts in the geographic tables may not add.

10


Six Months Ended
April 30,
Units$ (Millions)Average Price Per Unit $
202620252026202520262025
REVENUES
North652 636 $666.9 $633.2 $1,022,900 $995,600 
Mid-Atlantic653 645 651.5 558.0 $997,700 $865,100 
South1,369 1,524 1,131.0 1,264.9 $826,200 $830,000 
Mountain1,175 1,519 1,040.9 1,312.6 $885,900 $864,100 
Pacific541 566 878.0 779.3 $1,622,900 $1,376,900 
Home Building4,390 4,890 4,368.3 4,548.0 $995,100 $930,100 
Corporate and other(0.9)(0.8)
Total home sales4,390 4,890 4,367.4 4,547.2 $994,900 $929,900 
Land sales and other309.5 51.0 
Total Consolidated$4,676.9 $4,598.2 
CONTRACTS
North871 690 $929.5 $723.6 $1,067,200 $1,048,700 
Mid-Atlantic685 765 625.1 720.2 $912,600 $941,400 
South1,591 1,453 1,343.6 1,230.0 $844,500 $846,500 
Mountain1,392 1,404 1,217.8 1,229.6 $874,900 $875,800 
Pacific598 645 1,070.6 1,008.2 $1,790,300 $1,563,100 
Total Consolidated5,137 4,957 $5,186.6 $4,911.6 $1,009,700 $990,800 


11


RECONCILIATION OF NON-GAAP MEASURES
This press release contains, and Company management’s discussion of the results presented in this press release may include, information about the Company’s adjusted home sales gross margin and the Company’s net debt-to-capital ratio.
These measures are non-GAAP financial measures which are not calculated in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures should not be considered a substitute for, or superior to, the comparable GAAP financial measures, and may be different from non-GAAP measures used by other companies in the home building business.
The Company’s management considers these non-GAAP financial measures as we make operating and strategic decisions and evaluate our performance, including against other home builders that may use similar non-GAAP financial measures. The Company’s management believes these non-GAAP financial measures are useful to investors in understanding our operations and leverage and may be helpful in comparing the Company to other home builders to the extent they provide similar information.
Adjusted Home Sales Gross Margin
The following table reconciles the Company’s home sales gross margin as a percentage of home sales revenues (calculated in accordance with GAAP) to the Company’s adjusted home sales gross margin (a non-GAAP financial measure). Adjusted home sales gross margin is calculated as (i) home sales gross margin plus interest recognized in home sales cost of revenues plus inventory write-downs recognized in home sales cost of revenues divided by (ii) home sales revenues.
Adjusted Home Sales Gross Margin Reconciliation
(Amounts in thousands, except percentages)
Three Months Ended
April 30,		Six Months Ended
April 30,
2026202520262025
Revenues - home sales$2,512,464 $2,706,453 $4,367,449 $4,547,229 
Cost of revenues - home sales1,913,162 2,002,218 3,308,624 3,383,698 
Home sales gross margin599,302 704,235 1,058,825 1,163,531 
Add:Interest recognized in cost of revenues - home sales27,416 30,311 47,496 50,387 
Inventory impairments and write-offs in cost of revenues - home sales32,477 9,799 44,151 26,216 
Adjusted home sales gross margin$659,195 $744,345 $1,150,472 $1,240,134 
Home sales gross margin as a percentage of home sale revenues23.9 %26.0 %24.2 %25.6 %
Adjusted home sales gross margin as a percentage of home sale revenues26.2 %27.5 %26.3 %27.3 %

The Company’s management believes adjusted home sales gross margin is a useful financial measure to investors because it allows them to evaluate the performance of our home building operations without the often varying effects of capitalized interest costs and inventory impairments. The use of adjusted home sales gross margin also assists the Company’s management in assessing the profitability of our home building operations and making strategic decisions regarding community location and product mix.


12


Forward-looking Adjusted Home Sales Gross Margin
The Company has not provided projected third quarter and full FY 2026 home sales gross margin or a GAAP reconciliation for forward-looking adjusted home sales gross margin because such measure cannot be provided without unreasonable efforts on a forward-looking basis, since inventory write-downs are based on future activity and observation and therefore cannot be projected for the third quarter and full FY 2026. The variability of these charges may have a potentially unpredictable, and potentially significant, impact on our third quarter and full FY 2026 home sales gross margin.
​
Net Debt-to-Capital Ratio
The following table reconciles the Company’s ratio of debt to capital (calculated in accordance with GAAP) to the Company’s net debt-to-capital ratio (a non-GAAP financial measure). The net debt-to-capital ratio is calculated as (i) total debt minus mortgage warehouse loans minus cash and cash equivalents divided by (ii) total debt minus mortgage warehouse loans minus cash and cash equivalents plus stockholders’ equity.

Net Debt-to-Capital Ratio Reconciliation
(Amounts in thousands, except percentages)
April 30, 2026January 31, 2026October 31, 2025
Loans payable$903,336 $858,347 $896,388 
Loans payable included in liabilities held for sale— — 114,254 
Senior notes1,742,154 1,741,842 1,741,525 
Mortgage company loan facility138,202 121,130 150,000 
Total debt2,783,692 2,721,319 2,902,167 
Total stockholders’ equity
8,475,155 8,409,092 8,270,663 
Total capital$11,258,847 $11,130,411 $11,172,830 
Ratio of debt-to-capital24.7 %24.4 %26.0 %
Total debt$2,783,692 $2,721,319 $2,902,167 
Less:Mortgage company loan facility(138,202)(121,130)(150,000)
Cash and cash equivalents (1,105,511)(1,202,828)(1,258,997)
Cash and cash equivalents included in assets held for sale— — (773)
Total net debt1,539,979 1,397,361 1,492,397 
Total stockholders’ equity
8,475,155 8,409,092 8,270,663 
Total net capital$10,015,134 $9,806,453 $9,763,060 
Net debt-to-capital ratio15.4 %14.2 %15.3 %

The Company’s management uses the net debt-to-capital ratio as an indicator of its overall leverage and believes it is a useful financial measure to investors in understanding the leverage employed in the Company’s operations.
###

13

Source: View Original Filing on SEC EDGAR

FAQ

How did Toll Brothers (TOL) perform in its FY 2026 second quarter?

Toll Brothers reported FY 2026 Q2 net income of $260.6 million, or $2.72 per diluted share. Home sales revenues were $2.51 billion on 2,491 homes delivered, reflecting profitable operations but lower results than the strong FY 2025 second quarter.

What were Toll Brothers (TOL) home deliveries and pricing in Q2 FY 2026?

In Q2 FY 2026, Toll Brothers delivered 2,491 homes generating home sales revenues of $2.51 billion. This equates to an average delivered home price of roughly $1.0 million, illustrating the company’s continued focus on the luxury segment across its U.S. markets.

How strong were Toll Brothers (TOL) orders and backlog in Q2 FY 2026?

Net signed contracts in Q2 FY 2026 were $2.81 billion and 2,834 homes, up from the prior year. Quarter-end backlog totaled $6.32 billion and 5,394 homes, providing good revenue visibility despite being below the FY 2025 second quarter backlog level.

What margins did Toll Brothers (TOL) report for Q2 FY 2026?

Toll Brothers’ Q2 FY 2026 home sales gross margin was 23.9%, with adjusted home sales gross margin at 26.2%. SG&A expenses were 10.3% of home sales revenues, indicating continued cost discipline even as margins normalized versus FY 2025.

What guidance did Toll Brothers (TOL) give for FY 2026?

For FY 2026, Toll Brothers guided to 10,400–10,700 home deliveries and an average delivered price of $985,000–$1,000,000. It also forecast full-year adjusted home sales gross margin around 26.1% and SG&A of about 10.1% of home sales revenues.

What is Toll Brothers’ (TOL) balance sheet and leverage position after Q2 FY 2026?

At Q2 FY 2026 quarter-end, Toll Brothers held $1.11 billion in cash and cash equivalents and stockholders’ equity of $8.48 billion. Its debt-to-capital ratio was 24.7%, while net debt-to-capital stood at a relatively conservative 15.4%.

How much stock did Toll Brothers (TOL) repurchase in Q2 FY 2026?

During Q2 FY 2026, Toll Brothers repurchased approximately 1.2 million shares at an average price of $143.72, totaling $175.4 million. Year-to-date repurchases reached $226 million, alongside a quarterly dividend increased to $0.26 per share.

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