Luxury homebuilder Toll Brothers Q3 adjusted EPS beats estimates

Toll Brothers

19/08/2025 21:38

Overview

Toll Brothers Inc fiscal Q3 net income at $369.6 mln, adjusted EPS beats estimates

Home sales revenue for fiscal Q3 rises 6% yr/yr, no analyst estimate provided

Net signed contract value flat at $2.41 bln, contracted homes down 4%

Outlook

Toll Brothers sees Q4 deliveries of 3,350 units

Company expects FY 2025 deliveries of 11,200 units

Toll Brothers forecasts Q4 average delivered price per home $970,000-$980,000

Company projects FY 2025 adjusted home sales gross margin of 27.25%

Result Drivers

HOME SALES REVENUE - Increased 6% yr/yr driven by higher average home prices despite a decline in contracted homes

ADJUSTED GROSS MARGIN - Achieved 27.5%, exceeding guidance by 25 basis points, reflecting strategic pricing and operational efficiency

BACKLOG DECLINE - Backlog value and units decreased, indicating potential future challenges in maintaining sales momentum

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Home Sales Revenues
$2.88 bln
Q3 Adjusted EPS
Beat
$3.73
$3.6 (15 Analysts)
Q3 EPS
$3.73
Q3 Home Sales Adjusted Gross Margin
27.5%
Q3 Operating Income
$487.70 mln
Q3 Pretax Profit
$499.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "buy"

Wall Street's median 12-month price target for Toll Brothers Inc is $143.00, about 8.3% above its August 18 closing price of $131.18

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX7ZDlPJ

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)