Toll Brothers' Q1 net income rises, margin declines

Toll Brothers

17/02/2026 21:38

Overview

Luxury home builder's fiscal Q1 net income rose, driven by higher home sales revenue

Company completed sale of half its Apartment Living portfolio for $330 mln

Adjusted home sales gross margin fell to 26.5% from 26.9% yr/yr

Outlook

Toll Brothers expects FY 2026 deliveries between 10,300 and 10,700 units

Company projects FY 2026 average home price between $970,000 and $990,000

Toll Brothers maintains FY 2026 adjusted home sales gross margin guidance at 26%

Result Drivers

LUXURY MARKET FOCUS - Co attributed performance to focus on luxury market and affluent customer base

INCREASED AVERAGE SALES PRICE - Average sales price per home increased to $1.03 mln, boosting net signed contract value

EXIT FROM MULTI-FAMILY BUSINESS - Sale of half of co's Apartment Living portfolio completed, generating $330 mln in cash proceeds

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Home Sales Revenues
$1.85 bln
Q1 Home Sales Adjusted Gross Margin
26.50%
Q1 Operating Income
$219.10 mln
Q1 Pretax Profit
$273.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "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 $160.00, about 3.7% below its February 13 closing price of $166.12

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXbKyXx5

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(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.)