Toll Brothers Q2 home sales revenue falls as deliveries decline

Toll Brothers

19/05/2026 21:43

Overview

US luxury home builder's fiscal Q2 home sales revenue fell yr/yr as delivered homes declined

EPS for fiscal Q2 dropped yr/yr as home sales gross margin decreased

Company repurchased $175 mln in shares and raised quarterly dividend

Outlook

Toll Brothers raises full-year guidance across all key home building metrics

Company expects FY 2026 deliveries of 10,400-10,700 units, avg price $985,000-$1,000,000

Toll Brothers sees adjusted home sales gross margin at 26.10% for FY 2026

Result Drivers

LOWER DELIVERIES - Fewer homes delivered and lower home sales revenue contributed to weaker Q2 results

LOWER GROSS MARGINS - Decrease in home sales gross margin and higher inventory impairments weighed on profitability

ORDERS GROWTH - Net signed contract value and units increased year-over-year

Company press release: ID:nGNXbS6f3P

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Home Sales Revenues
$2.51 bln
Q2 EPS
$2.72
Q2 Home Sales Adjusted Gross Margin
26.2%
Q2 Operating Income
$346.60 mln
Q2 Pretax Profit
$350.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "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 $174.50, about 37.4% above its May 18 closing price of $126.97

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

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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.)