Homebuilder Toll Brothers beats profit on higher deliveries

Published 19/08/2025, 21:54

Investing.com -- Toll Brothers reported third-quarter earnings and revenue ahead of Wall Street expectations on Tuesday, though contracted units fell from a year earlier. Shares of luxury homebuilder were down about 1.6% in after-hours trading.

TOL earned $3.73 per share for the quarter ended July 31, above analysts’ average estimate of $3.60.

Revenue was $2.88 billion, also ahead of the $2.86 billion expected.

The company flagged “affordability pressures and uncertain economic conditions.”

Net signed contract value was unchanged at $2.41 billion, while the number of new contracts declined 4%.

“In this environment, we continue to focus on strategically balancing price and pace in order to maximize profitability and returns,” said CEO Douglas Yearley.

“We are actively managing our spec starts on a community-by-community basis to best match local demand”

The company delivered 2,959 homes in the quarter, up 5% year-over-year.

Gross margin on home sales narrowed to 25.6% from 27.4% a year earlier.

Toll Brothers (NYSE:TOL) said it repurchased roughly 1.8 million shares during the quarter for $201 million.

 

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