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Toll Brothers' Q4 Beats on Revenue but Misses on EPS as Shares Fall

Management cites soft demand, guiding to slightly higher gross margins next quarter.

Overview

  • Toll Brothers reported fourth-quarter revenue of $3.42 billion, above estimates, with earnings of $4.58 per share that came in below expectations.
  • The company delivered 3,443 homes, a slight year-over-year increase, while net signed contracts totaled $2.53 billion and backlog fell to $5.5 billion from $6.5 billion a year earlier.
  • Guidance calls for 1,800 to 1,900 Q1 deliveries at an average price of $985,000 to $995,000 and an adjusted home sales gross margin of about 26.25% versus 25.5% in Q4.
  • Fiscal 2026 outlook targets 10,300 to 10,700 deliveries at an average price of $970,000 to $990,000 as the company focuses on price, pace, spec starts and inventory management.
  • The builder repurchased roughly 1.8 million shares and ended the quarter with $1.26 billion in cash, while the stock fell about 4% in post-report trading.