Q4 2025 Toll Brothers Inc Earnings Call Transcript
Key Points
- Toll Brothers Inc (TOL) delivered a record 11,292 homes in fiscal 2025, generating $10.8 billion in home sales revenue.
- The company achieved an adjusted gross margin of 27.3% and an SG&A margin of 9.5%, demonstrating strong financial performance.
- Toll Brothers Inc (TOL) returned approximately $750 million to stockholders through share repurchases and dividends.
- The company reported strong operating cash flows of $1.1 billion, highlighting its financial stability.
- Toll Brothers Inc (TOL) plans to grow its community count by 8% to 10% in fiscal 2026, indicating future growth potential.
- Earnings per diluted share were modestly below guidance due to the delayed closing of the sale of the Apartment Living business.
- The company experienced a 2% decline in net agreements in units and a 5% decline in dollars compared to Q4 of the previous year.
- The average sales price in the quarter decreased to approximately $972,000 from $1 million in Q4 of last year due to mix.
- Toll Brothers Inc (TOL) faces a cloudy near-term outlook for the overall housing market due to affordability pressures.
- The company reported a contract cancellation rate of 4.3% of beginning backlog, indicating some market challenges.
Good morning, and welcome to the Toll Brothers fourth quarter fiscal year 2025 conference call. (Operator Instructions) The company is planning to end the call at 9:30 when the market opens. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Douglas Yearley, CEO. Please go ahead.
Thank you, Drew. Good morning. Welcome, and thank you all for joining us. With me today are Rob Perrehouse, President and Chief Operating Officer; Wendy Marlett, Chief Marketing Officer; and Gregg Ziegler, our new Chief Financial Officer.
While Greg has been on these calls for many years, this is his first as our CFO. Congratulations, Greg.
Thank you, Doug.
As usual, I caution you that many
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