# Toll Brothers (TOL) Q3 2025 Financial Results Summary
**Release Date:** August 19, 2025
Toll Brothers, Inc. (NYSE:TOL) has reported its financial results for the third quarter ended July 31, 2025. The following summarizes the key financial highlights and metrics from the report compared to the same quarter in the previous year (FY 2024).
### Financial Highlights:
– **Net Income & Earnings per Share (EPS):**
– Q3 2025: $369.6 million, or **$3.73 per diluted share**
– Q3 2024: $374.6 million, or **$3.60 per diluted share**
– **Change:** Net income decreased by **1.3%**; EPS increased by **3.6%**.
– **Pre-tax Income:**
– Q3 2025: **$499.5 million**
– Q3 2024: **$503.6 million**
– **Change:** Decrease of **0.2%**.
– **Home Sales Revenues:**
– Q3 2025: **$2.88 billion** (up **6%**)
– Q3 2024: **$2.72 billion**
– **Deliveries:** 2,959 homes (up **5%** from 2,814 homes in Q3 2024).
– **Net Signed Contract Value:**
– Q3 2025: **$2.41 billion** (flat vs. Q3 2024)
– **Contracted Homes:** 2,388 (down **4%** from 2,490 in Q3 2024).
– **Backlog Value:**
– Q3 2025: **$6.38 billion** (down **10%** from $7.07 billion in Q3 2024).
– **Homes in Backlog:** 5,492 (down **19%** from 6,769 homes).
– **Gross Margin:**
– **Home Sales Gross Margin:** Q3 2025: **25.6%**; Q3 2024: **27.4%** (decreased by **6.6%**).
– **Adjusted Home Sales Gross Margin:** Q3 2025: **27.5%**; Q3 2024: **28.8%** (decreased by **4.5%**).
– **Selling, General & Administrative Expenses (SG&A):**
– As a percentage of home sales revenues: **8.8%** in Q3 2025 (improved from **9.0%** in Q3 2024).
– **Income from Operations:**
– Q3 2025: **$487.7 million** (down from **$497.2 million** in Q3 2024).
– **Other Income:**
– Q3 2025: **$15.0 million** (up from **$1.1 million** in the previous year).
– **Share Repurchases:**
– Approximately **1.8 million shares** repurchased at an average price of **$112.40** for a total of **$201.4 million**.
### Dividend Declaration:
– On July 25, 2025, **a quarterly dividend of $0.25 per share** was paid to shareholders of record as of July 11, 2025.
### Strong Financial Position:
– The company ended Q3 2025 with **$852.3 million** in cash and cash equivalents (compared to **$1.30 billion** at the end of FY 2024).
– **Debt-to-Capital Ratio:** 26.7% in Q3 2025, slightly up from **26.1%** in Q2 2025 and down from **27.0%** at FY 2024 end.
– **Net Debt-to-Capital Ratio:** 19.3% in Q3 2025, a decrease from **19.8%** in Q2 2025, and an increase from **15.2%** at FY 2024 end.
– **Stockholders’ Equity:** Increased from **$7.67 billion** at FY 2024 end to **$8.10 billion** at the end of Q3 2025.
### Forward Guidance:
– For the fourth quarter FY 2025, Toll Brothers expects:
– **Deliveries:** Approximately **3,350 units**.
– **Average Delivered Price per Home:** Between **$970,000 and $980,000**.
– **Adjusted Home Sales Gross Margin:** **27.00%**.
– **SG&A as a percentage of home sales:** Approximately **8.3%**.
This summary captures the performance highlights and financial metrics of Toll Brothers for the third quarter of FY 2025, indicating both strong revenue growth in home sales, alongside challenges in contract volume and backlog valuations.
### TOLL BROTHERS, INC. AND SUBSIDIARIES
### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data and percentages)
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| July 31, 2025 | July 31, 2025 | |||
| $ | % | $ | % | |
| Revenue… | ||||
| Home sales | 2,880,975 | 7,428,204 | ||
| Land sales and other | 64,142 | 3,472 | 115,121 | 209,950 |
| 2,945,117 | 2,727,9… | 7,543,325 | 7,513,2… | |
| Cost of revenue… | ||||
| Home sales | 2,142,768 | 74.4% | 5,526,466 | 74.4% |
| Land sales and other | 60,958 | 95.0% | 110,485 | 96.0% |
| 2,203,726 | 1,985,9… | 5,636,951 | 5,371,5… | |
| Gross margin – home sales | 738,207 | 25.6% | 1,901,738 | 25.6% |
| Gross margin – land sales and other | 3,184 | 5.0% | 4,636 | 4.0% |
| Selling, general and administrative expenses | 253,672 | 8.8% | 749,846 | 10.1% |
| Income from operations | 487,719 | 497,191 | 1,156,528 | 1,429,1… |
| Other: | ||||
| (Loss) income from unconsolidated entities | -1,012 | -10,514 | 1,734 | -13,799 |
| Other income – net | 12,793 | 16,950 | 40,123 | 49,234 |
| Income before income taxes | 499,500 | 503,627 | 1,198,385 | 1,464,5… |
| Income tax provision | 129,879 | 129,016 | 298,614 | 368,781 |
| Net income | 369,621 | 374,611 | 899,771 | 1,095,7… |
| Per share: | ||||
| Basic earnings | 3.76 | 3.64 | 9.02 | 10.51 |
| Diluted earnings | 3.73 | 3.60 | 8.95 | 10.40 |
| Cash dividend declared | 0.25 | 0.23 | 0.73 | 0.67 |
| Weighted number of shares: | ||||
| Basic | 98,434 | 102,980 | 99,718 | 104,299 |
| Diluted | 99,170 | 104,014 | 100,529 | 105,361 |
| Effective tax rate | 26.0% | 25.6% | 24.9% | 25.2% |
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### TOLL BROTHERS, INC. AND SUBSIDIARIES
### CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
| July 31, 2025 | October 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | 852,311 | 1,303,039 |
| Inventory | 11,071,549 | 9,712,925 |
| Property, construction and office equipment – net | 448,822 | 453,007 |
| Receivables, prepaid expenses and other assets | 602,623 | 590,611 |
| Mortgage loans held for sale | 185,127 | 191,242 |
| Customer deposits held in escrow | 113,969 | 109,691 |
| Investments in unconsolidated entities | 1,122,420 | 1,007,417 |
| Total Assets | 14,396,821 | 13,367,932 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Loans payable | 1,051,495 | 1,085,817 |
| Senior notes | 1,741,024 | 1,597,102 |
| Mortgage company loan facility | 150,000 | 150,000 |
| Customer deposits | 483,890 | 488,690 |
| Accounts payable | 619,648 | 492,213 |
| Accrued expenses | 2,082,387 | 1,752,848 |
| Income taxes payable | 157,170 | 114,547 |
| Total liabilities | 6,285,614 | 5,681,217 |
| Equity: | ||
| Stockholders’ Equity | ||
| Common stock, 112,937 shares issued at July 31, 2025 and October 31, 2024 | 1,129 | 1,129 |
| Additional paid-in capital | 683,692 | 694,713 |
| Retained earnings | 8,980,140 | 8,153,356 |
| Treasury stock, at cost – 16,383 and 13,149 shares at July 31, 2025 and October 31, 2024, respectively | -1,595,159 | -1,209,547 |
| Accumulated other comprehensive income | 25,770 | 31,277 |
| Total stockholders’ equity | 8,095,572 | 7,670,928 |
| Noncontrolling interest | 15,635 | 15,787 |
| Total equity | 8,111,207 | 7,686,715 |
| Total Liabilities and Equity | 14,396,821 | 13,367,932 |
