FORT WASHINGTON, PA — Toll Brothers Inc. (NYSE: TOL) reported first-quarter fiscal 2026 net income of $210.9 million, or $2.19 per diluted share, on home sales revenues of $1.85 billion for the quarter ended January 31, 2026.
Net income rose from $177.7 million, or $1.75 per diluted share, in the same quarter a year earlier.
The luxury homebuilder delivered 1,899 homes during the quarter, compared with 1,991 a year ago, while the average delivered price was about $977,000.
Net signed contracts totaled $2.38 billion on 2,303 homes, compared with $2.31 billion on 2,307 homes in the prior-year quarter.
Backlog at quarter end was $6.02 billion, representing 5,051 homes, down from $6.94 billion and 6,312 homes a year earlier.
Home sales gross margin was 24.8%, compared with 25.0% in the prior-year quarter. Adjusted home sales gross margin was 26.5%, compared with 26.9% a year earlier.
Selling, general and administrative expenses were 13.9% of home sales revenues, compared with 13.1% in the prior-year period.
Income from operations was $219.1 million.
During the quarter, Toll Brothers substantially completed the previously announced sale of approximately half of its Apartment Living portfolio, including its operating platform, to Kennedy Wilson for net cash proceeds of about $330 million. The company said it intends to exit the multifamily development business over the next several years.
Chairman and Chief Executive Officer Douglas C. Yearley Jr. said the company “met or exceeded guidance across nearly all metrics” and signed contracts “flat in units but up 3% in dollars year-over-year”.
At January 31, 2026, Toll Brothers had $1.20 billion in cash and cash equivalents and $2.20 billion available under its $2.35 billion senior unsecured revolving credit facility.
Stockholders’ equity was $8.41 billion, and the company’s debt-to-capital ratio was 24.4%, with a net debt-to-capital ratio of 14.2%.
For the second quarter of fiscal 2026, the company expects deliveries of 2,400 to 2,500 homes and an adjusted home sales gross margin of 25.5%. For the full fiscal year, Toll Brothers projects deliveries of 10,300 to 10,700 homes and an adjusted home sales gross margin of 26.0%.
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