FORT WASHINGTON, PA — Toll Brothers, Inc. (NYSE: TOL), the nation’s leading luxury homebuilder, has announced its financial results for the second quarter of fiscal year 2025, showcasing performance metrics that outpaced expectations despite a softer demand environment.
The company reported net income of $352.4 million, or $3.50 per diluted share, for the quarter ended April 30, 2025. Although this was down from $481.6 million, or $4.55 per diluted share, a year ago, the prior year’s results included a one-time gain from a land sale. Adjusting for that, net income last year was $357.5 million, signaling nearly stable performance.
Toll Brothers set a new second-quarter record with home sales revenues of $2.71 billion, a 2% year-over-year increase and well above the company’s guidance of $2.47 billion. This achievement was supported by the delivery of 2,899 homes, marking a 10% growth over the same quarter last year.
“Despite a softer demand environment, we generated record second-quarter home sales revenues,” said Douglas C. Yearley, Jr., chairman and chief executive officer. “These results highlight the strength of our broadly diversified luxury product offerings, price points, and geographies, as well as our strategy of prioritizing sales price and margin over pace in the current environment.”
The company’s pre-tax income totaled $477.5 million, compared to $649.8 million in the second quarter of FY 2024. Gross margin for home sales was steady at 26.0%, while adjusted gross margin, excluding interest and inventory write-downs, stood at 27.5%.
While new contract value and units showed declines of 11% and 13%, respectively, compared to last year, Toll Brothers maintains a robust backlog of $6.84 billion, containing 6,063 homes. This represents a 7% decrease in value and a 15% drop in units compared to FY 2024’s second quarter.
The company reaffirmed confidence in its long-term outlook, driven by strong demographic trends and a nationwide housing shortage. Yearley emphasized the company’s position within the market, noting its “balanced operating platform, disciplined underwriting, financial strength, and healthy cash flows,” as key enablers for adapting to evolving market conditions.
Additional highlights from the quarter include $686.5 million in cash and cash equivalents, $2.19 billion available under a credit facility, and an increase in quarterly dividends by 9% to $0.25 per share. Toll Brothers also repurchased 1.6 million shares at an average price of $107.84 per share during the quarter.
“This quarter’s performance demonstrates our ability to deliver value to our stockholders while adjusting to market conditions,” Yearley concluded.
With 421 selling communities as of quarter-end and a total of 78,600 lots owned or optioned, Toll Brothers appears well-positioned to continue targeting high-end buyers seeking luxury homes in prime locations. Its leadership reiterated optimism for the remainder of the fiscal year and beyond.
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