Toll Brothers Beats Q2 Revenue Guidance by $110M, Raises Delivery and Buyback Plans
Toll Brothers posted $2.5 billion in Q2 homebuilding revenue—$110 million above guidance—and net income of $260.6 million, or $2.72 per share, surpassing midpoint by $0.18. The company increased full-year guidance to 10,400–10,700 deliveries at $985,000–$1,000,000 average price and repurchased $175 million in stock.
1. Strong Top-Line and Earnings Beat
Toll Brothers reported Q2 homebuilding revenue of $2.5 billion, exceeding the high end of guidance by $110 million. Adjusted gross margin improved to 26.2% and SG&A expenses fell to 10.3% of revenues, driving net income of $260.6 million, or $2.72 per share.
2. Elevated Full-Year Delivery Guidance
Based on robust first-half results, the company raised its full-year home delivery outlook to 10,400–10,700 homes at an average selling price between $985,000 and $1,000,000. Net signed agreements climbed 7% to 2,834 homes for $2.8 billion in committed sales.
3. Shareholder Returns and Financial Position
Toll Brothers repurchased $175 million of common stock in Q2, bringing year-to-date buybacks to $226 million, while boosting its quarterly dividend. The balance sheet remains strong with $3.3 billion in liquidity, including $1.1 billion in cash, and a net debt-to-capital ratio of 15.4%.
4. Market Dynamics and Regional Performance
While orders grew, certain markets including Atlanta, San Antonio, Seattle, Portland, and San Francisco underperformed. Customers continued to take longer to decide, with average incentives holding at 8% of sales price as mortgage rates remain volatile.