Toll Brothers Q1 EPS Rises 25% to $2.19 on $1.85B Revenue Beat
Toll Brothers delivered 1,899 homes in Q1, generating $1.85 billion in homebuilding revenue (about $24 million above midpoint) and reported EPS of $2.19, up 25% year-over-year, on net contracts signed of 2,303 for $2.4 billion (flat units, +3% dollars). It ended the quarter with $3.4 billion liquidity and a 14.2% net debt-to-capital ratio, set Q2 delivery guidance of 2,400–2,500 homes, a 25.5% Q2 gross margin target, and authorized $650 million in share repurchases, while appointing Karl Mistry as CEO effective March 30.
1. Q1 Financial Results
Toll Brothers signed 2,303 net contracts worth $2.4 billion, flat in units and up 3% in dollars year-over-year, and delivered 1,899 homes, generating $1.85 billion in homebuilding revenue—about $24 million above the midpoint of guidance. The company reported adjusted EPS of $2.19, a 25% increase from the prior-year period.
2. Balance Sheet and Outlook
The quarter closed with $3.4 billion of liquidity and a net debt-to-capital ratio of 14.2%. Management set Q2 delivery guidance at 2,400–2,500 homes, forecast a 25.5% gross margin for the period and 26.0% for the full year, and authorized $650 million in share repurchases.
3. Leadership Transition and Strategy
Karl Mistry will assume the CEO role on March 30, with Douglas Yearley moving to executive chairman. The company maintained an 8% incentive rate, balanced spec and build-to-order homes roughly 50/50, and achieved average design-studio upgrades of $212,000 per contract.