TOL Q2 2025 Earnings
Reported May 20, 2025 at 4:37 PM ET · SEC Source
Q2 25 EPS
$3.50
BEAT +22.36%
Est. $2.86
Q2 25 Revenue
$2.74B
BEAT +9.92%
Est. $2.49B
vs S&P Since Q2 25
+4.4%
BEATING MARKET
TOL +28.1% vs S&P +23.6%
Market Reaction
Did TOL Beat Earnings? Q2 2025 Results
Toll Brothers delivered a standout fiscal second quarter, posting adjusted diluted EPS of $3.50 against a consensus estimate of $2.86, a 22.36% beat, while revenue of $2.74 billion topped expectations of $2.49 billion by 9.92%, even as total revenue … Read more Toll Brothers delivered a standout fiscal second quarter, posting adjusted diluted EPS of $3.50 against a consensus estimate of $2.86, a 22.36% beat, while revenue of $2.74 billion topped expectations of $2.49 billion by 9.92%, even as total revenue slipped 3.5% from a year ago. The luxury homebuilder's record second quarter results were fueled by home sales revenues of $2.71 billion, well above the company's own guidance of $2.47 billion, with CEO Douglas Yearley crediting Toll Brothers' strategy of prioritizing price and margin over pace across its diversified luxury product lineup. Home sales gross margin edged up 20 basis points to 26.0%, even as softening demand weighed on contract activity, with net signed contract value falling 11% to $2.60 billion and backlog declining 7% to $6.84 billion. Despite that demand pressure, management reaffirmed full-year guidance of 11,200 to 11,600 deliveries at an average price of $945,000 to $965,000, expressing confidence in long-term housing fundamentals, particularly within the luxury segment.
Key Takeaways
- • Record second quarter home sales revenues of $2.71 billion, well above guidance of $2.47 billion
- • Diversified luxury product offerings across price points and geographies
- • Balanced portfolio of build-to-order and spec homes
- • Strategy of prioritizing sales price and margin over pace
- • Home deliveries up 10% year-over-year to 2,899 units
- • Home sales gross margin improved to 26.0% from 25.8%
TOL YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
TOL Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are pleased with our second quarter results, as we delivered earnings that significantly exceeded expectations. Despite a softer demand environment, we generated record second quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion, and beat both our adjusted gross margin and SG&A guidance. We believe these results highlight the strength of our broadly diversified luxury product offerings, price points and geographies, our balanced portfolio of build-to-order and spec homes, and our strategy of prioritizing sales price and margin over pace in the current environment. Based on our first half results and the strength of our backlog, we are reaffirming our full year guidance.”
— Douglas C. Yearley Jr., Q2 2025 Earnings Press Release
TOL Earnings Trends
TOL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TOL EPS Trend
Earnings per share: estimate vs actual
TOL Revenue Trend
Quarterly revenue: estimate vs actual
TOL Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.11 | $2.19 | +3.92% | $2.15B | +15.65% |
| Q4 25 MISS FY | $4.89 | $4.58 | -6.34% | $3.42B | +3.17% |
| FY Full Year | $13.82 | $13.49 | -2.36% | $10.97B | +0.97% |
| Q3 25 | — | $3.73 | — | $2.95B | — |
| Q2 25 BEAT | $2.86 | $3.50 | +22.36% | $2.74B | +9.92% |