Toll Brothers posted fiscal third-quarter earnings that showed a split housing market: net income fell to $280.1 million, or $2.97 per diluted share, from $369.6 million and $3.73 a year earlier, while net signed contracts rose to $2.52 billion from $2.41 billion. The company signed contracts for 2,508 homes, up from 2,388, and grew its community count to 471 from 420, with management expecting an 8% to 10% rise for the full fiscal year and similar growth in fiscal 2027. Deliveries shrank to 2,662 homes worth $2.65 billion from 2,959 homes and $2.88 billion, and backlog fell to $6.24 billion and 5,312 homes from $6.38 billion and 5,492 homes. Home sales gross margin compressed to 23.9% from 25.6%, and adjusted gross margin slipped to 25.6% from 27.5%, while SG&A costs rose to 10.0% of home sales revenue from 8.8%. The company repurchased 1.4 million shares at an average price of $148.63, spending $206.8 million, and raised its planned fiscal 2026 buyback to $700 million from $650 million. Full-year guidance held at roughly $10.5 billion in home sales revenue and a 26.1% adjusted gross margin.
Toll Brothers IncProfit fell but contract signings rose; mixed results with margin compression and higher buyback.
