Toll Brothers Q3 earnings beat on strong home sales; deliveries guide falls short

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Toll Brothers (NYSE:TOL [https://seekingalpha.com/symbol/TOL]) on Monday turned in stronger-than-expected fiscal Q3 earnings as home sales revenue reached a new record as home deliveries accelerated. Still, the homebuilder issued soft guidance for deliveries.

For Q4, it expects deliveries [https://seekingalpha.com/pr/20205860-toll-brothers-reports-fy-2025-third-quarter-results] of 3.35K homes, trailing the 3.45K Visible Alpha estimate, average delivered price per home of $970K-$980K (midpoint $975K) and adjusted home sales gross margin of 27.00%.

The company revised its full fiscal year outlook for deliveries to 11.2K units from 11.2K-11.6K (midpoint 11.4K), falling short of the 11.3K Visible Alpha consensus. It also now expects average delivered price per home of $950K-$960K (midpoint $955K), vs. $945K-$965K (midpoint $955K) in the prior view.

Fiscal Q3 GAAP EPS of $3.73, topping the $3.64 average analyst estimate, rose from $3.50 in the prior quarter and $3.60 a year ago.

Q3 revenue of $2.95B for the quarter ended July 31, 2025, surpassing the $2.86B consensus, climbed from $2.74B in the three months ended April 30, 2025, and $2.72B in the three months ended July 31, 2024.

TOL shares slipped 0.9% in after-hours trading.

Delivered homes were 2.959, up from 2,899 in Q2 and +5% from the year-earlier period.

Backlog value of $6.38B fell from $6.84B in the previous quarter and -10% Y/Y. Homes in backlog were 5,492, down from 6,063 in Q2 and -10% from last year's Q3.

"While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base," said Chairman and CEO Douglas C. Yearley, Jr.

MORE ON TOLL BROTHERS

* Toll Brothers: A Free Cash Flow Powerhouse In An Uncertain Macroeconomic Environment [https://seekingalpha.com/article/4798245-toll-brothers-a-free-cash-flow-powerhouse-in-an-uncertain-macroeconomic-environment]
* Toll Brothers: A Sturdy Investment Choice Amid A Wobbly Economic Condition [https://seekingalpha.com/article/4795980-toll-brothers-a-sturdy-investment-choice-amid-a-wobbly-economic-condition]
* Toll Brothers Non-GAAP EPS of $3.73 beats by $0.13, revenue of $2.94B [https://seekingalpha.com/news/4487223-toll-brothers-non-gaap-eps-of-3_73-beats-by-0_13-revenue-of-2_94b]
* Toll Brothers Q3 2025 Earnings Preview [https://seekingalpha.com/news/4486651-toll-brothers-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Toll Brothers [https://seekingalpha.com/symbol/TOL/ratings/quant-ratings]