Toll Brothers Posts $2.65 Billion Q3 Sales as $996,000 Homes Test Luxury Demand
Updated
Updated · HousingWire · Aug 20
Toll Brothers Posts $2.65 Billion Q3 Sales as $996,000 Homes Test Luxury Demand
3 articles · Updated · HousingWire · Aug 20
Summary
Toll delivered 2,662 homes and $2.65 billion in fiscal Q3 home sales revenue, topping guidance, while net signed contracts rose 5% to 2,508 homes worth $2.52 billion.
A $996,000 average selling price, 25.6% adjusted gross margin and incentives down to 7.5% from 8% showed its affluent buyers still supported pricing better than the broader housing market.
That resilience rests on a luxury-heavy mix: 61% of revenue came from luxury move-up homes, one-quarter of buyers paid cash, average loan-to-value was 69%, and upgrades added about $207,000 per home.
Toll reaffirmed about $10.5 billion in full-year revenue guidance, kept a 26.1% margin target, and ended the quarter with $3.3 billion of liquidity as it expands communities and boosts 2026 buybacks to $700 million.
The bigger test now lies outside housing: with the 30-year Treasury yield near 5.23% and stocks retreating, prolonged market volatility could curb discretionary purchases by wealthy buyers even if mortgage affordability is less of a constraint.