Toll Brothers Inc (NYSE: TOL) is a residential homebuilding company that designs, builds, and sells luxury and affordable luxury homes across the United States. Revenue comes primarily from transactional home sales, with 11,292 homes delivered in FY2025 at an average price of $960,200, generating $10,842.2 million in home sales revenue (FY2025, year ended October 31, 2025). Land sales and other revenue contributed an additional $124.5 million in FY2025. The company targets move-up, empty-nester, active-adult, millennial, Gen Z, and affluent first-time buyers. It operates five regional segments: North, Mid-Atlantic, South, Mountain, and Pacific. Total consolidated revenue was $10,966.7 million in FY2025, up 1% from $10,846.7 million in FY2024. Net income was $1,346.5 million in FY2025, down 14% from $1,571.2 million in FY2024. Toll Brothers also holds interests in rental property joint ventures that develop for-rent apartments and student housing, generating gains on asset sales recognized through unconsolidated entities.

Revenue model

Transactional home sales are the primary revenue source, accounting for $10,842.2 million of $10,966.7 million in total FY2025 revenue. Secondary revenue comes from land sales ($124.5 million in FY2025) and gains from rental property joint ventures ($45.1 million share of gains recognized in FY2025). Home sales cost of revenues was 74.4% of home sales revenues in FY2025. The company also operates a mortgage subsidiary that provides financing to home buyers.

Products and services

Detached and attached single-family homes marketed under luxury and affordable luxury positioning, offered across multiple price points and product lines. Home designs include traditional move-up homes, empty-nester single-story layouts with first-floor primary bedroom suites, and master-planned communities with amenities such as golf courses, marinas, pool complexes, country clubs, and fitness centers. Buyers may select structural options and exterior styles on many home plans. The company also develops for-rent apartments and student housing through joint ventures.

Customers and end markets

Primary customers are individual home buyers in the luxury and affordable luxury segments, including move-up buyers, empty-nesters, active-adult buyers, second-home buyers, and affluent first-time buyers including millennials and Gen Z. No individual customer concentration is disclosed. End market demand is driven by household formation, existing-home inventory levels, mortgage rates, and consumer confidence in housing.

Value-chain role

Fully integrated homebuilder that acquires and develops land, designs communities, constructs homes using subcontractors and company-managed construction, and sells directly to end buyers. The company conducts environmental due diligence on land acquisitions, operates an internal mortgage subsidiary, and provides limited warranties on workmanship, mechanical equipment, and structural integrity.

Geographic exposure

Operations are organized across five U.S. regions as of FY2025 (year ended October 31, 2025). Home sales revenues by region: North $1,656.1 million, Mid-Atlantic $1,432.8 million, South $2,706.7 million, Mountain $2,924.4 million, Pacific $2,122.2 million. Pacific markets include Los Angeles, Orange County, San Francisco Bay, Sacramento, San Jose, Seattle, Spokane, Clark County, and Portland. All operations are domestic.

Source: SEC 10-K, filed 2025-12-19

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