Toll Brothers Reports 8% Revenue Growth to $2.95 Billion in Q3 Fiscal 2025

Toll Brothers, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a revenue of $2.95 billion, a 8% increase from $2.73 billion in the same period last year. Home sales accounted for $2.88 billion of this revenue, up from $2.72 billion, while land sales and other revenues rose to $64.1 million from $3.5 million. The company’s net income for the quarter was $369.6 million, slightly down from $374.6 million a year earlier. For the nine months ending July 31, 2025, total revenues reached $7.54 billion, compared to $7.51 billion in the prior year, with net income decreasing to $899.8 million from $1.10 billion.

The company experienced a decline in net contracts signed, with 2,388 homes valued at $2.41 billion in the latest quarter, down 4.1% in units but up 0.2% in dollar value compared to the previous year. The average sales price increased by 4.5%, reflecting ongoing affordability pressures and volatile economic conditions that have impacted consumer confidence. The backlog of homes under contract decreased to $6.38 billion, representing 5,492 homes, down from $7.07 billion and 6,769 homes a year earlier.

Operationally, Toll Brothers has been adjusting its strategy in response to market conditions. The company has reduced the pace of its spec home starts due to weaker demand, while also increasing incentives to balance sales prices and margins. The total number of communities selling increased to 420 from 408 at the end of the previous fiscal year. The company also reported a total of 76,800 home sites owned or controlled through options, an increase from 74,700 at the end of fiscal 2024.

In terms of financial health, Toll Brothers had $852.3 million in cash and cash equivalents as of July 31, 2025, with approximately $2.19 billion available under its revolving credit facility. The company issued $500 million in senior notes during the quarter and redeemed $350 million of existing notes. The debt to total capitalization ratio stood at 0.27 to 1.00, indicating a stable financial position. Looking ahead, the company anticipates continued softness in housing demand in the near term but remains optimistic about long-term market fundamentals, including favorable demographics and a structural undersupply of homes in the U.S.