Toll Brothers lifts 2026 delivery outlook as luxury demand holds

Toll Brothers delivered stronger-than-expected second-quarter results during a period marked by interest-rate sensitivity, affordability pressures, buyer hesitation, and reduced delivery expectations. The company beat expectations, raised full-year guidance across key homebuilding metrics, and kept incentives flat. It maintained strong margins and demonstrated operating leverage. The business performance was supported by continued demand from higher-income households willing to buy luxury homes despite external market pressures. Toll delivered 2,491 homes at an average price of $1.009 million, generating $2.51 billion in home sales revenue. Adjusted gross margin was 26.2%, above guidance, and SG&A was 10.3% of home sales revenue, below guidance. Net signed contracts increased 7% in units and 8% in dollars to 2,834 homes and $2.81 billion.

"Our second-quarter results reflect our unique position as America's luxury homebuilder, as well as the success of our strategies to expand our geographies, product lines, and price points. He added: We are quite simply a more efficient and less cyclical homebuilder. Even in a difficult market, our business continues to perform well."

"Toll delivered 2,491 homes at an average price of $1.009 million, generating $2.51 billion in home sales revenue. Adjusted gross margin came in at 26.2%, 70 basis points above guidance, and SG&A was 10.3% of home sales revenue, 40 basis points below guidance. Net signed contracts rose 7% in units and 8% in dollars, to 2,834 homes and $2.81 billion."

"Evercore ISI's Stephen Kim framed the quarter as a beat where it mattered: adjusted diluted EPS of $2.99 versus Evercore's $2.66 estimate and the Street consensus of $2.58; gross margin of 26.2% versus the expected 25.5%; SG&A of 10.3% versus the expected 10.6%; and orders up 7% versus Evercore's 3% forecast."

"Does that mean Toll is immune to the market? No. Toll, like its peers, is mortal, not supernatural. Its second-quarter home sales revenue declined from the prio"

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