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Here are a few analogies for Toll Brothers (TOL):

• The Mercedes-Benz of homebuilders
• The Ritz-Carlton of residential development

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• Luxury Single-Family Homes: Toll Brothers designs, builds, and sells spacious, high-end detached homes primarily in affluent suburban communities.
• Luxury Townhomes & Condominiums: The company constructs premium attached housing options, including multi-story townhomes and units within multi-family condominium buildings, often in desirable urban or suburban areas.
• Active Adult (55+) Communities: Toll Brothers develops and sells homes within age-restricted communities specifically tailored for adults aged 55 and over, featuring specialized amenities and lifestyles.
• Urban High-Rise Condominiums: They build and sell luxury condominium units in high-rise buildings located in prime metropolitan city centers.
• Luxury Rental Apartment Communities: Through its apartment living division, Toll Brothers develops and builds upscale multi-family rental properties, which are either held for lease or sold to institutional partners.

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Toll Brothers (symbol: TOL) primarily sells its luxury homes and communities to **individual customers** rather than to other companies.

The company serves the following categories of individual customers:

1. Affluent Individual Homebuyers: This is Toll Brothers' core customer base. These are typically high-net-worth individuals, couples, or families seeking a primary residence. They are often move-up buyers, empty-nesters, or those relocating for lifestyle reasons, who prioritize luxury features, customizable options, larger homes, and communities with premium amenities such such as clubhouses, pools, and fitness centers in desirable suburban or urban-adjacent locations.

2. Active Adult (55+) Homebuyers: Through their dedicated "Toll Brothers Active Adult" division, they cater to individuals aged 55 and older. These customers are typically empty-nesters or retirees looking for age-restricted communities that offer a low-maintenance lifestyle, often with extensive community amenities like golf courses, clubhouses, fitness centers, and social activities. They seek homes designed for ease of living, often with first-floor primary suites.

3. Urban Luxury Condominium Buyers: Via their "Toll Brothers City Living" division, the company serves affluent individuals and couples seeking high-rise condominiums in major urban centers. These customers prioritize prime locations, luxury finishes, concierge services, and sophisticated building amenities such as rooftop terraces, fitness centers, and resident lounges, often appealing to professionals or those seeking an upscale urban lifestyle without the maintenance of a single-family home.

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Douglas C. Yearley, Jr. Chairman and Chief Executive Officer

Doug Yearley joined Toll Brothers in 1990 and has held various management positions, specializing in land acquisitions and project management. He became an officer of the Company in 1994, was promoted to Chief Executive Officer in June 2010, and was elected Chairman of the Board in October 2018, succeeding founder Bob Toll. In 2024, Barron's magazine recognized him as one of the 25 Top CEOs. Yearley holds a Bachelor of Science degree from Cornell University and a Juris Doctor degree from Rutgers Law School.

Gregg Ziegler Chief Financial Officer

Gregg Ziegler was promoted to Chief Financial Officer in November 2025, after more than 23 years with Toll Brothers. He began his career at the company in 2002 as an Assistant Finance Director. Prior to joining Toll Brothers, Ziegler was a principal at Katalyst, a venture capital and private equity firm. From 1997 to 2000, he served as an associate with Berwind Corporation, a family-owned investment management company, and worked at PricewaterhouseCoopers from 1995 to 1997. He holds a Bachelor of Science degree in Accounting and a Master of Business Administration from Villanova University.

Robert Parahus President and Chief Operating Officer

Rob Parahus serves as President and Chief Operating Officer of Toll Brothers. He was promoted to this role in 2020.

Wendy Marlett Executive Vice President and Chief Marketing Officer

Wendy Marlett joined Toll Brothers in June 2019 as a Senior Vice President and was appointed Chief Marketing Officer in November 2019, later becoming Executive Vice President and Chief Marketing Officer in December 2021. She is responsible for overseeing the company's Marketing, Sales, Design Studio, and Customer Experience Departments. Before Toll Brothers, she was Chief Marketing Officer and Executive Vice President of Sales, Marketing, and Communications at CalAtlantic and its predecessor, Standard Pacific, from 2010 to 2018, and held a similar role at KB Home from 1995 to 2010.

Timothy Hoban Senior Vice President and General Counsel

Timothy Hoban began his career with Toll Brothers in 2005 as Regional Counsel in California. He moved to Pennsylvania in 2011 to take on a leadership role in the Legal Department as Chief Litigation Counsel. In 2020, Hoban was appointed General Counsel, overseeing all of Toll Brothers' legal affairs, including corporate governance, litigation, corporate transactions, and regulatory compliance.

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The key risks to Toll Brothers' business operations are primarily centered around the broader economic and housing market conditions, the volatility of construction costs and supply chains, and the inherent risks associated with its strategy regarding speculative home inventory.

1. Economic and Housing Market Conditions: Toll Brothers' business is highly sensitive to overall economic conditions and the state of the housing market. Factors such as fluctuating interest rates directly impact housing affordability for potential buyers and borrowing costs for the company, which can significantly influence demand and sales volume. Economic downturns, employment levels, and consumer confidence also play a crucial role in determining market demand for luxury homes. Recent reports indicate that disappointing earnings and stock performance have been attributed to increased pressure from higher interest rates and strained housing affordability.
2. Cost and Availability of Materials, Labor, and Supply Chain Disruptions: The homebuilding industry relies heavily on the availability and stable pricing of essential raw materials like lumber, other building components, and skilled labor. Disruptions in the supply chain or significant increases in the cost of these inputs can lead to project delays, increased construction costs, and ultimately, pressure on profit margins.
3. Speculative Home Inventory and Margin Pressures: Toll Brothers has a strategy that includes increasing the number of speculative homes (homes built without a buyer already in place). While this can accelerate sales, it introduces significant inventory risk if market conditions soften or demand unexpectedly declines. A weakened demand environment could necessitate price reductions and increased incentives to sell these homes, directly leading to margin erosion and potential impairments.

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Toll Brothers (TOL) operates in several key markets for its main products and services, primarily within the United States.

Main Products/Services and Addressable Markets:

• Luxury Home Building (Single-Family, Attached Homes, Condominiums): The U.S. luxury residential real estate market is valued at approximately USD 289.38 billion in 2025 and is projected to reach USD 338.57 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 3.19% over 2025-2030. Another report estimates the global ready-to-move-in luxury home market at US$ 580 billion in 2024, with the North American market expected to be valued at US$ 149.1 billion in 2024. This global market is projected to reach US$ 1,173 billion by the end of 2034, expanding at a CAGR of 7.3% between 2024 and 2034. Key cities such as New York, Los Angeles, San Francisco, Miami, and Washington D.C. are prominent within this market.
• Active-Adult (55+) Communities: The U.S. active adults (55+) community market was estimated at USD 635.5 billion in 2024 and is projected to grow to USD 906.6 billion by 2033, with a CAGR of 4.02% from 2025 to 2033. This market was also estimated at USD 587.7 billion in 2022 and is projected to grow at a CAGR of 4.02% by 2030.
• Master-Planned Communities: null
• For-Rent Apartment Communities and Luxury Student Housing: null
• Ancillary Businesses (e.g., Mortgage, Architectural, Engineering, Land Development): null

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Toll Brothers (TOL) is expected to drive future revenue growth over the next 2-3 years through several key strategies, including increasing home deliveries, maintaining strong average selling prices, expanding into new markets, and focusing on its affluent customer base.

Here are 3-5 expected drivers of future revenue growth:

• Increased Home Deliveries and Community Count Expansion: Toll Brothers anticipates increasing its number of home deliveries, which directly correlates with revenue growth. The company expects to deliver approximately 11,200 homes for the full fiscal year 2025. This growth in deliveries is supported by an expected increase in community count, projected to be between 440 and 450 by the end of the fiscal year, which is intended to support 8-10% year-over-year growth.
• Maintaining Strong Average Selling Prices (ASP) for Luxury Homes: The company emphasizes a strategy of "strategically balancing price and pace in order to maximize profitability and returns." Toll Brothers projects an average selling price for homes delivered in fiscal year 2025 to be between $950,000 and $960,000. The sustained demand for luxury homes and the company's focus on affluent buyers enable it to maintain high average selling prices, contributing significantly to overall revenue.
• Geographic Expansion and Diversification of Product Offerings: Toll Brothers is actively expanding its national footprint across various states and markets. The company maintains operations in 24 states and over 60 markets, strategically positioning itself for continued growth. Recent announcements highlight new luxury community launches across key U.S. markets, including Arizona, New Jersey, Pennsylvania, Texas, Florida, North Carolina, Oregon, and Nevada, which aim to address diverse buyer segments through premium offerings. This expansion into new geographies and the diversification of product lines are integral to widening its customer base and increasing revenue streams.
• Resilience and Focus on the Affluent Customer Base: Despite broader "affordability pressures and uncertain economic conditions," Toll Brothers has observed the "resilience of our luxury business and more affluent customer base." The company's core focus remains on affluent buyers, allowing it to capture premium market share and sustain demand for its luxury homes, thereby driving revenue.

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Share Repurchases

• Toll Brothers repurchased approximately $627.9 million of common stock in fiscal year 2024.
• In fiscal year 2023, the company repurchased approximately $565.9 million of stock.
• A new 20 million share repurchase authorization was approved in December 2023, replacing a previous authorization under which approximately $800 million of shares were repurchased between May 2022 and December 2023. The company reduced its outstanding share count by nearly 5% in fiscal 2024.

Share Issuance

• While share repurchases have significantly reduced the outstanding share count, Toll Brothers issues shares primarily in the form of equity awards.
• In fiscal year 2024, the estimated number of shares underlying performance-based Restricted Stock Units (RSUs) to be issued was 67,499, with a weighted-average fair value of $33.98 per share.
• In fiscal year 2023, the estimated number of shares underlying performance-based RSUs to be issued was 126,068, with a weighted-average fair value of $34.70 per share.

Inbound Investments

• No information was found regarding large inbound investments made in Toll Brothers by third-parties such as strategic partners or private equity firms.

Outbound Investments

• Toll Brothers makes investments in unconsolidated entities, often for-rent apartment projects and high-rise urban luxury condominiums, with joint venture partners.
• As of October 31, 2024, the company had investments of approximately $1.01 billion in these unconsolidated entities.
• Commitments to invest or advance up to an additional $312.8 million to these entities were outstanding as of October 31, 2024.

Capital Expenditures

• Toll Brothers' primary capital allocation in this category is directed towards land acquisition and development for its homebuilding operations.
• Significant land acquisitions in fiscal year 2024 included approximately $463.2 million in the first quarter, $472.0 million in the second quarter, and $258.6 million in the fourth quarter for purchasing lots. In fiscal year 2023, the company spent approximately $430.9 million in the fourth quarter on land to purchase approximately 3,352 lots.
• Expenditures for property, construction, and office equipment (net) amounted to $321.166 million in fiscal year 2024 and $323.990 million in fiscal year 2023. The company plans to continue investing in land to grow its community count in fiscal year 2025, providing a foundation for growth into fiscal year 2026 and beyond.