Fort Washington’s Toll Brothers is entering the new fiscal year with a more cautious outlook, writes Katherine Hamilton for The Wall Street Journal.
The luxury homebuilder reported stronger revenue to close out 2025. Still, it projects 10,300 to 10,700 home deliveries in fiscal 2026, slightly below Wall Street expectations.
Company leaders say demand remains uneven as higher mortgage rates and broader economic pressures continue to cool buyer activity nationwide. Rather than pushing aggressive expansion, Toll is closely tailoring its construction plans to demand in individual communities and taking a more selective approach to acquiring new land.
Chief Executive Douglas Yearley Jr, said the company is carefully balancing pricing with building pace as market conditions remain “choppy.” Toll Brothers expects the average selling price of its homes to fall between $970,000 and $990,000, underscoring its continued focus on the upper end of the market. That higher-income buyer base, Yearley noted, has helped cushion the company from some of the affordability challenges impacting other builders.
For the quarter ending October 31, Toll Brothers posted $3.42 billion in revenue, up 3% year over year, and delivered 3,443 homes, exceeding expectations. Profit dipped slightly due in part to the delayed sale of its apartment portfolio.
Learn more about Toll Brothers’ projections for the 2026 housing market by visiting The Wall Street Journal.
