Toll Brothers F2Q26 Recap and Growth Outlook

Goldman Sachs maintains a Neutral rating on Toll Brothers following strong F2Q results, raising EPS estimates but slightly lowering the price target to $153.

Key Takeaways

• 1.Toll Brothers leverages a resilient, affluent consumer base, with F2Q results showing strength in more profitable build-to-order sales.
• 2.Incentives have remained stable at 8% of average selling price (ASP) for four consecutive quarters.
• 3.Management plans to grow community count by 8-10% in F2027 and subsequent years.

Table of Contents

• Normalized Specs and Steady Incentives to Benefit Results
• Move-Up Homes Lead Sales In Line with Broader Macro Trends
• Product and Geographic Mix Reflected in Margin Outlook
• Revising Estimates and Price Target, Maintain Neutral Rating
• Updating Illustrative Scenario Analysis
• Disclosure Appendix

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