Toll Brothers earnings fall 11% as geopolitical volatility hits demand; sells half of rental portfolio

Filed May 29, 2026 · Period ending April 30, 2026 · Compared to 10-Q May 29, 2025 · ~1 min read

Key Changes

• high

  Net income declined 11% to $471.5M despite 2% revenue growth, driven by 140 basis point margin compression from higher sales incentives and $17M in Pacific region inventory impairments (up from $1M prior year).

  MD&A: Financial Results verify on EDGAR →
• high

  Sold approximately half of Apartment Living portfolio for $284M, generating $18.8M pre-tax gain, while recognizing $57.8M in other-than-temporary impairment charges on remaining rental property joint ventures.

  MD&A: Land Sales and Joint Ventures verify on EDGAR →
• high

  Backlog dropped 8% year-over-year to $6.32B (5,394 homes) from $6.84B (6,063 homes), signaling softer forward revenue visibility as geopolitical volatility starting in March added to affordability pressures.

  MD&A: Backlog and Demand verify on EDGAR →