Toll Brothers announced on March 4, 2026 that it is opening its newest luxury community, Toll Brothers at Oakhill Reserve, in Tomball, Texas. The development features two collections of one‑ and two‑story single‑family homes with modern designs, 45‑ to 50‑foot‑wide sites, and pricing that starts in the upper $300,000s. Amenities include a resort‑style pool, pickleball courts, walking and biking trails, a playground, and ample green space, and buyers can customize their homes through Toll Brothers’ Design Studio.
In its Q1 2026 earnings release, Toll Brothers reported earnings per share of $2.19, beating the consensus estimate of $2.11 by $0.08 (a 3.8% beat). The company also generated home‑sales revenue of $1.85 billion, up 0.5% from $1.84 billion in Q1 2025. The modest revenue growth was driven by a higher average sales price of $977,000, reflecting strong demand for luxury homes in the Houston‑area market.
Toll Brothers’ adjusted gross margin expanded to 26.5% in Q1 2026, 0.25 percentage points above the 26.25% guidance. The margin improvement was largely due to pricing power in the luxury segment and operational efficiencies that offset modest increases in construction and land costs. SG&A expense as a percentage of home‑building revenue fell to 13.9%, 0.3 percentage points better than the 14.2% guidance, driven by disciplined cost control and a focus on high‑margin projects.
Management guided for Q2 2026 deliveries of 2,400–2,500 homes at an average price of $975,000–$985,000 and an adjusted gross margin of 25.5%. Full‑year 2026 guidance calls for 10,300–10,700 home deliveries at an average price of $970,000–$990,000 and an adjusted gross margin of 26.0%. The guidance reflects confidence in sustained demand for luxury homes, while the slight margin compression signals a cautious outlook amid rising input costs.
Douglas C. Yearley, Jr., Chairman and CEO, said, “We are pleased with our first‑quarter results, as we met or exceeded guidance across nearly all metrics. We delivered 1,899 homes at an average price of $977,000, generating home‑sales revenues of $1.85 billion.” He added that the company’s “adjusted gross margin of 26.5% in the quarter, 25 basis points better than guidance, and our SG&A margin of 13.9% in the quarter, 30 basis points better than guidance” demonstrate disciplined execution.
Investors focused on the per‑home pricing, margin outlook, and backlog trends. While the earnings beat and margin expansion signaled strong execution, concerns about a slightly lower average sales price and a modest margin compression in the full‑year guidance tempered enthusiasm.
The launch of Toll Brothers at Oakhill Reserve aligns with the company’s strategy of expanding its luxury portfolio in high‑growth regions. The new community adds to a portfolio that now includes 12 luxury communities in the Houston‑area market, and the company’s exit from the multifamily business further concentrates resources on high‑margin homebuilding.
The combination of a new luxury community launch, a solid Q1 earnings beat, and a forward‑looking guidance that balances optimism with caution underscores Toll Brothers’ continued focus on delivering value to affluent homebuyers while maintaining a healthy balance sheet.
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