Toll Brothers has opened three new luxury communities—Outlook at The Station in Sunnyvale, California; Summercrest in Estero, Florida; and Altair Ridge in Orion Township, Michigan—on February 2, 2026. The California development offers one‑ and two‑story condominiums ranging from one to three bedrooms and up to 1,962 sq ft, with prices beginning in the mid‑$900,000s. Summercrest delivers gated, two‑story townhomes between 1,944 and 2,495 sq ft, priced from the mid‑$500,000s, while Altair Ridge features three‑bedroom townhomes with 2.5 to 3.5 bathrooms, priced from the mid‑$400,000s. All three communities include resort‑style amenities such as pools, fitness centers, and club rooms, positioning them to attract Toll Brothers’ affluent customer base.
Toll Brothers’ expansion into California, Florida, and Michigan underscores its strategy to grow in high‑growth, affluent markets while phasing out its multifamily portfolio. The company has announced that it will exit the apartment business over the next few years to focus on core homebuilding, and the new luxury communities reinforce that pivot by targeting buyers less sensitive to affordability pressures. The geographic spread also diversifies the company’s exposure to regional market cycles.
In its most recent quarterly report, Toll Brothers posted a net income of $446.7 million and earnings per diluted share of $4.58 for the fourth quarter of 2025, slightly below the $4.63 EPS of the prior year. Revenue of $3.42 billion beat expectations, driven by strong demand in the company’s core homebuilding segments, but the EPS miss was largely attributable to a delayed sale of its apartment portfolio, which created a one‑time charge. The company’s adjusted gross margin for FY 2025 was 27.3%, a modest decline from the 27.8% margin reported in FY 2024, reflecting higher input costs and a shift in the mix toward more expensive luxury units.
For 2026, Toll Brothers has guided for 10,300 to 10,700 home deliveries with an average selling price of $970,000 to $990,000, and an adjusted gross margin of approximately 26%. The guidance signals confidence in sustained demand for luxury homes despite broader market softness, while the slight margin compression reflects the company’s focus on higher‑margin projects and the impact of elevated construction costs.
CEO Doug Yearley Jr. emphasized that the company’s luxury business remains differentiated, noting that affluent buyers are “less impacted by affordability pressures.” He also reiterated the company’s plan to exit the multifamily business and highlighted the resilience of its core homebuilding operations amid soft demand across many markets. These comments reinforce the strategic intent behind the new community openings and the company’s broader focus on high‑margin, high‑growth segments.
The combination of new luxury communities, a clear exit strategy from multifamily, and a forward‑looking guidance package positions Toll Brothers to maintain growth momentum in a challenging housing environment. By concentrating on affluent buyers and expanding in key markets, the company aims to sustain profitability and capitalize on pockets of demand that remain robust even as broader market conditions remain uncertain.
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