Q4 Top Earnings Performers: Toll Brothers (NYSE:TOL) and Other Leading Home Builder Stocks

Homebuilder Industry Q4 Earnings Overview

Quarterly earnings season offers a valuable opportunity to assess how companies are performing, particularly when compared to others in their sector. In this review, we focus on Toll Brothers (NYSE:TOL) and examine how it stacks up against other leading homebuilders.

Historically, homebuilders have gained an edge through large-scale operations, which enable cost savings and stronger brand presence. While design and style have always played a role, recent years have seen a shift toward energy efficiency and sustainability as key drivers of innovation. Despite these advancements, homebuilders remain highly sensitive to broader economic trends—especially interest rates, which have a significant influence on both new and existing home sales. As a result, the homebuilding sector is among the most cyclical within the industrials category.

Among the 13 homebuilder stocks tracked this quarter, results were mixed. Collectively, these companies surpassed revenue expectations by 3.6% compared to analyst forecasts.

Despite some companies outperforming others, the sector as a whole has experienced a decline. Since the latest earnings releases, share prices for these homebuilders have dropped by an average of 4.1%.

Toll Brothers (NYSE:TOL) Performance

Founded by two brothers who began with a single home in Pennsylvania, Toll Brothers has grown into a premier luxury homebuilder operating nationwide.

For the most recent quarter, Toll Brothers posted revenue of $2.15 billion, marking a 15.4% increase year-over-year and surpassing analyst projections by 15.7%. Despite this strong revenue performance, the quarter was mixed, as the company fell short of EBITDA expectations even while exceeding revenue estimates.

Douglas C. Yearley, Jr., Chairman and CEO, commented: “We are satisfied with our first quarter, having met or outperformed guidance on nearly every metric. We delivered 1,899 homes at an average price of $977,000, resulting in $1.85 billion in home sales revenue. Our adjusted gross margin reached 26.5%, exceeding guidance by 25 basis points, while SG&A expenses accounted for 13.9% of homebuilding revenue, 30 basis points better than anticipated. This led to earnings of $2.19 per diluted share—a 25% rise from the first quarter of fiscal 2025. Additionally, we secured 2,303 net contracts valued at $2.4 billion, with unit volume steady and dollar value up 3% year-over-year as the average sales price climbed to $1,033,000.”

Toll Brothers Total Revenue

Toll Brothers led the group in both revenue growth and exceeding analyst expectations. However, investor sentiment has been negative, with the stock declining 7.2% since the earnings announcement and currently trading at $151.32.

Top Q4 Performer: Taylor Morrison Home (NYSE:TMHC)

Recognized as “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home specializes in building single-family residences and communities throughout the U.S.

In the latest quarter, Taylor Morrison Home reported $2.1 billion in revenue—a 10.9% decrease year-over-year—but still outperformed analyst estimates by 7.2%. The company delivered a strong quarter, beating both EBITDA and adjusted operating income projections.

Taylor Morrison Home Total Revenue

Despite outperforming its peers, the market reacted unfavorably, with shares falling 7.2% post-earnings to $61.63.

Lowest Q4 Performer: Meritage Homes (NYSE:MTH)

Founded in Arizona in 1985 as Monterey Homes, Meritage Homes focuses on designing and building energy-efficient single-family homes across the United States.

Meritage Homes posted revenue of $1.44 billion for the quarter, down 11.5% year-over-year and missing analyst expectations by 3.8%. The company fell short on both revenue and adjusted operating income estimates, making it a challenging quarter.

Meritage Homes had the weakest performance relative to analyst forecasts among its peers. The stock price has remained steady since the report and is currently at $69.01.

Tri Pointe Homes (NYSE:TPH)

Established in California in 2009, Tri Pointe Homes is known for its innovative and sustainable approach to building high-quality homes in the U.S.

Tri Pointe Homes reported $972.6 million in revenue, a 22.4% decline year-over-year, but still exceeded analyst expectations by 3.6%. The quarter was mixed, with revenue beating forecasts but adjusted operating income falling short.

Tri Pointe Homes experienced the slowest revenue growth among its competitors. The stock price has remained unchanged since the earnings release and is currently at $46.36.

KB Home (NYSE:KBH)

As the first homebuilder to be listed on the NYSE, KB Home targets both first-time and move-up homebuyers.

KB Home generated $1.69 billion in revenue for the quarter, a 15.3% decrease from the previous year, but still surpassed analyst expectations by 2.3%. However, the company missed both adjusted operating income and EBITDA estimates, indicating a slower quarter.

Shares have dropped 6.8% since the earnings report and are currently priced at $58.49.

Looking for Strong Investment Opportunities?

If you’re interested in companies with robust fundamentals, explore our Strong Momentum Stocks list. These businesses are well-positioned for growth, regardless of economic or political shifts.

The StockStory analyst team—comprised of experienced investment professionals—leverages quantitative analysis and automation to deliver high-quality, timely market insights.