Financial Analysis

Commitments and Contingencies Legal Proceedings We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition. Land Purchase Contracts Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although we, in some cases, forfeit any deposit balance outstanding if and when we terminate an agreement. If market conditions are weak, approvals needed to develop the land are uncertain, or other factors exist that make the purchase undesirable, we may choose not to acquire the land. Whether a purchase agreement is legally terminated or not, we review the amount recorded for the land parcel subject to the purchase agreement to determine whether the amount is recoverable. While we may not have formally terminated the purchase agreements for those land parcels that we do not expect to acquire, we write off any nonrefundable deposits and costs previously capitalized to such land parcels in the periods that we determine such costs are not recoverable. Information regarding our land purchase contracts at October 31, 2025 and 2024, is provided in the table below (amounts in thousands): 2025 2024 Aggregate purchase price: Unrelated parties $ 7,433, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Benefit Plans We grant various types of restricted stock units to our employees and our non-employee directors under our stock incentive plans. We also granted stock options to certain of our employees and non-employee directors through fiscal year 2023. Restricted stock unit awards may be based on performance conditions, market conditions or service over a requisite time period (time-based). On March 12, 2019, shareholders approved the Toll Brothers, Inc. 2019 Omnibus Incentive Plan (the Omnibus Plan), which succeeded the Toll Brothers, Inc. Stock Incentive Plan for Employees (2014) and the Toll Brothers, Inc. Stock Incentive Plan for Non-Executive Directors (2016) with respect to equity awards granted after its adoption, and no additional equity awards may be granted under such prior plans. As a result, the Omnibus Plan is the sole plan out of which new equity awards may be granted to employees (including executive officers), directors and other eligible participants under the plan. The Omnibus Plan provides for the granting of incentive stock options and nonqualified stock options with a term of up to 10 years at a price not less than the market price of the stock at the date of grant. The Omnibus Plan also provides for the issuance of stock appreciation rights and restricted and unrestricted stock awards and stock units, which may be performance-based. Stock options and restricted stock units granted under the Omnibus Plan generally vest over a four-year perio …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Disclosures Financial Instruments A summary of assets and (liabilities) at October 31, 2025 and 2024, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (amounts in thousands): Fair value Financial Instrument Fair value hierarchy October 31, 2025 October 31, 2024 Mortgage Loans Held for Sale Level 2 $ 200,816 $ 191,242 Forward Loan Commitments Mortgage Loans Held for Sale Level 2 $ 63 $ 2,152 Interest Rate Lock Commitments (IRLCs) Level 2 $ (1) $ (962) Forward Loan Commitments IRLCs Level 2 $ 1 $ 962 Interest Rate Swap Contracts Level 2 $ $ 15,283 At October 31, 2025 and 2024, the carrying value of cash and cash equivalents, escrow cash held by our wholly owned captive title company, and customer deposits held in escrow approximated fair value. The fair values of the interest rate swap contracts are included in Receivables, prepaid expenses and other assets in our Consolidated Balance Sheets and are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of each swap contract. Although the Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its interest rate swap contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to eva …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2025, 2024, and 2023 ($ amounts in thousands): 2025 2024 2023 $ %* $ %* $ %* Federal tax provision at statutory rate 376,188 21.0 437,984 21.0 386,898 21.0 State tax provision, net of federal benefit 85,649 4.8 103,880 5.0 90,698 4.9 Other permanent differences 56 2,737 0.1 (2,782) (0.2) Reversal of accrual for uncertain tax positions (1,748) (0.1) (2,132) (0.1) (621) Accrued interest on anticipated tax assessments 1,292 0.1 1,418 0.1 403 Increase in unrecognized tax benefits 2,598 0.1 2,556 0.1 2,209 0.1 Excess stock compensation benefit (15,196) (0.8) (17,546) (0.8) (7,320) (0.4) Energy tax credits (68) (2,348) (0.1) Other (3,954) (0.2) (14,384) (0.7) 3,163 0.2 Income tax provision* 444,885 24.8 514,445 24.7 470,300 25.5 * Due to rounding, percentages may not add We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated that our rate for state income taxes, before federal benefit, will be 6.1% in fiscal 2025. Our state income tax rate, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At October 31, 2025 and 2024, loans payable consisted of the following (amounts in thousands): 2025 2024 Senior unsecured term loan $ 650,000 $ 650,000 Loans payable other 249,087 437,969 Deferred issuance costs (2,699) (2,152) $ 896,388 $ 1,085,817 Senior Unsecured Term Loan We are party to a $650.0 million senior unsecured term loan facility (the Term Loan Facility) with a syndicate of banks. On February 7, 2025, we entered into an agreement to amend the Term Loan Facility to extend the maturity date of all $650.0 million of outstanding term loans to February 7, 2030. No principal payments are required before the stated maturity date. Under the Term Loan Facility, we may select interest rates equal to (i) the Secured Overnight Financing Rate (SOFR) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At October 31, 2025, the interest rate on the Term Loan Facility was 5.14% per annum. Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Revolving Credit Facility described below. In November 2020, we entered into five interest rate swap transactions to hed …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements In November 2024, the FASB issued Accounting Standards Update (""ASU"") 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 will be effective for our fiscal year 2028. The amendments in this update are to be applied on a prospective basis, with the option for retrospective application. Early adoption is permitted. We are currently evaluating the impact this standard will have on our disclosures. In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Venture Formations (ASU 2023-05), which addresses the accounting for contributions made to a joint venture. ASU 2023-05 requires joint ventures to measure all assets and liabilities upon formation at fair value. This guidance is to be applied prospectively for all joint venture formations with a formation date on or after January 1, 2025. We adopted ASU 2023-05 effective January 1, 2025. The adoption of ASU 2023-05 impacted our disclosures only and has been applied to all joint venture formations in our current fiscal year. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 requires disclosure of significant segment expens …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Retirement and Deferred Compensation Plans Salary Deferral Savings Plans We maintain salary deferral savings plans covering substantially all employees. We recognized an expense, net of plan forfeitures, with respect to the plans of $20.9 million, $19.2 million, and $17.1 million for the fiscal years ended October 31, 2025, 2024, and 2023, respectively, which is included in Selling, general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income. Deferred Compensation Plan We have an unfunded, nonqualified deferred compensation plan that permits eligible employees to defer a portion of their compensation. The deferred compensation, together with certain of our contributions, earns various rates of return depending upon when the compensation was deferred. A portion of the deferred compensation and interest earned may be forfeited by a participant if he or she elects to withdraw the compensation prior to the end of the deferral period. We accrued $38.1 million and $36.6 million at October 31, 2025 and 2024, respectively, for our obligations under the plan, which is included in Accrued expenses in the Consolidated Balance Sheets. Defined Benefit Retirement Plans We have two unfunded defined benefit retirement plans. Retirement benefits generally vest when the participant reaches normal retirement age. Unrecognized prior service costs are being amortized over the period from the date participants enter the plans until their intere …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Information on Segments We are engaged in the business of acquiring and developing land and constructing and selling single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, we have aggregated our geographical homebuilding segments under the aggregation criteria outlined. In determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. In addition, our determination of reporting segments considered how our chief operating decision makers (CODMs) evaluate operating performance and capital allocation. Based upon these factors and in consideration of the geographical layout of our homebuilding markets, we have identified five homebuilding reporting segments which are reported under the following hierarchy: The North region: Connecticut, Delaware, Massachusetts, Michigan, New Jersey, New York and Pennsylvania; The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia; The South region: Florida, South Carolina and Texas; The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah; and The Pacific region: California, Oregon and Washington. Corporate and other is a non-operating segment comprised principally of general corporate expenses such as our executive offices; the c …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Toll Brothers, Inc. (the Company, we, us, or our), a Delaware corporation, and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. References herein to fiscal year refer to our fiscal years ended or ending October 31. Use of Estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. In times of economic disruption when uncertainty regarding future economic conditions is heightened, these estimates and assumptions are subject to greater variability. As a result, actual results could differ from the estimates and assumptions we make that affect the amounts reported in the Consolidated Financial Statements and accompanying notes, and such differences may be material. Cash and Cash Equivalents Investments with original maturities of three months or less are classified as cash equivalents. Our cash balances exceed federally insurable limits. We monitor the cash balances in our operating accounts and adjust the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity Our authorized capital stock consists of 400 million shares of common stock, $0.01 par value per share (common stock), and 15 million shares of preferred stock, $0.01 par value per share. At October 31, 2025, we had 94.8 million shares of common stock issued and outstanding, 2.1 million shares of common stock reserved for outstanding stock options and restricted stock units, 2.6 million shares of common stock reserved for future equity award issuances, and 205,943 shares of common stock reserved for issuance under our employee stock purchase plan. As of October 31, 2025, no shares of preferred stock have been issued. Cash Dividends In March 2025, our Board of Directors approved an increase in the quarterly dividend from $0.23 to $0.25 per share. During the fiscal years October 31, 2025, 2024 and 2023, we declared and paid aggregate cash dividends of $0.98, $0.90 and $0.83 per share, respectively, to our shareholders. Stock Repurchase Program From time to time, our Board of Directors authorizes the repurchase of shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Companys equity award and other employee benefit plans. Most recently, on December 13, 2023, the Board of Directors authorized the repurchase of up to 20 million shares of our common s …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Legal Proceedings We are involved in various claims and litigation arising principally in the ordinary course of business. We believe that adequate provision for resolution of all current claims and pending litigation has been made and that the disposition of these matters will not have a material adverse effect on our results of operations and liquidity or on our financial condition. Land Purchase Contracts Generally, our agreements to acquire land parcels do not require us to purchase those land parcels, although, in some cases, we forfeit any deposit balance outstanding if and when we terminate an agreement. Information regarding our land purchase contracts, as of the dates indicated, is provided in the table below (amounts in thousands): January 31, 2026 October 31, 2025 Aggregate purchase price: Unrelated parties $ 7,713,909 $ 7,433,042 Unconsolidated entities that the Company has investments in 71,230 111,295 Total $ 7,785,139 $ 7,544,337 Deposits against aggregate purchase price $ 824,351 $ 744,500 Additional cash required to acquire land 6,960,788 6,799,837 Total $ 7,785,139 $ 7,544,337 Amount of additional cash required to acquire land included in accrued expenses $ 893,268 $ 749,974 In addition, we expect to purchase approximately 8,700 additional home sites over a number of years from several joint ventures in which we have interests; the purchase prices of these home sites will be determined at a future date. At October 31, 2025, we a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Benefit Plans We grant various types of restricted stock units to our employees and our non-employee directors. We also previously granted stock options to certain of our employees and non-employee directors, but discontinued this practice in fiscal year 2023. Additionally, we have an employee stock purchase plan that allows employees to purchase our stock at a discount. Information regarding the amount of total stock-based compensation expense and tax benefit recognized by us, for the periods indicated, is as follows (amounts in thousands): Three months ended January 31, 2026 2025 Total stock-based compensation expense recognized $ 18,809 $ 18,022 Income tax benefit recognized $ 4,751 $ 4,554 At January 31, 2026 and October 31, 2025, the aggregate unamortized value of unvested stock-based compensation awards was approximately $39.4 million and $23.0 million, respectively.

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock

Fair Value Disclosures Financial Instruments The table below provides, as of the dates indicated, a summary of assets/(liabilities) related to our financial instruments, measured at fair value on a recurring basis (amounts in thousands): Fair value Financial Instrument Fair value hierarchy January 31, 2026 October 31, 2025 Mortgage Loans Held for Sale Level 2 $ 130,326 $ 200,816 Forward Loan Commitments Mortgage Loans Held for Sale Level 2 $ (264) $ 63 Interest Rate Lock Commitments (IRLCs) Level 2 $ 192 $ (1) Forward Loan Commitments IRLCs Level 2 $ (192) $ 1 At January 31, 2026 and October 31, 2025, the carrying value of cash and cash equivalents, escrow cash held by our wholly owned captive title company, and customer deposits held in escrow approximated fair value. Mortgage Loans Held for Sale At the end of the reporting period, we determine the fair value of our mortgage loans held for sale, interest rate lock commitments, and the forward loan commitments we have entered into as a hedge against the interest rate risk of our mortgage loans and commitments using the market approach to determine fair value. The table below provides, as of the dates indicated, the aggregate unpaid principal and fair value of mortgage loans held for sale (amounts in thousands): Aggregate unpaid principal balance Fair value Fair value greater (less) than principal balance At January 31, 2026 $ 130,764 $ 130,326 $ (438) At October 31, 2025 $ 200,976 $ 200,816 $ (160) Inventory We recognize inve …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes We recorded income tax provisions of $62.6 million and $43.7 million for the three months ended January 31, 2026 and 2025, respectively. The effective tax rate was 22.9% for the three months ended January 31, 2026, compared to 19.7% for the three months ended January 31, 2025. The income tax provisions for all periods included the provision for state income taxes, interest accrued on anticipated tax assessments, excess tax benefits related to stock-based compensation, and other permanent differences. We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimate that our state income tax rate for the full fiscal year 2026 will be approximately 5.6%. Our state income tax rate for the full fiscal year 2025 was 6.1%. At January 31, 2026, we had $23.7 million of gross unrecognized tax benefits, including interest and penalties. If these unrecognized tax benefits were to reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that our unrecognized tax benefits will change, but we are not able to pr …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At January 31, 2026 and October 31, 2025, loans payable consisted of the following (amounts in thousands): January 31, 2026 October 31, 2025 Senior unsecured term loan $ 650,000 $ 650,000 Loans payable other 210,888 249,087 Deferred issuance costs (2,541) (2,699) $ 858,347 $ 896,388 Senior Unsecured Term Loan We are party to a $650.0 million senior unsecured term loan facility (the Term Loan Facility) with a syndicate of banks that, prior to its amendment on February 5, 2026, was scheduled to mature on February 7, 2030. On February 5, 2026, we amended the Term Loan Facility to, among other things, extend the maturity date of $548.4 million of outstanding term loans to February 5, 2031, with the remaining $101.6 million continuing to be due on February 7, 2030. No principal payments are required before such maturity dates. Under the Term Loan Facility, we may select interest rates equal to (i) the Secured Overnight Financing Rate (SOFR) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At January 31, 2026, the interest rate on the Term Loan Facility was 4.55% per annum. Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires expanded disclosure of our income tax rate reconciliation and income taxes paid. ASU 2023-09 will be effective for our fiscal year ending October 31, 2026 and may be applied either retrospectively or prospectively. We are currently evaluating the impact this standard will have on our disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 will be effective for our fiscal year 2028. The amendments in this update are to be applied on a prospective basis, with the option for retrospective application. Early adoption is permitted. We are currently evaluating the impact this standard will have on our disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Information on Segments We operate in the following five geographic segments, with operations generally located in the states listed below: The North region: Connecticut, Delaware, Massachusetts, Michigan, New Jersey, New York and Pennsylvania; The Mid-Atlantic region: Georgia, Maryland, North Carolina, Tennessee and Virginia; The South region: Florida, South Carolina and Texas; The Mountain region: Arizona, Colorado, Idaho, Nevada and Utah; The Pacific region: California, Oregon and Washington. Our Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operating Officer (COO) are our chief operating decision makers (CODMs). Our CODMs use segment measures, principally income from operations (the primary measure of segment profit or loss), in addition to revenue, operating profit, and other key homebuilding metrics regularly provided to assess each segments performance and decide how to allocate resources. These operating results are reviewed against actual and forecasted figures. Our geographic reporting segments are consistent with how our CODMs are assessing operating performance and allocating capital. Total revenues, significant expenses, income (loss) from operations and income (loss) before income taxes for each of our reportable segments were as follows (amounts in thousands): For the three months ended January 31, 2026 North Mid-Atlantic South Mountain Pacific Total Corporate and other Total consolidated Revenues: Home sales $ 278,449 $ 238,152 $ 469, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements include the accounts of Toll Brothers, Inc. (the Company, we, us, or our), a Delaware corporation, and its majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in 50% or less owned partnerships and affiliates are accounted for using the equity method unless it is determined that we have effective control of the entity, in which case we would consolidate the entity. Our unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. The October 31, 2025 balance sheet amounts and disclosures have been derived from our October 31, 2025 audited financial statements. Since the condensed consolidated financial statements do not include all the information and footnotes required by U.S. generally accepted accounting principles (GAAP) for complete financial statements, they should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025 (2025 Form 10-K). In the opinion of management, the unaudited condensed consolidated financial statements include all recurring adjustments necessary to present fairly our financial position as of January 31, 2026; the results of our operations and c …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity Stock Repurchase Program From time to time, our Board of Directors authorizes the repurchase of shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Companys equity awards and other employee benefit plans. Most recently, on December 13, 2023, our Board of Directors authorized the repurchase of up to 20 million shares of our common stock and cancelled all open authorizations effective the same date. The Board of Directors did not fix any expiration date for this repurchase program. The table below provides, for the periods indicated, information about our share repurchase programs: Three months ended January 31, 2026 2025 Number of shares purchased (in thousands) 344 187 Average price per share (1) $ 146.75 $ 127.02 Remaining authorization at January 31 (in thousands) 9,333 14,900 (1) Average price per share includes costs associated with the repurchases, including accrued excise taxes. Cash Dividends During the three-month periods ended January 31, 2026 and 2025, we declared and paid cash dividends of $0.25 and $0.23 per share, respectively, to our shareholders. Accumulated Other Comprehensive Income The changes in each component of accumulated other comprehensive income (AOCI), for the periods indicated, were as follows (amounts in thousands): …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing