TOL Toll Brothers, Inc.

Overview and Growth

Fiscal 2025 results for Toll Brothers, Inc. combined $10.97B of revenue with net income of $1.35B and an operating cash inflow of $1.11B. Revenue of $10.97B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 1.1% above fiscal 2024 revenue of $10.85B, marking a year-over-year increase. The company reported diluted EPS of $13.49, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $15.01 in fiscal 2024, the current result was 10.1% lower. At period end, total assets were $14.52B, framing the scale of the company’s operating and financing commitments. Asset turnover was 0.76x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $2.75B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 25.1% of revenue, showing how much of the top line remained after direct costs. Operating income was $1.72B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 15.7% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $1.35B for the fiscal year. Measured against reported revenue, net income produced a 12.3% margin after operating costs and the remaining recognized items. EBITDA was $1.80B, supplying an additional view of reported operating earnings before interest, taxes, depreciation, and amortization. The company recognized $444.88M of income tax for the period, completing the transition from pretax income to net income. Net income equaled 16.3% of period-end equity, showing the earnings generated on shareholders’ book capital. Net income represented 9.3% of period-end assets, placing the company’s bottom-line result against the total resource base employed. The company moved from fiscal 2024 net income of $1.57B to $1.35B, with the current outcome ending below that comparison.

Liquidity and Capital Structure

The company held $14.52B of assets against $6.23B of liabilities and $8.29B of equity, revealing how the asset base was financed. Reported cash and equivalents were $1.26B, separating immediately recognizable cash resources from the rest of the current-asset base. Equity equaled 57.1% of assets, showing the shareholder-capital layer within the company’s balance sheet. Relative to total assets, liabilities measured 42.9%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 8.7%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 8.6% higher than fiscal 2024 assets of $13.37B, measuring the company’s own balance-sheet change. Against $7.69B of equity in fiscal 2024, the current book-equity balance moved 7.8% and ended higher. The reported cash balance changed 3.4% from $1.30B in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported $1.11B of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.83x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $86.19M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 7.7% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $1.03B, leaving a positive amount after capital expenditures. Free cash flow represented 9.4% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 7.1%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Oct 31, 2025. Analysis generated Oct 21, 2026.