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What changed in Toll Brothers, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Toll Brothers, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+270 added−278 removedSource: 10-K (2025-12-19) vs 10-K (2024-12-20)

Top changes in Toll Brothers, Inc.'s 2025 10-K

270 paragraphs added · 278 removed · 235 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

71 edited+6 added−13 removed78 unchanged
Biggest changeOur ability and willingness to continue development activities over the long term will depend on, among other things, a suitable economic environment and our continued ability to locate and enter into options or agreements to purchase land, obtain governmental approvals for suitable parcels of land, and consummate the acquisition and complete the development of such land on acceptable terms.
Biggest changeOur ability and willingness to continue development activities over the long term will depend on, among other things, a suitable economic environment and our continued ability to locate and enter into options or agreements to purchase land, obtain governmental approvals for suitable parcels of land, and consummate the acquisition and complete the development of such land on acceptable terms. 5 The following is a summary of home sites for future communities (as distinguished from operating communities) that we either owned or controlled through options or purchase agreements at October 31, 2025: Number of communities Number of home sites North 114 8,320 Mid-Atlantic 127 8,140 South 169 13,143 Mountain 129 10,085 Pacific 98 6,892 Total 637 46,580 Of the 46,580 planned home sites at October 31, 2025, we owned 10,811 and controlled 35,769 through options and purchase agreements.
We have developed a number of home designs with features such as single-story living and first-floor primary bedroom suites, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, fitness and recreation centers that we believe appeal to this category of home buyer.
We have developed a number of home designs with features such as single-story living and first-floor primary bedroom suites, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers that we believe appeal to this category of home buyer.
Major structural options include home offices, fitness rooms, multi-generational living suites, finished basements, and spacious indoor/outdoor 2 living areas. We also offer numerous interior fit-out options such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. We market our high-quality homes to both upscale luxury and affordable luxury home buyers.
Major structural options include home offices, fitness rooms, multi-generational living suites, finished basements, and spacious indoor/outdoor living areas. We also offer numerous interior fit-out options such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. We market our high-quality homes to both upscale luxury and affordable luxury home buyers.
Acquisitions From time to time, we acquire home builders in order to expand our footprint and/or product offerings in an existing market or to enter a new market. These acquisitions are generally completed using available cash on hand and primarily consist of smaller privately-held builders. In fiscal 2024 and 2023, we did not make any acquisitions.
Acquisitions From time to time, we acquire home builders in order to expand our footprint and/or product offerings in an existing market or to enter a new market. These acquisitions are generally completed using available cash on hand and primarily consist of smaller privately-held builders. In fiscal 2025, 2024 and 2023, we did not make any acquisitions.
We determine our spec home strategy for each community based on local market factors and maintain a level of spec home inventory based on our current and planned sales pace and construction cadence for the community. We are continuously developing new designs to replace or augment existing ones to ensure that our homes reflect current consumer tastes.
We determine our spec home strategy for each community based on local market factors and maintain a level of spec home inventory based on our current and planned sales pace and construction cadence for the community. 2 We are continuously developing new designs to replace or augment existing ones to ensure that our homes reflect current consumer tastes.
These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan, 7 and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market.
These representations and warranties primarily involve the absence of misrepresentations by the borrower or other parties, the appropriate underwriting of the loan, and in some cases, a required minimum number of payments to be made by the borrower. The Company generally does not retain any other continuing interest related to mortgage loans sold in the secondary market.
For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. Information about the number and amount of loans funded by our mortgage subsidiary is contained in the table below.
For those home buyers who qualify, our mortgage subsidiary provides the home buyer with a mortgage commitment that specifies the terms and conditions of a proposed mortgage loan based upon then-current market conditions. 7 Information about the number and amount of loans funded by our mortgage subsidiary is contained in the table below.
The impact of those statutes, rules, and regulations can be to increase our home buyers’ cost of financing, increase our cost of doing business, and restrict our home buyers’ access to some types of loans. 9 Insurance/Warranty All of our homes are sold under our limited warranty as to workmanship and mechanical equipment.
The impact of those statutes, rules, and regulations can be to increase our home buyers’ cost of financing, increase our cost of doing business, and restrict our home buyers’ access to some types of loans. Insurance/Warranty All of our homes are sold under our limited warranty as to workmanship and mechanical equipment.
To date, these restrictions have not had a material impact on us. We also are subject to a variety of local, state, and federal statutes, ordinances, rules, and regulations concerning protection of public health and the environment (“environmental laws”).
To date, these restrictions have not had a material impact on us. 9 We also are subject to a variety of local, state, and federal statutes, ordinances, rules, and regulations concerning protection of public health and the environment (“environmental laws”).
Visitors to our website, www.TollBrothers.com, can obtain detailed information regarding our communities and homes across the country, take panoramic or video tours of our homes, and design their own homes based upon our available floor plans and 6 options .
Visitors to our website, www.tollbrothers.com, can obtain detailed information regarding our communities and homes across the country, take panoramic or video tours of our homes, and design their own homes based upon our available floor plans and options.
In addition to purchasing land parcels outright, we strive to enter into option agreements and other arrangements 4 to defer the acquisition of land until we are closer in time to delivering the completed home to our customer.
In addition to purchasing land parcels outright, we strive to enter into option agreements and other arrangements to defer the acquisition of land until we are closer in time to delivering the completed home to our customer.
Increasingly, we are modifying designs and the number of options we provide to offer our customers a curated experience while gaining efficiencies in the home building process, particularly in respect to our affordable luxury product and our spec homes. We use our own architectural staff and also engage third-party architectural firms to develop new designs.
Increasingly, we are modifying designs and the number of options we provide to offer our customers a curated experience while gaining efficiencies in the home building process, particularly with respect to our affordable luxury and spec homes. We use our own architectural staff and also engage third-party architectural firms to develop new designs.
While historically most of our homes have been sold on a build-to-order basis where we do not begin construction of the home until we have a signed contract with a customer, over the past two years, we have increased the number of spec homes in most of our communities, which are homes started without a signed agreement with a customer.
While historically most of our homes have been sold on a build-to-order basis where we do not begin construction of the home until we have a signed contract with a customer, over the past three years, we have increased the number of spec homes in most of our communities, which are homes started without a signed agreement with a customer.
We also design, build, market, and sell high-density, high-rise urban luxury condominiums with third-party joint venture partners through Toll Brothers City Living ® (“City Living”). At October 31, 2024, we were operating in 24 states and in the District of Columbia.
We also design, build, market, and sell high-density, high-rise urban luxury condominiums with third-party joint venture partners through Toll Brothers City Living ® (“City Living”). At October 31, 2025, we were operating in 24 states and in the District of Columbia.
Deposit rates are tracked on a weekly basis to help us monitor the strength or weakness in demand in each of our communities. If demand for homes in a particular community is strong, we determine whether the base sales prices in that community should be increased.
Reservation rates are tracked on a weekly basis to help us monitor the strength or weakness in demand in each of our communities. If demand for homes in a particular community is strong, we determine whether the base sales prices in that community should be increased.
Between the time that the home buyer signs the non-binding deposit agreement and the binding agreement of sale, which typically takes about three weeks, the home buyer is required to complete a financial questionnaire that allows us to determine whether the home buyer has the financial resources necessary to purchase the home.
Between the time that the home buyer signs the non-binding reservation agreement and the binding agreement of sale, which typically takes about three weeks, the home buyer is required to complete a financial questionnaire that allows us to determine whether the home buyer has the financial resources necessary to purchase the home.
Such statements may include, but are not limited to, information related to: market conditions; mortgage rates; inflation rates; demand for our homes; our build-to-order and spec strategy; sales paces and prices; effects of home buyer cancellations; our strategic priorities; growth and expansion; our land acquisition, land development and capital allocation priorities; anticipated operating results; home deliveries; financial resources and condition; changes in revenues, profitability, margins and returns; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; impacts of tariffs; selling, general and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; the outcome of legal proceedings, investigations, and claims; and the impact of public health or other emergencies.
Such statements may include, but are not limited to, information related to: market conditions; mortgage rates; inflation rates; demand for our homes; our build-to-order and spec strategy; sales paces and prices; effects of home buyer cancellations; our strategic priorities; growth and expansion; our land acquisition, land development and capital allocation priorities; anticipated operating results; home deliveries; financial resources and condition; changes in revenues, profitability, margins and returns; changes in accounting treatment; cost of revenues, including expected labor and material costs; availability of labor and materials; impacts of tariffs; selling, general and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our plans and expectations regarding our announced exit from the multifamily development business, including the disposition of our remaining assets; our ability to acquire land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; the outcome of legal proceedings, investigations, and claims; and the impact of public health or other emergencies.
At October 31, 2024 and October 31, 2023, the percentage of these home sites optioned was approximately 55% and 49%, respectively. We, either alone or in joint venture, are developing several parcels of land for master-planned communities in which we intend to build homes on a portion of the lots, with the remaining lots being sold to other builders.
At October 31, 2025 and October 31, 2024, the percentage of these home sites optioned was approximately 57% and 55%, respectively. We, either alone or in joint venture, are developing several parcels of land for master-planned communities in which we intend to build homes on a portion of the lots, with the remaining lots being sold to other builders.
We have increasingly focused our marketing efforts to the digital environment for media buying and have adopted a number of virtual tools and techniques to allow our sales personnel to engage in remote interactions with potential customers. We have a two-step sales process.
We have increasingly focused our marketing efforts to the digital environment for media buying and have adopted a number of virtual tools and techniques to allow our sales personnel to engage in remote interactions with potential customers.
At October 31, 2024, our home building communities were operating in the following major suburban and urban residential markets: • Boston, Massachusetts metropolitan area • New Haven County, Connecticut • Westchester and Dutchess Counties, New York • New York metropolitan area • Central and northern New Jersey • Philadelphia, Pennsylvania metropolitan area • Virginia and Maryland suburbs of Washington, D.C. • Delaware • Raleigh and Charlotte, North Carolina metropolitan areas 1 • Nashville, Tennessee • Charleston, Greenville, Hilton Head and Myrtle Beach, South Carolina • Atlanta, Georgia metropolitan area • Southeast and southwest coasts and the Jacksonville, Orlando, and Tampa areas of Florida • Detroit, Michigan metropolitan area • Dallas, Houston, Austin, and San Antonio, Texas metropolitan areas • Denver, Colorado metropolitan area, Fort Collins and Colorado Springs, Colorado • Phoenix and Sedona, Arizona • Las Vegas and Reno, Nevada metropolitan areas • Boise and Coeur d’Alene, Idaho metropolitan areas • Salt Lake City, Utah metropolitan area and St.
At October 31, 2025, our home building communities were operating in the following major suburban and urban residential markets: • Boston, Massachusetts metropolitan area • New Haven and Fairfield Counties, Connecticut • Westchester and Dutchess Counties, New York • New York metropolitan area 1 • Central and northern New Jersey • Philadelphia, Pennsylvania metropolitan area • Virginia and Maryland suburbs of Washington, D.C. • Raleigh, Charlotte and Wilmington, North Carolina metropolitan areas • Nashville, Tennessee • Charleston, Greenville, Hilton Head and Myrtle Beach, South Carolina • Atlanta, Georgia metropolitan area • Southeast coast, southwest coast and the Panhandle of Florida • Jacksonville, Orlando, and Tampa areas of Florida • Detroit, Michigan metropolitan area • Dallas, Houston, Austin, and San Antonio, Texas metropolitan areas • Denver, Colorado metropolitan area, Fort Collins and Colorado Springs, Colorado • Phoenix and Sedona, Arizona • Las Vegas and Reno, Nevada metropolitan areas • Boise and Coeur d’Alene, Idaho metropolitan areas • Salt Lake City, Utah metropolitan area and St.
We have also significantly expanded our geographic footprint over the past decade. In addition to our traditional “move-up” home buyer, we are focusing on the “empty-nester” market, the millennial generation, and the affordable luxury buyer. We market to the “empty-nester” (or “move-down”) market, which we believe has strong growth potential.
We have also significantly expanded our geographic footprint over the past decade. In addition to our traditional “move-up” home buyer, we are focusing on the “empty-nester” market, the millennial and Gen Z generations, and the affordable luxury buyer. We market to the “empty-nester” (or “move-down”) market, which we believe has strong growth potential.
As a result of the breath of our products and geographic footprint, we have a wide range of base sales prices for our homes.
As a result of the breadth of our products and geographic footprint, we have a wide range of base sales prices for our homes.
We have integrated certain of these designs and features in some of our other home types and communities. As of October 31, 2024, we were selling from 76 age-restricted active-adult communities, in which at least one home occupant must be at least 55 years of age.
We have integrated certain of these designs and features in some of our other home types and communities. As of October 31, 2025, we were selling from 81 age-restricted active-adult communities, in which at least one home occupant must be at least 55 years of age.
If we determine that the home buyer is not financially qualified, we will not enter into an agreement of sale. During fiscal 2024, 2023, and 2022, our customers signed net contracts for $10.07 billion (10,231 homes), $7.91 billion (8,077 homes), and $9.07 billion (8,255 homes), respectively.
If we determine that the home buyer is not financially qualified, we will not enter into an agreement of sale. During fiscal 2025, 2024, and 2023, our customers signed net contracts for $9.85 billion (9,943 homes), $10.07 billion (10,231 homes), and $7.91 billion (8,077 homes), respectively.
Our mortgage subsidiary funds its commitments through a combination of its own capital, capital provided from us, its loan facility, and the sale of mortgage loans to various investors. Our mortgage subsidiary has commitments from investors to acquire all $351.7 million of these locked-in loans and receivables.
Our mortgage subsidiary funds its commitments through a combination of its own capital, capital provided from us, its loan facility, and the sale of mortgage loans to various investors. Our mortgage subsidiary has commitments from investors to acquire all $382.1 million of these locked-in loans and receivables.
The table below provides the average value of all structural and finishing options purchased by our home buyers, including lot premiums and excluding incentives, as well as the value of these options and premiums as a percent of the base sales price of the homes purchased, excluding incentives, in fiscal 2024, 2023, and 2022: 2024 2023 2022 Option value (in thousands) Percent of base sales price Option value (in thousands) Percent of base sales price Option value (in thousands) Percent of base sales price Overall $ 206 24.9 % $ 224 26.5 % $ 190 25.3 % Detached $ 232 27.3 % $ 251 29.2 % $ 215 28.9 % Attached $ 125 16.4 % $ 136 17.0 % $ 117 15.4 % In general, the ability to purchase a premium lot or customize a home with structural options and interior finishes varies widely across our product lines and what stage of construction the home is in when a purchase contract is signed, which may result in significant variation in the option value as a percentage of base sales price.
The table below provides the average value of all structural and finishing options purchased by our home buyers, including lot premiums and excluding incentives, as well as the value of these options and premiums as a percent of the base sales price of the homes purchased, excluding incentives, in fiscal 2025, 2024, and 2023: 2025 2024 2023 Option value (in thousands) Percent of base sales price Option value (in thousands) Percent of base sales price Option value (in thousands) Percent of base sales price Overall $ 202 24.5 % $ 206 24.9 % $ 224 26.5 % Detached $ 224 26.7 % $ 232 27.3 % $ 251 29.2 % Attached $ 128 16.4 % $ 125 16.4 % $ 136 17.0 % In general, the ability to purchase a premium lot or customize a home with structural options and interior finishes varies widely across our product lines and what stage of construction the home is in when a purchase contract is signed, which may result in significant variation in the option value as a percentage of base sales price.
Land Development Joint Ventures At October 31, 2024, we had investments in 16 Land Development Joint Ventures to develop land. Some of these Land Development Joint Ventures develop land for the sole use of the venture participants, including us, and others develop land for sale to the joint venture participants and to unrelated builders.
Land Development Joint Ventures At October 31, 2025, we had investments in 21 Land Development Joint Ventures to develop land. Some of these Land Development Joint Ventures develop land for the sole use of the venture participants, including us, and others develop land for sale to the joint venture participants and to unrelated builders.
In fiscal 2024 and 2023, approximately 49% and 27% of deliveries were spec homes. These homes allow us to compete more effectively with existing homes available in the market, especially for homebuyers that require a home within a short time frame.
In fiscal 2025 and 2024, approximately 54% and 49% of deliveries were spec homes, respectively. These homes allow us to compete more effectively with existing homes available in the market, especially for homebuyers that require a home within a short time frame.
We generally have the right to cancel any of our agreements to purchase land by forfeiture of some or all of the deposits we have made pursuant to the agreement. During fiscal 2024 and 2023, we acquired control of approximately 14,900 and 4,200 home sites, respectively, net of options terminated and lots sold.
We generally have the right to cancel any of our agreements to purchase land by forfeiture of some or all of the deposits we have made pursuant to the agreement. During fiscal 2025 and 2024, we acquired control of approximately 12,700 and 14,900 home sites, respectively, net of options terminated and lots sold.
If we acquire all 5 of these land parcels, we will be required to pay an additional $5.55 billion. The purchases of these land parcels are expected to occur over the next several years.
If we acquire all of these land parcels, we will be required to pay an additional $6.80 billion. The purchases of these land parcels are expected to occur over the next several years.
The second step in the sales process occurs when we sign a binding agreement of sale contract with the home buyer and the home buyer provides a larger cash down payment that is generally non-refundable. Cash down payments averaged approximately 8% of the total purchase price of a home in fiscal year 2024.
The second step in the sales process occurs when we sign a binding agreement of sale contract with the home buyer and the home buyer provides a significant cash down payment that is generally non-refundable. Cash down payments averaged approximately 7% of the total purchase price of a home in fiscal year 2025.
In addition to our residential for-sale business, we also develop and operate urban and suburban for-rent apartment communities primarily through joint ventures.
In addition to our residential for-sale business, we also develop and operate urban and suburban for-rent apartment and student housing communities (“Apartment Living”) primarily through joint ventures.
We expect to purchase approximately 9,000 additional home sites from several of our Land Development Joint Ventures over a number of years.
We expect to purchase approximately 8,800 additional home sites from several of our Land Development Joint Ventures over a number of years.
In fiscal 2024, 2023, and 2022, we recognized (loss) income from the unconsolidated entities in which we had an investment of $(23.8) million, $50.1 million, and $23.7 million, respectively. In addition, we earned construction and management fee income from these unconsolidated entities of $40.0 million in fiscal 2024, $39.2 million in fiscal 2023, and $33.9 million in fiscal 2022.
In fiscal 2025, 2024, and 2023, we recognized income (loss) from the unconsolidated entities in which we had an investment of $19.1 million, $(23.8) million, and $50.1 million, respectively. In addition, we earned construction and management fee income from these unconsolidated entities of $24.2 million in fiscal 2025, $40.0 million in fiscal 2024, and $39.2 million in fiscal 2023.
At October 31, 2024, one of these master-planned communities was wholly owned, while the remaining communities were being developed through joint ventures with other builders or financial partners. At October 31, 2024, our Land Development Joint Ventures owned approximately 22,700 home sites. At October 31, 2024, we had agreed to acquire 316 home sites.
At October 31, 2025, one of these master-planned communities was wholly owned, while the remaining communities were being developed through joint ventures with other builders or financial partners. At October 31, 2025, our Land Development Joint Ventures owned approximately 28,900 home sites. At October 31, 2025, we had agreed to acquire 832 home sites.
Fiscal year Total Toll Brothers, Inc. settlements (a) TBMC financed settlements* (b) Gross capture rate (b/a) Amount financed (in millions) 2024 10,813 4,114 38.0% $ 2,131.2 2023 9,597 3,123 32.5% $ 1,598.6 2022 10,515 3,706 35.2% $ 2,030.6 * Amounts exclude referred loans, which amounted to 8.5%, 9.5%, and 6.5% of our home closings in fiscal 2024, 2023, and 2022, respectively.
Fiscal year Total Toll Brothers, Inc. settlements (a) TBMC financed settlements* (b) Gross capture rate (b/a) Amount financed (in millions) 2025 11,292 4,898 43.4% $ 2,641.8 2024 10,813 4,114 38.0% $ 2,131.2 2023 9,597 3,123 32.5% $ 1,598.6 * Amounts exclude referred loans, which amounted to 8.9%, 8.5%, and 9.5% of our home closings in fiscal 2025, 2024, and 2023, respectively.
During fiscal year 2024 and 2023, we forfeited control of over 4,000 lots in each year that were subject to land purchase agreements primarily because the planned community no longer met our development criteria. At October 31, 2024, we owned or controlled approximately 74,700 home sites, as compared to approximately 70,700 home sites at October 31, 2023.
During fiscal year 2025 and 2024, we forfeited control of over 5,900 and 4,000 lots, respectively, that were subject to land purchase agreements primarily because the planned community no longer met our development criteria. At October 31, 2025, we owned or controlled approximately 76,100 home sites, as compared to approximately 74,700 home sites at October 31, 2024.
At October 31, 2024, we had investments of $1.01 billion in these unconsolidated entities and were committed to invest or advance up to an additional $312.8 million to these entities if they require additional funding.
At 8 October 31, 2025, we had investments of $1.03 billion in unconsolidated entities and were committed to invest or advance up to an additional $331.2 million to these unconsolidated entities if they require additional funding.
The percentage of the 10,813 homes delivered in fiscal 2024 within the various ranges of base sales price was as follows: Range of Base Sales Price Percentage of Homes Delivered in Fiscal 2024 Less than $500,000 11% $500,000 to $750,000 31% $750,000 to $1,000,000 25% $1,000,000 to 2,000,000 27% More than $2,000,000 6% Of the homes delivered in fiscal 2024, approximately 27% of our home buyers paid the full purchase price in cash; the remaining home buyers borrowed approximately 68% of the sales price of the home.
The percentage of the 11,292 homes delivered in fiscal 2025 within the various ranges of base sales price was as follows: Range of Base Sales Price Percentage of Homes Delivered in Fiscal 2025 Less than $500,000 12% $500,000 to $750,000 25% $750,000 to $1,000,000 31% $1,000,000 to 2,000,000 27% More than $2,000,000 5% Of the homes delivered in fiscal 2025, approximately 25% of our home buyers paid the full purchase price in cash; the remaining home buyers borrowed approximately 69% of the sales price of the home.
These projects are located in various metropolitan areas throughout the country and are generally being operated or developed (or we expect will be developed) with partners under the brand names Toll Brothers Apartment Living ® and Toll Brothers Campus Living ® .
These projects are located in various metropolitan areas throughout the country and have generally been operated or developed with partners under the brand names Toll Brothers Apartment Living ® and Toll Brothers Campus Living ® .
This deposit will reserve, for a short period of time, the home site or unit that the home buyer has selected. This deposit also locks in the base price of the home. Because these deposit agreements are non-binding, they are not recorded as signed contracts, nor are they recorded in backlog.
At this point the home buyer signs a non-binding reservation agreement. This agreement will reserve, for a short period of time, the home site or unit that the home buyer has selected, and caps the base price of the home. Because these reservation agreements are non-binding, they are not recorded as signed contracts, nor are they recorded in backlog.
Our home buyers had not locked in the interest rate on the remaining $1.67 billion of mortgage loan commitments as of October 31, 2024. Backlog We had a backlog of $6.47 billion (5,996 homes) at October 31, 2024; $6.95 billion (6,578 homes) at October 31, 2023; and $8.87 billion (8,098 homes) at October 31, 2022.
Our home buyers had not locked in the interest rate on the remaining $1.45 billion of mortgage loan commitments as of October 31, 2025. Backlog We had a backlog of $5.49 billion (4,647 homes) at October 31, 2025; $6.47 billion (5,996 homes) at October 31, 2024; and $6.95 billion (6,578 homes) at October 31, 2023.
Of the 5,996 homes in backlog at October 31, 2024, approximately 97% are expected to be delivered by October 31, 2025. This delivery estimate is based on current expectations regarding our backlog conversion rate.
Of the 4,647 homes in backlog at October 31, 2025, approximately 98% are expected to be delivered by October 31, 2026. This delivery estimate is based on current expectations regarding our backlog conversion rate.
The purchase prices of these home sites will be determined at a future date. We count lots in these joint ventures as optioned lots if we have a contractual right to acquire them. Home Building Joint Ventures At October 31, 2024, we had an aggregate $58.4 million of investments in our Home Building Joint Ventures to develop luxury for-sale homes.
The purchase prices of these home sites will be determined at a future date. We count lots in these joint ventures as optioned lots if we have a contractual right to acquire them. Home Building Joint Ventures At October 31, 2025, we had a $14.8 million investment in one Home Building Joint Venture to develop luxury for-sale homes.
Investments in Unconsolidated Entities We have investments in joint ventures (i) to develop lots for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) to develop for-sale homes (“Home Building Joint Ventures”); (iii) to develop luxury for-rent residential apartments and single family homes, and commercial space (“Rental Property Joint Ventures”); and (iv) to provide financing and land banking for residential builders and developers for the acquisition and development of land and home sites (“Other Joint Ventures”).
Investments in Unconsolidated Entities We have investments in joint ventures (i) to develop lots for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) to develop for-sale homes (“Home Building Joint Ventures”); (iii) to develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”).
At fiscal year-end, were were selling from 408 of these communities. Backlog consists of homes under contract but not yet delivered to our home buyers. We had a backlog of $6.47 billion (5,996 homes) at October 31, 2024; we expect to deliver approximately 97% of these homes in fiscal 2025.
At fiscal year-end, we were selling from 446 of these communities. Backlog consists of homes under contract but not yet delivered to our home buyers. We had a backlog of $5.49 billion (4,647 homes) at October 31, 2025; we expect to deliver approximately 98% of these homes in fiscal 2026.
At October 31, 2024, we had agreed to acquire 316 home sites from four of our Land Development Joint Ventures for an aggregate purchase price of approximately $26.8 million. In addition, we expect to purchase approximately 9,000 additional 8 home sites over a number of years from several of these joint ventures.
At October 31, 2025, we had agreed to acquire 832 home sites from five of our Land Development Joint Ventures for an aggregate purchase price of approximately $111.3 million. In addition, we expect to purchase approximately 8,800 additional home sites over a number of years from several of these joint ventures.
Because of the larger upfront costs and longer development time periods associated with high-rise projects, we generally expect to continue developing future high density, high-rise urban luxury condominium communities through joint ventures with third parties.
Once construction has been completed, the homes in backlog in these communities are generally delivered quickly. Because of the larger upfront costs and longer development time periods associated with high-rise projects, we generally expect to continue developing future high density, high-rise urban luxury condominium communities through joint ventures with third parties.
Of the 25,592 available home sites, approximately 8,900 were not yet owned by us but were controlled through options. 3 Of our 471 operating communities at October 31, 2024, a total of 408 communities were offering homes for sale; with the remaining consisting primarily of sold out communities where not all homes had been completed and delivered.
Of the 24,875 available home sites, approximately 7,300 were not yet owned by us but were controlled through options. Of our 500 operating communities at October 31, 2025, a total of 446 communities were offering homes for sale; with the remaining consisting primarily of sold out communities where not all homes had been completed and delivered.
At October 31, 2024, the aggregate purchase price of land parcels subject to option and purchase agreements in both operating and future communities was approximately $6.10 billion (including $26.8 million of land to be acquired from joint ventures in which we have invested). Of the $6.10 billion of land purchase contracts, we paid or deposited $549.2 million.
At October 31, 2025, the aggregate purchase price of land parcels subject to option and purchase agreements in both operating and future communities was approximately $7.54 billion (including $111.3 million of land to be acquired from joint ventures in which we have invested). Of the $7.54 billion of land purchase contracts, we paid or deposited $744.5 million.
At October 31, 2024, our mortgage subsidiary was committed to fund $1.84 billion of mortgage loans. Of these commitments, $168.8 million, as well as $182.8 million of mortgage loans receivable, had “locked-in” interest rates as of October 31, 2024.
At October 31, 2025, our mortgage subsidiary was committed to fund $1.64 billion of mortgage loans. Of these commitments, $188.0 million, as well as $194.1 million of mortgage loans receivable, had “locked-in” interest rates as of October 31, 2025.
In recent years, we have pursued a strategy of broadening our product lines, price points and geographic footprint, as well as increasing the number of quick move-in (or “spec”) homes that we sell relative to our traditional build-to-order homes.
In recent years, we have pursued a strategy of broadening our product lines, price points and geographic footprint, as well as increasing the number of quick move-in (or “spec”) homes that we sell relative to our traditional build-to-order homes. We cater to luxury first-time, move-up, empty-nester (move-down), active-adult and second-home buyers in the United States.
At October 31, 2024, we had $388.6 million invested in our Land Development Joint Ventures and funding commitments of $243.0 million to six of the Land Development Joint Ventures which will be funded if additional investments in the ventures are required.
At October 31, 2025, we had $553.4 million invested in our Land Development Joint Ventures and funding commitments of $315.5 million to 11 of the Land Development Joint Ventures which will be funded if additional investments in the ventures are required.
We generally include attractive design features even in our less expensive homes based on our belief that these enhancements improve our marketing and sales effort.
We believe this reputation results in greater demand for all of our product types. We generally include attractive design features even in our less expensive homes based on our belief that these enhancements improve our marketing and sales effort.
With the millennial generation in its prime family formation years, we also continue to focus on this group with our core suburban homes, affordable luxury offerings, urban condominiums and luxury rental apartment products.
With the millennial generation in its prime family formation years and the Gen Z generation either in or approaching adulthood, we also continue to focus on these groups with our core suburban homes, affordable luxury offerings, and urban condominiums.
Human Capital Resources At October 31, 2024, we employed approximately 4,900 persons full-time, as compared to approximately 4,800 employees at October 31, 2023. At October 31, 2024, approximately 1% of our employees were covered by a collective bargaining agreement. We believe our employees are among our most important resources and are critical to our continued success.
Human Capital Resources At October 31, 2025 and October 31, 2024, we employed approximately 4,900 persons full-time employees. We believe our employees are among our most important resources and are critical to our continued success.
Although our sales and construction activities vary somewhat by season, which can affect the timing of closings, any such seasonal effect is relatively insignificant compared to the effect of the timing of receipt of final regulatory approvals, the opening of the community, and the subsequent timing of closings.
Although our sales and construction activities vary somewhat by season, which can affect the timing of closings, any such seasonal effect is relatively insignificant compared to the effect of the timing of receipt of final regulatory approvals, the opening of the community, and the subsequent timing of closings. 6 Marketing and Sales We believe that our marketing strategy for our homes has enhanced our reputation as a builder and developer of high quality luxury homes.
Through our City Living brand, with third-party joint venture partners, we currently are developing two high-density, high-rise urban luxury communities to serve affluent move-up families, empty-nesters, and young professionals who are seeking to live in or close to major cities. Our City Living communities are generally high-rise condominiums that take an extended period of time to construct.
Through our City Living brand, we typically develop with third party joint venture partners, high-density, high-rise urban luxury communities to serve affluent move-up families, empty-nesters, and young professionals who are seeking to live in or close to major cities. We are currently developing one such community with a joint venture partner in West New York, New Jersey.
We generally start selling homes in these communities after construction has commenced. By the time construction has been completed, we typically have a significant number of homes under contract with buyers in backlog. Once construction has been completed, the homes in backlog in these communities are generally delivered quickly.
Our City Living communities are generally high-rise condominiums that take an extended period of time to construct. We generally start selling homes in these communities after construction has commenced. By the time construction has been completed, we typically have a significant number of homes under contract with buyers in backlog.
Of the 408 communities in which homes were being offered for sale at October 31, 2024, a total of 329 were detached home communities and 79 were attached home communities. At October 31, 2024, we had 3,526 spec homes in our communities, of which 2,664 were under construction and 862 were completed.
Of the 446 communities in which homes were being offered for sale at October 31, 2025, a total of 360 were detached home communities and 86 were attached home communities. At October 31, 2025, we had 3,043 spec homes in our communities, of which 1,783 were under construction and 1,260 were completed.
In the five years ended October 31, 2024, we delivered 49,407 homes from 986 communities, including 10,813 homes from 527 communities in fiscal 2024. At October 31, 2024, we had 1,041 communities in various stages of planning, development or operations containing approximately 74,700 home sites that we owned or controlled through options.
In the five years ended October 31, 2025, we delivered 52,203 homes from 1,061 communities, including 11,292 homes from 556 communities in fiscal 2025. At October 31, 2025, we had 1,137 communities in various stages of planning, development or operations containing approximately 76,100 home sites that we owned or controlled through options.
At October 31, 2024, eleven of these joint ventures had aggregate loan commitments of $639.6 million and outstanding borrowings against these commitments of $381.6 million. At October 31, 2024, our Land Development Joint Ventures owned approximately 22,700 home sites.
At October 31, 2025, 15 of these joint ventures had aggregate loan commitments of $922.7 million and outstanding borrowings against these commitments of $547.8 million. At October 31, 2025, our Land Development Joint Ventures owned approximately 28,900 home sites.
All of our employees must adhere to a code of conduct that sets standards for appropriate behavior and includes required annual training on preventing, identifying, reporting and stopping any type of unlawful discrimination. In recent years, we have implemented protocols and procedures to protect our employees, subcontractors and customers.
Our management teams and all of our employees are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. All of our employees must adhere to a code of conduct that sets standards for appropriate behavior and includes required annual training on preventing, identifying, reporting and stopping any type of unlawful discrimination.
At October 31, 2024, we or joint ventures in which we have an interest, controlled 67 land parcels as for-rent apartment projects containing approximately 21,300 planned or completed units. See “Investments in Unconsolidated Entities” below for more information relating to our joint ventures.
At October 31, 2025, we or joint ventures in which we have an interest, controlled 73 land parcels as for-rent apartment or student housing projects containing approximately 22,300 planned or completed units.
Many of these modifications have been well received by our employees with minimal disruption to our operations and have continued through fiscal 2024. Available Information We file annual, quarterly and current reports, proxy statements, and other information with the Securities and Exchange Commission (the “SEC”). These filings are available over the internet at the SEC’s website at http://www.sec.gov.
Available Information We file annual, quarterly and current reports, proxy statements, and other information with the Securities and Exchange Commission (the “SEC”). These filings are available over the internet at the SEC’s website at http://www.sec.gov. Our principal Internet address is www.tollbrothers.com.
For more information regarding revenues, net contracts signed, income (loss) before income taxes, and assets by segment, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Segments” in Item 7 of this Form 10-K.
For example, our attached homes and our spec homes do not offer the opportunity for buyers to add significant structural options to their homes and thus they typically have a smaller option value as a percentage of base sales price. 4 For more information regarding revenues, net contracts signed, income (loss) before income taxes, and assets by segment, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Segments” in Item 7 of this Form 10-K.
We pay our employees competitively and offer a broad range of company-paid benefits, which we believe are competitive with others in our industry. We are committed to hiring, developing and supporting a diverse and inclusive workplace. Our management teams and all of our employees are expected to exhibit and promote honest, ethical and respectful conduct in the workplace.
We pay our employees competitively and offer a broad range of company-paid benefits, which we believe are competitive with others in our industry. We are committed to cultivating a workplace where everyone is welcome and treated with fairness, dignity and respect.
Our Communities and Homes Our home building communities are generally located in affluent suburban areas near major transit hubs and highways that provide access to employment and urban centers. They are generally located on land we have either acquired and developed or acquired fully approved and, in some cases, improved.
They are generally located on land we have either acquired and developed or acquired fully approved and, in some cases, improved.
At October 31, 2024, joint ventures in which we had an interest had aggregate loan commitments of $3.54 billion and outstanding borrowings against these commitments of $2.75 billion.
At October 31, 2025, joint ventures in which we had an interest had aggregate loan commitments of $2.07 billion and outstanding borrowings against these commitments of $1.77 billion. These projects are located in multiple metropolitan areas throughout the country and have been operated or developed with joint venture partners.
The first step takes place when a potential home buyer visits one of our communities (either in person or virtually) and decides to purchase one of our homes, at which point the home buyer signs a non-binding deposit agreement and provides a small, refundable deposit.
We have a two-step sales process that covers most, but not all, of our sales with some home buyers proceeding directly to the second step described below. The first step takes place when a potential home buyer visits one of our communities (either in person or virtually) and decides to purchase one of our homes.
The following table summarizes certain information with respect to our operating communities at October 31, 2024: Total number of operating communities Number of selling communities Homes approved Homes closed Homes under contract but not closed (Backlog) Home sites available North 59 43 6,029 3,200 855 1,974 Mid-Atlantic 64 52 6,247 1,918 786 3,543 South 165 145 18,454 6,662 2,003 9,789 Mountain 126 117 17,266 8,126 1,595 7,545 Pacific 57 51 5,519 2,021 757 2,741 Total 471 408 53,515 21,927 5,996 25,592 At October 31, 2024, significant site improvements had not yet commenced on approximately 12,000 of the 25,592 available home sites.
At October 31, 2025, we were selling homes from 446 communities, compared to 408 communities at October 31, 2024, and 370 communities at October 31, 2023. 3 The following table summarizes certain information with respect to our operating communities at October 31, 2025: Total number of operating communities Number of selling communities Homes approved Homes closed Homes under contract but not closed (Backlog) Home sites available North 67 55 5,826 2,632 833 2,361 Mid-Atlantic 73 68 6,491 2,141 708 3,642 South 177 153 19,257 8,108 1,561 9,588 Mountain 124 115 16,331 8,281 1,024 7,026 Pacific 59 55 5,596 2,817 521 2,258 Total 500 446 53,501 23,979 4,647 24,875 At October 31, 2025, significant site improvements had not yet commenced on approximately 11,000 of the 24,875 available home sites.
Removed
We cater to luxury first-time, move-up, empty-nester (move-down), active-adult and second-home buyers in the United States, as well as urban and suburban renters under the brand names Toll Brothers Apartment Living ® and Toll Brothers Campus Living ® .
Added
On September 18, 2025, we announced our intention to exit the multifamily development business, beginning with the sale of our interests in approximately half of our portfolio, as well as our operating platform, to Kennedy Wilson for a purchase price of approximately $380 million, as adjusted to reflect investments in certain assets since the September announcement.
Removed
At October 31, 2024, we were selling homes from 408 communities, compared to 370 communities at October 31, 2023, and 348 communities at October 31, 2022.
Added
In December 2025, we completed a significant portion of the sale to Kennedy Wilson, including our operating platform, with the remaining portion expected to occur in the first half of our fiscal 2026. In connection with the transaction, Kennedy Wilson has agreed to assume our management responsibilities for our retained interests in for-rent properties.
Removed
For example, our attached homes and our spec homes do not offer the opportunity for buyers to add significant structural options to their homes and thus they have a smaller option value as a percentage of base sales price.
Added
We expect to sell our interests in these retained assets over time. See “Investments in Unconsolidated Entities” below for more information relating to our joint ventures. Our Communities and Homes Our home building communities are generally located in affluent suburban areas near major transit hubs and highways that provide access to employment and urban centers.
Removed
In fiscal 2022, we acquired substantially all of the assets and operations of a privately-held home builder with operations in San Antonio, Texas for approximately $48.1 million in cash. The assets acquired, which consisted of 16 communities, were primarily inventory, including approximately 450 home sites owned or controlled through land purchase agreements.
Added
Excluded from these investments in unconsolidated entities is $121.2 million that have been classified within “Real estate and related assets held for sale” on our Consolidated Balance Sheet as of October 31, 2025 and we have a remaining funding commitment of $23.5 million to these entities.
Removed
The following is a summary of home sites for future communities (as distinguished from operating communities) that we either owned or controlled through options or purchase agreements at October 31, 2024: Number of communities Number of home sites North 95 6,595 Mid-Atlantic 133 8,621 South 142 11,799 Mountain 117 9,727 Pacific 83 6,389 Total 570 43,131 Of the 43,131 planned home sites at October 31, 2024, we owned 11,268 and controlled 31,863 through options and purchase agreements.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

31 edited+4 added−5 removed131 unchanged
Biggest changeThe amount of interest we incur on our revolving bank credit facility and term loan (exclusive of the amount we have hedged with interest rate swap transactions through October 2025 as further described in Note 6 – “Loans Payable, Senior Notes, and Mortgage Company Loan Facility” in Item 15(a)1 of this Form 10-K) fluctuates based on changes in short-term interest rates and the amount of borrowings we incur and letters of credit that are issued.
Biggest changeFollowing the expiration of certain interest rate swaps in October 2025, the entire amount of interest we incur on our revolving bank credit facility and term loan fluctuates based on changes in short-term interest rates and the amount of borrowings we incur and letters of credit that are issued.
The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and the types of products we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other 15 factors.
The projection of losses related to these liabilities requires actuarial assumptions that are subject to variability due to uncertainties regarding construction defect claims relative to our markets and 15 the types of products we build, insurance industry practices, and legal or regulatory actions and/or interpretations, among other factors.
These laws and regulations, which are generally intended to directly or indirectly reduce greenhouse gas emissions, conserve water or limit other potential climate change impacts, may impose restrictions or 16 additional requirements on land development and home construction in certain areas.
These laws and regulations, which are generally intended to directly or indirectly 16 reduce greenhouse gas emissions, conserve water or limit other potential climate change impacts, may impose restrictions or additional requirements on land development and home construction in certain areas.
In addition, if values of the building or units decline, we may also be required to recognize significant impairments in the future. Our condominium and rental multi-unit buildings are subject to fluctuations in delivery volume due to their extended construction time, levels of pre-sales and lease-up, and quick delivery of units once buildings are complete.
In addition, if values of the building or units decline, we may also be required to recognize significant impairments in the future. 13 Our condominium and rental multi-unit buildings are subject to fluctuations in delivery volume due to their extended construction time, levels of pre-sales and lease-up, and quick delivery of units once buildings are complete.
We also cannot provide any assurance that we will be able to maintain our strategies, and any related initiatives or actions, in the future and, due to unexpectedly favorable or unfavorable market conditions or other factors, we may determine that we need to adjust, refine or abandon all or portions of our strategies, and any 12 related initiatives or actions, though we cannot guarantee that any such adjustments will be successful.
We also cannot provide any assurance that we will be able to maintain our strategies, and any related initiatives or actions, in the future and, due to unexpectedly favorable or unfavorable market conditions or other factors, we may determine that we need to adjust, refine or abandon all or portions of our strategies, and any related initiatives or actions, though we cannot guarantee that any such adjustments will be successful.
In the recent past, strong demand for homes combined with supply chain disruptions, labor shortages and municipal related delays caused our construction cycles to lengthen and the costs of building materials to increase. Longer construction cycles can lead to increased cancellation rates, lower customer satisfaction and brand diminishment.
In the past, strong demand for homes combined with supply chain disruptions, labor shortages and municipal related delays caused our construction cycles to lengthen and the costs of building materials to increase. Longer construction cycles can lead to increased cancellation rates, lower customer satisfaction and brand diminishment.
However, attempts at mitigation may not be successful and we could be subject to claims relating to actions of, or matters relating to, our subcontractors. 14 We participate in certain joint ventures where we may be adversely impacted by the actions of the joint venture or its participants.
However, attempts at mitigation may not be successful and we could be subject to claims relating to actions of, or matters relating to, our subcontractors. We participate in certain joint ventures where we may be adversely impacted by the actions of the joint venture or its participants.
We have implemented policies that are designed to inform subcontractors of observations of hazardous conditions that could jeopardize the safety of individuals or result in penalties or other legal consequences, and ultimately to reduce or eliminate unsafe acts and conditions.
We have implemented policies that are designed to inform subcontractors of observations of hazardous conditions that could jeopardize the safety of individuals or 14 result in penalties or other legal consequences, and ultimately to reduce or eliminate unsafe acts and conditions.
We could be adversely impacted by the loss of key management personnel or if we fail to attract qualified personnel. Our future success depends, to a significant degree, on the efforts of our senior management and our ability to attract qualified personnel.
We could be adversely impacted by the loss of key management personnel or if we fail to attract qualified personnel. Our future success depends, to a significant degree, on the efforts of our senior management and our ability to attract and retain qualified personnel.
If home buyers are not able to obtain suitable financing, our results of operations may decline. Our results of operations also depend on the ability of our potential home buyers to obtain mortgages for the purchase of our homes. Mortgage rates have increased significantly since January 2022, which has negatively impacted the overall housing market.
If home buyers are not able to obtain suitable financing, our results of operations may decline. Our results of operations also depend on the ability of a substantial portion of our potential home buyers to obtain mortgages for the purchase of our homes. Mortgage rates have increased significantly since January 2022, which has negatively impacted the overall housing market.
Our operations could be adversely affected if key members of our senior management unexpectedly leave the Company; if we cannot attract qualified personnel to manage our business; or if we are unable to successfully manage transition matters when our senior executives, several of whom are retirement eligible under our various compensation plans.
Our operations could be adversely affected if key members of our senior management unexpectedly leave the Company; if we cannot attract qualified personnel to manage our business; or if we are unable to successfully manage transition matters as our senior executives retire, several of whom are retirement eligible under our various compensation plans.
Demand for our homes and rental apartments is subject to fluctuations and difficult to predict, often due to factors outside of our control, such as employment levels, consumer confidence and spending, housing demand, availability of financing for homebuyers, interest rates, availability, quality and prices of new homes compared to existing inventory, and demographic trends.
Demand for our homes is subject to fluctuations and difficult to predict, often due to factors outside of our control, such as employment levels, consumer confidence and spending, overall housing demand, availability of financing for homebuyers, interest rates, availability, quality and prices of new homes compared to existing inventory, and demographic trends.
Our quarterly operating results fluctuate with the seasons; normally, a significant portion of our agreements of sale are entered into with customers in the winter and spring months.
Our quarterly operating results fluctuate with the seasons; normally, a significant portion of our agreements of sale are entered in the winter and spring months.
Our quarterly operating results will fluctuate depending on the timing of completion of construction of our multi-unit condominium buildings, levels of pre-sales, and the relatively short delivery time of the pre-sold units once the building is 13 completed.
Our quarterly operating results could fluctuate depending on the timing of completion of construction of our multi-unit condominium buildings, levels of pre-sales, and the relatively short delivery time of the pre-sold units once the building is completed.
We cannot guarantee that (i) our strategies, which include expanding our presence in existing markets and potential expansion into new markets, offering a wide variety of products and price points, becoming a more capital and operationally efficient home builder, and maintaining an appropriate balance of spec homes for sale relative to our build-to-order homes, and any related initiatives or actions (including home builder acquisitions), will be successful or that they will generate growth, earnings or returns at any particular level or within any particular time frame; (ii) in the future we will achieve positive operational or financial results or results in any particular metric or measure equal to or better than those attained in the past; or (iii) we will perform in any period as well as other home builders.
We cannot guarantee that (i) our strategies, which include expanding our presence in existing markets and potential expansion into new markets, offering a wide variety of products and price points, becoming a more capital and operationally efficient home builder, and maintaining an appropriate balance of spec homes for sale relative to our build-to-order homes, and any related initiatives or actions (including home builder acquisitions or dispositions, like our previously disclosed planned exit from the multifamily development business), will be successful or that they will generate growth, earnings or returns at any particular level or within any particular time frame; (ii) in the future we will achieve positive operational or financial results or 12 results in any particular metric or measure equal to or better than those attained in the past; or (iii) we will perform in any period as well as other home builders.
These factors include, but are not limited to: changes in the regulatory and fiscal environment; prolonged economic downturns; high levels of foreclosures; lack of affordability; a lack of foreign buyer demand; severe weather including drought; natural disasters such as earthquakes and wild fires; the risk of local governments imposing building moratoriums and of state or local governments imposing regulations that increase building costs; environmental incidents; and declining population and/or growth rates and the related reduction in housing demand in this region.
These factors include, but are not limited to: changes in the regulatory and fiscal environment; prolonged economic downturns; high levels of foreclosures; lack of affordability; lack of suitable land for development at reasonable prices; lack of foreign buyer demand; severe weather including drought; natural disasters such as earthquakes and wildfires; the risk of local governments imposing building moratoriums and of state or local governments imposing regulations that increase building costs; environmental incidents; and declining population and/or growth rates and the related reduction in housing demand in this region.
In a housing market downturn, our sales and results of operations will be adversely affected; we may have significant inventory impairments and other write-offs; our gross margins may decline significantly from historical levels; and we may incur substantial losses from operations.
In a housing market downturn, our sales and results of operations are adversely affected; we may have significant inventory impairments and other write-offs; our gross margins are likely to decline significantly from historical levels; and we may incur 11 substantial losses from operations.
Home buyers may also choose to cancel their home agreement and forfeit their deposit. The amount of deposit that we require varies by community and market and may be insufficient to compel a home buyer to complete the purchase. At October 31, 2024, we had 5,996 homes with a sales value of $6.47 billion in backlog.
Home buyers may also choose to cancel their home agreement and forfeit their deposit. The amount of deposit that we require varies by community and market and may be insufficient to compel a home buyer to complete the purchase. At October 31, 2025, we had 4,647 homes with a sales value of $5.49 billion in backlog.
The majority of these letters of credit and surety bonds support our land development and construction obligations to various municipalities, other government agencies, and utility companies related to infrastructure construction. At October 31, 2024, we had outstanding letters of credit and surety bonds totaling $180.0 million and $1.16 billion, respectively.
The majority of these letters of credit and surety bonds support our land development and construction obligations to various municipalities, other government agencies, and utility companies related to infrastructure construction. At October 31, 2025, we had outstanding letters of credit and surety bonds totaling $155.9 million and $1.14 billion, respectively.
In addition, $1.60 billion of our senior notes become due and payable at various times from November 2025 through November 2029. We cannot be certain that we will be able to replace existing financing and credit lines or find additional sources of financing in the future on favorable terms or at all.
In addition, 17 $1.75 billion of our senior notes become due and payable at various times from March 2027 through June 2035. We cannot be certain that we will be able to replace existing financing and credit lines or find additional sources of financing in the future on favorable terms or at all.
In certain circumstances, the joint venture participants, including us, are required to provide guarantees of certain obligations relating to the joint ventures. In most of these joint ventures, we do not have a controlling interest and, as a result, are not able to require these joint ventures or their participants to honor their obligations or renegotiate them on acceptable terms.
In most of these joint ventures, we do not have a controlling interest and, as a result, are not able to require these joint ventures or their participants to honor their obligations or renegotiate them on acceptable terms.
Outbreaks of contagious diseases similar to the pandemic may occur in the future, which could have a significant negative impact on the economy, our ability to conduct normal business operations and our results of operations and financial condition.
During the pandemic, overall economic conditions, as well as demand for our homes and our ability to conduct normal business operations became highly unpredictable. Outbreaks of contagious diseases may occur in the future, which could have a significant negative impact on the economy, our ability to conduct normal business operations and our results of operations and financial condition.
We have received a deposit from our home buyer for each home reflected in our backlog, and generally we have the right to retain the deposit if the home buyer does not complete the purchase.
Our backlog reflects agreements of sale with our home buyers for homes that have not yet been delivered. We have received a deposit from our home buyer for each home reflected in our backlog, and generally we have the right to retain the deposit if the home buyer does not complete the purchase.
At October 31, 2024, we had approximately 74,700 home sites that we owned or controlled through options. In the future, changes in the availability of land, competition for available land, availability of financing to acquire land, zoning regulations that limit housing density, and other market conditions may hurt our ability to obtain land for new residential communities at acceptable prices.
In the future, changes in the availability of land, competition for available land, availability of financing to acquire land (whether directly for us or indirectly through land banks or other land financing vehicles), zoning regulations that limit housing density, and other market conditions may hurt our ability to obtain land for new residential communities at acceptable prices.
At any particular time, we cannot accurately predict whether housing market conditions will improve, deteriorate or continue as they exist at that time. 11 Adverse changes in economic conditions in markets where we conduct our operations and where prospective purchasers of our homes live could reduce the demand for homes and, as a result, could adversely affect our business, results of operations, and financial condition.
Adverse changes in economic conditions in markets where we conduct our operations and where prospective purchasers of our homes live could reduce the demand for homes and, as a result, could adversely affect our business, results of operations, and financial condition.
ITEM 1A. RISK FACTORS Risks Related to Our Business and Industry We are subject to demand fluctuations in the housing industry. Any reduction in demand would adversely affect our business, results of operations, and financial condition.
ITEM 1A. RISK FACTORS Risks Related to Our Business and Industry Housing market demand fluctuations have adversely affected, and may continue to adversely affect our business, results of operations, and financial condition.
In addition, insuring against construction defect and product liability claims has become increasingly difficult due to limited coverage options, high costs, lack of reinsurance options and the exit of insurers from the market.There can be no assurance that any form of insurance coverage will be available in the future or, if it is offered, that it will be available on reasonable terms.
In addition, insuring against construction defect and product liability claims has become increasingly difficult due to limited coverage options, high costs, lack of reinsurance options and the exit of insurers from the market.
Our business and results of operations depend substantially on our ability to obtain financing and lines of credit, whether from bank borrowings or from financing in the public debt mark ets.
Our business and results of operations depend substantially on our ability to obtain financing and lines of credit, whether from bank borrowings or from financing in the public debt mark ets. Our Revolving Credit Facility, which provides for $2.35 billion in committed borrowing capacity and letters of credit, and our $650.0 million term loan mature in February 2030.
These sales can result in significant gains or losses that we recognize on our Consolidated Statements of Operations and Comprehensive Income as income from unconsolidated entities. The timing of these gains or losses cannot be predicted with certainty and, as a result, can cause our net income to fluctuate from quarter to quarter.
The timing of these gains or losses cannot be predicted with certainty and, as a result, can cause our net income to fluctuate from quarter to quarter. Increases in cancellations of existing agreements of sale could have an adverse effect on our business.
We have investments in and commitments to certain unconsolidated joint ventures with unrelated parties generally involved in land development, home building and apartment rental development activities.
We have investments in and commitments to certain unconsolidated joint ventures with unrelated parties generally involved in land development, home building and apartment rental development activities. These joint ventures generally borrow money to help finance their activities. In certain circumstances, the joint venture participants, including us, are required to provide guarantees of certain obligations relating to the joint ventures.
In addition to our residential for-sale business, we also develop, operate and/or, in certain situations, sell for-rent apartments, which we accomplish mainly through joint ventures. Often, the joint venture through which we develop and lease-up a rental property sells the property to a third party or to the joint venture partner upon stabilization.
In addition to our residential for-sale business, we also develop, operate and/or sell for-rent apartments, which we accomplish mainly through joint ventures. As noted above, we have agreed to sell a substantial portion of our interests in our for-rent joint ventures and intend to entirely exit the business over time.
Removed
Increases in cancellations of existing agreements of sale could have an adverse effect on our business. Our backlog reflects agreements of sale with our home buyers for homes that have not yet been delivered.
Added
At any particular time, we cannot accurately predict whether housing market conditions will improve, deteriorate or continue as they exist at that time.
Removed
At October 31, 2024, we had investments of $1.01 billion in unconsolidated entities and were committed to invest or advance up to an additional $312.8 million to these unconsolidated entities if they require additional funding. These joint ventures generally borrow money to help finance their activities.
Added
At October 31, 2025, we had approximately 76,100 home sites that we owned or controlled through options.
Removed
We are subject to one collective bargaining agreement that covers approximately 1% of our employees. We have not experienced any work stoppages due to strikes by unionized workers, but we cannot make assurances that there will not be any work stoppages due to strikes or other job actions in the future.
Added
Often, the joint venture through which we develop and lease-up a rental property sells the property to a third party or to the joint venture partner upon stabilization. These sales can result in significant gains or losses that we recognize on our Consolidated Statements of Operations and Comprehensive Income as income from unconsolidated entities.
Removed
Our Revolving Credit Facility, which provides for $1.955 billion 17 in committed borrowing capacity and letters of credit, and substantial portions of our $650.0 million term loan mature in February 2028, with smaller portions maturing in Novemb er 2025 and November 2026.
Added
There can be no assurance that any form of insurance coverage will be available in the future or, if it is offered, that it will be available on reasonable terms.
Removed
During the pandemic, overall economic conditions, as well as demand for our homes and our ability to conduct normal business operations became highly unpredictable.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeDepending on the severity and impact of a cybersecurity threat, members of our senior management team, the Audit and Risk Committee and the full Board of Directors are notified of an incident and kept informed of the mitigation and remediation of the incident. We are not aware of any material cybersecurity incidents in the last three years.
Biggest changeDepending on the severity and impact of a cybersecurity threat, members of our senior management team, the Audit and Risk Committee and the full Board of Directors are notified of an incident and kept informed of the mitigation and remediation of the incident. We are not aware of any material cybersecurity incidents in the last three fiscal years.
We also manage risks related to cybersecurity by maintaining insurance coverage as part of our overall insurance portfolio. For additional information concerning cybersecurity risks we face, see “Item 1A Risk Factors – Information technology failures or data security breaches could harm our business”.
We also manage risks related to cybersecurity by maintaining insurance coverage as part of our overall insurance portfolio. For additional information concerning cybersecurity risks we face, see “Item 1A Risk Factors – Information technology failures and data security breaches could harm our business”.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeManufacturing/Distribution Facilities We own a manufacturing facility of approximately 225,000 square feet located in Morrisville, Pennsylvania, a manufacturing facility totaling approximately 150,000 square feet located in Emporia, Virginia and a manufacturing facility totaling approximately 30,500 square feet in Bartow, Florida.
Biggest changeManufacturing/Distribution Facilities We own manufacturing facilities of approximately 225,000 square feet located in Morrisville, Pennsylvania; approximately 150,000 square feet located in Emporia, Virginia; approximately 30,500 square feet in Bartow, Florida; and 34,000-square feet in Culpepper, Virginia.
We also lease, from unrelated parties, a facility of approximately 56,000 square feet located in Fairless Hills, Pennsylvania and two facilities of approximately 38,000 square feet, on a combined basis, located in Westfield, Massachusetts. In addition, we own a 34,000-square foot manufacturing, warehouse, and office facility in Culpepper, Virginia.
We also lease, from unrelated parties, a facility of approximately 56,000 square feet located in Fairless Hills, Pennsylvania and two facilities of approximately 38,000 square feet, on a combined basis, located in Westfield, Massachusetts.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreements), which limit the amount of share repurchases we may make. Based upon these provisions, our ability to repurchase our common stock was limited to approximately $3.90 billion as of October 31, 2024.
Biggest changeThis authorization terminated, effective December 13, 2023, all prior authorizations. Our Board of Directors did not fix any expiration date for the current share repurchase program. Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreements), which limit the amount of share repurchases we may make.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Shares of our common stock are listed on the New York Stock Exchange under the symbol “TOL.” On December 18, 2024, there were approximately 381 record holders of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Shares of our common stock are listed on the New York Stock Exchange under the symbol “TOL.” On December 17, 2025, there were approximately 359 record holders of our common stock.
At October 31, 2024, under the provisions of our revolving credit agreement and term loan agreement, we could have paid up to approximately $3.57 billion of cash dividends.
At October 31, 2025, under the provisions of our revolving credit agreement and term loan agreement, we could have paid up to approximately $4.24 billion of cash dividends.
During the three-month period ended October 31, 2024, the net exercise method was not employed to exercise options. (b) Average price paid per share includes costs associated with the purchases, but excludes any excise tax that we accrue on our share repurchases as a result of the Inflation Reduction Act of 2022.
During the three-month period ended October 31, 2025, the net exercise method was not employed to exercise options. (b) Average price paid per share includes costs associated with the purchases, but excludes any excise tax that we accrue on our share repurchases.
During the three months ended October 31, 2024, we withheld 1,147 of the shares subject to performance based restricted stock units and restricted stock units to cover approximately $159,000 of income tax withholdings and we issued the remaining 3,024 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.
During the three months ended October 31, 2025, we withheld 453 of the shares subject to performance based restricted stock units and restricted stock units to cover approximately $60,900 of income tax withholdings and we issued the remaining 1,149 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.
Issuer Purchases of Equity Securities During the three months ended October 31, 2024, we repurchased the following shares of our common stock: Period Total number of shares purchased (a) Average price paid per share (b) Total number of shares purchased as part of a publicly announced plan or program (c) Maximum number of shares that may yet be purchased under the plan or program (c) (in thousands) (in thousands) (in thousands) August 1, 2024 to August 31, 2024 97 $ 143.95 97 16,327 September 1, 2024 to September 30, 2024 472 $ 145.95 472 15,855 October 1, 2024 to October 31, 2024 768 $ 151.36 768 15,087 Total 1,337 1,337 (a) Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the recipient.
Issuer Purchases of Equity Securities During the three months ended October 31, 2025, we repurchased the following shares of our common stock: Period Total number of shares purchased (a) Average price paid per share (b) Total number of shares purchased as part of a publicly announced plan or program (c) Maximum number of shares that may yet be purchased under the plan or program (c) (in thousands) (in thousands) (in thousands) August 1, 2025 to August 31, 2025 307 $ 137.16 307 11,157 September 1, 2025 to September 30, 2025 897 $ 140.85 897 10,260 October 1, 2025 to October 31, 2025 583 $ 134.17 583 9,677 Total 1,787 1,787 (a) Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the recipient.
Stockholder Return Performance Graph The following graph and chart compares the five-year cumulative total return (assuming that an investment of $100 was made on October 31, 2019, and that dividends were reinvested) from October 31, 2019 to October 31, 2024, for (a) our common stock, (b) the S&P Homebuilding Index and (c) the S&P 500 ® : Comparison of 5 Year Cumulative Total Return Among Toll Brothers, Inc., the S&P 500 ® , and the S&P Homebuilding Index October 31: 2019 2020 2021 2022 2023 2024 Toll Brothers, Inc. $ 100.00 $ 107.71 $ 155.05 $ 112.73 $ 187.48 $ 391.20 S&P 500 ® $ 100.00 $ 109.71 $ 156.79 $ 133.88 $ 147.46 $ 203.52 S&P 500 Homebuilding Index $ 100.00 $ 117.37 $ 155.67 $ 132.48 $ 186.63 $ 310.37 ITEM 6. [RESERVED] 23
Stockholder Return Performance Graph The following graph and chart compares the five-year cumulative total return (assuming that an investment of $100 was made on October 31, 2020, and that dividends were reinvested) from October 31, 2020 to October 31, 2025, for (a) our common stock, (b) the S&P Homebuilding Index and (c) the S&P 500 ® : Comparison of 5 Year Cumulative Total Return Among Toll Brothers, Inc., the S&P 500 ® , and the S&P Homebuilding Index October 31: 2020 2021 2022 2023 2024 2025 Toll Brothers, Inc. $ 100.00 $ 143.95 $ 104.66 $ 174.05 $ 363.18 $ 337.56 S&P 500 ® $ 100.00 $ 142.91 $ 122.03 $ 134.41 $ 185.51 $ 225.31 S&P 500 Homebuilding Index $ 100.00 $ 132.63 $ 112.87 $ 159.00 $ 264.42 $ 227.37 ITEM 6. [RESERVED] 23
Dividends During fiscal 2024, we paid aggregate cash dividends of $0.90 per share to our shareholders.
Based upon these provisions, our ability to repurchase our common stock was limited to approximately $4.05 billion as of October 31, 2025. Dividends During fiscal 2025, we paid aggregate cash dividends of $0.98 per share to our shareholders.
Removed
This authorization terminated, effective December 13, 2023, the prior authorization that had been in effect since March 17, 2022. Our Board of Directors did not fix any expiration date for the current share repurchase program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeUnits Delivered and Revenues: Fiscal 2024 Compared to Fiscal 2023 Revenues ($ in millions) Units Delivered Average Delivered Price ($ in thousands) 2024 2023 % Change 2024 2023 % Change 2024 2023 % Change North $ 1,484.3 $ 1,494.1 (1) % 1,522 1,577 (3) % $ 975.2 $ 947.4 3 % Mid-Atlantic 1,422.0 1,175.3 21 % 1,512 1,067 42 % $ 940.5 $ 1,101.5 (15) % South 2,787.4 2,204.8 26 % 3,316 2,597 28 % $ 840.6 $ 849.0 (1) % Mountain 2,590.4 2,660.7 (3) % 2,984 2,897 3 % $ 868.1 $ 918.4 (5) % Pacific 2,279.1 2,329.4 (2) % 1,479 1,459 1 % $ 1,541.0 $ 1,596.6 (3) % Total home building 10,563.2 9,864.3 7 % 10,813 9,597 13 % $ 976.9 $ 1,027.9 (5) % Other 0.1 1.7 Total home sales revenue 10,563.3 $ 9,866.0 7 % 10,813 9,597 13 % $ 976.9 $ 1,028.0 (5) % Land sales and other revenue 283.4 128.9 Total revenue $ 10,846.7 $ 9,994.9 Net Contracts Signed: Fiscal 2024 Compared to Fiscal 2023 Net Contract Value ($ in millions) Net Contracted Units Average Contracted Price ($ in thousands) 2024 2023 % Change 2024 2023 % Change 2024 2023 % Change North $ 1,456.8 $ 1,336.9 9 % 1,421 1,411 1 % $ 1,025.2 $ 947.5 8 % Mid-Atlantic 1,292.0 1,165.5 11 % 1,353 1,170 16 % $ 954.9 $ 996.2 (4) % South 2,498.2 1,938.3 29 % 3,007 2,386 26 % $ 830.8 $ 812.4 2 % Mountain 2,655.0 1,633.1 63 % 3,002 1,950 54 % $ 884.4 $ 837.5 6 % Pacific 2,170.6 1,834.0 18 % 1,448 1,160 25 % $ 1,499.0 $ 1,581.0 (5) % Total consolidated $ 10,072.6 $ 7,907.8 27 % 10,231 8,077 27 % $ 984.5 $ 979.1 1 % Backlog at October 31: October 31, 2024 Compared to October 31, 2023 Backlog Value ($ in millions) Backlog Units Average Backlog Price ($ in thousands) 2024 2023 % Change 2024 2023 % Change 2024 2023 % Change North $ 937.5 $ 964.1 (3) % 855 956 (11) % $ 1,096.5 $ 1,008.5 9 % Mid-Atlantic 824.8 953.0 (13) % 786 945 (17) % $ 1,049.4 $ 1,008.4 4 % South 1,807.5 2,093.4 (14) % 2,003 2,312 (13) % $ 902.4 $ 905.5 — % Mountain 1,645.5 1,577.7 4 % 1,595 1,577 1 % $ 1,031.7 $ 1,000.5 3 % Pacific 1,252.5 1,357.1 (8) % 757 788 (4) % $ 1,654.6 $ 1,722.2 (4) % Total consolidated $ 6,467.8 $ 6,945.3 (7) % 5,996 6,578 (9) % $ 1,078.7 $ 1,055.8 2 % 37 Income (Loss) Before Income Taxes ($ amounts in millions): 2024 2023 % Change 2024 vs 2023 North $ 252.7 $ 197.4 28 % Mid-Atlantic 471.5 243.5 94 % South 578.0 416.7 39 % Mountain 446.2 517.1 (14) % Pacific 541.8 610.1 (11) % Total home building 2,290.2 1,984.8 15 % Corporate and other (204.6) (142.4) (44) % Total consolidated $ 2,085.6 $ 1,842.4 13 % “Corporate and other” is comprised principally of general corporate expenses such as our executive offices; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including our apartment rental development business and our high-rise urban luxury condominium operations; and income from our Rental Property Joint Ventures and Other Joint Ventures.
Biggest changeUnits Delivered and Revenues: Fiscal 2025 Compared to Fiscal 2024 Revenues ($ in millions) Units Delivered Average Delivered Price ($ in thousands) 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change North $ 1,656.1 $ 1,484.3 12 % 1,611 1,522 6 % $ 1,028.0 $ 975.2 5 % Mid-Atlantic 1,432.8 1,422.0 1 % 1,598 1,512 6 % 896.6 940.5 (5) % South 2,706.7 2,787.4 (3) % 3,330 3,316 — % 812.8 840.6 (3) % Mountain 2,924.4 2,590.4 13 % 3,303 2,984 11 % 885.4 868.1 2 % Pacific 2,122.2 2,279.1 (7) % 1,450 1,479 (2) % 1,463.6 1,541.0 (5) % Total home building 10,842.2 10,563.2 3 % 11,292 10,813 4 % 960.2 976.9 (2) % Other — 0.1 Total home sales revenue 10,842.2 10,563.3 3 % 11,292 10,813 4 % 960.2 976.9 (2) % Land sales and other revenue 124.5 283.4 Total revenue $ 10,966.7 $ 10,846.7 Net Contracts Signed: Fiscal 2025 Compared to Fiscal 2024 Net Contract Value ($ in millions) Net Contracted Units Average Contracted Price ($ in thousands) 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change North $ 1,688.7 $ 1,456.8 16 % 1,589 1,421 12 % $ 1,062.7 $ 1,025.2 4 % Mid-Atlantic 1,428.9 1,292.0 11 % 1,520 1,353 12 % 940.1 954.9 (2) % South 2,349.0 2,498.2 (6) % 2,888 3,007 (4) % 813.4 830.8 (2) % Mountain 2,393.9 2,655.0 (10) % 2,732 3,002 (9) % 876.2 884.4 (1) % Pacific 1,989.5 2,170.6 (8) % 1,214 1,448 (16) % 1,638.8 1,499.0 9 % Total consolidated $ 9,850.0 $ 10,072.6 (2) % 9,943 10,231 (3) % 990.6 984.5 1 % Backlog at October 31: October 31, 2025 Compared to October 31, 2024 Backlog Value ($ in millions) Backlog Units Average Backlog Price ($ in thousands) 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change North $ 971.1 $ 937.5 4 % 833 855 (3) % $ 1,165.8 $ 1,096.5 6 % Mid-Atlantic 822.2 824.8 — % 708 786 (10) % 1,161.3 1,049.4 11 % South 1,456.6 1,807.5 (19) % 1,561 2,003 (22) % 933.1 902.4 3 % Mountain 1,119.4 1,645.5 (32) % 1,024 1,595 (36) % 1,093.2 1,031.7 6 % Pacific 1,125.1 1,252.5 (10) % 521 757 (31) % 2,159.5 1,654.6 31 % Total consolidated $ 5,494.4 $ 6,467.8 (15) % 4,647 5,996 (22) % 1,182.3 1,078.7 10 % 37 Income (Loss) Before Income Taxes ($ amounts in millions): 2025 2024 % Change 2025 vs 2024 North $ 327.0 $ 252.7 29 % Mid-Atlantic 253.6 471.5 (46) % South 524.1 578.0 (9) % Mountain 511.1 446.2 15 % Pacific 400.9 541.8 (26) % Total home building 2,016.7 2,290.2 (12) % Corporate and other (225.3) (204.6) (10) % Total consolidated $ 1,791.4 $ 2,085.6 (14) % “Corporate and other” is comprised principally of general corporate expenses such as our executive offices; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; interest income; income from certain of our ancillary businesses, including our apartment rental development business and our high-rise urban luxury condominium operations; and income from our Rental Property Joint Ventures and Other Joint Ventures.
Our primary uses of cash include inventory additions in the form of land acquisitions and deposits to obtain control of land, land development, working capital to fund day-to-day operations, and investments in existing and future unconsolidated joint ventures. We may also use cash to fund capital expenditures such as investments in our information technology systems.
Our primary uses of cash 32 include inventory additions in the form of land acquisitions and deposits to obtain control of land, land development, working capital to fund day-to-day operations, and investments in existing and future unconsolidated joint ventures. We may also use cash to fund capital expenditures such as investments in our information technology systems.
We also provide general liability insurance for our subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work.
We also provide general liability insurance for our 28 subcontractors in Arizona, California, Colorado, Nevada, Washington, and certain areas of Texas, where eligible subcontractors are enrolled as insureds under our general liability insurance policies in each community in which they perform work.
Our cash flows provided by operating activities, supplemented with our short-term borrowings and long-term debt, have been sufficient to fund our 32 operations while allowing us to invest in activities that support the long-term growth of our Company.
Our cash flows provided by operating activities, supplemented with our short-term borrowings and long-term debt, have been sufficient to fund our operations while allowing us to invest in activities that support the long-term growth of our Company.
Short-term Liquidity and Capital Resources In fiscal 2025, we expect our principal demand for funds will be for inventory additions (in the form of land acquisition, land development, home construction costs, and deposits to control land, which could occur directly or indirectly through builder acquisitions), operating expenses, including our general and administrative expenses, investments and funding of capital improvements, investments in existing and future unconsolidated joint ventures, repayment of community level debt, common stock repurchases, and dividend payments.
Short-term Liquidity and Capital Resources In fiscal 2026, we expect our principal demand for funds will be for inventory additions (in the form of land acquisition, land development, home construction costs, and deposits to control land, which could occur directly or indirectly through builder acquisitions), operating expenses, including our general and administrative expenses, investments and funding of capital improvements, investments in existing and future unconsolidated joint ventures, repayment of community level debt, common stock repurchases, and dividend payments.
We believe that the accounting estimates and assumptions described below involve significant subjectivity and judgment, and changes to such estimates or assumptions could have a material impact on our financial condition or operating results.
We believe that the accounting estimates and assumptions described below involve significant subjectivity and judgment, and changes to such estimates or assumptions could have a 26 material impact on our financial condition or operating results.
For further information regarding the Senior Notes, see Note 6 to our Consolidated Financial Statements under the caption “Senior Notes.” The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries (the “Guarantor Subsidiaries” and, together with us, the “Guarantors”).
For further information regarding the Senior Notes, see Note 5 to our Consolidated Financial Statements under the caption “Senior Notes.” The obligations of the Subsidiary Issuer to pay principal, premiums, if any, and interest are guaranteed jointly and severally on a senior basis by Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries (the “Guarantor Subsidiaries” and, together with us, the “Guarantors”).
Because of changes in economic conditions, actual results could differ materially from management’s assumptions and may require material valuation adjustments to our investments in unconsolidated entities to be recorded in the future. 29 RESULTS OF OPERATIONS The following table compares certain items in our Consolidated Statements of Operations and Comprehensive Income and other supplemental information for fiscal 2024 and 2023 ($ amounts in millions, unless otherwise stated).
Because of changes in economic conditions, actual results could differ materially from management’s assumptions and may require material valuation adjustments to our investments in unconsolidated entities to be recorded in the future. 29 RESULTS OF OPERATIONS The following table compares certain items in our Consolidated Statements of Operations and Comprehensive Income and other supplemental information for fiscal 2025 and 2024 ($ amounts in millions, unless otherwise stated).
We believe that, as of October 31, 2024, in the event we had become legally obligated to perform under a guarantee of the obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay all or a significant portion of the obligation.
We believe that, as of October 31, 2025, in the event we had become legally obligated to perform under a guarantee of the obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay all or a significant portion of the obligation.
We are required by the terms of certain loan documents to meet certain covenants, such as financial ratios and reporting requirements. As of October 31, 2024, we were in compliance with all such covenants and requirements on our term loan, credit facility and other loans payable.
We are required by the terms of certain loan documents to meet certain covenants, such as financial ratios and reporting requirements. As of October 31, 2025, we were in compliance with all such covenants and requirements on our term loan, credit facility and other loans payable.
In recent years, we have pursued a strategy of broadening our product lines, price points and geographic footprint, as well as increasing the number of spec homes that we sell relative to our traditional build-to-order homes. We cater to luxury first-time, move-up, empty-nester (move-down), active-adult, and second-home buyers in the United States, as well as urban and suburban renters.
In recent years, we have pursued a strategy of broadening our product lines, price points and geographic footprint, as well as increasing the number of spec homes that we sell relative to our traditional build-to-order homes. We cater to luxury first-time, move-up, empty-nester (move-down), active-adult, and second-home buyers in the United States.
A higher discount rate reduces the estimated fair value of our investments in unconsolidated entities, while a lower discount rate increases the estimated fair value of our investments in unconsolidated entities. During the year ended October 31, 2024, we utilized discount rates ranging from 10% to 15% in our valuations.
A higher discount rate reduces the estimated fair value of our investments in unconsolidated entities, while a lower discount rate increases the estimated fair value of our investments in unconsolidated entities. During the year ended October 31, 2025, we utilized discount rates ranging from 10% to 15% in our valuations.
The increase in the number of homes delivered in fiscal 2024, as compared to fiscal 2023, was principally due to higher backlog conversion and an increase in the number of spec homes delivered in fiscal 2024, offset, in part, by a decrease in the number of homes in backlog at October 31, 2023, as compared to the number of homes in backlog at October 31, 2022.
The increase in the number of homes delivered in fiscal 2025, as compared to fiscal 2024, was principally due to higher backlog conversion and an increase in the number of spec homes delivered in fiscal 2025, offset, in part, by a decrease in the number of homes in backlog at October 31, 2024, as compared to the number of homes in backlog at October 31, 2023.
These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of October 31, 2024, while others are considered future commitments.
These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the Consolidated Balance Sheet as of October 31, 2025, while others are considered future commitments.
Long-term Liquidity and Capital Resources Beyond fiscal 2025, our principal demands for funds will be for the payments of the principal amount of our long-term debt as it becomes due or matures, land purchases and inventory additions needed to grow our business, long-term capital investments and investments in unconsolidated joint ventures, common stock repurchases, and dividend payments.
Long-term Liquidity and Capital Resources Beyond fiscal 2026, our principal demands for funds will be for the payments of the principal amount of our long-term debt as it becomes due or matures, land purchases and inventory additions needed to maintain and grow our business, long-term capital investments and investments in unconsolidated joint ventures, common stock repurchases, and dividend payments.
For more information regarding these joint ventures, see Note 4, “Investments in Unconsolidated Entities” in the Notes to Consolidated Financial Statements in Item 15(a)1 of this Form 10-K.
For more information regarding these joint ventures, see Note 3, “Investments in Unconsolidated Entities” in the Notes to Consolidated Financial Statements in Item 15(a)1 of this Form 10-K.
The decrease in income before income taxes in fiscal 2024, as compared to fiscal 2023, was primarily due to lower earnings from decreased revenues and higher home sales cost of revenues, as a percentage of home sales revenues.
The decrease in income before income taxes in fiscal 2025, as compared to fiscal 2024, was primarily due to higher home sales cost of revenues, as a percentage of home sales revenues, and lower earnings from decreased revenues.
In fiscal 2024, three of our Rental Property Joint Ventures sold their assets or we sold a portion of our ownership interest to unrelated parties, resulting in aggregate gains of $176.1 million recognized by the joint ventures. From our investments in these joint ventures we received cash and recognized our share of the gains of $24.1 million in fiscal 2024.
From our investments in these joint ventures we received cash and recognized our share of the gains of $45.1 million in fiscal 2025. In fiscal 2024, three of our Rental Property Joint Ventures sold their assets, or we sold a portion of our ownership interest to unrelated parties, resulting in aggregate gains of $176.1 million recognized by the joint ventures.
At October 31, 2024, we were selling from 408 communities, compared to 370 communities at October 31, 2023, and 348 communities at October 31, 2022. Customer Mortgage Financing We maintain relationships with a diverse group of mortgage financial institutions, many of which are among the largest in the industry.
At October 31, 2025, we were selling from 446 communities, compared to 408 communities at October 31, 2024, and 370 communities at October 31, 2023. Customer Mortgage Financing We maintain relationships with a diverse group of mortgage financial institutions, many of which are among the largest in the industry.
The increase in land sales and other cost of revenues as a percentage of land sales and other revenues in fiscal 2024 compared to fiscal 2023 was primarily due to the sale of a single land parcel to a commercial developer in our second quarter for net cash proceeds of $180.7 million, which resulted in a pre-tax gain of $175.2 million.
The increase in land sales and other cost of revenues as a percentage of land sales and other revenues in fiscal 2025 compared to fiscal 2024 was primarily due to the sale of a single land parcel to a commercial developer for net cash proceeds of $180.7 million, which resulted in a pre-tax gain of $175.2 million in fiscal 2024.
For more information regarding our primary obligations, refer to Note 6, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility,” and Note 14, “Commitments and Contingencies,” to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for amounts outstanding as of October 31, 2024, related to debt and commitments and contingencies, respectively.
For more information regarding our primary obligations, refer to Note 5, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility,” and Note 13, “Commitments and Contingencies,” to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for amounts outstanding as of October 31, 2025, related to debt and commitments and contingencies, respectively.
The increase in “other” in fiscal 2024 was principally due to a $5.0 million gain related to an investment we held in a privately held company that sold substantially all of its assets to a third party during the year.
The decrease in “other” was principally due to a $5.0 million gain in fiscal 2024 related to an investment we held in a privately held company that sold substantially all of its assets to a third party.
The decrease in the average price of homes delivered in fiscal 2024 was primarily due to a shift in the number of homes delivered to less expensive areas or product types.
The decrease in the average price of homes delivered in fiscal 2025 was primarily due to a shift in the number of homes delivered to less expensive areas and/or product types.
A discussion and analysis regarding Results of Operations and Analysis of Financial Condition for the year ended October 31, 2023, as compared to the year ended October 31, 2022, is included in Part II, Item 7, “MD&A” to our Annual Report on Form 10-K for the fiscal year ended October 31, 2023, filed with the SEC on December 21, 2023. 30 FISCAL 2024 COMPARED TO FISCAL 2023 Home Sales Revenues and Home Sales Cost of Revenues The increase in home sales revenues in fiscal 2024, as compared to fiscal 2023, was attributable to a 13% increase in the number of homes delivered, offset, in part, by a 5% decrease in the average price of homes delivered.
A discussion and analysis regarding Results of Operations and Analysis of Financial Condition for the year ended October 31, 2024, as compared to the year ended October 31, 2023, is included in Part II, Item 7, “MD&A” to our Annual Report on Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 20, 2024. 30 FISCAL 2025 COMPARED TO FISCAL 2024 Home Sales Revenues and Home Sales Cost of Revenues The increase in home sales revenues in fiscal 2025, as compared to fiscal 2024, was attributable to a 4% increase in the number of homes delivered, offset, in part, by a 2% decrease in the average price of homes delivered.
Refer to Note 6, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility” in the Notes to the Consolidated Financial Statements in Item 15(a)1 of this Form 10-K for additional information. Operating Activities Cash provided by operating activities during fiscal 2024 was $1.01 billion.
Refer to Note 5, “Loans Payable, Senior Notes, and Mortgage Company Loan Facility” in the Notes to the Consolidated Financial Statements in Item 15(a)1 of this Form 10-K for additional information. Operating Activities Cash provided by operating activities during fiscal 2025 was $1.11 billion.
In fiscal 2024 and fiscal 2023, we also recognized $8.9 million and $8.4 million, respectively, of write-offs related to previously incurred costs that we believed not to be recoverable in our apartment living operations.
In fiscal 2025 and fiscal 2024, we also recognized $7.3 million and $8.9 million, respectively, of write-offs related to previously incurred costs that we believed not to be recoverable in our Apartment Living operations.
In fiscal 2023, two of our Rental Property Joint Ventures sold their assets to unrelated parties, resulting in aggregate gains of $106.2 million recognized by the joint ventures. From our investments in these joint ventures, we received cash and recognized gains of $50.9 million in fiscal 2023.
From our investments in these joint ventures we received cash and recognized our share of the gains of $24.1 million in fiscal 2024. In fiscal 2023, two of our Rental Property Joint Ventures sold their assets to unrelated parties, resulting in aggregate gains of $106.2 million recognized by the joint ventures.
We also operate through a number of joint ventures and have undertaken various commitments as a result of those arrangements. At October 31, 2024, we had investments in these entities of $1.01 billion, and were committed to invest or advance up to an additional $312.8 million to these entities if they require additional funding.
We also operate through a number of joint ventures and have undertaken various commitments as a result of those arrangements. At October 31, 2025, we had investments in these entities of $1.03 billion, and were committed to invest or advance up to an additional $331.2 million to these entities if they require additional funding.
During fiscal 2024 and 2023, we acquired control of approximately 14,900 and 4,200 home sites, respectively, net of options terminated and land sales. In each of fiscal 2024 and 2023 we forfeited control of approximately optioned 4,000 lots primarily because the planned community no longer met our development criteria.
During fiscal 2025 and 2024, we acquired control of approximately 12,700 and 14,900 home sites, respectively, net of options terminated and land sales. In fiscal 2025 and 2024 we forfeited control of approximately 5,900 and 4,000 optioned lots, respectively, primarily because the planned community no longer met our development criteria.
The 7% decrease in the value of homes in backlog at October 31, 2024, as compared to October 31, 2023, was due to the delivery of more homes out of backlog than were added during fiscal 2024, and a decrease in the average value of each contract signed.
The 15% decrease in the value of homes in backlog at October 31, 2025, as compared to October 31, 2024, was due to the delivery of more homes out of backlog than were added during fiscal 2025, and a relatively flat average value of each contract signed.
The increase in the number of net contracts signed in fiscal 2024, as compared to fiscal 2023, was principally due to an increase in demand in fiscal 2024, partially offset by an decrease in the number of selling communities.
The decrease in the number of net contracts signed in fiscal 2025, as compared to fiscal 2024, was principally due to soft demand, offset, in part by an increase in the number of selling communities.
At October 31, 2024, we controlled approximately 74,700 home sites, as compared to approximately 70,700 home sites at October 31, 2023, and approximately 76,000 home sites at October 31, 2022.
At October 31, 2025, we controlled approximately 76,100 home sites, as compared to approximately 74,700 home sites at October 31, 2024, and approximately 70,700 home sites at October 31, 2023.
SUPPLEMENTAL GUARANTOR INFORMATION At October 31, 2024, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), had issued and outstanding $1.60 billion aggregate principal amount of senior notes maturing on various dates between November 15, 2025 and November 1, 2029 (the “Senior Notes”).
SUPPLEMENTAL GUARANTOR INFORMATION At October 31, 2025, our 100%-owned subsidiary, Toll Brothers Finance Corp. (the “Subsidiary Issuer”), had issued and outstanding $1.75 billion aggregate principal amount of senior notes maturing on various dates between March 15, 2027 and June 15, 2035 (the “Senior Notes”).
Financing Activities We used $816.5 million of cash from financing activities in fiscal 2024, primarily for the repurchase of $627.1 million of our common stock; payments of $100.1 million of loans payable, net of new borrowings; and the payment of dividends on our common stock of $93.4 million.
We used $816.5 million of cash from financing activities in fiscal 2024, primarily for the repurchase of $627.1 million of our common stock; payments of $100.1 million of loans payable, net of new borrowings; and the payment of dividends on our common stock of $93.4 million. This activity was offset by $4.1 million of proceeds from stock-based benefit plans.
At October 31, 2024, we had guaranteed the debt of certain unconsolidated entities that have loan commitments aggregating $3.03 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $646.9 million to be our maximum exposure related to repayment and carry cost guarantees.
At October 31, 2025, we had guaranteed the debt of certain unconsolidated entities that have loan commitments aggregating $1.92 billion, of which, if the full amount of the debt obligations were borrowed, we estimate $414.8 million to be our maximum exposure related to repayment and carry cost guarantees.
The Revolving Credit Facility provides us with a committed borrowing capacity of $1.955 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders, and is scheduled to mature on February 14, 2028.
The Revolving Credit Facility provides us with a committed borrowing capacity of $2.35 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders, and is scheduled to mature on February 7, 2030.
Based upon the federal statutory rate of 21.0% for fiscal 2024, our federal tax provision would have been $438.0 million.
Based upon the federal statutory rate of 21.0% for fiscal 2025, our federal tax provision would have been $376.2 million.
For the fiscal years 2024 and 2023, our earnings related to the Rental Property Joint Ventures include approximately $50.3 million and $32.9 million, respectively, of our share of net operating losses incurred by these joint ventures, of which approximately $29.8 million and $26.1 million, respectively, was our share of the depreciation expense recognized by these joint ventures.
For fiscal years 2025 and 2024, our earnings related to the Rental Property Joint Ventures include approximately $68.0 million and $50.3 million, respectively, representing our share of net operating losses incurred by these joint ventures, of which approximately $38.3 million and $29.8 million, respectively, was our share of the depreciation expense recognized by these joint ventures.
The decrease in the average delivered home price was mainly due to increase in homes delivered in less expensive product types/geographic regions. Home sales cost of revenues, as a percentage of homes sales revenues, in fiscal 2024 was 73.4%, as compared to 73.1% in fiscal 2023.
The decrease in the average delivered home price was mainly due to an increase in homes delivered in less expensive product types/geographic regions and an increase in the number of spec homes closed. Home sales cost of revenues, as a percentage of homes sales revenues, in fiscal 2025 was 74.4%, as compared to 73.4% in fiscal 2024.
The increase in home sales costs of revenues, as a percentage of home sale revenues, in fiscal 2024 was primarily due to a shift in product mix/areas to lower-margin areas. Inventory impairment charges were $15.2 million and $15.9 million in fiscal 2024 and 2023, respectively.
The increase in home sales cost of revenues, as a percentage of home sales revenues, was primarily due to a shift in product mix/areas to lower-margin areas and an increase in impairment charges. Inventory impairment charges were $15.2 million and $13.7 million in fiscal 2025 and 2024, respectively.
A discussion and analysis regarding our Segments’ Results of Operations and Analysis of Financial Condition for the year ended October 31, 2023, as compared to the year ended October 31, 2022 is included in Part II, Item 7, “MD&A” to our Annual Report on Form 10-K for the fiscal year ended October 31, 2023, filed with the SEC on December 21, 2023. 38 FISCAL 2024 COMPARED TO FISCAL 2023 North Year ended October 31, 2024 2023 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 1,484.3 $ 1,494.1 (1) % Units delivered 1,522 1,577 (3) % Average delivered price ($ in thousands) $ 975.2 $ 947.4 3 % Net Contracts Signed: Net contract value ($ in millions) $ 1,456.8 $ 1,336.9 9 % Net contracted units 1,421 1,411 1 % Average contracted price ($ in thousands) $ 1,025.2 $ 947.5 8 % Home sales cost of revenues as a percentage of home sales revenues 76.8 % 79.4 % Income before income taxes ($ in millions) $ 252.7 $ 197.4 28 % Number of selling communities at October 31, 43 40 8 % The decrease in the number of homes delivered in fiscal 2024, as compared to fiscal 2023, was mainly due to a decrease in the number of homes in backlog at October 31, 2023, as compared to the number of homes in backlog at October 31, 2022, offset, in part by a higher backlog conversion in fiscal 2024 and an increase in the number of spec homes delivered.
A discussion and analysis regarding our Segments’ Results of Operations and Analysis of Financial Condition for the year ended October 31, 2024, as compared to the year ended October 31, 2023 is included in Part II, Item 7, “MD&A” to our Annual Report on Form 10-K for the fiscal year ended October 31, 2024, filed with the SEC on December 20, 2024. 38 FISCAL 2025 COMPARED TO FISCAL 2024 North Year ended October 31, 2025 2024 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 1,656.1 $ 1,484.3 12 % Units delivered 1,611 1,522 6 % Average delivered price ($ in thousands) $ 1,028.0 $ 975.2 5 % Net Contracts Signed: Net contract value ($ in millions) $ 1,688.7 $ 1,456.8 16 % Net contracted units 1,589 1,421 12 % Average contracted price ($ in thousands) $ 1,062.7 $ 1,025.2 4 % Home sales cost of revenues as a percentage of home sales revenues 74.2 % 76.8 % Income before income taxes ($ in millions) $ 327.0 $ 252.7 29 % Number of selling communities at October 31, 55 43 28 % The increase in the number of homes delivered in fiscal 2025, as compared to fiscal 2024, was mainly due to an increase in the number of spec homes delivered, offset, in part, by a decrease in the number of homes in backlog at October 31, 2024, as compared to the number of homes in backlog at October 31, 2023.
We recognized inventory impairments and write-offs of $59.4 million, or 0.6% of home sales revenues, and $30.7 million, or 0.3% of home sales revenues, in fiscal 2024 and fiscal 2023, respectively. Interest cost in fiscal 2024 was $129.0 million, or 1.2% of home sales revenues, as compared to $139.4 million, or 1.4% of home sales revenues in fiscal 2023.
We recognized inventory impairments and write-offs of $65.9 million, or 0.6% of home sales revenues, and $59.4 million, or 0.6% of home sales revenues, in fiscal 2025 and fiscal 2024, respectively. Interest cost in fiscal 2025 was $118.1 million, or 1.1% of home sales revenues, as compared to $129.0 million, or 1.2% of home sales revenues in fiscal 2024.
At October 31, 2024, the unconsolidated entities had borrowed an aggregate of $2.20 billion, of which we estimate $560.4 million to be our maximum exposure related to repayment and carry cost guarantees. The terms of these guarantees generally range from 1 month to 3.0 years.
At October 31, 2025, the unconsolidated entities had borrowed an aggregate of $1.46 billion, of which we estimate $413.5 million to be our maximum exposure related to repayment and carry cost guarantees. The terms of these guarantees generally range from 1 month to 8.2 years.
This activity was offset, in part, by $101.4 million of cash received as returns from our investments in unconsolidated entities. Cash used in investing activities during fiscal 2023 was $150.6 million, primarily related to $216.4 million used to fund our investments in unconsolidated entities and $73.0 million for the purchase of property and equipment.
This activity was offset, in part, by $82.2 million of cash received as returns from our investments in unconsolidated entities. Cash used in investing activities during fiscal 2024 was $167.6 million, primarily related to $193.2 million used to fund our investments in unconsolidated entities and $73.6 million for the purchase of property and equipment.
In addition, at October 31, 2024, we expected to purchase approximately 9,000 additional home sites from several Land Development Joint Ventures in which we have an interest, at prices to be determined. Of the approximately 74,700 total home sites that we owned or controlled through options at October 31, 2024, we owned approximately 34,000 and controlled approximately 40,800 through options.
In addition, at October 31, 2025, we expected to purchase approximately 8,800 additional home sites from several Land Development Joint Ventures in which we have an interest, at prices to be determined. Of the approximately 76,100 total home sites that we owned or controlled through options at October 31, 2025, we owned approximately 33,000 and controlled approximately 43,100 through options.
At October 31, 2024, we had agreed to terms for the acquisition of 316 home sites from four joint ventures for an estimated aggregate purchase price of $26.8 33 million. In addition, we expect to purchase approximately 9,000 additional home sites over a number of years from several joint ventures in which we have interests.
At October 31, 2025, we had agreed to terms for the acquisition of 832 home sites from five joint ventures for an estimated aggregate purchase price of 33 $111.3 million. In addition, we expect to purchase approximately 8,800 additional home sites over a number of years from several joint ventures in which we have interests.
At October 31, 2024, we had $1.30 billion of cash and cash equivalents on hand and approximately $1.77 billion available for borrowing under our Revolving Credit Facility.
At October 31, 2025, we had $1.26 billion of cash and cash equivalents on hand and approximately $2.19 billion available for borrowing under our Revolving Credit Facility.
Summarized Balance Sheet Data (amounts in millions) October 31, 2024 Assets Cash $ 1,170.6 Inventory $ 9,594.5 Amount due from Non-Guarantor Subsidiaries $ 725.6 Total assets $ 12,242.5 Liabilities & Stockholders' Equity Loans payable $ 968.4 Senior notes $ 1,597.1 Total liabilities $ 4,952.9 Stockholders' equity $ 7,289.6 Summarized Statement of Operations Data (amounts in millions) For the year ended October 31, 2024 Revenues $ 10,673.2 Cost of revenues $ 7,687.0 Selling, general and administrative $ 975.7 Income before income taxes $ 2,048.6 Net income $ 1,543.3 SEGMENTS During fiscal 2024 and 2023, we operated in five geographic segments, with operations generally located in the states listed below: • The North region: Connecticut, Delaware, Illinois, 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.
Summarized Balance Sheet Data (amounts in millions) October 31, 2025 Assets Cash $ 1,078.1 Inventory $ 10,539.2 Amount due from Non-Guarantor Subsidiaries $ 852.6 Total assets $ 13,298.7 Liabilities & Stockholders' Equity Loans payable $ 878.4 Senior notes $ 1,741.5 Total liabilities $ 5,487.2 Stockholders' equity $ 7,811.5 Summarized Statement of Operations Data (amounts in millions) For the year ended October 31, 2025 Revenues $ 10,812.3 Cost of revenues $ 8,106.4 Selling, general and administrative $ 1,027.1 Income before income taxes $ 1,687.9 Net income $ 1,268.7 SEGMENTS During fiscal 2025 and 2024, we operated in 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; and • The Pacific region: California, Oregon and Washington.
The value of our backlog at October 31, 2024, 2023, and 2022 was $6.47 billion (5,996 homes), $6.95 billion (6,578 homes), and $8.87 billion (8,098 homes), respectively. Approximately 97% of the homes in backlog at October 31, 2024 are expected to be delivered by October 31, 2025.
The value of our backlog at October 31, 2025, 2024, and 2023 was $5.49 billion (4,647 homes), $6.47 billion (5,996 homes), and $6.95 billion (6,578 homes), respectively. Approximately 98% of the homes in backlog at October 31, 2025 are expected to be delivered by October 31, 2026.
The decrease in income before income taxes in fiscal 2024, as compared to fiscal 2023, was mainly due lower earnings from decreased revenues, higher home sales cost of revenues, as a percentage of home sales revenues, and increased SG&A spend, partially offset by higher earnings from land sales and other revenues.
The increase in income before income taxes in fiscal 2025, as compared to fiscal 2024, was mainly due to higher earnings from increased revenues, lower home sales cost of revenues, as a percentage of home sales revenues, partially offset by higher SG&A costs.
The decrease in the average price of homes delivered in fiscal 2024 was primarily due to a shift in the number of homes delivered to less expensive areas and/or products, as well as an increase in the number of spec homes delivered.
The decrease in the average price of homes delivered in fiscal 2025 was primarily due to a shift in the number of homes delivered to less expensive areas and/or products, as well as the increase in spec home deliveries with higher sales incentives in fiscal 2025.
The decrease in the average value of each contract signed in fiscal 2024 was mainly due to a shift in the number of contracts signed in less expensive areas or product types, offset, in part, by a decrease in average sale incentives.
The decrease in the average value of each contract signed in fiscal 2025 was mainly due to a shift in the number of contracts signed to less expensive areas or product types and increased sales incentives.
The increase in the number of net contracts signed in fiscal 2024, as compared to fiscal 2023, was principally due to improved demand in fiscal 2024, offset, in part, by a decrease in the number of selling communities.
The increase in the number of net contracts signed in fiscal 2025, as compared to fiscal 2024, was principally due to an increase in the number of selling communities, offset, in part, by moderately softer demand.
We recognized a $470.3 million income tax provision in fiscal 2023. Based upon the federal statutory rate of 21.0% for fiscal 2023, our federal tax provision would have been $386.9 million.
We recognized a $514.4 million income tax provision in fiscal 2024. Based upon the federal statutory rate of 21.0% for fiscal 2024, our federal tax provision would have been $438.0 million.
At October 31, 2024, we or joint ventures in which we have an interest, owned or controlled 67 land parcels that are planned, or being developed or operated, as for-rent apartment projects containing approximately 21,300 units.
At October 31, 2025, we, or joint ventures in which we have an interest, controlled 73 land parcels that are planned or operating as for-rent apartment projects containing approximately 22,300 units.
This activity was offset by $48.3 million of proceeds from stock-based benefit plans. INFLATION The long-term impact of inflation on us is manifested in increased costs for land, land development, construction, and overhead. We generally enter into contracts to acquire land a significant period of time before development and sales efforts begin.
INFLATION The long-term impact of inflation on us is manifested in increased costs for land, land development, construction, and overhead. We generally enter into contracts to acquire land a significant period of time before development and sales efforts begin.
Financial Highlights In fiscal 2024, we recognized $10.85 billion of revenues, consisting of $10.56 billion of home sales revenues and $283.4 million of land sales and other revenues, and net income of $1.57 billion, as compared to $9.99 billion of revenues, consisting of $9.87 billion of home sales revenues and $128.9 million of land sales and other revenues, and net income of $1.37 billion in fiscal 2023.
Financial Highlights In fiscal 2025, we recognized $10.97 billion of revenues, consisting of $10.84 billion of home sales revenues and $124.5 million of land sales and other revenues, and net income of $1.35 billion, as compared to $10.85 billion of revenues, consisting of $10.56 billion of home sales revenues and $283.4 million of land sales and other revenues, and net income of $1.57 billion in fiscal 2024.
The increase in the average value of each contract signed in the fiscal 2024 period was primarily due to a shift in the number of contracts signed to more expensive areas and/or products and a decrease in average sales incentives in fiscal 2024.
The increase in the average value of each contract signed in the fiscal 2025 period was primarily due to favorable demand conditions, as well as a shift in the number of contracts signed to more expensive areas and/or products, partially offset by a modest increase in sales incentives.
The decrease in the average value of each contract signed in fiscal 2024 was mainly due to shifts in the number of contracts signed to less expensive areas and/or products and an increase in average sales incentives.
The average value of each contract signed in fiscal 2025 decreased primarily due to shifts in the number of contracts signed to less expensive areas and/or products and increased sales incentives.
Income Before Income Taxes In fiscal 2024, we reported income before income taxes of $2.09 billion, or 19.2% of revenues, as compared to $1.84 billion, or 18.4% of revenues, in fiscal 2023. Income Tax Provision We recognized a $514.4 million income tax provision in fiscal 2024.
Income Before Income Taxes In fiscal 2025, we reported income before income taxes of $1.79 billion, or 16.3% of revenues, as compared to $2.09 billion, or 19.2% of revenues, in fiscal 2024. Income Tax Provision We recognized a $444.9 million income tax provision in fiscal 2025.
At October 31, 2024, we had $1.30 billion of cash and cash equivalents and approximately $1.77 billion available for borrowing under our $1.955 billion revolving credit facility (the “Revolving Credit Facility”). At October 31, 2024, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $180.0 million.
At October 31, 2025, we had $1.26 billion of cash and cash equivalents and approximately $2.19 billion available for borrowing under our $2.35 billion revolving credit facility (the “Revolving Credit Facility”). At October 31, 2025, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of approximately $155.9 million.
The increase in home sales cost of revenues, as a percentage of home sales revenues, was primarily due to a shift in product mix/areas to lower-margin areas and lower interest expense as a percentage of home sales revenues, and higher inventory impairment charges. Inventory impairment charges were $26.0 million and $5.7 million in fiscal 2024 and 2023, respectively.
The increase in home sales cost of revenues, as a percentage of home sales revenues, was mainly due to a shift in product mix/areas to lower-margin areas and higher inventory impairment charges. Inventory impairment charges were $16.9 million and $3.4 million in fiscal 2025 and 2024, respectively.
The increase in income before income taxes in fiscal 2024, as compared to fiscal 2023, was principally due to higher earnings from increased home sales revenues and lower home sales costs of revenues, as a percentage of home sales revenues, offset, in part, by higher SG&A costs resulting from increased sales volume.
The decrease in income before income taxes in fiscal 2025, as compared to fiscal 2024, was principally due to higher home sales costs of revenues, as a percentage of home sales revenues, and lower earnings from decreased home sales revenues.
In fiscal 2024 and 2023, the value of net contracts signed was $10.07 billion (10,231 homes) and $7.91 billion (8,077 homes), respectively. The value of our backlog at October 31, 2024 was $6.47 billion (5,996 homes), as compared to our backlog at October 31, 2023 of $6.95 billion (6,578 homes).
In fiscal 2025 and 2024, the value of net contracts signed was $9.85 billion (9,943 homes) and $10.07 billion (10,231 homes), respectively. The value of our backlog at October 31, 2025 was $5.49 billion (4,647 homes), as compared to our backlog at October 31, 2024 of $6.47 billion (5,996 homes).
We believe that our home buyers generally are, and will continue to be, well-positioned to secure mortgages due to their typically lower loan-to-value ratios and attractive credit profiles, as compared to the average home buyer.
We believe that national, regional and community banks continue to recognize the long-term value in creating relationships with our home buyers, and these banks continue to provide these customers with financing. 25 We believe that our home buyers generally are, and will continue to be, well-positioned to secure mortgages due to their typically lower loan-to-value ratios and attractive credit profiles, as compared to the average home buyer.
Income from Unconsolidated Entities We recognize our proportionate share of the earnings and losses from the various unconsolidated entities in which we have an investment.
These increases were offset, in part, by modestly lower selling commissions. Income from Unconsolidated Entities We recognize our proportionate share of the earnings and losses from the various unconsolidated entities in which we have an investment.
Total Assets ($ amounts in millions): At October 31, 2024 2023 North $ 1,425.7 $ 1,281.4 Mid-Atlantic 1,445.0 1,323.4 South 2,514.4 2,399.1 Mountain 2,950.8 2,666.9 Pacific 2,266.8 2,175.8 Total home building 10,602.8 9,846.6 Corporate and other 2,765.2 2,680.4 Total consolidated $ 13,367.9 $ 12,527.0 Note: Due to rounding, amounts may not add.
Total Assets ($ amounts in millions): At October 31, 2025 2024 North $ 1,566.6 $ 1,425.7 Mid-Atlantic 1,697.9 1,445.0 South 2,907.6 2,514.4 Mountain 2,948.4 2,950.8 Pacific 2,586.0 2,266.8 Total home building 11,706.5 10,602.8 Corporate and other 2,813.3 2,765.2 Total consolidated $ 14,519.9 $ 13,367.9 Note: Due to rounding, amounts may not add.
The difference between the tax provision recognized and the tax provision based on the federal statutory rate was mainly due to the provision for state income taxes of $90.7 million and a $2.2 million increase in unrecognized tax benefits, offset, in part, by a benefit of $7.3 million from excess tax benefits related to stock-based compensation, $2.8 million of other permanent differences, and a $2.3 million benefit of federal energy efficient home credits.
The difference between the tax provision recognized and the tax provision based on the federal statutory rate was mainly due to the provision for state income taxes of $85.6 million and a $2.6 million increase in unrecognized tax benefits, offset, in part, by a benefit of $15.2 million from excess tax benefits related to stock-based compensation, $2.7 million of miscellaneous and other deferred tax adjustments, and $1.7 million of reversals of accruals for uncertain tax positions.
The increase in the average value of each contract signed in fiscal 2024 was mainly due to a shift in the number of contracts signed to more expensive areas, partially offset by an increase in average sales incentives.
The increase in the average value of each contract signed in fiscal 2025 was mainly due to a shift in the number of contracts signed to more expensive areas or product types.
We compete primarily based on price, location, design, quality, service, and reputation. We believe our size and financial stability, relative to many others in our industry, provides us with a competitive advantage.
We believe our size and financial stability, relative to many others in our industry, provides us with a competitive advantage.
Mountain Year ended October 31, 2024 2023 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 2,590.4 $ 2,660.7 (3) % Units delivered 2,984 2,897 3 % Average delivered price ($ in thousands) $ 868.1 $ 918.4 (5) % Net Contracts Signed: Net contract value ($ in millions) $ 2,655.0 $ 1,633.1 63 % Net contracted units 3,002 1,950 54 % Average contracted price ($ in thousands) $ 884.4 $ 837.5 6 % Home sales cost of revenues as a percentage of home sales revenues 76.5 % 74.0 % Income before income taxes ($ in millions) $ 446.2 $ 517.1 (14) % Number of selling communities at October 31, 117 120 (3) % The increase in the number of homes delivered in fiscal 2024, as compared to fiscal 2023, was mainly due to higher backlog conversion and an increase in the number of spec homes delivered in fiscal 2024, partially offset by a decrease in the number of 41 homes in backlog at October 31, 2023, as compared to the number of homes in backlog at October 31, 2022.
Mountain Year ended October 31, 2025 2024 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 2,924.4 $ 2,590.4 13 % Units delivered 3,303 2,984 11 % Average delivered price ($ in thousands) $ 885.4 $ 868.1 2 % Net Contracts Signed: Net contract value ($ in millions) $ 2,393.9 $ 2,655.0 (10) % Net contracted units 2,732 3,002 (9) % Average contracted price ($ in thousands) $ 876.2 $ 884.4 (1) % Home sales cost of revenues as a percentage of home sales revenues 76.1 % 76.5 % Income before income taxes ($ in millions) $ 511.1 $ 446.2 15 % Number of selling communities at October 31, 115 117 (2) % The increase in the number of homes delivered in fiscal 2025, as compared to fiscal 2024, was mainly due to higher backlog conversion and an increase in the number of spec homes delivered.
The increase in the number of net contracts signed in fiscal 2024, as compared to fiscal 2023, was principally due to an increase in the number of selling communities in fiscal 2024.
The decrease in the number of net contracts signed in fiscal 2025, as compared to fiscal 2024, was primarily due to soft demand, offset, in part, by an increase in the number of selling communities.
In fiscal 2024 and 2023, income from ancillary businesses included management fees earned on our apartment rental development, high-rise urban luxury condominium, and other unconsolidated entities and operations totaling $35.7 million and $34.7 million, respectively. In fiscal 2023, the gain on litigation settlements - net primarily related to the settlement of an insurance claim.
In fiscal 2025 and 2024, income from ancillary businesses included management fees earned on our apartment rental development, high-rise urban luxury condominium, and other unconsolidated entities and operations totaling $20.4 million and $35.7 million, respectively.
Years ended October 31, 2024 2023 % Change Revenues: Home sales $ 10,563.3 $ 9,866.0 7 % Land sales and other 283.4 128.9 10,846.7 9,994.9 9 % Cost of revenues: Home sales 7,753.4 7,207.3 8 % Land sales and other 70.9 153.5 7,824.3 7,360.7 6 % Selling, general and administrative 982.3 909.4 8 % Income from operations 2,040.2 1,724.8 18 % Other: (Loss) income from unconsolidated entities (23.8) 50.1 (148) % Other income - net 69.3 67.5 3 % Income before income taxes 2,085.6 1,842.4 13 % Income tax provision 514.4 470.3 9 % Net income $ 1,571.2 $ 1,372.1 15 % Supplemental information: Home sales cost of revenues as a percentage of home sales revenues 73.4 % 73.1 % Land sales and other cost of revenues as a percentage of land sales and other revenues 25.0 % 119.1 % SG&A as a percentage of home sales revenues 9.3 % 9.2 % Effective tax rate 24.7 % 25.5 % Deliveries – units 10,813 9,597 13 % Deliveries – average sales price (in ‘000s) $ 976.9 $ 1,028.0 (5) % Net contracts signed – value $ 10,072.6 $ 7,907.8 27 % Net contracts signed – units 10,231 8,077 27 % Net contracts signed – average sales price (in ‘000s) $ 984.5 $ 979.1 1 % At October 31, 2024 2023 % Change Backlog – value $ 6,467.8 $ 6,945.3 (7) % Backlog – units 5,996 6,578 (9) % Backlog – average sales price (in ‘000s) $ 1,078.7 $ 1,055.8 2 % Note: Due to rounding, amounts may not add.
Years ended October 31, 2025 2024 % Change Revenues: Home sales $ 10,842.2 $ 10,563.3 3 % Land sales and other 124.5 283.4 10,966.7 10,846.7 1 % Cost of revenues: Home sales 8,069.7 7,753.4 4 % Land sales and other 142.7 70.9 8,212.5 7,824.3 5 % Selling, general and administrative 1,033.6 982.3 5 % Income from operations 1,720.6 2,040.2 (16) % Other: Income (loss) from unconsolidated entities 19.1 (23.8) 180 % Other income - net 51.7 69.3 (25) % Income before income taxes 1,791.4 2,085.6 (14) % Income tax provision 444.9 514.4 (14) % Net income $ 1,346.5 $ 1,571.2 (14) % Supplemental information: Home sales cost of revenues as a percentage of home sales revenues 74.4 % 73.4 % Land sales and other cost of revenues as a percentage of land sales and other revenues 114.6 % 25.0 % SG&A as a percentage of home sales revenues 9.5 % 9.3 % Effective tax rate 24.8 % 24.7 % Deliveries – units 11,292 10,813 4 % Deliveries – average sales price (in ‘000s) $ 960.2 $ 976.9 (2) % Net contracts signed – value $ 9,850.0 $ 10,072.6 (2) % Net contracts signed – units 9,943 10,231 (3) % Net contracts signed – average sales price (in ‘000s) $ 990.6 $ 984.5 1 % At October 31, 2025 2024 % Change Backlog – value $ 5,494.4 $ 6,467.8 (15) % Backlog – units 4,647 5,996 (22) % Backlog – average sales price (in ‘000s) $ 1,182.4 $ 1,078.7 10 % Note: Due to rounding, amounts may not add.
The fiscal 2024 period was positively impacted by a $5.0 million gain related to our investment in a privately held company that sold substantially all of its assets to a third party; a $4.4 million gain from a bulk sale of security monitoring accounts by our smart home technology business; higher earnings from our mortgage and title company operations primarily due to increased volume; offset by higher losses by various Rental Property Joint Ventures.
Specifically, in the fiscal 2024 period, we recognized a $5.0 million gain related to an investment in a privately held company that sold substantially all of its assets to a third party and a $4.4 million gain from a bulk sale of security monitoring accounts by our smart home technology business.
The decrease in home sales costs of revenues, as a percentage of home sale revenues, in fiscal 2024 was primarily due to a shift in product mix/areas to higher-margin areas and lower interest expense as a percentage of home sales revenue.
The decrease in home sales costs of revenues, as a percentage of home sale revenues, was primarily due to a shift in the mix of homes delivered in higher-margin areas/products and lower interest expense as a percentage of home sales revenue. Fiscal 2025 also benefitted from higher income from unconsolidated entities, primarily from one Home Building Joint Venture.
In addition, in fiscal 2023, we sold our ownership interest in one of our Rental Property Joint Ventures and recognized a gain of $16.0 million. The gains recognized from these sales are included in “Income from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income included in Item 15(a)1 of this Form 10-K.
The gains recognized from these sales are included in “Income (loss) from unconsolidated entities” in our Consolidated Statements of Operations and Comprehensive Income included in Item 15(a)1 of this Form 10-K.
Selling, General and Administrative Expenses (“SG&A”) SG&A spending increased by $72.8 million in fiscal 2024, as compared to fiscal 2023. As a percentage of home sales revenues, SG&A was 9.3% and 9.2% in fiscal 2024 and 2023, respectively.
Selling, General and Administrative Expenses (“SG&A”) SG&A spending increased by $51.3 million in fiscal 2025 compared to fiscal 2024. As a percentage of home sales revenues, SG&A was 9.5% and 9.3% in fiscal 2025 and 2024, respectively. The dollar increase in SG&A was primarily due to an increase in payroll, marketing and insurance costs.
The increase in the average delivered price in fiscal 2024 was primarily due to a shift in the number of homes delivered to more expensive areas and/or products, as well as sales price increases.
The increase in the average delivered price in fiscal 2025 was primarily due to a shift in the number of homes delivered to more expensive areas and/or products, offset, in part by an increase in incentives as a result of soft market conditions.
In addition, in fiscal 2024 and 2023 we recognized $0.6 million and $10.3 million, respectively, in land impairment charges included in land sales and other cost of revenues in connection with planned land sales. 40 South Year ended October 31, 2024 2023 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 2,787.4 $ 2,204.8 26 % Units delivered 3,316 2,597 28 % Average delivered price ($ in thousands) $ 840.6 $ 849.0 (1) % Net Contracts Signed: Net contract value ($ in millions) $ 2,498.2 $ 1,938.3 29 % Net contracted units 3,007 2,386 26 % Average contracted price ($ in thousands) $ 830.8 $ 812.4 2 % Home sales cost of revenues as a percentage of home sales revenues 71.7 % 73.5 % Income before income taxes ($ in millions) $ 578.0 $ 416.7 39 % Number of selling communities at October 31, 145 115 26 % The increase in the number of homes delivered in fiscal 2024, as compared to fiscal 2023, was mainly due to a higher backlog conversion and an increase in the number of spec homes delivered in fiscal 2024, partially offset by a decrease in the number of homes in backlog at October 31, 2023, as compared to the number of homes in backlog at October 31, 2022.
In addition, in fiscal 2025 and 2024 we recognized $12.1 million and $0.6 million, respectively, in land impairment charges included in land sales and other cost of revenues in connection with planned land sales on future communities which we no longer intend to develop. 40 South Year ended October 31, 2025 2024 % Change Units Delivered and Home Sales Revenues: Home sales revenues ($ in millions) $ 2,706.7 $ 2,787.4 (3) % Units delivered 3,330 3,316 — % Average delivered price ($ in thousands) $ 812.8 $ 840.6 (3) % Net Contracts Signed: Net contract value ($ in millions) $ 2,349.0 $ 2,498.2 (6) % Net contracted units 2,888 3,007 (4) % Average contracted price ($ in thousands) $ 813.4 $ 830.8 (2) % Home sales cost of revenues as a percentage of home sales revenues 73.2 % 71.7 % Income before income taxes ($ in millions) $ 524.1 $ 578.0 (9) % Number of selling communities at October 31, 154 145 6 % The number of homes delivered in fiscal 2025, as compared to fiscal 2024, was relatively flat.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−2 removed3 unchanged
Biggest changeThe following table shows our debt obligations by scheduled maturity, weighted-average interest rates, and estimated fair value as of October 31, 2024 ($ amounts in thousands): Fixed-rate debt Variable-rate debt (a) Fiscal year of maturity Amount Weighted- average interest rate (%) Amount Weighted- average interest rate (%) 2025 $ 165,472 5.17% $ 185,024 6.72% 2026 412,922 4.98% 178,277 6.62% 2027 493,194 4.89% 60,937 5.73% 2028 410,488 4.30% 487,500 5.73% 2029 409,820 3.77% — Thereafter (b) 41,759 3.46% — Bond discounts, premiums, and deferred issuance costs - net (10,322) (2,152) Total $ 1,923,333 4.56% $ 909,586 6.12% Fair value at October 31, 2024 $ 1,880,418 $ 911,738 (a) Based upon the amount of variable-rate debt outstanding at October 31, 2024, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $9.1 million per year, without consideration of the Company’s interest rate swap transactions.
Biggest changeThe following table shows our debt obligations by scheduled maturity, weighted-average interest rates, and estimated fair value as of October 31, 2025 ($ amounts in thousands): Fixed-rate debt Variable-rate debt (a) Fiscal year of maturity Amount Weighted- average interest rate (%) Amount Weighted- average interest rate (%) 2026 $ 107,896 3.64% $ 150,000 6.28% 2027 507,878 4.91% — 2028 411,244 4.31% — 2029 13,395 3.36% — 2030 411,015 3.76% 650,000 5.14% Thereafter 553,404 5.54% — Bond discounts, premiums, and deferred issuance costs - net (14,220) (2,699) Total $ 1,990,612 4.68% $ 797,301 5.37% Fair value at October 31, 2025 $ 1,998,222 $ 800,000 (a) Based upon the amount of variable-rate debt outstanding at October 31, 2025, and holding the variable-rate debt balance constant, each 1% increase in interest rates would increase the interest incurred by us by approximately $8.0 million per year, without consideration of the Company’s interest rate swap transactions.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements, listed in Item 15(a)(1) beginning on page F-1 of this report are incorporated herein by reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. 43
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements, listed in Item 15(a)(1) beginning on page F-1 of this report are incorporated herein by reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. 43
Removed
(b) In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the $650.0 million Term Loan Facility, which is included in the variable-rate debt column in the table above.
Removed
The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility through October 2025. The spread was 0.90% as of October 31, 2024. These interest rate swaps were designated as cash flow hedges. ITEM 8.

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