Toll Brothers announced that the last quick‑move‑in home in its new Fontaine community in Lake Mary, Florida, has been sold. The 3,400‑plus‑square‑foot Bronte Transitional model, priced at $1.175 million, sits on a seventy‑foot‑wide lot and features a first‑floor primary bedroom suite and smart‑home technology. The home is slated for delivery in early 2026, marking the completion of the community’s construction phase.
The milestone comes on the heels of Toll Brothers’ Q4 2025 earnings, which saw revenue rise to $3.42 billion—up 3.0% year‑over‑year—while diluted EPS fell to $4.58, missing the consensus estimate of $4.87 by $0.29. The revenue beat was driven by strong demand in the company’s core luxury segment, but the EPS miss reflected a 0.4‑percentage‑point contraction in the adjusted home‑sales gross margin, from 27.5% in Q3 to 27.1% in Q4, largely due to higher input costs and a shift toward lower‑margin product lines.
CEO Douglas C. Yearley said the company is “running the business in a disciplined manner” and that the luxury brand continues to attract affluent buyers even as the broader market softens. He noted that Toll Brothers has exited its multifamily business to focus on core homebuilding, a move that has helped streamline operations and improve cash flow. The company ended Q4 2025 with $1.26 billion in cash and cash equivalents, providing a buffer for ongoing construction and potential market downturns.
For fiscal 2026, Toll Brothers is guiding for 1,800–1,900 home deliveries in Q1 and 10,300–10,700 for the full year, with an adjusted gross margin of 26.25% for Q1. The guidance signals cautious optimism about demand, while the margin target reflects the company’s expectation of continued input‑cost pressure. The firm’s focus on high‑margin luxury homes is intended to offset the softness in the broader housing market and maintain profitability.
Analysts reacted to the earnings miss by tightening expectations for the company’s 2026 outlook. The EPS miss and margin contraction prompted a downgrade in some coverage, while others maintained a “buy” stance, citing the resilient luxury segment and the company’s disciplined cost management. The final home sale in Fontaine is viewed as a positive operational indicator, demonstrating that Toll Brothers can still close high‑end projects even as it navigates a challenging macro environment.
The completion of Fontaine’s final home sale underscores Toll Brothers’ strategic pivot toward premium, move‑in‑ready homes in desirable markets. By concentrating on luxury communities in growth regions like Lake Mary and exiting lower‑margin businesses, the company aims to sustain profitability amid rising costs and a softening overall housing market. The milestone, coupled with the company’s cautious 2026 guidance, suggests a focus on steady, high‑margin growth rather than aggressive expansion.
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