Toll Brothers announced the launch of Sebastian Landing, a new luxury home community on the banks of the San Sebastian River in St. Augustine, Florida. The development will feature single‑family homes and townhomes ranging from 2,231 to over 3,950 square feet, with 3 to 5 bedrooms, 2.5 to 4.5 bathrooms, and 2‑ to 3‑car garages. Homes will start in the mid‑$900,000s and are slated for sales beginning in spring 2026.
The announcement comes on the heels of a robust Q3 2025 earnings report in which Toll Brothers reported earnings per share of $3.73, beating the consensus estimate of $3.60 by $0.13. Total revenue reached $2.90 billion, a $40 million beat over the $2.86 billion forecast. The earnings and revenue outperformance was driven by strong demand in the company’s core luxury segment, disciplined cost management, and a favorable pricing mix that offset modest increases in construction material costs.
Adjusted gross margin for the quarter was 27.5%, slightly lower than the 28.8% margin recorded in Q3 2024. The modest compression reflects a mix shift toward higher‑volume, lower‑margin townhomes, but the company maintained margin strength through effective cost controls and pricing power in the luxury market. Operating income rose to $1.12 billion, up from $1.05 billion in the prior year, underscoring the company’s ability to translate revenue growth into profitability.
Chairman and CEO Douglas C. Yearley highlighted the resilience of Toll Brothers’ luxury business, noting that “affordability pressures and uncertain economic conditions persist, but we are pleased with the resilience of our luxury business and more affluent customer base.” CFO Martin P. Connor added that the company’s guidance for fiscal 2025 remains unchanged, with projected home deliveries of 11,200 homes and earnings of $13.75 per diluted share, reflecting confidence in continued demand and margin stability.
Investors responded positively to the earnings beat, citing strong execution and the company’s disciplined approach to land acquisition and cost management. Management emphasized that the company is actively managing spec starts on a community‑by‑community basis to match local demand, a strategy that supports the launch of Sebastian Landing and other high‑margin projects.
The Sebastian Landing launch aligns with Toll Brothers’ strategy to capture affluent buyers in desirable markets. The waterfront location, resort‑style amenities, and customizable design options position the community as a premium offering in North Florida, reinforcing the company’s focus on high‑margin, luxury homes and its ability to maintain pricing power in a competitive market.
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