Home Builders Stocks Q1 Highlights: Toll Brothers (NYSE:TOL)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Toll Brothers (NYSE:TOL) and the best and worst performers in the home builders industry.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 12 home builders stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.8%.

While some home builders stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results.

Toll Brothers (NYSE:TOL)

Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States.

Toll Brothers reported revenues of $2.53 billion, down 7.6% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income and revenue estimates.

Karl K. Mistry, chief executive officer, stated: “In the second quarter, we once again successfully navigated a challenging market and produced strong results. We delivered 2,491 homes at an average price of $1,009,000 in the quarter, generating $2.5 billion of home sales revenues, or approximately $110 million above the midpoint of our guidance. Our adjusted gross margin was 26.2%, or 70 basis points above guidance, and our SG&A expense, as a percentage of home sales revenues, was 10.3% or 40 basis points better than guidance. In addition, orders were up 7% in units and 8% in dollars year-over-year. Based on our year-to-date performance, we are raising our full year guidance across all key home building metrics.

Toll Brothers scored the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 10.8% since reporting and currently trades at $137.60.

Is now the time to buy Toll Brothers? Access our full analysis of the earnings results here, it’s free.

Best Q1: Taylor Morrison Home (NYSE:TMHC)

Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE:TMHC) builds single family homes and communities across the United States.

Taylor Morrison Home reported revenues of $1.39 billion, down 26.8% year on year, outperforming analysts’ expectations by 4.1%. The business had an incredible quarter with a beat of analysts’ EPS and adjusted operating income estimates.

The market seems happy with the results as the stock is up 15.7% since reporting. It currently trades at $71.68.

Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: NVR (NYSE:NVR)

Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.

NVR reported revenues of $1.88 billion, down 21.7% year on year, falling short of analysts’ expectations by 7.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

NVR delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.6% since the results and currently trades at $6,128.

Read our full analysis of NVR’s results here.

Installed Building Products (NYSE:IBP)

Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Installed Building Products reported revenues of $660.5 million, down 3.5% year on year. This result missed analysts’ expectations by 1.3%. It was a softer quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 31.6% since reporting and currently trades at $204.79.

Read our full, actionable report on Installed Building Products here, it’s free.

Champion Homes (NYSE:SKY)

Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.

Champion Homes reported revenues of $621.3 million, up 4.6% year on year. This print surpassed analysts’ expectations by 2.1%. It was an exceptional quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.

The stock is flat since reporting and currently trades at $71.66.

Read our full, actionable report on Champion Homes here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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