Gross Margin ConcernsToll Brothers issued guidance for 1Q25 with adjusted gross margins down 160 basis points, which may fall short of investor expectations.
Growth Projections2025 guidance features closings growth of 4-7%, which is below the prior estimate of 8%.
Land InflationGreater margin headwinds from land inflation specifically at TOL, who is cycling away from cheap pre-COVID land, relative to peers.