What Toll Brothers, Inc. told the SEC could break it.

Toll's unconsolidated JVs had ~$1.46B of aggregate borrowings at year-end 2025, with Toll's estimated maximum exposure under repayment and carry-cost guarantees at $413.5M (terms up to ~8.2 years), excluding completion guarantees/indemnities.

“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.”

Toll Brothers' operations depend on obtaining suitable land at reasonable prices in a highly competitive market; if land is not available at reasonable prices, its sales and results could decrease (it controlled ~76,100 home sites owned or under option at year-end 2025).

“If land is not available at reasonable prices, our sales and results of operations could decrease. The home building industry is highly competitive for suitable land and the risk inherent in purchasing and developing land increases as consumer demand for housing increases. In the long term, our operations depend on our ability to obtain land at reasonable prices for the development of our residential communities.”

Building-material shortages/cost increases and a tight labor market erode Toll's margins; tariffs (especially on materials imported from Canada or Mexico) and immigration-law changes could raise component costs and worsen skilled-tradesperson shortages.

“Changes in laws, government regulations, or enforcement priorities, such as the imposition of tariffs (in particular on materials imported from Canada or Mexico) or changes in immigration laws and/or their enforcement, could result in higher component costs, tighter overall labor conditions and a shortage of skilled tradespeople, which could in turn adversely affect our business.”