Our Story Begins
Toll Brothers is founded by brothers Bob and Bruce Toll in southeastern Pennsylvania. Inspired by their father, a home builder, the brothers build their first two homes
We view our ESG program as an important component to the success of our company, and this report represents a key step in providing transparency into our efforts. As a company, we pride ourselves on our ability to serve our employees, trade partners, customers, and the communities in which we operate with care and dedication. We bring those same values in our approach to this ESG initiative.
In April of 2021, we published our inaugural ESG Report, setting forth important information with respect to many ESG issues impacting our company. Our CEO's letter introducing that report is included below and summarizes our views regarding many aspects of ESG. We continue to review our sustainability strategy and engage with our key stakeholders regarding ESG-related matters. We use the Sustainability Accounting Board (SASB) industry-specific standards to help identify topics of relevance for our audience, and with this 2023 update, we present an additional year's worth of data.
We continue to evaluate and look for ways to improve our ESG Report. The U.S. Securities and Exchange Commission issued a sweeping set of proposed rules that would govern how companies manage and disclose risks related to a changing climate, among other required disclosures. This development underscores the dynamic nature of ESG reporting and the evolving expectations of our stakeholders. We intend to evaluate final rules when they become available, as well as any other regulatory developments. We expect the final rule to inform how best to foster continued discussion and engagement with all of our stakeholders around the complex issues surrounding sustainability and broader ESG practices for long-term value creation.
For additional, important information about the data included in this report, click here.
Inquiries regarding our sustainability initiatives can be directed to ESG@TollBrothers.com.
I am pleased to present this inaugural Toll Brothers Environmental, Social, and Governance (ESG) Report.
Our initial report is about both the present and the future. It includes information on where we at Toll Brothers stand today on many Environmental, Social, and Governance issues. It also sets the framework for the future as the ESG landscape evolves and we fine-tune our data collection priorities and practices. The audience for this report is varied and broad. Stakeholders include our shareholders, financial partners, customers, trade partners, the communities in which we build, society at large, the governmental entities that oversee our sector, and, of course, our employees. In preparing this report, we have solicited the views of various stakeholders and focused on matters deemed to be of significance to them and our business.
Home building is a unique industry, and our opportunity to make an impact is significant. This starts with the tremendous economic influence of our industry as a job-creating engine. Toll Brothers directly employs approximately 4,500 people. The National Association of Home Builders (NAHB) estimates that the average new home generates 2.9 jobs in each community where a house is built. Based on this estimate, we directly and indirectly supported over 24,000 jobs in fiscal year 2020. These jobs, which include employment for plumbers, painters, electricians, carpenters, furniture makers, real estate brokers, site planners, and many others, were more critical than ever, as the nation recovers from historically high unemployment rates caused by the pandemic. We are proud to be part of a bedrock industry that continually refreshes the nation's housing supply while also creating so many good jobs. The communities we develop also contribute to the vibrancy and the tax base of the towns and cities where we build, enhancing the quality of life not only of our buyers but also of the municipalities as a whole. This contribution includes not only the beautiful communities we build but also the contribution and civic participation of our residents and our employees in the areas where we have a presence.
In our communities, we strive to fulfill the aspirations of those seeking a home they love. With our first time, move-up, empty nester, and active-adult new home communities, as well as rental and urban condominium projects, we have a wide variety of product lines to serve the upscale market. And in a nation where the housing shortage is well-documented, our mission is more important than ever—we want to be part of the solution to this major public policy concern.
As an employer, we want to be at the forefront in providing opportunities and growth to all, irrespective of race, ethnicity, religion, sexual orientation, and gender. We are committed to creating an inclusive culture, hiring and advancing diverse talent within our firm, and to expanding educational and professional opportunities for underserved youth. Increasing the diversity of voices at all levels of our organization is a high priority. Ensuring our employees' health and safety, providing an environment where all employees are treated with fairness, dignity, and respect, and having opportunities to grow and thrive is aligned with our values and critical to our success.
Since Toll Brothers was founded in 1967, we have taken seriously our responsibilities to the broader communities in which we build and to the environment. Whether this involves thoughtful land planning, sustainable land stewardship, decreasing our impact on climate change, planting trees, creating parks and hiking trails, supporting local organizations, or reducing water use, energy consumption, and waste production, our goal is to build beautiful communities that enhance both the lives of residents and the environments in which they are built.
I am so proud and honored to be leading this great company. Thank you for your interest and continued support.
Douglas C. Yearley, Jr.|Chairman and CEO
Sound corporate governance enables our company to operate with integrity while promoting long-term value creation for our stockholders and other stakeholders.
We are committed to sound corporate governance. This commitment is rooted in the oversight of a capable, independent Board of Directors, strengthened by ongoing dialogue with our stockholders, and guided by policies that enable the success of our strategy and business objectives.
We are driven by high standards ingrained in our corporate culture and honed over more than 50 years.
Every day, we strive to honor our company legacy and maintain the standards that have established Toll Brothers as an industry leader and a luxury brand that stands the test of time.
Nation's leading builder
of luxury homes
#1 Home Builder on Fortune Magazine's "World's Most Admired Companies®" list for 8 years
for sale since 2000
National presence in over
60 markets in 24 states
|SASB | PERFORMANCE INDICATOR||FY 2020||FY 2021||FY 2022|
|IF-HB-000.aNumber of controlled lots||63,182||80,867||76,049|
|IF-HB-000.bNumber of homes delivered||8,496||9,986||10,515|
|IF-HB-000.cNumber of active selling communities (FYE)||317||340||348|
|Average delivered home price||$816,500||$844,400||$923,600|
|Average price in backlog (FYE)||$818,200||$992,100||$1,095,800|
|Home sales revenues||$6.9B||$8.4B||$9.7B|
|Net signed contract value||$8.0B||$11.5B||$9.1B|
|Number of homes under contract||9,932||12,472||8,255|
|For important information regarding the data included in this report, click here.|
The information presented in this report is non-financial in nature and therefore has not been prepared in accordance with generally accepted accounting principles(GAAP), nor reviewed or evaluated using an established control framework. It has not been independently audited. Information presented, including performance or other metrics, may be based on estimates and assumptions that require a high degree of complex and subjective judgement, and may not necessarily be comparable with that presented by other companies or as calculated pursuant to any third-party standards of sustainability reporting. Inclusion of information in this report is not an indication that we deem such information to be material or important to an understanding of our business or an investment decision with respect to our securities.
Unless expressly stated otherwise, this report covers our owned and operated businesses and does not address the performance, or conduct or operations of our suppliers, contractors, and partners.
This report contains forward-looking statements relating to Toll Brothers operations that are based on management's current expectations, beliefs, estimates, and projections about the homebuilding, land development, real estate, and related industries and other matters. These statements are not guarantees of future conduct, performance or policy and are subject to certain risks, uncertainties and other factors, many of which are beyond the company's control, including local, state, and federal regulations and economic conditions that may impact Toll Brothers, Inc.'s financial results or its operational or ESG-related performance. See the forward-looking disclaimer below for a description of these risks, uncertainties, and other factors.
Therefore, the actual conduct of our activities, including the development, implementation, or continuation of any program, policy, or initiative discussed or forecasted in this report, may differ materially in the future. As with any projection or estimate, actual results or numbers may vary. Many of the standards and metrics used in preparing this report continue to evolve and are based on management assumptions believed to be reasonable at the time of preparation but should not be considered guarantees.
Any statements of intention in this report speak only as of the date they first appeared in this report.
Toll Brothers undertakes no obligation to update publicly any statement in this report.
This report contains references to Toll Brothers' website. These references are for readers' convenience only and Toll Brothers is not incorporating by reference any information posted on tollbrothers.com.
As used in this report, the term "Toll Brothers" and such terms as "the company," "the corporation," "our," "its," "we," and "us" may refer to one or more of Toll Brothers' consolidated subsidiaries, affiliates, and in certain instances, our joint ventures. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This report contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "can," "could," "might," "should," "likely," "will," and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements related to: the impact of the COVID-19 pandemic on the U.S. economy and on our business; expectations regarding interest rates and inflation; the markets in which we operate or may operate; our strategic objectives and priorities; our land acquisition, land development and capital allocation plans and priorities; housing market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues, in profitability and in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; the rate at which we deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.
Any or all of the forward-looking statements included in this report are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties and assumptions that are made that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:
Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.
Forward–looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.
†As of March 7, 2023, the date of the company's most recent shareholder meeting.