Question · Q1 2026
Randa Shaw asked about Toll Brothers' spec strategy, specifically which part (50% ratio or early selling) would be prioritized if demand softened. She also inquired about the company's long-term net debt to capital target and desired cash holdings.
Answer
Executive Vice President Karl Mistry stated that if the market softened, Toll Brothers would pull back on spec starts and lean into their build-to-order business. CFO Gregg Ziegler indicated a long-term net debt to total capital target in the mid-teens and a minimum cash holding of a few hundred million dollars for operating expenses.
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TOL's earnings beat/miss a week before the call