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Toll Brothers (TOL) announced that Gregg Ziegler will succeed Marty Connor as Chief Financial Officer, effective October 31, 2025, marking a significant leadership transition at a challenging juncture for the new home construction market. The industry is grappling with persistent affordability issues, softening consumer confidence, and potential tariff-related cost pressures, which have created headwinds for homebuilders.

While the timing of this transition may spark some investor unease, Ziegler’s 23-year tenure at TOL and Connor’s planned retirement—rather than a departure to a competitor or another industry—suggest a stable and orderly succession, mitigating concerns about strategic disruption.

• Gregg Ziegler’s extensive history with TOL, starting as an Assistant Finance Director in 2002 and progressing through key roles in capital markets, mergers and acquisitions, corporate strategy, and as Treasurer since 2013, positions him as a seasoned insider poised to ensure a seamless transition. His deep understanding of the company’s operations and strong relationships with Wall Street, as highlighted by CEO Douglas Yearley, underscore his readiness to take on the CFO role.
• Ziegler’s internal promotion also signals that TOL intends to maintain its current strategic trajectory, leveraging its diversified luxury home portfolio and disciplined financial management without material shifts in direction.
• TOL’ recent financial performance reinforces its resilience amid this leadership change, as evidenced by its better-than-expected 2Q25 earnings report on May 20, 2025, which drove a stock price increase. The company delivered 2,899 homes, generating $2.71 bln in home sales revenue, up nearly 10% in units and 2.3% in dollars yr/yr, surpassing guidance by approximately 300 homes and $236 mln.
• However, challenges loom as affordability constraints weigh on demand, prompting TOL and peers to increase incentives, which pressured the adjusted home sales gross margin, declining 70 basis points yr/yr to 27.5% in 2Q25. Ziegler will need to navigate these headwinds while maintaining the company’s focus on returns over margins, as emphasized by CEO Yearley.
• TOLs’ diversified price points -- spanning affordable luxury (45%), true luxury (35%), and age-targeted homes (20%) -- and its presence across over 60 markets in 24 states provide a competitive edge that Ziegler is likely to leverage. This diversified portfolio has allowed TOL to adapt to varying regional demand dynamics, though the company adopted a cautious stance in its 3Q25 guidance, projecting 2,800-3,000 home deliveries, below analyst expectations.

Gregg Ziegler’s appointment as CFO appears to be a prudent choice, leveraging his deep institutional knowledge to ensure continuity and minimize disruption. With TOLs’ solid financial footing and diversified portfolio, Ziegler is well-positioned to steer the company through current market challenges, setting the stage for capitalizing on an eventual housing market recovery as interest rates ease.