Financial research concept

Homebuilder Net Contracted Units

Homebuilder Net Contracted Units measures the number of home sale contracts signed during a period, net of cancellations.

By Lee BaileyPublished Sep 23, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 23, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
27 connected conceptsPart of the reviewed Homebuilder Operating Model; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Why it matters
  2. Investor caution
  3. Part of the Homebuilder Operating Model
  4. See It in Company Research
  5. Continue Research

Homebuilder Net Contracted Units measures the number of home sale contracts signed during a period, net of cancellations.

Toll Brothers signed 2,508 net contracts in the three months ended July 31, 2026, versus 2,388 a year earlier.

Why it matters

Net contracted units are a forward demand indicator that can lead deliveries and revenue.

Investor caution

Issuer definitions can differ, and Toll Brothers nets cancellations regardless of when the canceled contract was originally signed.

Source:

Part of the Homebuilder Operating Model

Connect land optionality, order intake, selling-community productivity, backlog, spec inventory, closing volume and price, conversion, margins, land investment, lot-supply duration, and mortgage capture to understand homebuilder demand, capital, delivery, and financing economics.

How the model fits together
  • Land optionality and downside exposure: Owned-versus-controlled lots show how much future land supply sits on the builder's balance sheet versus under purchase or option contracts. Lot-option deposits show capital placed at risk to preserve that flexibility, while inventory impairments reveal when carrying values no longer support expected economics.
  • Spec inventory and operating leverage: Unsold completed homes reveal finished speculative inventory risk. Home-sales gross margin measures the closing-level spread after the issuer-defined home sales cost base, while the SG&A ratio shows how corporate and selling overhead scales against homebuilding revenue.
  • Orders, backlog, delivery conversion, and financing capture: Net contracted units, contract value, average contracted price, community count, and per-community growth describe current order demand and selling-footprint productivity. Backlog units, value, average contracted price, and their year-over-year changes show the contracted delivery pipeline. Home closings, average closing price, and backlog conversion connect that pipeline to realized deliveries, while land investment, lot-supply years, and mortgage capture add future supply and financing context. Toll Brothers defines net contracts after cancellations and notes that spec homes can move from contract to delivery within a quarter, so backlog is not a complete measure of current sales activity.

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