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KB Home Reports 2025 First Quarter Results

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KB Home (KBH) reported first quarter 2025 results with revenues of $1.39 billion, down 5% year-over-year. Home deliveries decreased 9% to 2,770 units, while average selling price increased 4% to $500,700.

The company's net income declined 21% to $109.6 million, with diluted earnings per share down 15% to $1.49. Homebuilding operating income margin decreased to 9.2% from 10.8%. Net orders fell 17% to 2,772, with the cancellation rate rising to 16% from 14%.

Due to muted demand at the start of Spring's selling season, KB Home revised its fiscal 2025 guidance, now expecting housing revenues between $6.60 billion to $7.00 billion. The company repurchased 753,939 shares at $50.0 million during Q1. The balance sheet shows total liquidity of $1.25 billion and stockholders' equity of $4.09 billion.

KB Home (KBH) ha riportato i risultati del primo trimestre 2025 con ricavi di 1,39 miliardi di dollari, in calo del 5% rispetto all'anno precedente. Le consegne di abitazioni sono diminuite del 9% a 2.770 unità, mentre il prezzo medio di vendita è aumentato del 4% a 500.700 dollari.

Il reddito netto dell'azienda è sceso del 21% a 109,6 milioni di dollari, con utili per azione diluiti in calo del 15% a 1,49 dollari. Il margine operativo nella costruzione di abitazioni è diminuito al 9,2% dal 10,8%. Gli ordini netti sono scesi del 17% a 2.772, con il tasso di cancellazione che è aumentato al 16% dal 14%.

In seguito a una domanda debole all'inizio della stagione di vendita primaverile, KB Home ha rivisto le proprie previsioni fiscali per il 2025, ora aspettandosi ricavi nel settore abitativo tra 6,60 miliardi e 7,00 miliardi di dollari. L'azienda ha riacquistato 753.939 azioni per 50,0 milioni di dollari durante il primo trimestre. Il bilancio mostra una liquidità totale di 1,25 miliardi di dollari e un patrimonio netto di 4,09 miliardi di dollari.

KB Home (KBH) reportó los resultados del primer trimestre de 2025 con ingresos de 1.39 mil millones de dólares, una disminución del 5% en comparación con el año anterior. Las entregas de viviendas cayeron un 9% a 2,770 unidades, mientras que el precio medio de venta aumentó un 4% a 500,700 dólares.

Los ingresos netos de la empresa disminuyeron un 21% a 109.6 millones de dólares, con ganancias por acción diluidas que cayeron un 15% a 1.49 dólares. El margen de ingresos operativos en la construcción de viviendas disminuyó al 9.2% desde el 10.8%. Los pedidos netos cayeron un 17% a 2,772, con la tasa de cancelación aumentando al 16% desde el 14%.

Debido a la demanda moderada al inicio de la temporada de ventas de primavera, KB Home revisó su guía fiscal para 2025, ahora esperando ingresos por viviendas entre 6.60 mil millones y 7.00 mil millones de dólares. La empresa recompró 753,939 acciones por 50.0 millones de dólares durante el primer trimestre. El balance muestra una liquidez total de 1.25 mil millones de dólares y un patrimonio neto de 4.09 mil millones de dólares.

KB Home (KBH)는 2025년 1분기 결과를 보고하며 수익이 13억 9천만 달러로 전년 대비 5% 감소했다고 발표했습니다. 주택 인도는 9% 감소하여 2,770채에 이르렀고, 평균 판매가는 4% 증가하여 500,700달러가 되었습니다.

회사의 순이익은 21% 감소하여 1억 960만 달러에 이르렀으며, 희석 주당 순이익은 15% 감소하여 1.49달러로 나타났습니다. 주택 건설 운영 소득 마진은 10.8%에서 9.2%로 감소했습니다. 순주문은 17% 감소하여 2,772건에 이르렀고, 취소율은 14%에서 16%로 증가했습니다.

봄 판매 시즌 초기에 수요가 미약해 KB Home은 2025 회계연도 가이던스를 수정하여 주택 수익이 66억 달러에서 70억 달러 사이에 이를 것으로 예상하고 있습니다. 회사는 1분기 동안 5천만 달러에 753,939주를 재매입했습니다. 대차대조표는 총 유동성이 12억 5천만 달러이며 주주 자본이 40억 9천만 달러임을 보여줍니다.

KB Home (KBH) a annoncé ses résultats pour le premier trimestre 2025 avec des revenus de 1,39 milliard de dollars, en baisse de 5% par rapport à l'année précédente. Les livraisons de maisons ont diminué de 9% pour atteindre 2 770 unités, tandis que le prix de vente moyen a augmenté de 4% pour atteindre 500 700 dollars.

Le bénéfice net de l'entreprise a chuté de 21% pour atteindre 109,6 millions de dollars, avec un bénéfice par action dilué en baisse de 15% à 1,49 dollar. La marge bénéficiaire opérationnelle dans la construction de maisons a diminué à 9,2% contre 10,8%. Les commandes nettes ont chuté de 17% pour atteindre 2 772, avec un taux d'annulation passant de 14% à 16%.

En raison d'une demande faible au début de la saison de vente du printemps, KB Home a révisé ses prévisions pour l'exercice 2025, s'attendant désormais à des revenus dans le secteur du logement compris entre 6,60 milliards et 7,00 milliards de dollars. L'entreprise a racheté 753 939 actions pour 50,0 millions de dollars au cours du premier trimestre. Le bilan montre une liquidité totale de 1,25 milliard de dollars et des capitaux propres de 4,09 milliards de dollars.

KB Home (KBH) hat die Ergebnisse des ersten Quartals 2025 mit Einnahmen von 1,39 Milliarden Dollar veröffentlicht, was einem Rückgang von 5% im Vergleich zum Vorjahr entspricht. Die Hauslieferungen sanken um 9% auf 2.770 Einheiten, während der durchschnittliche Verkaufspreis um 4% auf 500.700 Dollar stieg.

Der Nettogewinn des Unternehmens fiel um 21% auf 109,6 Millionen Dollar, wobei der verwässerte Gewinn pro Aktie um 15% auf 1,49 Dollar zurückging. Die operative Gewinnmarge im Wohnungsbau sank von 10,8% auf 9,2%. Die Nettobestellungen fielen um 17% auf 2.772, während die Stornierungsrate von 14% auf 16% anstieg.

Aufgrund der gedämpften Nachfrage zu Beginn der Verkaufssaison im Frühling hat KB Home seine Prognose für das Geschäftsjahr 2025 überarbeitet und erwartet nun Einnahmen aus dem Wohnungsbau zwischen 6,60 Milliarden und 7,00 Milliarden Dollar. Das Unternehmen hat im ersten Quartal 753.939 Aktien für 50,0 Millionen Dollar zurückgekauft. Die Bilanz zeigt eine Gesamtliquidität von 1,25 Milliarden Dollar und ein Eigenkapital von 4,09 Milliarden Dollar.

Positive
  • Average selling price increased 4% to $500,700
  • Strong liquidity position of $1.25 billion
  • Book value per share increased 12% year over year to $57.05
  • Community count expanded 7% to 255
  • Lot portfolio grew 41% year over year to 78,233
Negative
  • Revenue declined 5% to $1.39 billion
  • Net income decreased 21% to $109.6 million
  • Home deliveries dropped 9% to 2,770 units
  • Net orders fell 17% with higher cancellation rate of 16%
  • Operating income margin decreased to 9.2% from 10.8%
  • Housing gross profit margin declined to 20.2% from 21.5%

Insights

KB Home's Q1 2025 results reveal a company facing significant headwinds in the current housing market. With $1.39 billion in revenue, representing a 5% year-over-year decline, and deliveries down 9%, KBH is experiencing meaningful contraction in its core business. The 21% drop in net income to $109.6 million and diluted EPS of $1.49 (down 15%) paint a concerning picture.

More troubling are the forward-looking indicators - net orders declined 17% and backlog value fell 21% to $2.20 billion. These metrics typically serve as leading indicators for future quarters, suggesting continued pressure on the business. Management's explicit acknowledgment of missed sales goals and the resulting reduction in full-year revenue guidance confirms the materiality of these challenges.

The compressed margins - operating margin down to 9.2% from 10.8% and gross profit margin falling to 20.2% from 21.5% - indicate KBH is facing cost pressures while simultaneously needing to offer buyer concessions to maintain sales velocity. The mid-February price adjustments mentioned by management essentially signal price reductions were necessary to stimulate demand.

While the 4% increase in average selling price to $500,700 appears positive, this metric can be misleading during slowdowns, as it may reflect a change in mix rather than pricing power. The 57% increase in land and land development investments (to $920.3 million) raises questions about capital allocation during a period of declining sales.

The $50 million in share repurchases demonstrates management's confidence in the company's long-term value, but the timing is questionable given the deteriorating fundamentals and reduced guidance. The revised full-year revenue expectations of $6.60-$7.00 billion and gross margin forecast of 19.2-20.0% represent meaningful reductions from previous projections.

KB Home's Q1 results offer a revealing window into the current housing market dynamics. The company's performance confirms what many industry observers have noted - homebuyers remain hesitant amid persistent affordability challenges. The 17% decline in net orders despite healthy traffic levels indicates consumers are visiting communities but not converting to purchases at normal rates.

The reduction in monthly net orders per community to 3.6 from 4.6 year-over-year represents a significant 22% drop in absorption rates. This metric is particularly telling as it normalizes for the company's community count growth and reveals the true demand weakness. The slight uptick in cancellation rates to 16% from 14% further confirms buyer uncertainty.

KB Home's mid-quarter tactical shift to "reposition communities to offer the most compelling value" effectively acknowledges price reductions or increased incentives were necessary to stimulate sales. This adjustment speaks to the competitive pricing environment builders now face to maintain volume.

The company's 7% increase in community count shows KBH continues to invest in growth, but the declining absorption rates mean each community is generating fewer sales. With inventories increasing 7% quarter-over-quarter and 13% year-over-year, there's risk of carrying costs weighing on future margins if sales pace doesn't accelerate.

The 41% year-over-year expansion in the lot portfolio to 78,233 lots represents a significant land position that could become problematic if market conditions worsen. However, the company has maintained flexibility with approximately 46% of lots under contract rather than owned.

While management highlights recent sales improvements, the overall picture shows a housing market where consumers remain cautious and price-sensitive. The revised guidance suggests KB Home doesn't expect a rapid normalization of sales patterns, even as we enter the traditionally stronger spring selling season.

Revenues of $1.39 Billion; Diluted Earnings Per Share of $1.49

Repurchased $50.0 Million of Common Stock

LOS ANGELES--(BUSINESS WIRE)-- KB Home (NYSE: KBH) today reported results for its first quarter ended February 28, 2025.

“Consumers are working through affordability concerns and uncertainties related to macroeconomic and geopolitical issues, which are causing them to move slowly in their homebuying decisions,” said Jeffrey Mezger, Chairman and Chief Executive Officer. “Demand at the start of this Spring’s selling season was more muted than what we have seen historically, despite a healthy level of traffic in our communities. In mid-February, we took steps to reposition our communities to offer the most compelling value, and buyers responded favorably to these adjustments. Although we missed our sales goals for the first quarter, we are encouraged by the significant improvement in weekly sales and normalizing absorption pace over the last five weeks.”

“While our sales trends have improved, we are reducing our revenue guidance for fiscal 2025 primarily to reflect the lower level of net orders we generated in the first quarter. I am confident that our experienced team will effectively navigate the variability in market conditions and execute on our objectives for this year, while continuing to deliver high levels of customer satisfaction,” concluded Mezger.

Three Months Ended February 28, 2025 (comparisons on a year-over-year basis)

  • Revenues of $1.39 billion were down 5%, compared to $1.47 billion.
  • Homes delivered decreased 9% to 2,770.
  • Average selling price rose 4% to $500,700.
  • Homebuilding operating income was $127.3 million, compared to $157.7 million. The homebuilding operating income margin was 9.2%, compared to 10.8%, primarily reflecting a lower housing gross profit margin. Inventory-related charges totaled $1.5 million for the current quarter and $1.3 million for the year-earlier quarter.
    • The Company’s housing gross profit margin decreased to 20.2%, compared to 21.5%, mainly due to higher relative land costs and homebuyer concessions, as well as reduced operating leverage.
    • Selling, general and administrative expenses as a percentage of housing revenues were 11.0%, compared to 10.8%.
  • Financial services pretax income declined 35% to $7.5 million, primarily due to decreased equity in income of the Company’s mortgage banking joint venture. The mortgage banking joint venture’s results reflected a lower volume of loan originations, largely due to fewer homes delivered.
  • Net income decreased 21% to $109.6 million. Diluted earnings per share was down 15% to $1.49, reflecting current quarter net income, partly offset by the favorable impact of the Company’s common stock repurchases.
    • The effective tax rate was 21.4%, compared to 20.6%.

Net Orders and Backlog (comparisons on a year-over-year basis, except as noted)

  • Net orders of 2,772 were down 17%, contributing to a decrease in ending backlog homes to 4,436. Ending backlog value declined 21% to $2.20 billion.
    • Monthly net orders per community decreased to 3.6, compared to 4.6.
    • The cancellation rate as a percentage of gross orders was 16%, compared to 14%.
  • The Company’s average community count for the quarter reached 257, while the ending community count expanded to 255, both representing a 7% increase.

Balance Sheet as of February 28, 2025 (comparisons to November 30, 2024, except as noted)

  • The Company had total liquidity of $1.25 billion, including $267.8 million of cash and cash equivalents and $981.7 million of available capacity under its unsecured revolving credit facility, with $100.0 million of cash borrowings outstanding.
  • Inventories increased 7% to $5.94 billion. On a year-over-year basis, inventories grew 13%.
    • The Company’s investments in land and land development increased 57% to $920.3 million, compared to $587.1 million for the year-earlier quarter.
    • The Company’s lots owned or under contract expanded slightly to 78,233, of which approximately 54% were owned and 46% were under contract. Year over year, the Company’s lot portfolio grew 41%, up from 55,509.
  • Notes payable were $1.79 billion, compared to $1.69 billion, reflecting cash borrowings outstanding under the Company’s unsecured revolving credit facility. The Company’s debt to capital ratio was 30.5%, compared to 29.4%.
  • Stockholders’ equity grew to $4.09 billion, compared to $4.06 billion, mainly due to current quarter net income, partly offset by common stock repurchases and cash dividends.
    • In the 2025 first quarter, the Company repurchased 753,939 shares of its outstanding common stock at a cost of $50.0 million, or $66.32 per share. As of February 28, 2025, the Company had $650.0 million remaining under its current common stock repurchase authorization.
    • Based on the Company’s 71.7 million outstanding shares as of February 28, 2025, book value per share of $57.05 increased 12% year over year.

Guidance

The Company is providing the following guidance for its 2025 full year:

  • Housing revenues in the range of $6.60 billion to $7.00 billion.
  • Average selling price in the range of $480,000 to $495,000.
  • Homebuilding operating income as a percentage of revenues of approximately 9.4%, assuming no inventory-related charges.
    • Housing gross profit margin in the range of 19.2% to 20.0%, assuming no inventory-related charges.
    • Selling, general and administrative expenses as a percentage of housing revenues in the range of 10.0% to 10.4%.
  • Effective tax rate of approximately 24%.
  • Ending community count of approximately 250.

The Company plans to also provide guidance for its 2025 second quarter on its conference call today.

Conference Call

The conference call to discuss the Company’s 2025 first quarter earnings will be broadcast live TODAY at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To listen, please go to the Investor Relations section of the Company’s website at kbhome.com.

About KB Home

KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 49 markets, have built nearly 700,000 quality homes in our more than 65-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional homebuying experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership. For more information, visit kbhome.com.

Forward-Looking and Cautionary Statements

Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. If we update or revise any such statement(s), no assumption should be made that we will further update or revise that statement(s) or update or revise any other such statement(s). Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions; population growth, household formations and demographic trends; conditions in the capital, credit and financial markets; our ability to access external financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; the execution of any securities repurchases pursuant to our board of directors’ authorization; material and trade costs and availability, including the greater costs associated with achieving current and expected higher standards for ENERGY STAR certified homes, and delays related to state and municipal construction, permitting, inspection and utility processes, which have been disrupted by key equipment shortages; consumer and producer price inflation; changes in interest rates, including those set by the Federal Reserve, which the Federal Reserve may increase to moderate inflation, as it did in 2022 and 2023, and those available in the capital markets or from financial institutions and other lenders, and applicable to mortgage loans; our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit facility and our senior unsecured term loan; the ability and willingness of the applicable lenders and financial institutions, or any substitute or additional lenders and financial institutions, to meet their commitments or fund borrowings, extend credit or provide payment guarantees to or for us under our revolving credit facility or unsecured letter of credit facility; volatility in the market price of our common stock; our obtaining adequate levels of affordable insurance for our business and our ability to cover any incurred costs, liabilities or losses that are not covered by the insurance we have procured; home selling prices, including our homes’ selling prices, being unaffordable relative to consumer incomes; weak or declining consumer confidence, either generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes; weather events, significant natural disasters and other climate and environmental factors, such as a lack of adequate water supply to permit new home communities in certain areas; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal government’s operations (also known as a government shutdown), and financial markets’ and businesses’ reactions to any such failure; regulatory instability associated with the current U.S. presidential administration, including from its government efficiency initiatives, and the impact on the economy or financial markets therefrom; government actions, policies, programs and regulations directed at or affecting the housing market (including the tax benefits associated with purchasing and owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by government-sponsored enterprises and government agencies), the homebuilding industry, or construction activities; changes in existing tax laws or enacted corporate income tax rates, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as Internal Revenue Service guidance regarding heightened qualification requirements for federal tax credits for building energy-efficient homes; changes in U.S. trade policies, including the imposition of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory measures taken by other countries, and financial markets’ and businesses’ reactions to any such policies; disruptions in world and regional trade flows, economic activity and supply chains due to the military conflict and other attacks in the Middle East region and military conflict in Ukraine, including those stemming from wide-ranging sanctions the U.S. and other countries have imposed or may further impose on Russian business sectors, financial organizations, individuals and raw materials, the impact of which may, among other things, increase our operational costs, exacerbate building materials and appliance shortages and/or reduce our revenues and earnings; the adoption of new or amended financial accounting standards and the guidance and/or interpretations with respect thereto; the availability and cost of land in desirable areas and our ability to timely and efficiently develop acquired land parcels and open new home communities; impairment, land option contract abandonment or other inventory-related charges, including any stemming from decreases in the value of our land assets; our warranty claims experience with respect to homes previously delivered and actual warranty costs incurred; costs and/or charges arising from regulatory compliance requirements, including implementing state climate-related disclosure rules, or from legal, arbitral or regulatory proceedings, investigations, claims or settlements, including unfavorable outcomes in any such matters resulting in actual or potential monetary damage awards, penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or involuntary restrictions or adjustments to our business operations or practices that are beyond our current expectations and/or accruals; our ability to use/realize the net deferred tax assets we have generated; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gaining share and scale in our served markets, through, among other things, our making substantial investments in land and land development, which, in some cases, involves putting significant capital over several years into large projects in one location, and in entering into new markets; our operational and investment concentration in markets in California; consumer interest in our new home communities and products, particularly from first-time homebuyers and higher-income consumers; our ability to generate orders and convert our backlog of orders to home deliveries and revenues, particularly in key markets in California, and the costs and margin impact we incur from the incentives or concessions we may provide to buyers to do so; our ability to successfully implement our business strategies and achieve any associated financial and operational targets and objectives, including those discussed in this release or in any of our other public filings, presentations or disclosures; income tax expense volatility associated with stock-based compensation; the ability of our homebuyers to obtain or afford homeowners and flood insurance policies, and/or typical or lender-required policies for other hazards or events, for their homes, which may depend on the ability and willingness of insurers or government-funded or -sponsored programs to offer coverage at an affordable price or at all; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services, which may depend on the ability and willingness of lenders and financial institutions to offer such loans and services to our homebuyers; the performance of mortgage lenders to our homebuyers; the performance of KBHS Home Loans, LLC (“KBHS”); the ability and willingness of lenders and financial institutions to extend credit facilities to KBHS to fund its originated mortgage loans; information technology failures and data security breaches; an epidemic, pandemic or significant seasonal or other disease outbreak, and the control response measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; widespread protests and/or civil unrest, whether due to political events, social movements or other reasons; and other events outside of our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.

KB HOME

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended February 28, 2025 and February 29, 2024

(In Thousands, Except Per Share Amounts – Unaudited)

 

 

Three Months Ended

 

February 28, 2025

 

February 29, 2024

Total revenues

$

1,391,777

 

 

$

1,467,766

 

Homebuilding:

 

 

 

Revenues

$

1,387,041

 

 

$

1,461,698

 

Costs and expenses

 

(1,259,702

)

 

 

(1,304,022

)

Operating income

 

127,339

 

 

 

157,676

 

Interest income

 

2,079

 

 

 

5,857

 

Equity in income (loss) of unconsolidated joint ventures

 

2,413

 

 

 

(445

)

Homebuilding pretax income

 

131,831

 

 

 

163,088

 

Financial services:

 

 

 

Revenues

 

4,736

 

 

 

6,068

 

Expenses

 

(1,539

)

 

 

(1,546

)

Equity in income of unconsolidated joint venture

 

4,329

 

 

 

7,055

 

Financial services pretax income

 

7,526

 

 

 

11,577

 

Total pretax income

 

139,357

 

 

 

174,665

 

Income tax expense

 

(29,800

)

 

 

(36,000

)

Net income

$

109,557

 

 

$

138,665

 

Earnings per share:

 

 

 

Basic

$

1.52

 

 

$

1.81

 

Diluted

$

1.49

 

 

$

1.76

 

Weighted average shares outstanding:

 

 

 

Basic

 

71,537

 

 

 

75,894

 

Diluted

 

73,012

 

 

 

78,264

 

KB HOME

CONSOLIDATED BALANCE SHEETS

(In Thousands – Unaudited)

 

 

February 28,
2025

 

November 30,
2024

Assets

 

 

 

Homebuilding:

 

 

 

Cash and cash equivalents

$

267,833

 

$

597,973

Receivables

 

347,774

 

 

377,533

Inventories

 

5,942,547

 

 

5,528,020

Investments in unconsolidated joint ventures

 

61,269

 

 

67,020

Property and equipment, net

 

92,764

 

 

90,359

Deferred tax assets, net

 

102,421

 

 

102,421

Other assets

 

102,512

 

 

105,920

 

 

6,917,120

 

 

6,869,246

Financial services

 

62,140

 

 

66,923

Total assets

$

6,979,260

 

$

6,936,169

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Homebuilding:

 

 

 

Accounts payable

$

364,039

 

$

384,894

Accrued expenses and other liabilities

 

727,950

 

 

796,261

Notes payable

 

1,792,307

 

 

1,691,679

 

 

2,884,296

 

 

2,872,834

Financial services

 

2,286

 

 

2,719

Stockholders’ equity

 

4,092,678

 

 

4,060,616

Total liabilities and stockholders’ equity

$

6,979,260

 

$

6,936,169

KB HOME

SUPPLEMENTAL INFORMATION

For the Three Months Ended February 28, 2025 and February 29, 2024

(In Thousands, Except Average Selling Price – Unaudited)

 

 

 

 

 

Three Months Ended

 

February 28, 2025

 

February 29, 2024

Homebuilding revenues:

 

 

 

Housing

$

1,387,041

 

 

$

1,458,126

 

Land

 

 

 

 

3,572

 

Total

$

1,387,041

 

 

$

1,461,698

 

 

 

 

 

 

 

 

 

Homebuilding costs and expenses:

 

 

 

Construction and land costs

 

 

 

Housing

$

1,107,414

 

 

$

1,144,427

 

Land

 

 

 

 

2,101

 

Subtotal

 

1,107,414

 

 

 

1,146,528

 

Selling, general and administrative expenses

 

152,288

 

 

 

157,494

 

Total

$

1,259,702

 

 

$

1,304,022

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

Interest incurred

$

26,392

 

 

$

26,505

 

Interest capitalized

 

(26,392

)

 

 

(26,505

)

Total

$

 

 

$

 

 

 

 

 

 

 

 

 

Other information:

 

 

 

Amortization of previously capitalized interest

$

23,423

 

 

$

26,503

 

Depreciation and amortization

 

9,704

 

 

 

10,195

 

 

 

 

 

 

 

 

 

Average selling price:

 

 

 

West Coast

$

708,700

 

 

$

673,800

 

Southwest

 

461,500

 

 

 

450,700

 

Central

 

367,000

 

 

 

364,700

 

Southeast

 

400,200

 

 

 

417,700

 

Total

$

500,700

 

 

$

480,100

 

 

KB HOME

SUPPLEMENTAL INFORMATION

For the Three Months Ended February 28, 2025 and February 29, 2024

(Dollars in Thousands – Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

February 28, 2025

 

February 29, 2024

Homes delivered:

 

 

 

 

 

 

 

West Coast

 

 

 

 

 

849

 

 

828

Southwest

 

 

 

 

 

678

 

 

717

Central

 

 

 

 

 

751

 

 

870

Southeast

 

 

 

 

 

492

 

 

622

Total

 

 

 

 

 

2,770

 

 

3,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net orders:

 

 

 

 

 

 

 

West Coast

 

 

 

 

 

898

 

 

950

Southwest

 

 

 

 

 

545

 

 

698

Central

 

 

 

 

 

720

 

 

1,017

Southeast

 

 

 

 

 

609

 

 

658

Total

 

 

 

 

 

2,772

 

 

3,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net order value:

 

 

 

 

 

 

 

West Coast

 

 

 

 

$

607,179

 

$

633,400

Southwest

 

 

 

 

 

269,222

 

 

314,863

Central

 

 

 

 

 

239,725

 

 

363,923

Southeast

 

 

 

 

 

229,941

 

 

270,005

Total

 

 

 

 

$

1,346,067

 

$

1,582,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February 28, 2025

 

February 29, 2024

 

Homes

 

Value

 

Homes

 

Value

Backlog data:

 

 

 

 

 

 

 

West Coast

1,260

 

$

879,894

 

 

1,667

 

$

1,100,889

Southwest

1,001

 

 

488,714

 

 

1,360

 

 

608,455

Central

1,102

 

 

400,205

 

 

1,414

 

 

505,194

Southeast

1,073

 

 

433,120

 

 

1,355

 

 

577,206

Total

4,436

 

$

2,201,933

 

 

5,796

 

$

2,791,744

KB HOME
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In Thousands, Except Percentages – Unaudited)

Company management’s discussion of the results presented in this press release may include, information about the Company’s adjusted housing gross profit margin, which is not calculated in accordance with generally accepted accounting principles (“GAAP”). The Company believes this non-GAAP financial measure is relevant and useful to investors in understanding its operations, and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. However, because it is not calculated in accordance with GAAP, this non-GAAP financial measure may not be completely comparable to other companies in the homebuilding industry and, thus, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the most directly comparable GAAP financial measure in order to provide a greater understanding of the factors and trends affecting the Company’s operations.

Adjusted Housing Gross Profit Margin

The following table reconciles the Company’s housing gross profit margin calculated in accordance with GAAP to the non-GAAP financial measure of the Company’s adjusted housing gross profit margin:

 

 

Three Months Ended

 

February 28, 2025

 

February 29, 2024

Housing revenues

$

1,387,041

 

 

$

1,458,126

 

Housing construction and land costs

 

(1,107,414

)

 

 

(1,144,427

)

Housing gross profits

 

279,627

 

 

 

313,699

 

Add: Inventory-related charges (a)

 

1,455

 

 

 

1,298

 

Adjusted housing gross profits

$

281,082

 

 

$

314,997

 

Housing gross profit margin

 

20.2

%

 

 

21.5

%

Adjusted housing gross profit margin

 

20.3

%

 

 

21.6

%

 

(a) Represents inventory impairment and land option contract abandonment charges associated with housing operations.

Adjusted housing gross profit margin is a non-GAAP financial measure, which the Company calculates by dividing housing revenues less housing construction and land costs excluding housing inventory impairment and land option contract abandonment charges (as applicable) recorded during a given period, by housing revenues. The most directly comparable GAAP financial measure is housing gross profit margin. The Company believes adjusted housing gross profit margin is a relevant and useful financial measure to investors in evaluating the Company’s performance as it measures the gross profits the Company generated specifically on the homes delivered during a given period. This non-GAAP financial measure isolates the impact that housing inventory impairment and land option contract abandonment charges have on housing gross profit margins, and allows investors to make comparisons with the Company’s competitors that adjust housing gross profit margins in a similar manner. The Company also believes investors will find adjusted housing gross profit margin relevant and useful because it represents a profitability measure that may be compared to a prior period without regard to variability of housing inventory impairment and land option contract abandonment charges. This financial measure assists management in making strategic decisions regarding community location and product mix, product pricing and construction pace.

For Further Information:

Jill Peters, Investor Relations Contact

(310) 893-7456 or jpeters@kbhome.com

Cara Kane, Media Contact

(321) 299-6844 or ckane@kbhome.com

Source: KB Home

FAQ

What were KB Home's (KBH) Q1 2025 earnings per share and revenue?

KBH reported Q1 2025 diluted earnings per share of $1.49 and revenues of $1.39 billion.

How much did KB Home's (KBH) net orders decline in Q1 2025?

KBH's net orders decreased 17% to 2,772 units in Q1 2025.

What is KB Home's (KBH) revenue guidance for fiscal 2025?

KBH expects housing revenues between $6.60 billion to $7.00 billion for fiscal 2025.

How many shares did KB Home (KBH) repurchase in Q1 2025?

KBH repurchased 753,939 shares at a cost of $50.0 million, or $66.32 per share.

What was KB Home's (KBH) average selling price in Q1 2025?

KBH's average selling price rose 4% to $500,700 in Q1 2025.
KB Home

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