KB Home

Latest Results (20.11.2025):

KB Home reported third quarter 2025 results: revenues of $1.62 billion and diluted EPS of $1.61, with net income of $109.8 million, as the company cited improved build efficiency, modest easing in mortgage rates, and continued return of capital to shareholders.

Financial Snapshot

Revenues were $1.62 billion (down from $1.75 billion a year earlier). Net income was $109.8 million and diluted EPS declined 21% to $1.61. For the nine months ended August 31, 2025, revenues totaled $4.54 billion, net income was $327.3 million and diluted EPS was $4.60 (down 23% year over year).

Profitability & Margins

Homebuilding operating income was $131.2 million with an operating margin of 8.1% (8.8% excluding $11.3 million of inventory-related charges). Housing gross profit margin was 18.2% (18.9% excluding the inventory charge) versus 20.6% a year ago. SG&A was 10.0% of housing revenues (9.8% prior year). Financial services pretax income was $8.7 million.

Deliveries, Orders & Backlog

Homes delivered: 3,393 (down 7%). Average selling price was $475,700 (slightly lower). Net orders were 2,950 (down 4%); ending backlog homes 4,333 (down from 5,724) with backlog value $1.99 billion. Monthly net orders per community were 3.8; cancellation rate 17% (vs. 15%).

Balance Sheet & Liquidity

Total liquidity was $1.16 billion (including $330.6 million cash and $831.7 million available revolver capacity, with $250.0 million drawn). Inventories were $5.84 billion (up 6% sequentially, up 3% year over year). Lots owned/under contract were 65,251 (down 15% year over year). Notes payable were $1.94 billion and debt-to-capital was 33.2%.

Share Repurchases & Book Value

KB Home repurchased $188.5 million of common stock in the quarter (~3.3 million shares at $57.12), bringing nine-month repurchases to $438.5 million (~7.8 million shares). Approximately $261.5 million remained under the repurchase authorization. Book value per share was $60.25, up 11% year over year (based on ~64.8 million shares outstanding).

Guidance

Full-year 2025 guidance: housing revenues $6.10–$6.20 billion; average selling price ~$483,000; homebuilding operating income margin ~8.9% (assuming no inventory charges); housing gross profit margin 19.2%–19.3% (no inventory charges); SG&A 10.2%–10.3% of housing revenues; effective tax rate ~23%; ending community count ~260. Q4 guidance to be provided on the company conference call.