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Feb 28, 2025
KB Home Q1 2025 Earnings Report
KB Home reported first quarter results with lower revenues and net income, impacted by reduced deliveries and lower net orders, despite higher average selling prices.
Key Takeaways
KB Home reported Q1 2025 revenue of $1.39 billion, a 5% decrease year-over-year, with homes delivered down 9% to 2,770 units. The average selling price rose 4% to $500,700. Net income decreased 21% to $109.6 million, and the backlog value declined 21% to $2.20 billion. The company continues to face affordability challenges and slower buyer decision-making but remains focused on adjusting to market conditions.
Revenue of $1.39 billion, down 5% from Q1 2024.
Homes delivered decreased 9% to 2,770 units.
Average selling price rose 4% to $500,700.
Ending backlog value declined 21% to $2.20 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
KB Home provided updated full-year guidance, lowering revenue expectations due to reduced net orders but maintaining focus on operational execution and customer satisfaction.
Positive Outlook
- Housing revenues projected between $6.60 billion and $7.00 billion for fiscal 2025.
- Average selling price expected to range from $480,000 to $495,000.
- Housing gross profit margin expected between 19.2% and 20.0%.
- Ending community count projected around 250.
- SG&A expenses anticipated to be between 10.0% and 10.4% of housing revenues.
Challenges Ahead
- Revenue guidance reduced to reflect lower net orders in Q1 2025.
- Continued buyer caution due to macroeconomic uncertainties.
- Backlog value down 21% year-over-year.
- Decreased equity income from mortgage banking joint ventures.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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