May 31, 2020

KB Home Q2 2020 Earnings Report

KB Home's Q2 2020 results were impacted by COVID-19, but the company still achieved growth in pretax income and housing gross profit margin.

Key Takeaways

KB Home reported solid financial results for Q2 2020 despite significant disruptions from the COVID-19 pandemic. The company saw year-over-year growth in key metrics such as housing gross profit margin and pretax income. Revenues totaled $914.0 million and diluted earnings per share increased to $0.55.

Revenues totaled $914.0 million, compared to $1.02 billion.

Housing gross profit margin increased 100 basis points to 18.2%.

Total pretax income grew 19% to $67.8 million.

Net income and diluted earnings per share increased to $52.0 million and $0.55, respectively.

Total Revenue
$914M
Previous year: $1.02B
-10.6%
EPS
$0.55
Previous year: $0.51
+7.8%
Total Backlog Value
$1.9B
Previous year: $2.17B
-12.4%
Total ASP
$364K
Previous year: $368K
-1.0%
West Coast ASP
$567K
Previous year: $575K
-1.3%
Gross Profit
$170M
Previous year: $178M
-4.8%
Cash and Equivalents
$575M
Previous year: $180M
+219.9%
Free Cash Flow
$156M
Previous year: -$4.39M
-3655.3%
Total Assets
$5.04B
Previous year: $4.92B
+2.5%

KB Home

KB Home

KB Home Revenue by Geographic Location

Forward Guidance

Company management is reinstating guidance and will provide its outlook for the 2020 third quarter and full year on the Company’s earnings conference call.

Revenue & Expenses

Visualization of income flow from segment revenue to net income