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May 31, 2025
KB Home Q2 2025 Earnings Report
KB Home reported Q2 2025 results with earnings of $1.50 per share and revenue of $1.53 billion, down year-over-year.
Key Takeaways
KB Home delivered a solid Q2 amid softer market conditions, beating guidance on key metrics while increasing share repurchases and lowering construction costs.
EPS of $1.50 met guidance despite 11% fewer home deliveries.
Revenue declined to $1.53B, reflecting lower volume but stable pricing.
KBH repurchased $200M in stock at prices below book value.
Operating income margin was 8.6%, supported by lower build times and costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
KB Home expects steady performance for FY2025 with moderated land investments and continued focus on shareholder returns.
Positive Outlook
- Housing revenues projected between $6.30B and $6.50B.
- Average selling price guidance of $480K to $490K.
- Operating margin expected in the 8.6% to 9.0% range.
- Gross margin guidance of 19.0% to 19.4%.
- Continued share repurchases planned with $450M authorization remaining.
Challenges Ahead
- Scaling back land acquisition and development investment.
- Market conditions remain softened, impacting order flow.
- Backlog value dropped 27% year-over-year.
- Net orders per community declined to 4.5 from 5.5.
- Increased SG&A expenses affecting leverage and margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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