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Aug 31
KB Home Q3 2025 Earnings Report
KB Home reported solid financial results in Q3 2025, meeting or exceeding guidance across key metrics, driven by operational execution and improving affordability.
Key Takeaways
KB Home delivered solid financial results in the third quarter of 2025, with revenues of $1.62 billion and diluted earnings per share of $1.61. The company focused on operational execution, reducing build times and costs, and continued to return capital to stockholders through significant share repurchases.
Revenues totaled $1.62 billion, a decrease from $1.75 billion in the prior year.
Diluted earnings per share were $1.61, down 21% year-over-year, partly offset by share repurchases.
Homebuilding operating income was $131.2 million, with an operating income margin of 8.1%.
The company repurchased $188.5 million of common stock in the quarter, demonstrating a commitment to stockholder returns.
KB Home
KB Home
KB Home Revenue by Segment
KB Home Revenue by Geographic Location
Revenue by Segment
Housing Revenue
CapyFin.comLand Revenue
CapyFin.comRevenue by Geographic Location
West Coast Homes Delivered Revenue
CapyFin.comSouthwest Homes Delivered Revenue
CapyFin.comCentral Homes Delivered Revenue
CapyFin.comSoutheast Homes Delivered Revenue
CapyFin.com Forward Guidance
KB Home provided full-year 2025 guidance, anticipating housing revenues between $6.10 billion and $6.20 billion, an average selling price of approximately $483,000, and a housing gross profit margin in the range of 19.2% to 19.3%.
Positive Outlook
- Expected housing revenues of $6.10 billion to $6.20 billion for the full year 2025.
- Anticipated average selling price of approximately $483,000.
- Projected homebuilding operating income as a percentage of revenues of approximately 8.9%.
- Forecasted housing gross profit margin in the range of 19.2% to 19.3%.
- Expected effective tax rate of approximately 23%.
Challenges Ahead
- Selling, general and administrative expenses as a percentage of housing revenues are expected to be in the range of 10.2% to 10.3%.
- Guidance for homebuilding operating income and housing gross profit margin assumes no inventory-related charges, which could impact actual results.
- The company did not provide specific fourth-quarter guidance in the press release, deferring it to the conference call.
- The forward-looking statements are subject to various risks and uncertainties, including general economic conditions and interest rate changes.
- The company's operational and investment concentration in California markets could pose a risk.
Revenue & Expenses
Visualization of income flow from segment revenue to net income