Nov 30, 2024

KB Home Q4 2024 Earnings Report

KB Home experienced substantial growth in revenue and diluted earnings per share, driven by increased deliveries and net orders.

Key Takeaways

KB Home reported a strong Q4 2024 with a 19% increase in revenues to $2.00 billion and a 36% increase in diluted earnings per share to $2.52. Net orders rose by approximately 40% year-over-year, and the company repurchased $100 million of common stock during the quarter.

Revenues increased by 19% to $2.00 billion.

Diluted earnings per share grew by 36% to $2.52.

Net orders rose roughly 40% year over year.

The company repurchased $100.0 million of common stock.

Total Revenue
$2B
Previous year: $1.67B
+19.5%
EPS
$2.52
Previous year: $1.85
+36.2%
Total Backlog Value
$2.24B
Previous year: $2.67B
-15.9%
Total ASP
$501K
Previous year: $487K
+2.8%
West Coast ASP
$706K
Previous year: $679K
+4.0%
Gross Profit
$416M
Previous year: $1.66B
-75.0%
Cash and Equivalents
$598M
Previous year: $727M
-17.8%
Free Cash Flow
$353M
Previous year: $301M
+17.1%
Total Assets
$6.94B
Previous year: $6.65B
+4.3%

KB Home

KB Home

KB Home Revenue by Geographic Location

Forward Guidance

The Company is providing the following guidance for its 2025 full year:

Positive Outlook

  • Housing revenues in the range of $7.00 billion to $7.50 billion.
  • Average selling price in the range of $488,000 to $498,000.
  • Homebuilding operating income as a percentage of revenues of approximately 10.7%, assuming no inventory-related charges.
  • Housing gross profit margin in the range of 20.0% to 21.0%, assuming no inventory-related charges.
  • Effective tax rate of approximately 24%.

Challenges Ahead

  • Selling, general and administrative expenses as a percentage of housing revenues in the range of 9.6% to 10.0%.
  • Ending community count of approximately 250.

Revenue & Expenses

Visualization of income flow from segment revenue to net income