Q1 25 EPS
$1.49
MISS 6.14%
Est. $1.59
Q1 25 Revenue
$1.39B
MISS 7.16%
Est. $1.50B
vs S&P Since Q1 25
-22.1%
TRAILING MARKET
KBH +7.5% vs S&P +29.6%
Market Reaction
Did KBH Beat Earnings? Q1 2025 Results
KB Home stumbled out of the gate in fiscal Q1 2025, missing on both the top and bottom lines as softening demand and affordability headwinds weighed on results. The homebuilder posted diluted EPS of $1.49, falling short of the $1.59 consensus estimat… Read more KB Home stumbled out of the gate in fiscal Q1 2025, missing on both the top and bottom lines as softening demand and affordability headwinds weighed on results. The homebuilder posted diluted EPS of $1.49, falling short of the $1.59 consensus estimate by 6.14%, while revenue of $1.39 billion trailed expectations by 7.16% and declined 5% year over year. The most telling signal came from net orders, which dropped 17% to 2,772 units as monthly net orders per community fell to 3.6 from 4.6 a year ago, reflecting what CEO Jeffrey Mezger described as demand that was "more muted than what we have seen historically." Housing gross profit margin also contracted to 20.2% from 21.5%, hurt by higher land costs and increased homebuyer concessions. In response, KB Home trimmed its full-year fiscal 2025 revenue outlook to a range of $6.60 billion to $7.00 billion, sending shares down sharply in after-hours trading as investors weighed the implications of a slower spring selling season.
Key Takeaways
- • Average selling price rose 4% to $500,700 year over year
- • Community count expanded 7% to 255 ending communities
- • Lot portfolio grew 41% year over year to 78,233 lots
- • Housing gross profit margin compressed to 20.2% from 21.5% due to higher relative land costs and homebuyer concessions
- • Homes delivered decreased 9% to 2,770
- • Net orders decreased 17% to 2,772
KBH YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
KBH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Consumers are working through affordability concerns and uncertainties related to macroeconomic and geopolitical issues, which are causing them to move slowly in their homebuying decisions. Demand at the start of this Spring's selling season was more muted than what we have seen historically, despite a healthy level of traffic in our communities. In mid-February, we took steps to reposition our communities to offer the most compelling value, and buyers responded favorably to these adjustments. Although we missed our sales goals for the first quarter, we are encouraged by the significant improvement in weekly sales and normalizing absorption pace over the last five weeks.”
— Jeffrey Mezger, Q1 2025 Earnings Press Release
KBH Earnings Trends
KBH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KBH EPS Trend
Earnings per share: estimate vs actual
KBH Revenue Trend
Quarterly revenue: estimate vs actual
KBH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.46 | $0.43 | -5.99% | $1.11B | +2.15% |
| Q1 26 MISS | $0.54 | $0.52 | -4.50% | $1.08B | -1.56% |
| Q4 25 BEAT FY | $1.79 | $1.92 | +7.26% | $1.69B | +2.15% |
| FY Full Year | $6.41 | $6.15 | -3.99% | $6.24B | +0.58% |
| Q3 25 BEAT | $1.51 | $1.61 | +6.91% | $1.62B | +2.19% |
| Q2 25 BEAT | $1.47 | $1.50 | +1.89% | $1.53B | +1.61% |
| Q1 25 MISS | $1.59 | $1.49 | -6.14% | $1.39B | -7.16% |