Q2 25 EPS
$1.50
BEAT +1.89%
Est. $1.47
Q2 25 Revenue
$1.53B
BEAT +1.61%
Est. $1.51B
vs S&P Since Q2 25
-6.0%
TRAILING MARKET
KBH +16.9% vs S&P +22.9%
Market Reaction
Did KBH Beat Earnings? Q2 2025 Results
KB Home posted a modest but meaningful beat in its fiscal second quarter, delivering earnings per share of $1.50 against a consensus estimate of $1.47, a 1.89% beat, while revenue of $1.53 billion edged past the $1.51 billion estimate by 1.61%, even … Read more KB Home posted a modest but meaningful beat in its fiscal second quarter, delivering earnings per share of $1.50 against a consensus estimate of $1.47, a 1.89% beat, while revenue of $1.53 billion edged past the $1.51 billion estimate by 1.61%, even as the top line fell 10.5% year over year. The headline numbers, however, masked a quarter defined by margin pressure and a softening demand environment; the housing gross profit margin contracted to 19.3% from 21.1% a year ago, squeezed by price reductions, buyer concessions, and higher relative land costs. Net orders fell 13% to 3,460 homes, with the cancellation rate rising to 16% from 13%, a reflection of what KB Home's own executives described as a softer 2025 housing market than anticipated, particularly in markets like Sacramento and Seattle. In response, the company is pulling back on land spending and aggressively repurchasing shares, buying back $200 million in stock during the quarter. For fiscal 2025, management guided housing revenues of $6.30 billion to $6.50 billion, with gross margins expected between 19.0% and 19.4%.
Key Takeaways
- • Lower build times and reduced direct construction costs
- • Average selling price increased slightly to $488,700
- • Price reductions and homebuyer concessions pressured margins
- • Higher relative land costs and geographic mix weighed on gross profit margins
- • Reduced operating leverage from lower delivery volumes
- • Lower construction costs partially offset margin headwinds
- • Community count grew 5% year-over-year to 254 average
KBH YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
KBH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our second quarter financial performance was solid, with results meeting or exceeding our guidance ranges, as we continue to navigate the current environment. Our team is producing improvements in two key areas, lowering our build times and reducing direct construction costs, helping to strengthen our business.”
— Jeffrey Mezger, Q2 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% |