Companies /Consumer Cyclical

KB Home

NYSE: KBH Residential Construction
$53.30
▼ $1.56 (−2.84%) today
Markets closed · 9:48pm ET

Q2 2025 Earnings

Reported Jun 23, 2025, 4:18pm ET · SEC source
$1.50
Beat +1.89%
EPS · est. $1.47
$1.5B
Beat +1.61%
Revenue · est. $1.5B
+2.1%
Beating market
KBH vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−2%0+2%+4%Jun 23Jun 24report 4:18pm ETearnings+1.2%+1.5%
−2%0+2%+4%Jun 23Jun 24earnings+1.2%+1.5%
KBH +1.5%S&P 500 +1.2%
0+2%+4%Jun 23Jun 24report 4:18pm ETearnings+1.6%+1.5%
0+2%+4%Jun 23Jun 24earnings+1.6%+1.5%
KBH +1.5%NASDAQ +1.6%
0+3%+6%+9%Jun 23Jul 1report 4:18pm ETearnings+2.9%+6.3%
0+3%+6%+9%Jun 23Jul 1earnings+2.9%+6.3%
KBH +6.3%S&P 500 +2.9%
0+3%+6%+9%Jun 23Jul 1report 4:18pm ETearnings+2.8%+6.3%
0+3%+6%+9%Jun 23Jul 1earnings+2.8%+6.3%
KBH +6.3%NASDAQ +2.8%
−0.45%
Day of report
−2.51%
Next session
+4.30%
One week
+7.12%
30 days

S&P 500 over the same 30 days: +5.00%.

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 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

“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.”

KB Home CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2025, KB Home guided housing revenues of $6.30 billion to $6.50 billion, average selling price of $480,000 to $490,000, homebuilding operating income margin of 8.6% to 9.0% (excluding inventory-related charges), housing gross profit margin of 19.0% to 19.4% (excluding inventory-related charges), SG&A as a percentage of housing revenues of 10.2% to 10.6%, an effective tax rate of approximately 24%, and an ending community count of approximately 250. The company indicated it is scaling back land acquisition and development investments while increasing share repurchases, and expects to continue repurchasing shares in the remainder of fiscal 2025.

KBH YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$500.0M$1.0B$1.5B$1.7B$1.5BRevenue$367.7M$294.7MGross Profit$195.0M$131.5MOperating Income$168.4M$107.9MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

KBH Revenue by Segment

Homebuilding$1.5B
Financial Services$4.9M

Figures from SEC filings and company reports. Not investment advice.