Companies /Consumer Cyclical

KB Home

NYSE: KBH Residential Construction
$53.30
▼ $1.56 (−2.84%) today
Markets closed · 8:52pm ET

Q3 2025 Earnings

Reported Sep 24, 2025, 4:24pm ET · SEC source
$1.61
Beat +6.91%
EPS · est. $1.51
$1.6B
Beat +2.19%
Revenue · est. $1.6B
−2.3%
Trailing market
KBH vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−2%0+2%Sep 24Sep 25report 4:24pm ETearnings−0.6%−1.0%
−2%0+2%Sep 24Sep 25earnings−0.6%−1.0%
KBH −1.0%S&P 500 −0.6%
−2%0+2%Sep 24Sep 25report 4:24pm ETearnings−0.5%−1.0%
−2%0+2%Sep 24Sep 25earnings−0.5%−1.0%
KBH −1.0%NASDAQ −0.5%
0+2%+4%Sep 23Oct 2report 4:24pm ETearnings+1.1%+4.3%
0+2%+4%Sep 23Oct 2earnings+1.1%+4.3%
KBH +4.3%S&P 500 +1.1%
0+2%+4%Sep 23Oct 2report 4:24pm ETearnings+1.6%+4.3%
0+2%+4%Sep 23Oct 2earnings+1.6%+4.3%
KBH +4.3%NASDAQ +1.6%
−0.63%
Day of report
+2.08%
Next session
+4.42%
One week
+1.81%
30 days

S&P 500 over the same 30 days: +4.13%.

Did KBH Beat Earnings? Q3 2025 Results

KB Home delivered a beat on both the top and bottom lines in fiscal Q3 2025, even as the homebuilder navigated a year-over-year revenue decline that underscored broader affordability pressures in the housing market. The company posted earnings of $1.61 per diluted share, exceeding the $1.51 consensus estimate by 6.91%, while revenue of $1.62 billion came in 2.19% above expectations, though that figure still represented a 7.5% drop from the year-ago period. The decline was driven primarily by a 7% decrease in homes delivered to 3,393 units and a contraction in housing gross profit margin to 18.2% from 20.6%, as price reductions and higher relative land costs weighed on profitability. CEO Jeffrey Mezger pointed to meaningful reductions in build times and construction costs as operational bright spots, while noting that easing mortgage rates during the quarter supported improving affordability. Looking ahead, KB Home guided full-year 2025 housing revenues of $6.10 billion to $6.20 billion, with a housing gross profit margin of 19.2% to 19.3%, signaling measured optimism despite a challenging demand environment.

Key Takeaways
  • Lower construction costs partially offsetting margin pressures
  • Reduced build times improving operational efficiency
  • Price reductions and higher relative land costs compressing margins
  • 7% decline in homes delivered year-over-year
  • Improving mortgage interest rates during the quarter supporting affordability
  • 3% increase in average community count to 259

“We achieved solid financial results in our third quarter, meeting or exceeding our guidance ranges across the key metrics for our business. Operationally, our execution was outstanding, as we continued to make meaningful progress in reducing both our build times and costs to build.”

KB Home CEO, on the earnings call

Forward Guidance & Outlook

For full-year 2025, KB Home guided housing revenues in the range of $6.10 billion to $6.20 billion, an average selling price of approximately $483,000, homebuilding operating income margin of approximately 8.9% (assuming no inventory-related charges), housing gross profit margin of 19.2% to 19.3% (assuming no inventory-related charges), SG&A as a percentage of housing revenues of 10.2% to 10.3%, an effective tax rate of approximately 23%, and an ending community count of approximately 260. The company expects to continue repurchasing shares in its 2025 fourth quarter and 2026 fiscal year.

KBH YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$500.0M$1.0B$1.5B$1.8B$1.6BRevenue$367.0M$293.4MGross Profit$194.0M$131.2MOperating Income$157.3M$109.8MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

KBH Revenue by Segment

Homebuilding$1.6B
Financial Services$6.0M

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