Companies /Consumer Cyclical

KB Home

NYSE: KBH Residential Construction
$53.30
▼ $1.56 (−2.84%) today
Markets closed · 8:56pm ET

Q4 2025 Earnings

Reported Dec 18, 2025, 4:18pm ET · SEC source
$1.92
Beat +7.26%
EPS · est. $1.79
$1.7B
Beat +2.15%
Revenue · est. $1.7B
+1.6%
Beating market
KBH vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%Dec 18Dec 19report 4:18pm ETearnings+0.8%−2.7%
−4%0+4%Dec 18Dec 19earnings+0.8%−2.7%
KBH −2.7%S&P 500 +0.8%
−4%0+4%Dec 18Dec 19report 4:18pm ETearnings+1.7%−2.7%
−4%0+4%Dec 18Dec 19earnings+1.7%−2.7%
KBH −2.7%NASDAQ +1.7%
−4%0+4%+8%Dec 17Dec 26report 4:18pm ETearnings+2.1%−3.8%
−4%0+4%+8%Dec 17Dec 26earnings+2.1%−3.8%
KBH −3.8%S&P 500 +2.1%
−4%0+4%+8%Dec 17Dec 26report 4:18pm ETearnings+2.5%−3.8%
−4%0+4%+8%Dec 17Dec 26earnings+2.5%−3.8%
KBH −3.8%NASDAQ +2.5%
−8.54%
Day of report
−1.64%
Next session
−0.78%
One week
+2.88%
30 days

S&P 500 over the same 30 days: +1.27%.

Did KBH Beat Earnings? Q4 2025 Results

KB Home posted a headline beat in its fiscal fourth quarter of 2025, but the numbers underneath told a more complicated story. Adjusted diluted EPS of $1.92 topped the $1.79 consensus estimate by 7.26%, while revenue of $1.69 billion edged past expectations by 2.15%, though both metrics reflected the weight of a difficult housing environment, with revenue falling 15.3% from a year ago as homes delivered dropped 9% to 3,619 units and the average selling price slid 7% to $465,600. Margin compression was the defining pressure of the quarter, with housing gross profit margin narrowing sharply to 17.0% from 20.9%, driven by price reductions, higher relative land costs, and geographic mix shifts, a dynamic <a href="https://247wallst.com/investing/2025/12/09/toll-brothers-posts-sixth-straight-earnings-beat-but-stock-drops-on-tepid-growth/">not unique to KB Home</a> among major homebuilders. Looking ahead, the company guided full-year 2026 housing revenues of $5.10 billion to $6.10 billion on 11,000 to 12,500 deliveries, signaling continued caution as it bets on a shift back toward built-to-order homes to defend margins amid persistent affordability pressures.

Key Takeaways
  • Homes delivered decreased 9% year-over-year to 3,619
  • Average selling price declined 7% to $465,600
  • Housing gross profit margin compressed to 17.0% from 20.9% due to price reductions, higher relative land costs, and geographic mix
  • Financial services pretax income declined to $10.6 million from $13.1 million due to lower mortgage banking JV income
  • Effective tax rate improved to 21.4% from 23.1%
  • Accelerated equity-based compensation expense of $16.0 million due to new retirement-eligibility provisions

“We closed our 2025 fiscal year on a positive note, meeting or exceeding nearly all our fourth quarter financial targets. Although housing market conditions remained challenging due to lower consumer confidence, affordability concerns and elevated mortgage interest rates, we were pleased to help nearly 13,000 individuals and families achieve the dream of homeownership during the year, while maintaining our industry-leading customer satisfaction ratings.”

KB Home CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2026, KB Home expects deliveries of 2,300–2,500 homes, housing revenues of $1.05–$1.15 billion, housing gross profit margin of 15.4%–16.0% (assuming no inventory-related charges), SG&A as a percentage of revenues of 12.2%–12.8%, an effective tax rate of approximately 19.0%, and common stock repurchases of $50–$100 million. For full-year 2026, the company guides for deliveries of 11,000–12,500 homes, housing revenues of $5.10–$6.10 billion, and an effective tax rate of 24.0%–26.0%. Management noted it will focus on controllable factors including optimizing assets, building affordable personalized homes, and aligning costs with revenue expectations amid continued housing market challenges.

KBH YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$600.0M$1.2B$1.8B$2.0B$1.7BRevenue$422.6M$285.6MGross Profit$234.4M$117.1MOperating Income$190.6M$101.5MNet Income
$0$600.0M$1.2B$1.8BRevenueGross ProfitOperating IncomeNet Income

KBH Revenue by Segment

Homebuilding$1.7B
Financial Services$8.7M

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