Global Finance News
25 Sep 2025, 09:55
KB Home (NYSE: KBH) reported third-quarter FY2025 revenue of $1.62 billion (down from $1.75B) and diluted EPS of $1.61 (–21% YoY).
Homes delivered fell 7% to 3,393 and the average selling price eased to $475,700. The housing gross margin was 18.2% ( 18.9% ex. $11.3M in inventory-related charges) versus 20.6% a year ago; homebuilding operating income was $131.2M (8.1% margin).
Net orders slipped 4% to 2,950; backlog ended at 4,333 homes valued at $1.99B. The builder continued returning capital, repurchasing $188.5M of stock in Q3 (3.3M shares) and $438.5M year-to-date, with $261.5M left under authorization. Liquidity totaled $1.16B (including $330.6M cash); debt to capital was 33.2%.
Management said cycle times and build costs improved and noted easing mortgage rates late in the quarter supported affordability.
Outlook (FY2025): housing revenues $6.10–$6.20B; ASP ~$483K; homebuilding operating margin ~8.9% (ex. charges), with housing gross margin 19.2–19.3% and SG&A 10.2–10.3%; effective tax rate ~23%; ending community count ~260. The company expects continued share repurchases in Q4 and into fiscal 2026.
Homes delivered fell 7% to 3,393 and the average selling price eased to $475,700. The housing gross margin was 18.2% ( 18.9% ex. $11.3M in inventory-related charges) versus 20.6% a year ago; homebuilding operating income was $131.2M (8.1% margin).
Net orders slipped 4% to 2,950; backlog ended at 4,333 homes valued at $1.99B. The builder continued returning capital, repurchasing $188.5M of stock in Q3 (3.3M shares) and $438.5M year-to-date, with $261.5M left under authorization. Liquidity totaled $1.16B (including $330.6M cash); debt to capital was 33.2%.
Management said cycle times and build costs improved and noted easing mortgage rates late in the quarter supported affordability.
Outlook (FY2025): housing revenues $6.10–$6.20B; ASP ~$483K; homebuilding operating margin ~8.9% (ex. charges), with housing gross margin 19.2–19.3% and SG&A 10.2–10.3%; effective tax rate ~23%; ending community count ~260. The company expects continued share repurchases in Q4 and into fiscal 2026.
