KB Home (KBH) Q3 2025 Financial Results Summary

# KB Home (KBH) Q3 2025 Financial Results Summary

**Release Date:** September 24, 2025

KB Home (NYSE: KBH) reported its results for the third quarter ended August 31, 2025. Below is a detailed summary of key financial metrics and operational performance for the quarter.

## Financial Highlights

### **Three Months Ended August 31, 2025 (Year-over-Year Comparisons)**

– **Revenues:**
– Total revenues of **$1.62 billion**, down **7.5%** from **$1.75 billion** year-over-year.

– **Homes Delivered:**
– Homes delivered decreased by **7%** to **3,393** from **3,631**.

– **Average Selling Price:**
– Average selling price slightly decreased to **$475,700**, a dip of about **1%** from **$480,900**.

– **Homebuilding Operating Income:**
– Reported at **$131.2 million**, down from **$189.0 million**, marking a decline of **30.6%**.
– Operating income margin was **8.1%**, down from **10.8%** due to lower housing gross profit margins.

– **Housing Gross Profit Margin:**
– Housing gross profit margin decreased to **18.2%**, down from **20.6%**.
– Excluding inventory-related charges, the adjusted gross profit margin was **18.9%**, compared to **20.7%**.

– **Selling, General and Administrative Expenses:**
– Increased as a percentage of housing revenues to **10.0%** compared to **9.8%**.

– **Financial Services Income:**
– Pretax income from financial services totaled **$8.7 million**, down from **$11.0 million**, a decrease of **20.5%**.

– **Net Income:**
– Net income was **$109.8 million**, down from **$157.3 million**, a decrease of **30.2%**.
– Diluted earnings per share (EPS) was **$1.61**, a decline of **21%** from **$2.04** in the prior year.

### **Nine Months Ended August 31, 2025 (Year-over-Year Comparisons)**

– **Revenues:**
– Total revenues of **$4.54 billion**, a decline of **7.9%** compared to **$4.93 billion**.

– **Homes Delivered:**
– Total homes delivered decreased by **9%** to **9,283** from **10,191**.

– **Average Selling Price:**
– Average selling price increased to **$487,500**, up **1.2%** from **$481,400**.

– **Net Income:**
– Reported net income was **$327.3 million**, down **29.5%** from **$464.4 million**.
– Diluted EPS decreased by **23%** to **$4.60** from **$5.94**.

## Operational Metrics

### **Net Orders and Backlog**

– **Net Orders:**
– Totaled **2,950**, down **4%** from **3,085**.

– **Backlog Homes:**
– Total backlog at **4,333**, down from **5,724**, with a backlog value of **$1.99 billion** compared to **$2.92 billion**.

– **Cancellation Rate:**
– Increased to **17%** from **15%** of gross orders.

– **Community Count:**
– Average community count increased by **3%** to **259**; ending community count rose **4%** to **264**.

## Balance Sheet Highlights

– **Total Liquidity:**
– Total liquidity stood at **$1.16 billion**, including **$330.6 million** in cash and **$831.7 million** available under credit facilities.

– **Inventories:**
– Increased by **6%** to **$5.84 billion** with a year-over-year growth of **3%**.

– **Notes Payable:**
– Increased to **$1.94 billion** from **$1.69 billion**.

– **Stockholders’ Equity:**
– Totaled **$3.90 billion**, down from **$4.06 billion**.

– **Share Repurchase:**
– Approximately **$188.5 million** worth of common stock was repurchased during the quarter.

## Dividend and Share Repurchase

– **Share Repurchase:** The company repurchased approximately **3.3 million shares** at a cost of **$188.5 million**.
– **Dividends:** The report does not explicitly mention the declaration of a quarterly dividend for Q3 2025.

## Guidance for the Future

– **Housing revenues** for the full year are projected in the range of **$6.10 billion to $6.20 billion**.
– **Average selling price** anticipated at approximately **$483,000**.
– **Homebuilding operating income margin** expected to be around **8.9%**.

KB Home continues to focus on strategically enhancing shareholder value through share repurchases while managing operational efficiencies to navigate market challenges.