KB Home ( (KBH) ) has released its Q3 earnings. Here is a breakdown of the information KB Home presented to its investors.
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KB Home is a prominent homebuilder in the United States, known for its customer-focused approach and commitment to sustainability, offering personalized, energy-efficient homes across 49 markets.
In its third-quarter earnings report for 2025, KB Home announced revenues of $1.62 billion and a diluted earnings per share of $1.61. The company also highlighted its strategic focus on reducing build times and costs, while maintaining a straightforward sales approach to enhance affordability as mortgage rates ease.
Key financial metrics revealed a 7% decrease in homes delivered and a slight reduction in average selling price to $475,700. Homebuilding operating income fell to $131.2 million, with a margin of 8.1%, impacted by lower housing gross profit margins. Despite these challenges, KB Home repurchased $188.5 million of common stock, contributing to a total return of over $490 million to shareholders in the fiscal year.
Net orders declined by 4%, with a backlog value of $1.99 billion, reflecting a decrease in the number of homes in the backlog. The company maintained a strong liquidity position with $1.16 billion, supported by cash and available credit. Investments in land and land development saw a reduction, aligning with a strategic focus on enhancing shareholder value through stock repurchases.
Looking ahead, KB Home remains optimistic about its growth prospects, with guidance for full-year housing revenues between $6.10 billion and $6.20 billion. The company plans to continue its share repurchase strategy, aiming to bolster long-term shareholder value while navigating market conditions and maintaining operational efficiency.