Q4 2025 KB Home Earnings Call Transcript
Key Points
- KB Home (KBH) reported total revenues of over $6.2 billion and nearly $430 million in net income for fiscal 2025, resulting in a 10% increase in book value per share.
- The company expanded its financial flexibility with a new $1.2 billion revolving credit facility and extended its term loan.
- KB Home (KBH) returned more than $600 million to shareholders in fiscal 2025, including dividends, and repurchased 13% of its outstanding shares.
- The company improved build times by approximately 20% year over year, achieving a target of 120 days or better from home start to completion.
- KB Home (KBH) plans to open 35 to 40 new communities in the first quarter of 2026, with expectations to hit a high water mark for community count during the spring selling season.
- The average selling price declined by 7% to $466,000 due to regional and product mix and general market conditions.
- Housing gross profit margin decreased to 17%, with adjusted housing gross profit margin at 17.8%, impacted by pricing pressure and higher land costs.
- Low consumer confidence, affordability concerns, and elevated mortgage rates continue to constrain the pool of actionable buyers.
- The company begins fiscal 2026 with a lower backlog than in previous years, representing 27% of the midpoint of its full-year delivery target.
- KB Home (KBH) faces challenges with aged inventory that was built at higher costs, impacting short-term margins.
Good afternoon. My name is John and I'll be your conference operator today.
I would like to welcome everyone to the KB Home 2025 4th quarter earnings conference call. All participants are in a listen-only mode. Following the company's opening remarks, we will open the lines for questions. This conference call is being recorded, and a replay will be accessible on the KB Home website until January 18, 2026.
I'll now turn the call over to Jill Peters, senior Vice President, Investor relations.
Thank you, Jill. You may now Begin.
Thank you, John. Good afternoon, everyone, and thank you for joining us today to review our results for the 4th quarter and full year of fiscal 2025.
On the call are Jeff Mezger, Chairman and Chief Executive Officer, Rob McGibney, President and Chief Operating Officer.
Rob Dillard, executive Vice President and Chief Financial Officer, Bill Hollinger, senior Vice President and Chief Accounting Officer, and Thad Johnson, senior
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