Wed, Apr 9, 8:20 PM (43 days ago)
KB Home (KBH) reported a 5% decrease in total revenues to $1.39 billion for Q1 2025, compared to $1.47 billion in Q1 2024. Homebuilding revenues fell by 5% due to a 9% drop in homes delivered, partially offset by a 4% increase in average selling price. Financial services revenues declined by 22% year-over-year. Pretax income decreased by 20% to $139.4 million, and net income fell by 21% to $109.6 million. Earnings per share also decreased by 15% to $1.49. The company faced market challenges including elevated mortgage interest rates, housing affordability concerns, and macroeconomic uncertainties. KB Home delivered 2,770 homes in Q1 2025, a 9% decrease from the previous year, and saw a 17% decline in net orders. The company employed targeted sales strategies, including homebuyer concessions and selective price reductions, to stimulate demand. Despite these challenges, KB Home increased investments in land and land development by 57% to $920.3 million, reflecting a strategic focus on future growth. The company ended the quarter with total liquidity of $1.25 billion and remains optimistic about its outlook, projecting housing revenues between $1.45 billion and $1.55 billion for Q2 2025. KB Home's financial health is supported by a strong balance sheet and strategic investments, positioning it for future growth amidst market uncertainties.