KB Home (KBH) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenues reached $2.0 billion, up 19% year-over-year, with deliveries rising 17% and EPS up 36% to $2.52 per share.

• Full-year 2024 saw nearly 14,200 homes delivered, $6.93 billion in revenues (up 8%), and $8.45 diluted EPS, with book value per share up 12% to $56.27 and ROE rising to 16.6%.

• Net orders increased 41% year-over-year in Q4, while backlog value declined 16% to $2.24 billion.

• Customer satisfaction reached record levels, with 106 new communities opened and build times reduced by 28%.

• Returned $120 million to shareholders in Q4, totaling $350 million in repurchases for the year, and book value per share increased 12% to $56.27.

Financial highlights

• Q4 housing revenues grew 20% year-over-year to $1.99 billion, with 3,978 homes delivered and a 3% increase in average selling price to $501,000.

• Q4 operating income margin expanded to 11.5%, and gross profit margin rose to 20.9%; SG&A ratio improved to 9.4%.

• Net income for Q4 was $190.6 million, up 27% year-over-year; full-year net income was $655.0 million, up 11%.

• Full-year housing revenues were $6.9 billion, up 8% year-over-year, with EPS up over 20%.

• Debt-to-capital ratio improved to 29.4%, and liquidity at year-end was $1.68 billion.

Outlook and guidance

• 2025 housing revenue guidance set at $7.0–$7.5 billion, with Q1 expected at $1.45–$1.55 billion.

• Average selling price for 2025 projected at $488,000–$498,000, with Q1 flat at $501,000.

• Gross profit margin for 2025 forecasted at 20.0–21.0%, with Q1 at 20.0–20.4%.

• SG&A ratio for 2025 expected at 9.6–10.0%, with Q1 at 10.5–10.9%; effective tax rate for 2025 projected at 24%.

• Ending community count guidance for 2025 is approximately 250.