KB Home (KBH) Q4 2025 earnings summary

Executive summary

• Delivered nearly 13,000 homes in fiscal 2025, generating over $6.2 billion in revenue and $430 million in net income, with a 10% increase in book value per share.

• Returned more than $600 million to shareholders in 2025, including $540 million in share repurchases and dividends, and repurchased 1.6 million shares for $100 million in Q4.

• Maintained industry-leading customer satisfaction and improved operational efficiency, notably reducing build times by 20% year-over-year.

• Ended the year with 271 active communities, up 5% year-over-year, and plan to open 35-40 new communities in Q1 2026.

• Book value per share increased 10% to $61.75, and stockholders' equity totaled $3.90 billion.

Financial highlights

• Q4 2025 revenues were $1.69 billion, with housing revenues of $1.68 billion, down 15-16% year-over-year; homes delivered fell 9% to 3,619.

• Q4 net income was $101.5 million ($1.55 per diluted share); adjusted net income was $125.7 million ($1.92 per share).

• Q4 housing gross profit margin was 17% (adjusted 17.8%), down from 20.9% last year.

• Full-year 2025 diluted EPS was $6.15; book value per share rose to $61.75.

• Backlog value at quarter-end was $1.40 billion, a 37% decrease.

Outlook and guidance

• Fiscal Q1 2026 housing revenues expected between $1.05-$1.15 billion on 2,300-2,500 deliveries.

• Q1 2026 housing gross profit margin expected at 15.4%-16%, with margins projected to improve through the year as BTO mix increases.

• Full-year 2026 guidance: housing revenues of $5.1-$6.1 billion on 11,000-12,500 deliveries.

• SG&A ratio for Q1 2026 expected at 12.2%-12.8%; effective tax rate to average 24%-26% for the year.

• Planned Q1 2026 share repurchases of $50-$100 million.