Kaufman & Broad (KOF) Q3 2024 earnings summary

Executive summary

• Maintained strong development momentum with a housing land portfolio of 35,594 lots and housing orders up 5.8% year-over-year to 3,433 lots as of August 2024.

• Housing backlog stands at €2,050M, representing nearly 28–30 months of activity, with 89%–96% of land reserves in high-demand areas.

• Home reservations in value rose 8.0% and in volume by 5.8% year-over-year, outperforming a declining French housing market.

• Confirmed acquisition of a student residence in Reims, expanding the residential offer and leveraging sustainable energy solutions.

• Fitch Ratings reaffirmed the 'BBB-' investment grade rating with a stable outlook in August 2024.

Financial highlights

• Revenue for the first nine months of 2024 was €701.2M, down from €1,083.9M in the prior year period, reflecting a strong base effect from the Austerlitz operation.

• Gross margin reached €146.2M (20.9% margin), with current operating income of €53.5M (7.6% margin).

• Net attributable income was €31.1M, or 4.4% of sales.

• Housing contributed 85.3% of revenue, while commercial property accounted for 12.9%.

• Net cash position increased to €381.5M, with cash and equivalents at €485.5M.

Outlook and guidance

• Full-year 2024 revenue expected around €1.1B, with current operating margin between 7% and 7.5%.

• Group anticipates maintaining a positive net cash position, excluding IFRS 16 and Put Neoresid debt.