KB Home (KBH) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenues grew 19% year-over-year to $2.0 billion, driven by a 17% increase in deliveries and improved build times.

• Diluted EPS for Q4 was $2.52, up 36% from the prior year; full-year EPS was $8.45, up over 20%.

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

• Book value per share increased 12% to $56.27, and return on equity rose to 16.6%.

• Customer satisfaction reached record levels, and 106 new communities were opened in 2024.

Financial highlights

• Q4 housing revenues were $1.99 billion, up 20% year-over-year, with a 17% increase in homes delivered and a 3% rise in average selling price to $501,000.

• Q4 operating income margin was 11.5%, up from 10.9% in the prior year; housing gross profit margin was 20.9%.

• Net income for Q4 was $190.6 million, up 27% year-over-year.

• SG&A expense ratio improved to 9.4% of housing revenues.

• Full-year housing revenues were $6.93 billion, up 8% year-over-year.

Outlook and guidance

• 2025 housing revenue guidance set at $7.25 billion midpoint, with a range of $7.00–$7.50 billion; Q1 expected between $1.45–$1.55 billion.

• 2025 average selling price projected at $488,000–$498,000, slightly lower due to regional mix.

• 2025 gross profit margin expected in the 20.0–21.0% range; Q1 margin forecasted at 20.0–20.4%.

• SG&A expense ratio for 2025 expected at 9.6%–10.0%; effective tax rate projected at 24%.

• Ending community count guidance for 2025 is approximately 250.