☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended February 28, 2025. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the transition period from [ ] to [ ]. Commission File No. 001-09195 KB HOME (Exact name of registrant as specified in its charter) Delaware 95-3666267 (State of incorporation) (IRS employer ...

Markets are trying to digest the new American order of tariffs across the globe. It’s led to some stocks getting absolutely demolished, while others actually stand to gain. There are some areas of the market that had been grappling with economic headwinds well before these tariffs were announced. One stock that’s wrestling with these headwinds is today’s Bear of the Day, KB Home ((KBH).KB Home operates as a homebuilding company in the United States.It builds and sells a variety of homes, including attached ...

I gave a hold rating to KB Home ( KBH ) in January, with my key thesis being that the macro headwinds make KBH's earnings outlook uncertain, and despite improvements in operation efficiency, I did not think it wasI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at ...

Core Viewpoint - KB Home (KBH) reported disappointing fiscal first-quarter 2025 results, with earnings and total revenues missing estimates and declining year over year [1][4] Financial Performance - Adjusted earnings per share (EPS) were $1.49, missing the Zacks Consensus Estimate of $1.56 by 4.5%, and down from $1.76 in the prior year [4] - Total revenues were $1.392 billion, missing the consensus mark of $1.503 billion by 7.4% and down 5.2% year over year [4] Segment Analysis - Homebuilding segment revenues were $1.387 billion, a decline of 5.1% from $1.462 billion in the prior year, with homes delivered decreasing by 9% to 2,770 units [5] - The average selling price (ASP) increased by 4.3% year over year to $500,700 [5] - Net orders fell 17% year over year to 2,772 units, with the value of net orders decreasing to $1.346 billion from $1.582 billion [6] Market Conditions - The results reflect a soft housing market, with homebuyers facing affordability issues due to high mortgage rates and ongoing macroeconomic uncertainties [2] - The company lowered its fiscal 2025 guidance due to these market uncertainties and a lower net orders level [2][12] Financial Position - As of February 28, 2025, KB Home had cash and cash equivalents of $267.8 million, down from $598 million at the end of fiscal 2024 [10] - The debt-to-capital ratio increased to 30.5% from 29.4% at the end of fiscal 2024 [10] Guidance Adjustments - For fiscal 2025, housing revenues are now expected to be in the range of $6.60-$7 billion, down from $7-$7.50 billion [12] - The expected housing gross margin is now between 19.2% and 20%, down from the previous range of 20-21% [13]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - Automation and software tools, including generative AI, are used, but all content is edited and authored by humans [5]

Homebuilder KB Home (NYSE:KBH) reported worse-than-expected fiscal first-quarter earnings and revenue after the close yesterday, slashing its fiscal 2025 revenue outlook as well. In response, no fewer than five analysts lowered their price targets, including Barclays to $56 from $60. At last glance, KBH was down 5.6% to trade at $58.32. The equity is on track for its worst single-day percentage loss since January as it trades at 52-week lows. Shares shed 33.4% in the last six months, and have struggled with ...

Financial Data and Key Metrics Changes - The company reported total revenues of $1.39 billion and diluted earnings per share of $1.49 for the first quarter, reflecting a 5% decrease in housing revenues compared to $1.46 billion in the prior year period [10][43][44] - The number of homes delivered decreased by 9% year-over-year, with 2,770 homes delivered, resulting in a backlog conversion rate of 62%, up from 55% in the previous year [44][45] - The gross profit margin for the first quarter was 20.2%, down from 21.5% in the same quarter last year, primarily due to higher land costs and increased homebuyer concessions [49][50] Business Line Data and Key Metrics Changes - The company experienced a shortfall in deliveries, trailing expectations by approximately 225 homes, with about 150 fewer inventory home sales than projected [11][17] - The average selling price of homes delivered was $500,700, with expectations for the second quarter to be approximately $488,000 [46] - The company generated 2,772 net orders in the first quarter, with a monthly absorption pace per community of 3.6 homes, down from 4.6 homes in the previous year [12][13] Market Data and Key Metrics Changes - Consumer confidence has declined due to affordability concerns and macroeconomic uncertainties, leading to slower homebuyer decisions [9][10] - The spring selling season started slower than previous years, prompting the company to lower its revenue guidance for fiscal 2025 to between $6.6 billion and $7 billion [10][39] - The company noted that Florida was the softest market in terms of sales demand, requiring the most pricing adjustments [110] Company Strategy and Development Direction - The company is focused on maintaining a high community count, with 255 active communities at the end of the first quarter, up 7% year-over-year [24] - Investments in land acquisition and development totaled $920 million, with a focus on capital efficiency and maintaining a healthy balance sheet [35][55] - The company aims to balance pace and price in each community while remaining flexible to market conditions [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the housing market, despite current challenges, and emphasized the importance of adapting to market conditions [35][39] - The company plans to continue improving build times and customer satisfaction while navigating varying market conditions [34][58] - Management acknowledged the need for further actions if market conditions evolve negatively, but noted recent improvements in net orders [15][33] Other Important Information - The company has not seen significant trade labor shortages and reported a 1% decrease in direct costs sequentially and a 3% decrease year-over-year [30][90] - The effective tax rate for the quarter was 21.4%, with expectations for an increase to approximately 24% for the second quarter and full year [53] Q&A Session Summary Question: What level of price adjustments was effective in stimulating demand? - Management indicated that price adjustments ranged from $5,000 to $30,000, with an average reduction of $15,000, which helped improve sales momentum [68][70] Question: How will gross margins evolve in the second half of the year? - Management expects operating margins to improve due to leverage from increased sales volume, despite a 75 basis point hit from price adjustments [76][82] Question: What regional differences exist in sales performance? - Florida was identified as the softest market, requiring more significant pricing adjustments, while Texas markets like Houston and Austin performed better [110][114] Question: How is the company managing its backlog in light of price adjustments? - The company is addressing backlog adjustments on a case-by-case basis, with minimal exposure to backlog issues due to the recent price changes [128]

Investor Presentation First Quarter 2025 1 Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current (at the time made) expectations and projections about future events and are subject to risks, uncertainties, and assumptions about our operations, economic and market fac ...

Monday, March 24, 2025The market narrative for the first trading day of a new week was set very early on today: President Trump suggested his formerly draconian tariff policy on virtually all U.S. trading partners would not be as harsh on April 2nd as previously advertised. While in the abstract, a notion like this might signal wavering leadership, market indexes seized this as nothing but good news.The Dow grew back +597 points, +1.42%, while the S&P 500 went up +100 points exactly, +1.76%. Meanwhile, the ...

Shares of KB Home (NYSE: KBH ) have been a disappointing performer over the past year, losing about 10% of their value and steadily falling in recent months, amid increased concerns about the housing market in a period of still-elevatedOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!A ...