Financial Data and Key Metrics Changes - Total revenues for fiscal 2025 exceeded $6.2 billion, with net income of nearly $430 million, resulting in a 10% increase in book value per share [5][6][24] - In Q4 2025, total revenues were just under $1.7 billion, with adjusted diluted earnings per share of $1.92 [7][21] - Housing revenues decreased by 15% in Q4 2025 compared to the previous year, with an average selling price decline of 7% to $466,000 [21][22] Business Line Data and Key Metrics Changes - The company delivered 3,619 homes in Q4 2025, exceeding guidance due to reduced average build times [21] - Housing gross profit margin was reported at 17%, with an adjusted margin of 17.8% after excluding inventory-related charges [22] - The company repurchased 13% of its outstanding shares in 2025, enhancing earnings and book value per share [7][30] Market Data and Key Metrics Changes - The cancellation rate remained stable at 18%, supporting net orders at an average absorption pace of three per month per community [10] - The company experienced a shift towards built-to-order (BTO) homes, with expectations to increase the BTO mix from 57% in Q4 2025 to historical levels of 70% or higher [12][57] Company Strategy and Development Direction - The company aims to enhance its built-to-order sales strategy, which is expected to yield higher margins as the year progresses [20][25] - Plans to open between 35 and 40 new communities in Q1 2026, anticipating a peak community count during the spring selling season [12][29] - The company is focused on maintaining a disciplined approach to pricing, avoiding aggressive sales tactics during slower periods [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, citing favorable demographics and structural undersupply as key demand drivers [7][8] - The company acknowledged challenges such as low consumer confidence and elevated mortgage rates, which are constraining the pool of actionable buyers [8][10] - Management expects to provide more visibility on operating and gross margins as the spring selling season approaches [9][24] Other Important Information - The company invested $665 million in land acquisition and development in Q4 2025, with a focus on developing owned land [18][29] - The company maintained a strong balance sheet with total liquidity of $1.43 billion at year-end 2025 [29] - A new $1 billion share repurchase authorization was approved to support the capital return strategy [30] Q&A Session Summary Question: Can you help understand the conservatism in the gross margin guide? - Management indicated that some inventory needs to be cleared, impacting margins due to higher costs associated with older specs [32][33] Question: Why exclude accelerated stock compensation from adjusted EPS? - The exclusion was made to provide a like-for-like number for better comparison, as the timing of the equity expense was significant [36][37] Question: What are the finished and under-construction specs at the end of the quarter? - The company reported about 1,700 homes in inventory, with over 1,000 at or near the finished stage [41][42] Question: How is the shift to BTO facilitated by new community openings? - New communities allow for a stronger focus on the built-to-order model without competing with existing specs, enhancing the value proposition [46][54] Question: What is the expectation for the BTO mix in the fiscal first quarter? - The BTO mix is expected to remain in the 57%-60% range for Q1, with a goal to reach at least a 70/30 ratio by the end of the year [58][59] Question: What are the assumptions required for potential impairment charges? - Management stated that a significant shift in community profitability would be needed to trigger larger impairment charges, with current evaluations showing no immediate concerns [68][71]

Financial Data and Key Metrics Changes - Total revenues for fiscal 2025 were over $6.2 billion, with net income of nearly $430 million, resulting in a 10% increase in book value per share [4][24] - In Q4 2025, total revenues were just under $1.7 billion, with adjusted diluted earnings per share of $1.92, and a 15% decrease in housing revenues [5][21] - Housing gross profit margin was 17%, with adjusted housing gross profit margin at 17.8%, reflecting a 310 basis point decrease due to pricing pressure and higher land costs [22] Business Line Data and Key Metrics Changes - The company delivered 12,902 homes in fiscal 2025, with a decrease in housing revenues by 10% to $6.21 billion [24] - In Q4 2025, the company produced 3,619 home deliveries, with an average selling price declining 7% to $466,000 [21] - The cancellation rate was stable at 18%, supporting net orders at an average absorption pace of three per month per community [9] Market Data and Key Metrics Changes - The company owned or controlled approximately 65,000 lots at year-end, with 43% controlled [15] - The average cash down payment for buyers was 17%, equating to nearly $80,000, with an average household income of $130,000 and a FICO score of 743 [14] - The company plans to open between 35 and 40 new communities in Q1 2026, expecting to reach a peak community count during the spring selling season [11] Company Strategy and Development Direction - The company is focused on increasing the built-to-order (BTO) sales mix from 57% in Q4 2025 to historical levels of 70% or higher [12] - A disciplined approach to pricing is emphasized, avoiding inflated prices masked by heavy incentives, which is seen as a competitive advantage [6][7] - The company aims to enhance shareholder value through continued share repurchases and a healthy dividend yield of approximately 1.6% [28][29] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the housing market, citing favorable demographics and structural undersupply as key demand drivers [5][6] - The company expects Q1 2026 to be the bottom for margins, with improvements anticipated as the year progresses [60] - Management highlighted the importance of maintaining high customer satisfaction and operational execution to drive results [14][18] Other Important Information - The company returned over $600 million in capital to shareholders in fiscal 2025, including approximately $540 million in share repurchases [17][29] - A new $1 billion share repurchase authorization was approved to support the capital return strategy [29] - The company invested $665 million in land acquisition and development in Q4 2025, with a focus on capital efficiency [17][28] Q&A Session Summary Question: Can you help understand the conservatism in the gross margin guide? - Management acknowledged the need to clear older inventory built at higher costs, impacting margins, and emphasized that the guidance is realistic rather than conservative [32][34] Question: Why exclude accelerated stock compensation from adjusted EPS? - The company aimed to provide a like-for-like number for better comparison, given the timing of the equity expense [36][37] Question: What are the finished and under-construction specs at the end of the quarter? - The company reported about 1,700 homes in inventory, with over 1,000 at or near the finished stage [40][41] Question: How does the new community facilitate the shift to BTO? - New communities allow for a stronger focus on BTO sales without competing with existing specs, enhancing the value proposition for customers [46] Question: What is the expectation for pricing in fiscal 2026? - The pricing expectation is driven by a mix of higher-end communities opening, rather than an assumption of price increases [72] Question: How will capital return to shareholders look beyond Q1? - The company plans to maintain a similar capital return strategy of $50 million to $100 million per quarter, evaluating opportunities as the year progresses [75]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Company Overview - KB Home has built approximately 700,000 homes since its founding in 1957[5] - The company operates in 49 major markets across 9 states[8] - KB Home has returned over $1.9 billion to stockholders through repurchases and dividends since Q3 2021[11] Q4 2025 Financial Highlights - Housing revenues totaled $1.68 billion, a decrease of 16% compared to $1.99 billion in Q4 2024[52] - Deliveries decreased by 9% to 3,619 homes, compared to 3,978 homes in Q4 2024[52] - The average selling price decreased by 7% to $465,600, compared to $501,000 in Q4 2024[52] - Net orders decreased by 10% to 2,414, compared to 2,688 in Q4 2024[52] - Backlog value decreased by 37% to $1.40 billion, compared to $2.24 billion in Q4 2024[52] - Book value per share increased 10% to $61.75[52] Capital Allocation and Balance Sheet - The company repurchased approximately 1.6 million shares of its outstanding common stock at a total cost of $100 million during the quarter[52] - Total liquidity was $1.4 billion, including $228.6 million of cash and cash equivalents and nearly $1.2 billion of available capacity under the company's unsecured revolving credit facility[52] - Share repurchases totaled $538 million in 2025[41]

The home builder reported a quarterly profit of $101.5 million as the stagnant housing market continued to eat into its finances. ...

KB Home (KBH) shares gapped down 5.3% in Thursday after-hours trading even after turning in better-than-feared headline results for FQ4 as the homebuilder navigated persistent challenging housing market conditions. The firm sees fiscal-year 2026 deliveries of 11K-12.5K homes (midpoint 11.25K), compared with ...

Financial Performance - Revenues for Q4 2025 totaled $1.69 billion, down from $2.00 billion year-over-year[4] - Net income for Q4 2025 was $101.5 million, compared to $190.6 million in the prior year[4] - Adjusted diluted earnings per share for Q4 2025 was $1.92, down from $2.53 year-over-year[4] - Total revenues for the three months ended November 30, 2025, were $1,694,378, a decrease of 15.3% compared to $1,999,899 in the same period of 2024[18] - Homebuilding revenues for the twelve months ended November 30, 2025, were $6,211,905, down 10% from $6,902,239 in 2024[18] - Operating income for the three months ended November 30, 2025, was $117,098, a decline of 48.9% from $229,099 in the prior year[18] - Net income for the twelve months ended November 30, 2025, was $428,789, down 34.5% from $655,018 in 2024[18] - Adjusted net income for Q4 2025 was $125,710, down 34.2% from $191,217 in Q4 2024[29] - Diluted earnings per share for Q4 2025 were $1.55, compared to $2.52 in Q4 2024[29] Sales and Deliveries - Homes delivered decreased by 9% to 3,619 units in Q4 2025[4] - Total homes delivered in Q4 2025 were 3,619, a decrease of 9.0% from 3,978 in Q4 2024[24] - Net orders for Q4 2025 totaled 2,414, down 10.2% from 2,688 in Q4 2024[24] - Total net order value for Q4 2025 was $1,099,317, a decrease of 16.5% compared to $1,316,653 in Q4 2024[24] - The company plans to deliver between 11,000 to 12,500 homes in 2026[14] Pricing and Margins - Average selling price declined by 7% to $465,600 in Q4 2025[4] - The average selling price for homes in the total market decreased to $465,600 in the three months ended November 30, 2025, from $501,000 in the same period of 2024[22] - Adjusted housing gross profit margin for Q4 2025 was 17.8%, compared to 20.9% in Q4 2024[26] - Total housing gross profits for Q4 2025 were $285,596, down from $415,760 in Q4 2024[26] Liquidity and Capital Management - Total liquidity as of November 30, 2025, was $1.43 billion, including $228.6 million in cash[10] - The company repurchased $100.0 million of common stock in Q4 2025, totaling approximately 9.4 million shares repurchased for the year[10] - Cash and cash equivalents decreased to $228,614 as of November 30, 2025, from $597,973 in 2024, reflecting a decline of 61.8%[20] - Total assets as of November 30, 2025, were $6,680,252, down from $6,936,169 in 2024, indicating a decrease of 3.7%[20] - Total liabilities decreased to $2,779,394 as of November 30, 2025, from $2,875,553 in 2024, a reduction of 3.3%[20] Other Financial Metrics - The effective tax rate for Q1 2026 is projected to be approximately 19.0%[14] - Financial services pretax income for the twelve months ended November 30, 2025, was $34,979, down 28.4% from $48,890 in 2024[18] - The company reported a loss on early extinguishment of debt of $954 for the three months ended November 30, 2025[18] - The company incurred inventory-related charges of $13,700 in Q4 2025, compared to $912 in Q4 2024[29] Backlog - Total backlog as of November 30, 2025, was 3,128 homes valued at $1,403,352, down from 4,434 homes valued at $2,242,907 in the previous year[24]

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves : The S & P 500 was making a comeback Thursday following four straight sessions of declines. Technology rebounded from recent losses after Micron signaled that strong demand for its AI memory chips will continue. Micron shares surged more than 12%. However, the AI trade was not carrying Thursday's market. What was actually wo ...

KB Home (NYSE:KBH) will release earnings results for its fourth quarter after the closing bell on Thursday, Dec. 18.Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.79 per share, down from $2.52 per share in the year-ago period. The consensus estimate for KB Home's quarterly revenue is $1.66 billion, compared to $2 billion a year earlier, according to data from Benzinga Pro.On Oct. 27, KB Home announced a new $1 billion share repurchase authorization.KB Home share ...

KB Home (NYSE:KBH) will release earnings results for its fourth quarter after the closing bell on Thursday, Dec. 18.Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.79 per share, down from $2.52 per share in the year-ago period. The consensus estimate for KB Home's quarterly revenue is $1.66 billion, compared to $2 billion a year earlier, according to data from Benzinga Pro.On Oct. 27, KB Home announced a new $1 billion share repurchase authorization.KB Home share ...