KB Home(US:KBH)2025-12-18 21:18Financial 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]