KB Home(US:KBH)2026-01-23 21:31Financial Performance and Projections - As of November 30, 2025, the company had a backlog of homes valued at approximately $X billion, which represents potential future housing revenues [54]. - The company delivered homes in a seasonal pattern, with 30% of deliveries occurring in the second quarter of 2025, compared to 36% in the second quarter of 2024 [60]. - The company does not use interest rate derivative instruments to manage exposure to changes in interest rates, which may affect future earnings and cash flows [319]. - As of November 30, 2025, the total fixed-rate debt is projected to be $1,340,000, with a fair value of $1,333,188 [321]. - The weighted average effective interest rate for fixed-rate debt in 2025 is 5.9%, with specific rates of 7.1% for 2027 and 7.5% for 2030 [321]. - The variable rate debt amounts to $360,000, with a weighted average effective interest rate of 5.4% as of November 30, 2025 [321]. - A 100 basis-point increase in the interest rate would increase annual interest expenses by approximately $3.6 million [321]. - For the year ending November 30, 2024, the total fixed-rate debt is also projected to be $1,340,000, with a fair value of $1,309,700 [322]. - The weighted average effective interest rate for fixed-rate debt in 2024 is 5.9%, with a specific rate of 7.1% for 2027 [322]. - The variable rate debt for 2024 is $360,000, with a weighted average effective interest rate of 6.0% [322]. - The financial services unconsolidated joint venture, KBHS, is exposed to interest rate risk related to its lending activities [324]. - KBHS utilizes best efforts forward sale commitments to manage interest rate risk and does not engage in speculative derivative activities [324]. - The entire loan portfolio of KBHS is held for sale and is subject to best efforts forward sale commitments [324]. Employee and Organizational Culture - Employee turnover for 2025 was 18%, with 16% voluntary departures and 2% involuntary separations, consistent with industry standards [65]. - The company employed approximately 2,118 full-time employees as of November 30, 2025, down from 2,384 in 2024 [62]. - The company has implemented a comprehensive wellness program for employees, promoting physical and mental health [72]. - The company has established partnerships with academic institutions to enhance its talent pipeline and recruit exceptional candidates [68]. - The company has a strong organizational culture, with senior corporate executives maintaining an average tenure of approximately 19 years [62]. Sustainability and Environmental Initiatives - The company has built over 217,000 ENERGY STAR certified homes, saving homeowners an estimated average of over $1,400 annually on utility bills compared to typical resale homes [76]. - The company has committed to building WaterSense labeled homes in all future Arizona, California, and Nevada communities, contributing to an estimated savings of 2.2 billion gallons of water per year [76]. - The company aims to enhance energy efficiency and water conservation in homes, with goals based on EPA standards [76]. - The company has a Supplier Code of Conduct that emphasizes fair treatment of workers and environmentally responsible operations, aligning with its sustainability goals [86]. - The board of directors maintains a governance framework with 90% independent directors and a strong focus on sustainability initiatives, reflecting a commitment to stockholder engagement [88]. - The company has been recognized as one of America's Most Responsible Companies by Newsweek for six consecutive years, highlighting its leadership in environmental and social practices [83]. Community Engagement and Safety - The company has invested in community initiatives through its KB Cares program, focusing on shelter, sustainability, and construction skills [82]. - The company introduced the nation's first new-home community meeting wildfire resilience standards in March 2025, utilizing fire-resistant materials and methods to significantly reduce wildfire spread risk [81]. - The company has partnered with IBACOS® since 2014 for annual jobsite safety reviews, ensuring compliance with safety obligations across nearly 50 checkpoints [80]. - The company aims to expand the application of IBHS standards to other new-home communities in 2026 and beyond, enhancing safety and resilience [81]. Customer Satisfaction - In 2025, the company received 18 division-level AvidCX awards, including the prestigious AvidCX Cup, based on customer satisfaction surveys from new homeowners [84].