NEW YORK (AP) — Stocks gained ground on Wall Street Friday for a second straight day, wiping away losses from earlier in the week. Technology stocks were once again the main force behind the market's broader moves, especially companies with a focus on artificial intelligence. Both the S&P 500 and the Nasdaq closed out the week with gains, despite several stumbles early this week. The S&P 500 rose 59.74 points, or 0.9%, to 6,834.50. It notched a 0.1% gain for the week. The Dow Jones Industrial Average ro ...

Core Insights - KB Home reported revenue of $1.69 billion for the quarter ended November 2025, a decrease of 15.3% year-over-year, with EPS at $1.92 compared to $2.52 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.65 billion by 2.8%, while EPS also surpassed the consensus estimate of $1.79 by 7.26% [1] Financial Performance - Total backlog of homes stood at 3,128, below the average estimate of 3,400 [4] - Homes delivered totaled 3,619, exceeding the average estimate of 3,506 [4] - Net orders were 2,414, lower than the estimated 2,573 [4] - Average selling price was $465.6 million, slightly below the estimate of $467.42 million [4] - Ending community count was 271, above the estimate of 260 [4] - Total backlog value was $1.4 billion, compared to the average estimate of $1.67 billion [4] - Total revenues from homebuilding were $1.68 billion, surpassing the estimate of $1.64 billion, but reflecting a year-over-year decline of 15.5% [4] - Financial services revenue was $8.69 million, exceeding the estimate of $5.84 million, marking a year-over-year increase of 26.9% [4] - Operating income from homebuilding was $117.1 million, below the average estimate of $139.16 million [4] - Financial services pretax income was $10.61 million, slightly above the estimate of $9.97 million [4] Stock Performance - KB Home shares have returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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]

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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 ...

Bethany Farms is a new luxury community offering modern home designs on private, half-acre home sites, with onsite amenitiesSIMPSONVILLE, S.C., Dec. 18, 2025 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, today announced its newest Greenville luxury home community, Bethany Farms, is now open in the Five Forks area of Simpsonville, South Carolina. The community features single-family homes situated on private, half-acre home sites with surrounding nature vie ...

We came across a bearish thesis on Dream Finders Homes, Inc. on Valueinvestorsclub.com by Woodrow. In this article, we will summarize the bulls’ thesis on DFH. Dream Finders Homes, Inc.'s share was trading at $18.67 as of December 17th. DFH’s trailing and forward P/E were 6.74 and 6.45 respectively according to Yahoo Finance. Copyright: alotofpeople / 123RF Stock Photo Dream Finders Homes (DFH) is a highly leveraged, growth-at-all-costs homebuilder that is now facing severe structural challenges. The com ...

We came across a bearish thesis on Dream Finders Homes, Inc. on Valueinvestorsclub.com by Woodrow. In this article, we will summarize the bulls’ thesis on DFH. Dream Finders Homes, Inc.'s share was trading at $18.67 as of December 17th. DFH’s trailing and forward P/E were 6.74 and 6.45 respectively according to Yahoo Finance. Copyright: alotofpeople / 123RF Stock Photo Dream Finders Homes (DFH) is a highly leveraged, growth-at-all-costs homebuilder that is now facing severe structural challenges. The com ...