KB Home exceeds Q2 revenue expectations despite market challenges
- KB Home reported total revenue of $1.52 billion for Q2 2025, surpassing analyst estimates.
- The company experienced an 11% decrease in home deliveries year-over-year, with net orders falling by 13%.
- Despite challenges, KB Home remains focused on optimizing operations and has adjusted its 2025 revenue expectations.
In the United States, KB Home, a notable homebuilder, published its financial results for the second quarter of the fiscal year 2025 on June 23, 2025. The report revealed a revenue of $1.52 billion, surpassing analyst expectations of $1.51 billion. In conjunction with this, the company reported second-quarter earnings per share of $1.50, which also exceeded predicted earnings of $1.47. Despite these positive revenue figures, the company faced challenges as it delivered 3,120 homes in the quarter, marking an 11% decrease compared to the same period last year. Furthermore, net orders fell by 13% year-over-year to 3,460, indicating a decline in demand amidst shifting market conditions. The report signaled that average selling prices for homes increased slightly to $488,700, suggesting a tendency towards higher market pricing despite reduced sales volume. Additionally, KB Home reported an ending backlog value of $2.29 billion, a significant decline of 27% from the previous year and presented an inventory rise of 7% to $5.91 billion. The company's financial maneuvering included a $200 million repurchase of common stock, leaving $450 million available under its buyback program by the end of May. On the note of financial health, KB Home closed the period with $308.9 million in cash and cash equivalents. Jeffrey Mezger, the chairman and CEO of KB Home, expressed confidence following the results: 'Our second quarter financial performance was solid, with results meeting or exceeding our guidance ranges, as we continue to navigate the current environment. Our team is producing improvements in two key areas, lowering our build times and reducing direct construction costs, helping to strengthen our business.' Looking forward, KB Home has adjusted its full-year 2025 housing revenue guidance, now expecting figures to fall within the range of $6.3 billion to $6.5 billion, down from their previous guidance of $6.6 billion to $7 billion. Anticipated average selling prices for homes in 2025 are expected to be between $480,000 and $490,000. Despite the softened market landscape, Mezger emphasized the company's commitment to optimizing assets for better value, ensuring pricing transparency, and enhancing profit margins.