Brief: KB Home Q3 Revenue USD 1,620.474 Million Vs. IBES Estimate USD 1,588 Million

KB Home

24/09/2025 21:10

Corrects headline to say "beat", not "beats"

Overview

KB Home Q3 revenue of $1.62 bln beats analyst expectations, per LSEG data

Diluted EPS for Q3 declines 21% but beats analyst estimates, per LSEG data

Co repurchased $188.5 mln of common stock in Q3

Outlook

Company sees 2025 housing revenues between $6.10 bln and $6.20 bln

KB Home expects average selling price of approximately $483,000 in 2025

Company projects 2025 homebuilding operating income margin at 8.9%

KB Home anticipates 2025 housing gross profit margin between 19.2% and 19.3%

Result Drivers

OPERATIONAL IMPROVEMENTS - Co made progress in reducing build times and costs, contributing to solid financial results, per CEO Jeffrey Mezger

SALES APPROACH - Consistent sales strategy focused on offering value at transparent prices supported results

MORTGAGE RATES - Easing mortgage interest rates improved affordability, encouraging sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.62 bln
$1.59 bln (8 Analysts)
Q3 EPS
Beat
$1.61
$1.5 (11 Analysts)
Q3 Net Income
Beat
$109.83 mln
$102.80 mln (10 Analysts)
Q3 Homebuilding Operating Income
$131.16 mln
Q3 Housing Adj. Gross Margin
18.9%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the homebuilding peer group is "buy."

Wall Street's median 12-month price target for KB Home is $65.00, about 4% above its September 23 closing price of $62.41

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBwphgpra

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)