KB HOME has recently released its 10-K report, providing a comprehensive overview of the company's financial performance and operations. KB Home operates as a homebuilding company in the United States, with operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company builds and sells a variety of homes, including attached and detached single-family residential homes, townhomes, and condominiums, primarily catering to first-time, first move-up, second move-up, and active adult homebuyers. Additionally, KB Home provides financial services such as mortgage banking services, property and casualty insurance services, and title services.
In the 10-K report, KB Home reported total revenues of $6.24 billion for the fiscal year ended November 30, 2025, representing a 10% decrease from the previous year. The company's pretax income for 2025 was $554.2 million, down 35% from 2024. Net income for the year was $428.8 million, a 35% decrease from the previous year. Earnings per share also declined, with basic earnings per share at $6.28 and diluted earnings per share at $6.15, down 28% and 27% respectively from 2024.
The challenging housing market conditions in 2025 impacted KB Home's performance, with net orders decreasing by 11% year over year to 11,596. The average selling price of net orders also decreased by 6% to $463,200. However, the company focused on operational efficiency, maintaining high customer satisfaction levels, improving build times, and lowering construction costs. KB Home also implemented a simplified sales strategy to stimulate demand, which included offering a straightforward, transparent base price with limited concessions or incentives.
The company's homebuilding revenues for 2025 totaled $6.21 billion, down 10% from the previous year. This decline was primarily attributed to a 9% decrease in the number of homes delivered and a slight decrease in the overall average selling price of homes to $481,400. KB Home's homebuilding operating income for 2025 was $507.1 million, compared to $763.9 million for 2024, with an operating income margin of 8.2%, down from 11.1% in 2024.
KB Home's strong balance sheet and liquidity position provided flexibility to navigate the challenging market conditions in 2025. The company maintained investments in land and land development while increasing share repurchases. KB Home ended 2025 with total liquidity of $1.43 billion and 271 active communities, a 5% increase from the previous year. Additionally, the company repurchased approximately 9.4 million shares of its common stock at a total cost of $538.5 million in 2025.
Following these announcements, the company's shares moved -1.48%, and are now trading at a price of $61.32. Check out the company's full 10-K submission here.
