KB HOME (KBH) FY2025 10-K Annual Report

Filed: Jan 23, 2026
Industrials
Operative BuildersSEC EDGAR

KB HOME (KBH) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Jan 23, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

KB HOME FY2025 10-K Analysis

Business Overview

  • Core business: homebuilding with focus on construction, land acquisition, and community development across multiple U.S. regions
  • New emphasis on accelerated operational strategies to monetize investments, leading to 4 inventory impairment charges and $15.5M charge in 2025
  • Strategic shift: increased focus on faster home selling, building and delivery pace amid rising land development and construction costs
  • Inventory balance $5.67B as of Nov 30, 2025, with 94% expected delivery within 5 years; warranty liability stable, no accrual changes in 2025
  • Noteworthy: $143.7M deposits in land option contracts with potential risks of write-offs if home prices decline; inflation pressures expected to persist into 2026

Management Discussion & Analysis

  • Revenue $6.24B, down 10% YoY driven by homebuilding decline from $6.90B in 2024
  • Homebuilding operating margin 8.2% vs 11.1%, housing gross profit margin 18.6% vs 21.0%
  • Best segment Southeast with net order value down 3% to $1.01B, worst Central down 27% to $1.04B
  • Cash $229M, liquidity $1.43B, land and development capex $2.61B down 8%, buybacks $538.5M repurchasing 9.4M shares
  • 2026 outlook positive with planned new community openings; risks from soft demand, affordability, cancellations at 17%

Risk Factors

  • Government shutdown Oct-Nov 2025 and potential budget impasse post-Jan 30, 2026 risking federal funding delays, notably in California
  • Military conflict in Ukraine exacerbating macroeconomic uncertainties with potential adverse impact on housing demand
  • Insurance underwriting pullbacks in California, Florida, Texas raising risks of homebuyer cancellations due to lack of affordable coverage
  • Competitor pressure intensified by rising resale home supply since mid-2024 forcing price reductions and concessions
  • Dependence on third-party lenders including GR Alliance, with lender performance delays disrupting home closings and sales contract cancellations

KB HOME FY2025 Key Financial Metrics
XBRL

Revenue

$6.2B

-10.0% YoY

Net Income

$429M

-34.5% YoY

Net Margin

6.9%

-258bp YoY

ROE

11.0%

-514bp YoY

Total Assets

$6.7B

-3.7% YoY

EPS (Diluted)

$6.15

-27.2% YoY

Operating Cash Flow

$336M

-7.5% YoY

Source: XBRL data from KB HOME FY2025 10-K filing on SEC EDGAR. All figures in USD.

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