Kb Home · NYSE:KBH
Kb Home — Q2 2025 Earnings Presentation
33 slides from Kb Home's earnings presentation, Jun 23, 2025
Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current (
Slide 3: Built to Order Model Provides Competitive Advantages
Built to Order Model Provides Competitive Advantages Buyers Want Choice Buyers Value Choice; Buyers select their floor plan, lot, square footage and As a Result, Our BTO Model Drives personalized finishes in our Design Studios based on what they High Monthly Absorption per Community value and can af
Slide 4: Built to Order Also Attracts Largest Demand Segments of Market
Built to Order Also Attracts Largest Demand Segments of Market A Leader in the 1st Time Buyer Segment While Drawing a Mix of Buyers to Our Communities Q2 2025 Buyer Profile BTO enhances (Based on Homes Delivered) value and affordability Position through choice of 15% our product lot, square footage,
Slide 5: 100% Committed to Our Customers' Satisfaction
100% Committed to Our Customers’ Satisfaction • KB Home’s unique Built to Order® business model begins and ends with the needs of our homebuyers. • We survey homebuyers to find out their priorities and design our homes to meet those needs. Our buyers have choice in personalizing their home to suit t
Slide 6: Second Quarter 2025
Second Quarter 2025 6
Slide 7: Growth-Oriented Geographic Footprint
Growth-Oriented Geographic Footprint Principal Markets West Coast Southwest Central Southeast California, Idaho, Arizona, Colorado, Florida, Washington Nevada Texas North Carolina Q2 2025 Mix West Coast Southwest Central Southeast Homebuilding Revenues 43% 21% 19% 17% Deliveries 31% 21% 26% 22% Aver
Slide 8: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights (all comparisons on a year-over-year basis) Q2 2025 Q2 2024 % Change • Revenues totaled $1.53 billion • Homebuilding operating income was $131.5 million, compared to Housing Revenues $1.53 billion $1.70 billion -10% $188.2 million. – Homebuilding operating income margi
Slide 9: Housing Revenues
Housing Revenues ($ in millions) $1,993 $1,758 $1,746 $1,702 $1,660 $1,574 $1,525 $1,458 $1,379 $1,387 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 9
Slide 10: Average Selling Price
Average Selling Price ($ in thousands) $501 $501 $495 $489 $487 $480 $480 $483 $481 $466 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 10
Slide 11: Homebuilding Operating Income Margin
Homebuilding Operating Income Margin* 11.7% 11.7% 11.4% 11.5% 10.9% 11.1% 10.9% 10.9% 9.3% 9.0% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 11 *Excludes inventory-related charges. See Appendix: Reconciliation of Non-GAAP Financial Measure
Slide 12: Housing Gross Profit Margin – Reported
Housing Gross Profit Margin – Reported 21.5% 21.5% 21.1% 21.1% 21.5% 20.6% 20.7% 20.9% 20.2% 19.3% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 12
Slide 13: Housing Gross Profit Margin – As Adjusted
Housing Gross Profit Margin – As Adjusted* 21.8% 21.6% 21.4% 21.5% 21.2% 20.8% 20.9% 20.3% 20.7% 19.7% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 13 *Excludes inventory-related charges. See Appendix: Reconciliation of Non-GAAP Financial
Slide 14: SG&A Expense Ratio
SG&A Expense Ratio 10.8% 11.0% 10.7% 10.1% 10.1% 10.2% 9.8% 9.9% 9.6% 9.4% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 14
Slide 15: Balanced Land Portfolio
Balanced Land Portfolio Q2 2025 Highlights Lots by Region (in 000’s) • Total inventory was $5.91 billion 22.5 • Total lots owned or controlled were 74,837 21.9 22.4 16.7 19.4 19.7 18.6 18.3 14.8 • Owned lots represented a supply of 14.1 16.7 16.5 16.5 approximately 3 years based on homes 14.7 29.0 2
Slide 16: Average Community Count
Average Community Count 256 257 254 251 253 251 240 240 243 236 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 16
Slide 17: Net Orders per Community per Month
Net Orders per Community per Month 5.5 5.2 4.6 4.5 4.3 4.1 3.6 3.5 2.8 2.7 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 17
Slide 18: Net Order Value
Net Order Value ($ in millions) $2,032 $1,900 $1,582 $1,611 $1,512 $1,543 $1,346 $1,317 $1,002 $933 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 18
Slide 19: Backlog Value
Backlog Value ($ in millions) $3,457 $3,395 $3,315 $3,122 $2,919 $2,792 $2,668 $2,202 $2,288 $2,243 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 19
Slide 20: Generating Significant Gross Operating Cash Flow
Generating Significant Gross Operating Cash Flow ($ in millions) Highlights $3,207 $3,130 $2,884 $2,496 $2,586 From 2021 through 2024: • We generated over $11 billion in gross $1,083 operating cash flow $363 $183 $107 • Approximately 86% of this cash flow was $(37) reinvested in our future growth th
Slide 21: Healthy Capital Structure
Healthy Capital Structure Debt-to-Capital Ratio Highlights Leverage 35.8% 33.4% 32.2% • Since fiscal year-end 2021, we have reduced our 30.7% 29.4% debt-to-capital ratio by 360 basis points 2021 2022 2023 2024 Q2 2025 Liquidity • Total liquidity, including cash and revolver availability, was $1.19 b
Slide 22: The ESG Difference
The ESG Difference 22
Slide 23: Leadership in Sustainable Homebuilding
Leadership in Sustainable Homebuilding Received a record 30 200,000+ ENERGY STAR® Market Leader Awards in 2024 Total U.S. EPA ENERGY STAR Certified New Homes 25,000+ Cumulative Solar Homes 26,000+ Total U.S. EPA WaterSense & Water Smart Homes Approx. $1.3 Billion* Cumulative Utility Bill Savings App
Slide 24: Giving Back to Our Communities
Giving Back to Our Communities 24
Slide 25: Strong Corporate Governance
Strong Corporate Governance Governance Practices: A Snapshot Independent • Nine of our ten directors are independent • Independent directors lead all Board committees Accountable • Directors are elected annually under a majority voting standard In 2025, our directors received an average of 97% sup
Slide 26: Summary
Summary 26
Slide 27: KB Home – A Compelling Story
KB Home – A Compelling Story Key Takeaways Well positioned Existing geographic footprint offers potential for substantially larger scale in markets selected for their long-term economic and demographic growth potential Compelling Focused on 1st time and affordable 1st move-up buyers, while also appe
Slide 28: KB Home is a Stronger, More Profitable Company Today
KB Home is a Stronger, More Profitable Company Today The growth in our scale and profitability, together with the health of our balance sheet, have transformed KB Home into a larger and stronger company. Housing Revenues ($ in billions) Housing Gross Margin(1) $6.90 21.4% 21.1% $6.37 18.7% $4.51 $3.
Slide 29: KB Home is a Stronger, More Profitable Company Today
KB Home is a Stronger, More Profitable Company Today Debt-to-Capital Ratio Capital Returned to Stockholders ($ in millions) 82.1% $468 $422 60.5% 42.3% $97 30.7% 29.4% $20 $12 2012 2016 2019 2023 2024 2012 2016 2019 2023 2024 Return on Equity Book Value per Share 15.7% 16.6% $56.27 12.2% $50.22 6.3%
Slide 30: Robust Share Repurchases
Robust Share Repurchases Share Repurchases ($ in millions) $411 $350 $188 We are returning cash to stockholders $150 through a significant share repurchase 2021 2022 2023 2024 program, utilizing the $1 billion authorization 4.7m shares repurchased 4.9m shares repurchased 9.2m shares repurchased 4.7m
Slide 31: Appendix
Appendix 31
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Housing Gross Profit Margin Housing Gross Profit Margin - As Reported 21.5% 21.1% 21.5% 20.7% 21.5% 21.1% 20.6% 20.9% 20.2% 19.3% Housing inventory-related charges 0.3 0.3 - 0.1 0.1 0.1 0.1 - 0.1 0.4 Housing G
Slide 33: Thank you for your interest in KB Home.
Thank you for your interest in KB Home. For further information, please contact us: Investor Relations (310) 231-4000 investorrelations@kbhome.com 33