KB Home Stock Gains as Deliveries Surge, Driving Profit Above Estimates

Bill McColl

Tue, Jan 14, 2025, 9:18 AM 1 min read

KB home shares rose Tuesday, a day after the home builder posted a big jump in deliveries, boosting its fourth-quarter profit and sales.
The builder said it also saw an increase in the average price of homes sold.
CEO Jeffrey Mezger said homeownership demand continued to grow and market conditions have improved.

KB Home (KBH) shares climbed Tuesday, a day after the home builder reported better-than-expected results as deliveries jumped.

The company posted fourth-quarter earnings per share (EPS) of $2.52, with revenue up 19% from a year ago to $2 billion. Both figures exceeded analysts' forecasts compiled by Visible Alpha.

Homes delivered increased 17% to 3,978, and the average selling price rose 3% to $501,000. Homebuilding operating income grew 27% to $229.1 million, and homebuilding operating margin added 60 basis points (bps) to 11.5%.

CEO Jeffrey Mezger said the boost in deliveries was driven by faster construction times. He noted that new orders climbed by about 40% on continuing demand and improved market conditions, “despite ongoing mortgage interest rate headwinds.”

Mezger added that the company spent more than $2.8 billion in 2024 on land purchases and development, and “we plan to increase our investment again in 2025.”

KB Home shares were up over 3% at $66.16 in intraday trading Tuesday and have added about 10% over the past 12 months.