$KBH Earnings:

- Revenues up 19% to $2.00 billion.
- Net income rose 27% to $190.6 million. Diluted earnings per share grew 36% to $2.52, driven by higher net income and the favorable impact of the Company’s common stock repurchases.
- Homes delivered increased 17% to 3,978.
- Average selling price rose 3% to $501,000.
- Homebuilding operating income increased 27% to $229.1 million. The homebuilding operating income margin expanded 60 basis points to 11.5%, reflecting improvements in both the housing gross profit margin and the selling, general and administrative expenses ratio. Inventory-related charges totaled $.9 million for the current quarter and $1.2 million for the year-earlier quarter.
- Financial services pretax income grew 8% to $13.1 million due to increased equity in income of the Company’s mortgage banking joint venture. The mortgage banking joint venture’s results reflected a greater volume of loan originations, largely due to an increase in the number of homes delivered.

“We had a strong finish to 2024, with significant year-over-year growth in our fourth-quarter revenues and diluted earnings per share. Our higher revenues reflected an increase in deliveries, which were driven by faster build times. Net orders rose roughly 40% year over year, as buyers continued to demonstrate a desire for homeownership and housing market conditions improved relative to last year, despite ongoing mortgage interest rate headwinds,” said Jeffrey Mezger, Chairman and Chief Executive Officer. “Our performance in the quarter contributed to a healthy outcome for 2024, as we generated nearly $7.0 billion in total revenues and $8.45 in diluted earnings per share. Operationally, we executed well, opening 106 new communities, significantly reducing our build times and achieving the highest level of customer satisfaction in our Company’s history.”

“In 2025, we will remain focused on expanding our scale, profitability and returns. We believe we are poised for growth having invested over $2.8 billion in land acquisition and development in 2024, and we plan to increase our investment again in 2025. These investments will contribute to future community count growth and, together with our affordably priced personalized homes that our Built to Order model offers, we believe we are well positioned to meet buyer demand. In addition, as in 2024, during which we returned over $420 million to our shareholders through both repurchases and dividends, we intend to continue our balanced capital allocation approach,” concluded Mezger.

https://t.co/mhZfAaucTR