KB Home, a prominent U.S. homebuilder, reported substantial growth in its fourth quarter and full year results for 2024. The company’s revenues increased by 19% year-over-year to $2.00 billion for the three months ended November 30, 2024. Diluted earnings per share (EPS) grew 36%, reaching $2.52, aided by a net income increase of 27% to $190.6 million.

Total deliveries for the fourth quarter rose 17% to 3,978 homes. Additionally, the average selling price of homes increased by 3% year-over-year to $501,000. Homebuilding operating income saw a 27% boost to $229.1 million, which resulted in an operating income margin expansion of 60 basis points to 11.5%. The housing gross profit margin climbed slightly, reaching 20.9% from the previous 20.7%.

For the full year, KB Home’s revenues totaled $6.93 billion, an 8% increase compared to $6.41 billion in 2023. Homes delivered rose 7% to 14,169. The average selling price stayed relatively stable, increasing to $486,900 from $481,300. The annual net income grew by 11% to $655.0 million, while diluted EPS increased 20% to $8.45.

Net orders for the fourth quarter showed a significant 41% increase, totaling 2,688 homes with a net order value of $1.32 billion. The cancellation rate improved to 17% from 28%, indicating greater demand stability. In contrast, the ending backlog homes totaled 4,434, down from 5,510 in the prior year, equating to a backlog value of $2.24 billion compared to $2.67 billion.

Balance sheet highlights as of November 30, 2024, included total liquidity of $1.68 billion, consisting of $598.0 million in cash and cash equivalents. The total inventory grew by 8% to $5.53 billion. Investments in land acquisition and development also increased significantly, by 58% to $2.84 billion. Stockholders’ equity reached $4.06 billion, up from $3.81 billion, despite stock repurchases amounting to $350 million within the year.

Looking ahead, KB Home provided guidance for 2025, projecting housing revenues between $7.00 billion and $7.50 billion, with an expected average selling price between $488,000 and $498,000. The anticipated homebuilding operating income as a percentage of revenues is approximately 10.7%.

In the fourth quarter alone, the company repurchased 1,264,484 shares at a total cost of $100.0 million. Following these transactions, $700.0 million remains under the current repurchase authorization, which represents about 6% of the company’s outstanding common stock as of the beginning of the fiscal year.

The effective tax rate for the fourth quarter was 23.1%, down from 24.7% a year earlier. Overall, KB Home’s operational performance reflected strong demand, as evidenced by increases in revenues and profit metrics throughout 2024.