KB Home reported its fourth-quarter and full-year results for 2024, highlighting strong performance amid a challenging housing market. The company generated total revenues of $2.00 billion in the fourth quarter, marking a 19% increase compared to the same period last year. This uptick was driven by a 17% rise in housing deliveries, which totaled 3,978 homes, alongside a 3% increase in the average selling price, now at approximately $501,000.

The homebuilder’s diluted earnings per share (EPS) rose significantly, increasing 36% to $2.52 for the fourth quarter, up from $1.85 a year earlier. For the full year, KB Home’s revenues reached nearly $7.0 billion, an increase of 8% compared to 2023, and the company reported diluted EPS of $8.45, up from $7.03.

KB Home’s operating income in the fourth quarter improved by 27% to $229.1 million. The operating income margin expanded to 11.5%, reflecting a 60 basis point improvement from the previous year’s fourth quarter. The company’s housing gross profit margin also increased to 20.9%, up from 20.7% in the prior year, while adjusted gross profit margin held steady at 20.9%.

In terms of net orders, KB Home experienced robust growth with 2,688 orders recorded in the fourth quarter, a 41% increase from the previous year. The cancellation rate improved to 17% from 28%, and net order value for the quarter rose to $1.32 billion. The average monthly net orders per community jumped to 3.5, compared to 2.7 in last year’s fourth quarter.

At the end of the fourth quarter, the company’s backlog totaled 4,434 homes valued at $2.24 billion, down from 5,510 homes valued at $2.67 billion a year earlier. The average community count increased by 8% to 256, reflecting KB Home’s continued expansion in community engagements, with the company opening 106 new communities during the year.

Looking ahead, KB Home provided guidance for 2025, forecasting housing revenues in the range of $7.0 billion to $7.5 billion, with average selling prices expected to be between $488,000 and $498,000. The company anticipates a housing gross profit margin of approximately 20.0% to 21.0% and a homebuilding operating income margin of around 10.7%.

The company plans to invest significantly in land acquisition and development, with a total investment of $2.84 billion in 2024, which was a 58% increase year-over-year. KB Home ended the year with total liquidity of $1.68 billion and a debt-to-capital ratio of 29.4%, down from 30.7% a year ago.

Throughout the fourth quarter, KB Home returned $100 million to shareholders through stock repurchases, adding to a total of approximately $350 million in share buybacks for the year. This initiative demonstrates the company’s ongoing commitment to enhance shareholder value while maintaining a solid liquidity profile.