KB Home : Q1 2025 Investor Presentation
KBH
Investor Presentation
First Quarter 2025
Built to Order Model Provides Competitive Advantages
Buyers Want Choice
Buyers select their floor plan, lot, square footage and personalized finishes in our Design Studios based on what they value and can afford. Approximately 60% to 70% of our business is Built to Order.
Choice Includes Finished Homes
An important complement to our "choice" model is the availability of quick move-in homes in each of our communities to serve the buyer who prioritizes a near-term move-in date over personalization.
Choice Influences Affordability
Buyers are empowered to significantly influence their overall sales price based on their selections, including a non-premium or premium lot and standard finishes or upgrades. Approximately 70% of our communities offer plans with square footage below 1,600-smaller homes with similar room counts and livability, at lower starting base prices without compromising gross margin percentages.
Competitive Differentiator
Resale homes are our largest competitor. Our affordable choice offering provides an important point of differentiation in attracting buyers.
Buyers Value Choice;
As a Result, Our BTO Model Drives
High Monthly Absorption per Community
6.3
4.6
3.9
4.2
4.1
3.1
3.8 3.4
4.4
3.5
*
2020
2021
2022
2023
2024
KBH
Peer Group Average*
3
Sources: Sell-Side Analyst Research and Form 10-K Filings
* Includes CCS, DHI, LEN, MTH, NVR, PHM, TMHC, TOL, TPH
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
Q1 2025 Buyer Profile
(Based on Homes Delivered)
16%
11%
49%
24%
Position
Invest in
our product
to target the
land positions
median
within
household
prime growth
income
submarkets
in each submarket
BTO enhances value and affordability through choice of lot, square footage, floor plan and elevation,
and the ability to personalize in our Design Studios
1st Time
2nd Move-Up
1st Move-Up
Active Adult
While we primarily target the 1st time and affordable 1st move-up buyers, our BTO business model also appeals to 2nd move-up buyers and empty nesters who can make a different set of choices in the same community
4
Dedicated to Providing World Class Customer Service
5 TrustBuilder® data as March 13, 2025.
First Quarter 2025
Growth-Oriented Geographic Footprint
Principal Markets
West Coast
Southwest
Central
Southeast
California, Idaho,
Washington
Arizona, Nevada
Colorado,
Texas
Florida,
North Carolina
Q1 2025 Mix
West Coast
Southwest
Central
Southeast
Homebuilding Revenues
43%
23%
20%
14%
Deliveries
31%
24%
27%
18%
Average Selling Price
$709K
$462K
$367K
$400K
Net Order Value
45%
20%
18%
17%
Backlog Value
40%
22%
18%
20%
7
First Quarter 2025 Highlights
(all comparisons on a year-over-year basis)
Q1 2025
Q1 2024
% Change
Housing Revenues
Deliveries
Average Selling Price
Net Orders
Net Order Value
Backlog Homes
Backlog Value
Ending Community Count
Average Community Count
Absorption (net orders per community, per month)
$1.39 billion
$1.46 billion
-5%
2,770
3,037
-9%
$500,700
$480,100
4%
2,772
3,323
-17%
$1.35 billion
$1.58 billion
-15%
4,436
5,796
-23%
$2.20 billion
$2.79 billion
-21%
255
238
7%
257
240
7%
3.6
4.6
-22%
8
Housing Revenues
($ in millions)
$1,993
$1,758
$1,702
$1,746
$1,660
$1,574
$1,458
$1,379$1,387
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First Quarter
Second Quarter
Third Quarter
Fourth Quarter
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Average Selling Price
($ in thousands)
$495
$501
$501
$483
$481
$487
$480
$480
$466
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First Quarter
Second Quarter
Third Quarter
Fourth Quarter
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Disclaimer
KB Home published this content on March 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 24, 2025 at 22:16:04.247.