KBH KB HOME

Overview and Growth

Fiscal 2025 results for KB HOME combined $6.24B of revenue with net income of $428.79M and an operating cash inflow of $335.68M. The $6.24B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 10.0% from $6.93B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. On a per-share basis, diluted EPS was $6.15, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 27.2% decrease from fiscal 2024 diluted EPS of $8.45. The diluted weighted-average share count was 69.25M, linking total earnings with the per-share result received by shareholders. Compared with 76.95M diluted shares in fiscal 2024, the current 69.25M base was 10.0% lower. Total assets stood at $6.68B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.93x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After all reported below-operating-line items, the company recorded net income of $428.79M for the fiscal year. Net margin was 6.9%, meaning that this portion of revenue remained as net income after all recognized expenses. The company recognized $125.40M of income tax for the period, completing the transition from pretax income to net income. Net income equaled 11.0% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 6.4%, showing earnings relative to the full balance sheet. Against $655.02M in fiscal 2024, the current $428.79M bottom line finished below the prior-year result in absolute terms.

Liquidity and Capital Structure

At period end, the $6.68B asset base was financed through $2.78B of liabilities and $3.90B of equity. Reported cash and equivalents were $230.44M, separating immediately recognizable cash resources from the rest of the current-asset base. Book equity represented 58.4% of total assets, quantifying the balance-sheet share supported by shareholder capital. Liabilities represented 41.6% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 3.4%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 3.7% from $6.94B in fiscal 2024, leaving current total assets lower year over year. Reported equity changed 3.9% from $4.06B in fiscal 2024, placing the current capital base lower year over year. The reported cash balance changed 61.5% from $599.19M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported $335.68M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 0.78x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $48.40M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 14.4% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $287.28M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 4.6%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 4.3% of total assets, relating post-investment cash generation to the company’s resource base. The operating cash outcome moved from $362.72M in fiscal 2024 to $335.68M, ending below the prior-year level.

Based on the annual report for the fiscal year ending Nov 30, 2025. Analysis generated Oct 21, 2026.