KB Home reports $1.5 billion in total revenues for Q1 2024

March 21, 2024 | by


KB Home, a leading homebuilding company, recently announced its financial results for the first quarter of 2024. With total revenues reaching an impressive $1.5 billion, the company exhibited strong performance and growth. Diluted earnings per share stood at a commendable $1.76, reflecting the company’s ability to generate substantial profits. Additionally, KB Home reported a stable gross margin of 21.5% and an operating income margin of just under 11%. The quarter witnessed a remarkable 55% increase in net orders, showcasing the growing demand for KB Home’s offerings. Alongside this, the cancellation rate notably improved, indicating buyers’ confidence in the flourishing housing market. As an industry leader, KB Home intends to surpass its previous monthly community order pace in the second quarter and is actively working towards reducing build times, cutting costs, and enhancing customer satisfaction. Furthermore, the company invested $590 million in land acquisition and development during the quarter and plans to increase its investment spend in 2024. With a substantial land portfolio of approximately 55,500 lots, KB Home is positioned to meet the heightened demand in the market.

Q1 2024 Earnings Call

KB Home (KBH) held its Q1 2024 earnings call on March 20, 2024, to discuss the financial performance and key developments during the quarter. The call highlighted positive results, indicating the company’s resilience and ability to capitalize on the current housing market trends.

Total Revenues

During the first quarter of 2024, KB Home generated total revenues of $1.5 billion. This reflects the company’s continued ability to attract buyers and generate sales despite the challenges posed by the ongoing pandemic and economic uncertainties. The strong revenues demonstrate the company’s successful execution of its business strategy.


Moreover, the diluted earnings per share for the quarter were reported at $1.76. This indicates the company’s ability to generate profits and deliver value to its shareholders.


KB Home maintained stable margins during the first quarter of 2024. The gross margin stood at 21.5%, which signifies the company’s efficient cost management and ability to maintain profitability while delivering quality homes to its customers.


Furthermore, the operating income margin was reported to be just under 11%. This margin reflects the company’s ability to effectively manage its operating expenses and generate income from its core operations. KB Home’s ability to maintain healthy margins is a testament to its operational efficiency.

Net Orders

KB Home experienced exceptional growth in net orders during the first quarter of 2024. The company reported a remarkable 55% year-over-year growth in net orders, reaching a total of 3,323 orders. This surge in demand reflects the strong market position of KB Home and the continued confidence of buyers in the housing market.


The significant increase in net orders not only indicates the effectiveness of KB Home’s marketing and sales strategies but also highlights its ability to meet the growing demand for housing.

Cancellation Rate

One of the noteworthy achievements during the first quarter of 2024 was the significant improvement in the cancellation rate. The improved cancellation rate is a positive indication of buyer confidence in the housing market and reflects the trust and satisfaction of customers with KB Home’s products and services.


The company’s commitment to delivering high-quality homes and providing an excellent customer experience has likely contributed to the reduction in cancellations. KB Home’s focus on customer satisfaction and their ability to live up to their promises has garnered trust among homebuyers.

Projected Second Quarter Pace

KB Home anticipates exceeding the monthly community order pace achieved last year in the second quarter. This projection demonstrates the company’s confidence in sustaining its growth momentum and capitalizing on the positive market conditions.

The projected growth in the second quarter is a testament to KB Home’s ability to adapt to market trends and cater to the evolving needs of homebuyers. The company’s strategic planning and effective execution position them well to surpass their prior-year performance.

Increased Production

To meet the elevated demand in the market, KB Home plans to ramp up starts and production levels. The company’s proactive approach to increasing production capacity demonstrates its commitment to fulfilling homebuyers’ needs and capitalizing on market opportunities.

By increasing their production levels, KB Home aims to address the growing demand for housing while maintaining its high standards of quality. This proactive approach will ensure that KB Home remains competitive and captures market share in a fast-paced and dynamic industry.

Focus on Improvements

KB Home places great emphasis on continuous improvement in various aspects of its operations. The company’s focus on reducing build times, driving down costs, and improving customer satisfaction reflects its commitment to delivering value.

By reducing build times, KB Home aims to enhance the efficiency of its construction processes, allowing buyers to move into their new homes sooner. This not only benefits customers but also boosts the company’s overall operational efficiency.

Additionally, by driving down costs, KB Home can strengthen its financial position and maintain competitiveness in the market. The company’s efforts to optimize its cost structure without compromising on quality will enable it to generate sustainable profits.

Furthermore, KB Home’s dedication to improving customer satisfaction ensures that buyers have a positive experience throughout the home buying process. By providing exceptional customer service and addressing customer feedback, the company aims to build long-term relationships with its buyers.

Land Acquisition and Development

During the first quarter of 2024, KB Home invested $590 million in land acquisition and development. This significant investment underscores the company’s strategic focus on expanding its land bank and securing prime locations.

The accelerated investment spend in 2024 indicates KB Home’s commitment to capitalizing on growth opportunities and meeting the increasing demand for housing. These investments in land acquisition and development will enable the company to expand its footprint, develop new communities, and cater to a broader customer base.

Lot Ownership

At the end of the first quarter of 2024, KB Home owned or controlled approximately 55,500 lots, of which 40,100 lots were owned outright. This substantial lot ownership signifies the company’s ability to secure land and signifies a strong foundation for future construction and development.

KB Home’s extensive lot ownership provides the company with the necessary resources to meet the increased demand for housing and further expand its operations. Additionally, a significant number of owned lots indicates the company’s long-term commitment to the market and its ability to sustain growth.

In conclusion, KB Home’s Q1 2024 earnings call highlighted the company’s impressive financial performance, positive growth indicators, and strategic initiatives. With strong revenues, stable margins, and significant net order growth, the company has positioned itself as a leader in the housing market. KB Home’s focus on meeting buyer demands, improving efficiency, and investing in land acquisition and development demonstrates its commitment to sustained success and delivering value to its stakeholders.



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