KB Home recently released its 10-K report, detailing its financial performance for the fiscal year ended November 30, 2024. The company operates as a homebuilding company in the United States, with operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. KB Home builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums, primarily targeting first-time, first move-up, second move-up, and active adult homebuyers.
In the fiscal year 2024, KB Home reported total revenues of $6.93 billion, an 8% increase from the previous year. The homebuilding segment accounted for $6.90 billion of the total revenues, representing an 8% growth from 2023. The company delivered 14,169 homes in 2024, a 7% increase from the prior year, with an average selling price of $486,900. Approximately 50% of the homes delivered were to first-time homebuyers.
KB Home's net income for 2024 was $655.02 million, an 11% increase from 2023, and its diluted earnings per share grew by 20% year-over-year. The company's return on equity for 2024 was 16.6%, compared to 15.7% in 2023, showcasing its strong financial performance.
The company's investments in land and land development for 2024 increased by 58% year-over-year to $2.84 billion. Additionally, KB Home repurchased approximately 4.7 million shares of its common stock at a total cost of $350.0 million in 2024. The company also increased its quarterly cash dividend on common stock by 25% to $.25 per share in the second quarter of 2024.
KB Home ended 2024 with total liquidity of $1.68 billion, comprised of $598.0 million of cash and cash equivalents and $1.08 billion of available capacity under its Credit Facility. The company had no cash borrowings outstanding under the Credit Facility at November 30, 2024.
In terms of operational performance, KB Home's net orders in 2024 increased by 18% year-over-year to 13,093, and the pace of monthly net orders per community rose to 4.4 from 3.8 in 2023. The company's cancellation rate as a percentage of gross orders for the 2024 fourth quarter improved to 17%, from 28% for the 2023 fourth quarter. Additionally, the company's ending backlog at November 30, 2024, was down 20% year-over-year to 4,434 homes.
KB Home's strong financial results for 2024 were attributed to its operational execution, despite uneven market conditions driven primarily by buyer discomfort with volatile mortgage interest rates, persistent inflationary pressures, and general economic concerns. The company focused on balancing pace, price, and construction starts at each community to optimize its return on each inventory asset within its market context. KB Home also implemented price increases in most of its communities in the first half of 2024 and selectively adjusted prices at certain communities in the third quarter to help stimulate demand. As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $66.85. If you want to know more, read the company's complete 10-K report here.