KB Home (NYSE:KBH) stock rose 0.36% (As on June 24, 11:21:46 AM UTC-4, Source: Google Finance) after the company topped second-quarter revenue and profit estimates, but cut its full-year sales forecast as the housing market remains sluggish. The Company had total liquidity of $1.19 billion, including $308.9 million of cash and cash equivalents and $881.7 million of available capacity under its unsecured revolving credit facility, with $200.0 million of cash borrowings outstanding. Inventories increased 7% to $5.91 billion. On a year-over-year basis, inventories grew 11%. Investments in land and land development for the 2025 second quarter decreased 23% from the prior-year quarter to $513.9 million. For the six months ended May 31, 2025, total land-related investments increased 14% to $1.43 billion, compared to $1.26 billion for the year-earlier period. The Company’s lots owned or under contract decreased slightly to 74,837, of which approximately 53% were owned and 47% were under contract. Year over year, the total lot portfolio grew 14%, up from 65,533. Net orders of 3,460 decreased 13%. The Company’s ending backlog homes totaled 4,776, compared to 6,270. Ending backlog value was down 27% to $2.29 billion.

KBH in the second quarter of FY25 has reported the adjusted earnings per share of $1.50, beating the analysts’ estimates for the adjusted earnings per share of $1.46. The company had reported the adjusted revenue decline of 10 percent to $1.53 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $1.52 billion. Average selling price increased slightly to $488,700. Homebuilding operating income was $131.5 million, compared to $188.2 million. The homebuilding operating income margin was 8.6%, compared to 11.1%, reflecting a lower housing gross profit margin and higher selling, general and administrative expenses ratio. Net income decreased 36% to $107.9 million.

For fiscal 2025, KB Home lowered its housing revenue forecast for the second straight quarter to $6.30 billion to $6.50 billion, down from the $6.60 billion to $7.00 billion range the company laid out in March and below analysts’ expectations of $6.57 billion. FY 25 Average selling price is expected to be in the range of $480,000 to $490,000 and Homebuilding operating income as a percentage of revenues is projected to be in the range of 8.6% to 9.0%

KB Home expects to generate $1.5 billion to $1.7 billion in revenue for the third quarter, below the $1.8 billion analyst consensus, with an average home selling price of $470,000 to $480,000, below its full-year average projection of $480,000 to $490,000.