KB Home shares are gaining as shipments surge

KB home page (KBH) shares rose on Tuesday, a day after the construction company reported better-than-expected results as deliveries surged.

In the fourth quarter, the company saw earnings per share (EPS) of $2.52, and revenue increased 19% year-over-year to $2 billion. Both numbers exceeded analyst forecasts from Visible Alpha.

The number of home completions increased 17% to 3,978, and the average sales price increased 3% to $501,000. Building a house operating income increased by 27% to $229.1 million, as well as home construction operating margin added 60 basis points (bps) up to 11.5%.

CEO Jeffrey Mezger said the increase in deliveries was due to faster construction times. He noted that new orders were up about 40% on sustained demand and improving market conditions “despite continued mortgage interest rate issues.”

Mezger added that the company spent more than $2.8 billion on land acquisition and development in 2024, and “we plan to increase our investments again in 2025.”

KB Home shares were up more than 3% at $66.16 in intraday trading Tuesday and are up about 10% over the past 12 months.