LOS ANGELES - KB Home (NYSE: NYSE:KBH), a prominent American homebuilder, announced today that its Executive Vice President and Chief Financial Officer, Jeff J. Kaminski, will retire in early 2025 after a tenure exceeding 14 years. Kaminski will remain in his role until the filing of the company's 2024 Annual Report on Form 10-K and will aid in the transition of his responsibilities. The company is currently in the process of identifying a successor as part of its planned succession strategy.
Jeffrey Mezger, Chairman and Chief Executive Officer of KB Home, expressed his gratitude for Kaminski's significant contributions to the company, highlighting his pivotal role in enhancing the financial structure and driving the execution of KB Home's growth strategy. Mezger credited Kaminski with strengthening the balance sheet, achieving a low debt-to-capital ratio, and generating substantial cash, which has led to notable stockholder returns and positioned the company for future growth. Kaminski's leadership in developing a strong finance and accounting team and a robust internal control system over financial reporting was also acknowledged.
Kaminski reflected on his time with KB Home as the highlight of his career, noting the company's growth and success in delivering homes to thousands of buyers while enhancing stockholder value. He expressed confidence in KB Home's continued prominence in the national homebuilding landscape.
KB Home, with a history spanning over 65 years, operates in 47 markets and has constructed over 680,000 homes. The company prides itself on its customer-centric approach, personalized homebuying experiences, and leadership in sustainable building practices, having delivered a significant number of ENERGY STAR® certified homes.
The information in this article is based on a press release statement from KB Home.
In other recent news, KB Home reported robust financial results for the third quarter of fiscal 2024, with revenues exceeding $1.75 billion and diluted earnings per share hitting $2.04. Despite the earnings per share falling short of BTIG's estimate, the company saw an 8% increase in home deliveries, reflecting a strong market demand. However, KB Home's third-quarter earnings were slightly impacted by reduced gross margins and average selling prices.
BTIG maintained a neutral rating on KB Home following these results. The firm adjusted its full-year 2024 EPS estimate for KB Home downward to $8.43 from the previous $8.55, due to the company's modestly below expectations fourth-quarter guidance. However, BTIG raised its FY25 EPS estimate for KB Home to $8.95 from $8.60, factoring in the company's revenue goal of $7.5 billion for fiscal year 2025.
These recent developments show KB Home's commitment to growth, as indicated by their significant investment in land acquisition and development, and a comprehensive share repurchase program. Despite a 15% year-over-year decrease in backlog, the company's management is committed to balancing growth investments with shareholder returns, maintaining a healthy liquidity position of $1.46 billion. As KB Home navigates the complexities of the housing market, it remains cautiously optimistic about its future.
InvestingPro Insights
As KB Home prepares for a leadership transition in its finance department, InvestingPro data provides additional context to the company's financial health and market performance. The company's market capitalization stands at $6.26 billion, reflecting its significant presence in the homebuilding industry.
KB Home's financial strength is evident in its ability to maintain dividend payments for 39 consecutive years, as noted in an InvestingPro Tip. This consistency aligns with the company's reported focus on enhancing stockholder value, which CFO Jeff Kaminski helped to achieve during his tenure.
The company's price-to-earnings ratio of 10.55 suggests that it may be undervalued compared to its earnings, potentially indicating a good entry point for investors. This valuation metric is particularly interesting given KB Home's strong market performance, with a remarkable 88.33% price total return over the past year.
An InvestingPro Tip highlights that KB Home operates with a moderate level of debt, which corroborates the press release's mention of the company achieving a low debt-to-capital ratio under Kaminski's leadership. This prudent financial management has likely contributed to KB Home's ability to generate substantial cash and position itself for future growth.
For investors seeking more comprehensive insights, InvestingPro offers 12 additional tips for KB Home, providing a deeper analysis of the company's financial health and market position.
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