By Connor Hart

KB Home cut its outlook for the year as it logged fewer orders in its fiscal first quarter, resulting in lower profit and sales.

The homebuilder said Monday it now expects housing revenues of $6.6 billion to $7 billion for its fiscal 2025, down from a prior projection of $7 billion to $7.5 billion. Analysts polled by FactSet expected homebuilding sales of $7.03 billion.

The company also lowered its expected average selling price to $480,000 to $495,000, down from $488,000 to $498,000.

Chief Executive Jeffrey Mezger said the lower outlook reflects fewer orders in the recent quarter.

"Consumers are working through affordability concerns and uncertainties related to macroeconomic and geopolitical issues, which are causing them to move slowly in their homebuying decisions," he said, adding that demand at the start of the spring selling season was softer than historical averages.

Shares fell 9.1% to $56.20 in after-hours trading.

During the recent quarter, KB Home's average selling price rose 4%, to $500,700, while homes delivered fell 9%, to 2,770. Home orders fell 17%, to 2,772.

For its three months ended Feb. 28, the company posted a profit of $109.6 million, compared with $138.7 million in the same quarter last year.

Quarterly earnings came in at $1.49 a share, missing the $1.57 a share that analysts polled by FactSet expected.

Revenue fell 5.2%, to $1.39 billion. Analysts modeled $1.5 billion.

KB Home also said it had appointed Robert Dillard as its chief financial officer, effective March 31.

Dillard most recently served as CFO of Sonoco Products, a packaging and industrial-products company. He will succeed Jeff Kaminski, who announced his retirement last fall.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 24, 2025 16:41 ET (20:41 GMT)

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