Latest news with #homebuilding
Yahoo
a day ago
- Business
- Yahoo
Failed New Zealand scheme is cautionary tale for Carney's homebuilding agency: report
OTTAWA — Researchers with the Montreal Economic Institute say Canada's new federal homebuilding agency is likely to overpromise and underdeliver, drawing a cautionary tale from down under. The free-market think tank argues in a new study that New Zealand's now-defunct homebuilding scheme KiwiBuild, a signature policy of Jacinda Ardern's Labour government, shows why government bureaucrats shouldn't try to play real estate developer. 'New Zealand's experience highlights the limits of government intervention in the real estate market, especially in terms of resource allocation,' write co-authors Gabriel Giguère, Yassine Benabid and Renaud Brossard. Brossard told the National Post he was struck by the similarities between KiwiBuild and the Liberal government's Build Canada Homes. 'If you look at government programs that have been done throughout the world, this is probably the closest thing to what (Prime Minister) Mark Carney's pitching,' said Brossard. KiwiBuild launched in 2018 with the lofty goal of building 100,000 affordable housing units in a decade. It would never come anywhere near meeting this target, completing just 2,389 units by the end of its last full year of activity in 2024. The program was slammed by both politicians and pundits as a 'complete disaster', contributing to Ardern's fall from global progressive darling to her abrupt resignation in early 2023. By one estimate, KiwiBuild would have taken 436 years to hit the original target of 100,000 homes. Brossard said that one critical mistake that KiwiBuild administrators made was relying too heavily on prefabricated homes. 'In some of the areas where they were hoping to build homes for (KiwiBuild), they found that shipping in a prefab home was actually more expensive than just building one in situ,' said Brossard. Carney has promised billions in subsidies to prefabricated and modular home builders, as part of his plan to double the rate of housing construction and build 500,000 new homes a year within a decade. Brossard and his co-authors report that KiwiBuild's prefab homes were often inferior to other housing options available to low and moderate-income families. Some banks were even hesitant to approve mortgages for the prefab homes, given the 'flight risk' involved where delinquents could theoretically load the units onto a truck bed and skip town. Brossard says that the big lesson from KiwiBuild is that civil servants should leave the nuts and bolts of real estate development to the professionals. 'This is what tends to happen with top-down government programs that push one-size-fits-all solutions,' said Brossard. The study recommends that Carney scrap Build Canada Homes and instead focus on creating a friendlier regulatory environment for private real estate developers. Brossard also said that policymakers can stimulate homebuilders by harmonizing professional qualifications for workers in the building trades across provinces and territories. The office of federal Housing Minister Gregor Robertson didn't respond when asked about KiwiBuild by the National Post. National Post Gary Berman: Common-sense solutions to address the housing shortage Developer makes his pitch: Renting our way out of the Canadian housing crisis Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here.
National Post
2 days ago
- Business
- National Post
Failed New Zealand scheme is cautionary tale for Carney's homebuilding agency: report
OTTAWA — Researchers with the Montreal Economic Institute (MEI) say Canada's new federal homebuilding agency is likely to overpromise and underdeliver, drawing a cautionary tale from down under. Article content The free-market think tank argues in a new study that New Zealand's now-defunct homebuilding scheme KiwiBuild, a signature policy of Jacinda Ardern's Labour government, shows why government bureaucrats shouldn't try to play real estate developer. Article content Article content Article content 'New Zealand's experience highlights the limits of government intervention in the real estate market, especially in terms of resource allocation,' write co-authors Gabriel Giguère, Yassine Benabid and Renaud Brossard. Article content Article content Brossard told the National Post he was struck by the similarities between KiwiBuild and the Liberal government's Build Canada Homes. Article content 'If you look at government programs that have been done through out the world, this is probably the closest thing to what (Prime Minister) Mark Carney's pitching,' said Brossard. Article content KiwiBuild launched in 2018 with the lofty goal of building 100,000 affordable housing units in a decade. It would never come anywhere near meeting this target, completing just 2,389 units by the end of its last full year of activity in 2024. Article content The program was slammed by both politicians and pundits as a 'complete disaster', contributing to Ardern's fall from global progressive darling to her abrupt resignation in early 2023. Article content Article content By one estimate, KiwiBuild would have taken 436 years to hit the original target of 100,000 homes. Article content Brossard said that one critical mistake that KiwiBuild administrators made was relying too heavily on prefabricated homes. Article content 'In some of the areas where they were hoping to build homes for (KiwiBuild), they found that shipping in a prefab home was actually more expensive than just building one in situ,' said Brossard. Article content Carney has promised billions in subsidies to prefabricated and modular home builders, as part of his plan to double the rate of housing construction and build 500,000 new homes a year within a decade. Article content Brossard and his co-authors report that KiwiBuild's prefab homes were often inferior to other housing options available to low and moderate-income families.
Yahoo
3 days ago
- Business
- Yahoo
Taylor Morrison Announces Date for Second Quarter 2025 Earnings Release and Webcast Conference Call
SCOTTSDALE, Ariz., June 25, 2025 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC) ("Taylor Morrison"), a leading national developer and homebuilder, announced today that it will release its second quarter 2025 results before the market opens on Wednesday, July 23, 2025. Taylor Morrison will hold a conference call to discuss its results the same day at 8:30 a.m. ET. A live audio webcast of the conference call will be available on Taylor Morrison's website at on the Investor Relations portion of the site under the Events tab. Call participants are asked to register for the event here to receive a unique passcode and dial-in information. The call will be recorded and available for replay on the Company's website. Taylor Morrison's filings will be available on the Company's website or with the SEC at About Taylor Morrison Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation's leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up and resort lifestyle homebuyers and renters under our family of brands—including Taylor Morrison, Esplanade and Yardly. From 2016-2025, Taylor Morrison has been recognized as America's Most Trusted® Builder by Lifestory Research. For more information about Taylor Morrison, please visit CONTACT: Mackenzie Aron, VP Investor Relations Taylor Morrison Home Corp. (407) 906-6262 investor@ View original content to download multimedia: SOURCE Taylor Morrison Home Corp. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
KBH Q2 Deep Dive: Lower Guidance and Market Headwinds Shape 2025 Outlook
Homebuilder KB Home (NYSE:KBH) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales fell by 10.5% year on year to $1.53 billion. On the other hand, the company's full-year revenue guidance of $6.4 billion at the midpoint came in 2.4% below analysts' estimates. Its GAAP profit of $1.51 per share was 2.7% above analysts' consensus estimates. Is now the time to buy KBH? Find out in our full research report (it's free). Revenue: $1.53 billion vs analyst estimates of $1.51 billion (10.5% year-on-year decline, 1.6% beat) EPS (GAAP): $1.51 vs analyst estimates of $1.47 (2.7% beat) Adjusted EBITDA: $144.9 million vs analyst estimates of $164.2 million (9.5% margin, 11.8% miss) The company dropped its revenue guidance for the full year to $6.4 billion at the midpoint from $6.8 billion, a 5.9% decrease Operating Margin: 8.8%, down from 11.4% in the same quarter last year Backlog: $2.29 billion at quarter end, down 26.7% year on year Market Capitalization: $3.82 billion KB Home's second quarter results for 2025 were met with a negative market reaction, as several evolving market headwinds weighed on performance. Management pointed to subdued demand during the spring selling season, with CEO Jeffrey Mezger citing that "affordability challenges have persisted compounded by the variability in mortgage interest rates, which remain elevated as well as macroeconomic and geopolitical uncertainty." Operationally, the company highlighted faster build times and reduced direct costs as partial offsets, but acknowledged that consumer caution and higher resale inventory pressured new order volumes and operating margins. Looking ahead, KB Home's reduced full-year guidance reflects management's expectations for continued softness in homebuyer demand and ongoing margin pressures. The company aims to align its cost structure with lower volumes, while maintaining flexibility to adjust pricing and production pace by community. President Rob McGibney noted that "our strategy focuses on delivering the most compelling value and improving affordability with transparency," but also acknowledged the risk of continued demand weakness if mortgage rates and consumer confidence do not improve. Management signaled an intent to prioritize operational efficiency and shareholder returns as they navigate this uncertain environment. Management attributed second quarter performance to faster build times and cost controls, but noted that consumer confidence and affordability remain key challenges impacting order flow and revenue outlook. Build times improved: The company reduced average build times by 7 days quarter-over-quarter, returning to pre-pandemic levels. Management believes this operational gain allows for quicker inventory turnover and the ability to close more homes within the year, supporting delivery targets even as demand softens. Sales strategy adjustments: KB Home shifted away from offering incentives and instead focused on adjusting base pricing at the community level. While this approach drove strong net orders in March, management reported a decline in April and May as consumers grew more apprehensive about the economy and mortgage rates. Community opening delays: Delays in municipal approvals for new communities pushed back several planned openings, which management estimates cost 'a couple of hundred' net orders in the quarter. They are now emphasizing better coordination with local authorities to mitigate future disruptions. Cost reduction efforts: Direct costs per home started in the quarter were 3.2% lower year-over-year, driven by value engineering, supply chain negotiations, and simplified studio offerings. However, savings were partially offset by higher land costs and reduced pricing power. Land investment moderation: The company scaled back new land spending and canceled contracts for roughly 9,700 lots that no longer met return criteria. Management stated that this measured approach is intended to preserve flexibility and align future community growth with evolving market conditions. Management expects near-term performance to be shaped by cautious consumer sentiment, affordability pressures, and disciplined cost management strategies. Sustained affordability challenges: Elevated mortgage rates and higher resale inventory continue to weigh on buyer confidence, leading management to anticipate subdued order volumes and a slower absorption pace in the coming quarters. The company's pricing strategy remains flexible in response to local market dynamics. Margin and cost discipline: Operating margins are expected to be pressured by reduced pricing power, less favorable regional mix, and higher land costs. Management is targeting further reductions in build times and overhead expenses to help offset these headwinds and maintain profitability. Shareholder return focus: With lower land investment planned for the remainder of the year, KB Home intends to accelerate share repurchases, supported by a strong balance sheet and liquidity. Management views this as a means to enhance earnings per share and return on equity in a challenging market backdrop. In the quarters ahead, the StockStory team will monitor (1) the pace of net order recovery as consumer sentiment and mortgage rates evolve, (2) the company's ability to sustain further reductions in build times and direct costs, and (3) the effectiveness of its strategy to moderate land investment while maintaining a robust pipeline for future community growth. Execution on pricing flexibility and inventory management will also be important indicators of operational resilience. KB Home currently trades at $52.87, in line with $53.36 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
KB Home (KBH) Q2 2025 Earnings Call Highlights: Strong Financial Performance Amid Market Challenges
Total Revenue: $1.5 billion in the second quarter. Diluted Earnings Per Share (EPS): $1.50 in the second quarter. Gross Margin: 19.7%, excluding inventory-related charges. SG&A Expenses: 10.7% of housing revenues. Operating Income Margin: 9% of homebuilding revenues. Net Orders: 3,460 in the second quarter. Average Community Count: 254, a 5% increase year-over-year. Backlog: 4,776 homes valued at $2.3 billion. Average Selling Price: Approximately $489,000. Net Income: $108 million in the second quarter. Book Value Per Share: Nearly $59, a 10% year-over-year increase. Share Repurchases: $200 million in the second quarter. Land Investment: Over $513 million in land acquisition and development. Total Liquidity: $1.2 billion, including $309 million of cash. Debt to Capital Ratio: 32.2%. Release Date: June 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KB Home (NYSE:KBH) delivered solid financial results in the second quarter, meeting or exceeding guidance ranges across key metrics. The company repurchased $200 million of its shares in the second quarter, demonstrating a commitment to returning cash to shareholders. Build times improved sequentially by seven days, returning to pre-pandemic levels, which contributed to exceeding delivery expectations. The company achieved a gross margin of 19.7%, excluding inventory-related charges, which was above the guidance range. KB Home (NYSE:KBH) maintained a high customer satisfaction level, receiving numerous division-level honors from Avid CX. Affordability challenges persist due to elevated mortgage interest rates and macroeconomic uncertainties, impacting consumer confidence and home purchase decisions. Net orders declined in April and May, not following the typical spring trajectory, leading to a revision of fiscal 2025 guidance. The average absorption pace per community decreased to 4.5% net orders compared to 5.5% in the previous year's second quarter. Municipal delays in utility signoffs and certificates of occupancy impacted the timing of community openings, affecting net orders. The company revised its revenue expectation for fiscal 2025 to between $6.3 billion and $6.5 billion, indicating a lower top line and contributing to lower margins. Q: What steps is KB Home taking to manage SG&A costs amid a revenue cut? A: Jeffrey Mezger, Chairman and CEO, explained that KB Home is focused on aligning overhead with revenue and scale. They are adjusting headcount based on delivery needs and exploring various cost-saving measures. The goal is to reduce the SG&A ratio back under 10% over time. Q: Can you explain the factors affecting the gross margin outlook? A: Robert Dillard, CFO, stated that the gross margin outlook is impacted by operating leverage, land costs, and regional mix. While construction cost reductions have offset some pricing pressure, the overall expectation for the full year is a margin between 19% and 19.4%. Q: How is KB Home planning to achieve its fourth-quarter closing targets? A: Rob McGibney, President and COO, highlighted improvements in build times as a key factor. The company needs to sell about 2,500 homes to meet delivery targets, which is less than last year. They are targeting high backlog turnover ratios and leveraging inventory homes for sales. Q: What is the strategy behind KB Home's pricing adjustments in response to market conditions? A: Jeffrey Mezger, CEO, emphasized that KB Home will continue to adjust pricing based on market conditions and community performance. The strategy involves offering the best value through base price adjustments rather than relying on incentives, which is already factored into their guidance. Q: How is KB Home addressing community opening delays and their impact on sales? A: Rob McGibney, COO, acknowledged that community opening delays impacted sales, resulting in missed opportunities for a couple of hundred sales. The company is enhancing coordination with municipal stakeholders to improve forecasting and responsiveness to such delays. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
