Kaufman & Broad H1 2025 slides: revenue up 10.4%, strategic urban projects advance

Introduction & Market Context

French property developer Kaufman & Broad (EPA:KOF) presented its first-half 2025 results on July 11, showcasing solid performance despite challenging market conditions. The company’s stock closed at €33.30 on July 10, up 1.83% ahead of the presentation.

The French housing market shows early signs of stabilization after a difficult period, with interest rates beginning to normalize. Kaufman & Broad has managed to significantly outperform the broader market in both building permits and construction starts, positioning itself favorably as the market recovers.

As shown in the following chart, the company’s pace of commercialization (sell-out times) remains substantially better than market averages, demonstrating its competitive advantage:

H1 2025 Financial Performance

Kaufman & Broad reported total revenue of €499.4 million for H1 2025, representing a 10.4% increase compared to €452.5 million in H1 2024. This growth was driven by both the housing segment (€406 million, 81% of total) and the tertiary segment (€85.7 million, 17% of total).

The following chart illustrates the revenue breakdown and year-over-year growth:

The company maintained a stable operational margin at 7.7% of revenue (€38.6 million), slightly improving from 7.6% in the previous year. After accounting for financing costs, taxes, and minority interests, Kaufman & Broad achieved a net result of €23.2 million.

The progression from operational result to net result is detailed in the following breakdown:

Kaufman & Broad’s financial structure has strengthened considerably, with financial debt reduced from €105.3 million to just €3.1 million. The company maintains a strong liquidity position of €393.8 million as of May 31, 2025.

The following table provides a comprehensive view of the company’s financial structure:

Housing Activity and Market Position

Housing reservations increased by 8.7% to 2,609 units in H1 2025, compared to 2,400 units in H1 2024. The value of these reservations remained stable at €561.8 million. Notably, the customer mix has shifted, with first-time buyers decreasing from 71% to 65% of reservations, while investors increased from 6% to 11%.

The following chart details this evolution in customer mix:

The company’s commercial offer increased by 20% to 1,951 units, providing a solid foundation for future sales. Meanwhile, Kaufman & Broad’s land portfolio remains substantial at 32,668 lots, representing over six years of activity with 85% located in tight zones.

Strategic Initiatives in Urban Development

Kaufman & Broad is increasingly focusing on urban redevelopment projects, including the transformation of industrial wastelands and office buildings into residential areas. These projects align with sustainability goals and address housing shortages in urban centers.

The company’s tertiary (commercial real estate) activity is also performing strongly, with €85.7 million in revenue and a backlog of €431.5 million. The segment has 113,500 m² under construction, primarily offices (100,800 m²).

As shown in the following breakdown, the tertiary segment represents a significant portion of Kaufman & Broad’s business:

Sustainability and Recognition

Kaufman & Broad has received validation from the Science Based Targets initiative (SBTi) for its carbon emission reduction targets. The company aims to reduce scope 1, 2, and 3 emissions by 46.2% between 2019 and 2030, demonstrating its commitment to sustainability.

The following image details the company’s sustainability commitments:

For the fourth consecutive year, Kaufman & Broad has been awarded the "Best Managed Companies" label, one of only 28 companies to receive this recognition in 2025.

Outlook and Guidance

Looking ahead, Kaufman & Broad has maintained its guidance for 2025, expecting:

• Revenue growth of approximately 5%
• Operational margin between 7.5% and 8%
• Significant treasury position after paying €43.1 million in dividends

The company is well-positioned to navigate the evolving market conditions, with its strong financial structure, strategic focus on urban redevelopment, and outperformance in building permits and construction starts compared to market averages.

Full presentation:

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