KB Home NYSE:KBH Price, Chart, News & Insight

NYSE:KBH

KB Home Stock Falls 1.3% After Hours as Q3 Revenue and Profit Decline

KB Home shares fell 1.3% in after-hours trading after the homebuilder reported weaker year-over-year third-quarter results amid continued pressure from high mortgage rates and softer housing demand.

Revenue fell 20% to $1.30 billion, while deliveries declined 19% to 2,732 homes. Net income dropped to $65.3 million from $109.8 million, and diluted EPS fell to $1.05 from $1.61. Homebuilding operating margin narrowed to 5.2% from 8.1%, while housing gross margin declined to 16.5% from 18.2%.

Demand indicators were also softer. Net orders fell 12% to 2,604, monthly orders per community declined to 3.1 from 3.8, and the cancellation rate edged up to 18%. Management cited higher mortgage rates, affordability pressure, geopolitical uncertainty and broader economic headwinds as factors making buyers more cautious.

There were some positives. Backlog increased for the first time in four years, with units up 2% and backlog value up 3% to $2.05 billion. Community count also grew, and KB Home maintained its full-year guidance for 10,500–11,000 deliveries and $4.90 billion–$5.10 billion in housing revenue.

The modest after-hours decline suggests investors focused more on the sharp year-over-year deterioration in revenue, earnings and margins than on the maintained outlook and improving backlog.

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WS News 09-23-26

KB Home (NYSE: KBH) traded little changed in premarket trading after reporting second-quarter results that reflected ongoing pressure in the U.S. housing market but met management's expectations.

The homebuilder reported revenue of $1.11 billion, down 27% year-over-year, while diluted earnings per share fell to $0.43 from $1.50 a year earlier. Home deliveries declined 23%, and the average selling price dropped to $461,900 as affordability challenges and a difficult housing environment continued to weigh on demand.

Despite the weaker year-over-year comparisons, investors appeared encouraged by management's comments regarding improving operational performance and expectations for sequentially stronger deliveries and gross margins during the second half of fiscal 2026. The company also highlighted progress in its return to a predominantly built-to-order business model, which represented 73% of net orders during the quarter.

KB Home maintained a solid balance sheet and continued returning capital to shareholders, repurchasing $75 million of stock during the quarter. While the housing market remains challenging due to elevated mortgage rates and affordability concerns, the company's guidance suggests conditions may gradually improve through the remainder of the year.

The muted share price reaction indicates investors are balancing near-term earnings pressure against signs of operational improvement and a more stable outlook for the second half of 2026.

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WS Investor 06-24-26

KB Home secures 1.2 billion dollar revolving credit line and extends 360 million dollar term loan maturity

KB Home disclosed in an 8-K filing that on November 12, 2025 it entered into a new 1.2 billion dollar revolving credit facility with a syndicate of lenders led by Bank of America. The facility replaces the company’s prior 1.09 billion dollar revolver and matures on November 12, 2030. The commitment may be increased to as much as 1.7 billion dollars if additional lenders participate. Proceeds may be used for general corporate purposes.

The homebuilder also amended and restated its existing 360 million dollar senior unsecured term loan, extending its maturity to November 12, 2029.

Both the revolver and term loan include customary financial and operational covenants—covering tangible net worth, leverage, liquidity, interest coverage and borrowing base—as well as restrictions on investments in joint ventures and non-guarantor subsidiaries. A change in control would allow lenders to terminate the revolver and accelerate both facilities. Interest will be based on SOFR or a base rate plus applicable spreads tied to KB Home’s leverage.

The company concurrently terminated its previous revolving credit facility with Citibank with no early-termination penalty.

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European Investor 11-13-25

KB Home (NYSE: KBH) reported third-quarter FY2025 revenue of $1.62 billion (down from $1.75B) and diluted EPS of $1.61 (–21% YoY).

Homes delivered fell 7% to 3,393 and the average selling price eased to $475,700. The housing gross margin was 18.2% ( 18.9% ex. $11.3M in inventory-related charges) versus 20.6% a year ago; homebuilding operating income was $131.2M (8.1% margin).

Net orders slipped 4% to 2,950; backlog ended at 4,333 homes valued at $1.99B. The builder continued returning capital, repurchasing $188.5M of stock in Q3 (3.3M shares) and $438.5M year-to-date, with $261.5M left under authorization. Liquidity totaled $1.16B (including $330.6M cash); debt to capital was 33.2%.

Management said cycle times and build costs improved and noted easing mortgage rates late in the quarter supported affordability.

Outlook (FY2025): housing revenues $6.10–$6.20B; ASP ~$483K; homebuilding operating margin ~8.9% (ex. charges), with housing gross margin 19.2–19.3% and SG&A 10.2–10.3%; effective tax rate ~23%; ending community count ~260. The company expects continued share repurchases in Q4 and into fiscal 2026.

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Global Finance News 09-25-25

KB Home Posts Q2 Earnings of $1.50 Per Share, Boosts Buybacks as Revenues Decline

KB Home reported a second-quarter performance marked by disciplined cost controls, a strong balance sheet, and aggressive share repurchases, despite year-over-year declines in revenue and net income. Total revenue for the quarter reached $1.53 billion, down from $1.71 billion, with 3,120 homes delivered—a decrease of 11%. The average selling price rose slightly to $488,700.

Net income fell to $107.9 million, translating to $1.50 in diluted earnings per share, compared to $2.15 per share in the same period last year. The company attributed the lower earnings to a combination of fewer home deliveries, price concessions, and reduced leverage on fixed costs. The housing gross margin was 19.3%, or 19.7% on an adjusted basis excluding inventory charges, down from 21.1% a year earlier.

Homebuilding operating income for the quarter was $131.5 million with an 8.6% margin. The financial services segment contributed $8.2 million in pretax income, lower than the $13.3 million in the prior-year period due to weaker performance in the mortgage joint venture.

As part of its capital allocation strategy, the company repurchased $200 million worth of common stock—approximately 3.73 million shares at an average price of $53.55. The company indicated plans to continue repurchases in the second half of the year. At quarter-end, KB Home held $309 million in cash and had $1.19 billion in total liquidity.

Net orders fell 13% to 3,460 units, and backlog homes declined to 4,776 from 6,270. The backlog value dropped 27% to $2.29 billion. Cancellation rates increased to 16%. Average community count rose to 254.

For the full fiscal year, KB Home guided housing revenues between $6.30 billion and $6.50 billion, with average selling prices expected in the $480,000 to $490,000 range. Gross margins are projected between 19.0% and 19.4%, with SG&A expected between 10.2% and 10.6%.

The company stated that although market conditions have softened, it remains committed to optimizing its land position, controlling costs, and returning capital to shareholders, with $450 million remaining under its current share repurchase authorization. Book value per share increased to $58.64, up 10% year-over-year.

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ME NEWS 06-24-25

KB Home announced its 2024 fiscal year incentive awards, which were determined by the board of directors' management development and compensation committee on January 23, 2025. For the 2024 fiscal year, eligible participants in KB Home’s annual incentive compensation program received their incentives in both cash and restricted stock. The shares of restricted stock, which will vest in equal installments over three years starting from January 25, 2026, were valued at $67.72 per share, based on the closing price of KB Home's stock on January 23, 2025.

The incentive awards to the company's named executive officers are as follows:

- Jeff J. Kaminski: Total Annual Incentive: $2,249,419 (all in cash).
- Robert V. McGibney: Total Annual Incentive: $3,768,968 (all in cash).
- Jeffrey T. Mezger: Total Annual Incentive: $7,795,702 ($6,295,702 in cash, $1,500,000 in restricted stock, or 22,150 shares).
- Albert Z. Praw: Total Annual Incentive: $1,803,306 (all in cash).
- Brian J. Woram: Total Annual Incentive: $1,671,502 ($1,601,600 in cash, $69,902 in restricted stock, or 1,032 shares).

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European Investor 01-28-25

09-23-26WS News

09-22-26WS News

12-19-25The Investor

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