KB Home (NYSE:KBH) Issues Quarterly Earnings Results

KB Home (NYSE:KBH - Get Free Report) posted its quarterly earnings results on Tuesday. The construction company reported $0.52 earnings per share for the quarter, meeting the consensus estimate of $0.52, FiscalAI reports. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.10 billion. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The company's quarterly revenue was down 22.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.49 EPS.

Here are the key takeaways from KB Home's conference call:

• Company announced a deliberate return to a Built-to-Order (BTO) model, exiting February at 68% BTO orders (above 70% in early March) and targeting 70% BTO deliveries in H2, which management says typically yields a 300–500 basis point gross margin advantage versus inventory homes.
• KB Home lowered full‑year guidance due to Q1 net orders falling short of the level needed to sustain the prior delivery plan and near‑term uncertainty from the Middle East conflict, now guiding to 10,000–11,500 deliveries and $4.8–$5.5 billion in housing revenues for FY2026.
• Operational execution improved: company reduced BTO build time to 108 days, opened a company‑high 276 active communities, and expects a larger, more predictable sold‑not‑started backlog that should support higher H2 deliveries and margins.
• Solid balance sheet and shareholder returns: Q1 results included total revenues of $1.08 billion and EPS of $0.52, repurchase of 843,000 shares (below book value), ~$70 million returned to shareholders in Q1, $1.2 billion liquidity, and ownership/control of over 63,000 lots.
• Margins and costs remain pressured: adjusted housing gross profit margin was 15.5% (down ~480 bps YoY) due to pricing pressure, higher relative land costs and regional mix; management expects gradual margin improvement in H2 but notes risks from lumber, land cost dynamics and interest‑rate/geopolitical volatility.

KB Home Stock Down 0.5%

Shares of KBH opened at $51.87 on Friday. The company has a current ratio of 2.20, a quick ratio of 0.53 and a debt-to-equity ratio of 0.43. KB Home has a 12 month low of $48.90 and a 12 month high of $68.71. The stock's 50 day moving average is $59.34 and its two-hundred day moving average is $60.94. The firm has a market cap of $3.23 billion, a P/E ratio of 10.56, a PEG ratio of 6.93 and a beta of 1.47.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Thursday, February 5th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, February 5th. This represents a $1.00 dividend on an annualized basis and a yield of 1.9%. KB Home's dividend payout ratio is presently 20.37%.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Citizens Jmp assumed coverage on KB Home in a research report on Tuesday. They issued an "outperform" rating and a $77.00 target price on the stock. UBS Group dropped their price objective on shares of KB Home from $71.00 to $63.00 and set a "buy" rating on the stock in a report on Wednesday. Wells Fargo & Company cut their price objective on shares of KB Home from $55.00 to $50.00 and set an "underweight" rating on the stock in a research note on Wednesday. Bank of America reduced their target price on shares of KB Home from $63.00 to $56.00 and set a "neutral" rating for the company in a report on Wednesday. Finally, The Goldman Sachs Group decreased their target price on shares of KB Home from $65.00 to $56.00 and set a "neutral" rating for the company in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, KB Home has an average rating of "Hold" and an average target price of $59.50.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in KBH. United Services Automobile Association purchased a new stake in KB Home in the 1st quarter worth $226,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in KB Home by 5.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,525 shares of the construction company's stock valued at $13,108,000 after purchasing an additional 11,103 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in KB Home by 23.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,530 shares of the construction company's stock valued at $134,000 after purchasing an additional 482 shares in the last quarter. Marshall Wace LLP grew its position in shares of KB Home by 341.2% in the second quarter. Marshall Wace LLP now owns 86,667 shares of the construction company's stock valued at $4,591,000 after purchasing an additional 67,023 shares during the period. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of KB Home in the second quarter valued at about $711,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Key KB Home News

Here are the key news stories impacting KB Home this week:

• Positive Sentiment: Strategic pivot — KBH is shifting toward ~70% built‑to‑order deliveries to protect margins and cashflow in H2 2026, which could improve profitability if demand stabilizes. Built-to-Order Shift
• Positive Sentiment: New analyst interest — Citizens initiated coverage with a Market Outperform, providing some institutional support and a potential catalyst if their thesis gains traction. Citizens Initiates Coverage
• Neutral Sentiment: Q1 results mixed — KBH reported EPS roughly in line with estimates but revenue and deliveries fell sharply year‑over‑year; management provided detailed slides and a transcript for investors to parse the underlying metrics. Earnings Call Transcript
• Neutral Sentiment: Analyst coverage is divergent — some firms maintain buy/overweight views while others cut price targets to the mid‑$50s or lower; consensus now reflects slower near‑term growth. Analyst Reactions
• Negative Sentiment: Guidance cut and macro headwind — Management trimmed full‑year delivery and revenue guidance and explicitly said the Middle East war has reduced buyer traffic and confidence, increasing uncertainty for near‑term demand. WSJ: Cuts Guidance
• Negative Sentiment: Margin and backlog pressure — Revenues fell ~22–23% Y/Y, backlog and home counts slipped, and margin compression forced a reset in expectations for capital returns (buybacks slowing). MarketBeat Deep Dive
• Negative Sentiment: Multiple price‑target cuts and downgrades — Banks including Goldman, Truist, Wells Fargo and others trimmed targets and some lowered ratings, which typically amplifies selling into a weak earnings/guidance print. Price Target Moves

About KB Home

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.