KB Home (NYSE:KBH) Issues Quarterly Earnings Results

KB Home (NYSE:KBH) posted its earnings results on Thursday. The construction company reported $1.92 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $0.13, Zacks reports. KB Home had a return on equity of 12.91% and a net margin of 7.92%.The business had revenue of $1.69 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same quarter last year, the company earned $2.52 EPS. The company’s quarterly revenue was down 15.5% compared to the same quarter last year.

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

• KB Home delivered strong shareholder returns in fiscal 2025, returning over $600 million (including repurchasing ~13% of shares at an average price below book value) while generating nearly $430 million in net income and a 10% increase in book value per share.
• Fiscal 2026 guidance calls for 11,000–12,500 home deliveries (full year) and housing revenues of $5.1–$6.1 billion, with Q1 deliveries of 2,300–2,500 homes and an expected Q1 housing gross margin of 15.4%–16%; margin detail for the full year will be provided after spring selling season visibility.
• Margins remain pressured by pricing pressure, negative operating leverage, higher relative land costs and older spec inventory (aged higher-cost specs must be cleared), which management expects will depress near?term margins and make Q1 a low point.
• Operational improvements are driving cost and cycle benefits — build times improved roughly 20% year-over-year in Q4 (company-wide target of ?120 days achieved, several divisions <100 days), direct costs on new starts fell ~4% sequentially and ~6% year-over-year, supporting a planned shift back toward higher?margin built?to?order (BTO) sales.
• Balance sheet and land position provide flexibility — KB Home ended the year with ~65,000 owned/controlled lots, total liquidity of ~$1.43 billion, an expanded $1.2 billion revolver and no near?term debt maturities until mid?2027, while targeting ~30% debt?to?capital.

KB Home Stock Performance

NYSE KBH opened at $62.78 on Friday. The business’s fifty day moving average is $62.13 and its 200 day moving average is $59.96. The company has a market capitalization of $4.07 billion, a PE ratio of 8.32, a price-to-earnings-growth ratio of 5.12 and a beta of 1.40. KB Home has a fifty-two week low of $48.90 and a fifty-two week high of $72.64.

KB Home Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Investors of record on Thursday, November 13th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, November 13th. This represents a $1.00 annualized dividend and a yield of 1.6%. KB Home’s payout ratio is 13.25%.

Insider Activity at KB Home

In other news, EVP Albert Z. Praw sold 20,284 shares of the stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $60.08, for a total value of $1,218,662.72. Following the completion of the sale, the executive vice president directly owned 104,062 shares of the company’s stock, valued at $6,252,044.96. This represents a 16.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.89% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC lifted its holdings in shares of KB Home by 78.1% in the third quarter. CIBC Private Wealth Group LLC now owns 2,228 shares of the construction company’s stock worth $142,000 after buying an additional 977 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in KB Home in the 3rd quarter worth $451,000. Sunbelt Securities Inc. bought a new position in shares of KB Home during the 3rd quarter valued at about $64,000. Coldstream Capital Management Inc. purchased a new position in shares of KB Home during the third quarter valued at about $257,000. Finally, Advisory Services Network LLC bought a new stake in shares of KB Home in the third quarter worth about $154,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on KBH shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of KB Home in a report on Wednesday, October 8th. Evercore ISI set a $65.00 price target on shares of KB Home and gave the company an “in-line” rating in a report on Tuesday, October 7th. Oppenheimer started coverage on shares of KB Home in a report on Wednesday, September 3rd. They set a “market perform” rating for the company. UBS Group restated a “buy” rating and set a $83.00 price objective on shares of KB Home in a research report on Thursday, September 25th. Finally, Raymond James Financial raised their target price on shares of KB Home from $65.00 to $72.00 and gave the stock an “outperform” rating in a report on Thursday, September 25th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $64.36.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.