KB Home (NYSE:KBH) Issues Earnings Results

KB Home (NYSE:KBH) posted its quarterly earnings data on Tuesday. The construction company reported $0.43 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.01), FiscalAI reports. KB Home had a net margin of 4.94% and a return on equity of 7.62%. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.09 billion. During the same quarter last year, the business posted $1.50 EPS. The company’s quarterly revenue was down 27.3% on a year-over-year basis.

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

• KB Home said second-quarter results met or exceeded the midpoint of guidance, with $1.11 billion in housing revenue and $0.43 diluted EPS, while adjusted housing gross margin improved sequentially.
• The company emphasized its strategic shift back to a predominantly built-to-order (BTO) model, with BTO representing 73% of net orders and 60% of second-quarter deliveries, which management says should improve predictability, margins, and backlog conversion.
• Backlog increased to 4,526 homes, up 26% sequentially, and management expects backlog growth to turn year-over-year positive in the third quarter, supporting higher deliveries and revenue in the second half of 2026.
• Operational execution improved further, with build times down to 100 days for BTO homes, the lowest in more than a decade, and finished unsold inventory reduced to 11% of total production from 25% in the first quarter.
• Management was upbeat about land and market positioning, highlighting a strong balance sheet, $1.12 billion of liquidity, ongoing share repurchases, and a return to Atlanta and the Bay Area; however, it also acknowledged softer spring demand, affordability pressure, and mortgage-rate volatility.

KB Home Stock Up 16.9%

KBH opened at $61.62 on Thursday. The firm has a 50-day moving average price of $51.43 and a 200-day moving average price of $56.01. KB Home has a twelve month low of $44.03 and a twelve month high of $68.71. The company has a market capitalization of $3.86 billion, a price-to-earnings ratio of 15.64, a PEG ratio of 9.42 and a beta of 1.37.

KB Home Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 7th were paid a $0.25 dividend. The ex-dividend date was Thursday, May 7th. This represents a $1.00 annualized dividend and a dividend yield of 1.6%. KB Home’s dividend payout ratio (DPR) is presently 25.38%.

Key Stories Impacting KB Home

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

• Positive Sentiment: Management signaled that KB Home’s built-to-order strategy is gaining traction, with 73% of net orders coming from built-to-order homes, which should improve visibility into deliveries and support more stable margins ahead.
• Positive Sentiment: The company guided for third-quarter housing revenue of about $1.20 billion to $1.35 billion and gross margin of 16.0% to 16.6%, reinforcing hopes that profitability improves in the back half of 2026. Article Title
• Positive Sentiment: KB Home repurchased $75 million of stock during the quarter, a sign management is still returning capital to shareholders despite a softer housing backdrop.
• Positive Sentiment: Several analysts responded positively after the report, with some raising or reiterating bullish targets, suggesting Wall Street sees upside if margins recover.
• Neutral Sentiment: Q2 results were mixed: revenue of $1.11 billion beat expectations, but EPS of $0.43 missed consensus by a penny and fell sharply from $1.50 a year ago.
• Neutral Sentiment: The broader housing market remains weak, and some commentary noted that demand is still soft even as investors focus on KB Home’s improving execution and strategy reset.
• Negative Sentiment: Revenue declined 27.3% year over year, highlighting the pressure from a difficult housing environment and why the company’s near-term fundamentals remain under strain.

Hedge Funds Weigh In On KB Home

Large investors have recently made changes to their positions in the stock. Parkside Financial Bank & Trust raised its stake in shares of KB Home by 73.1% during the 4th quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock valued at $33,000 after purchasing an additional 250 shares during the period. Fulcrum Asset Management LLP bought a new stake in shares of KB Home during the 3rd quarter valued at about $36,000. Sunbelt Securities Inc. bought a new stake in KB Home during the third quarter valued at approximately $64,000. EverSource Wealth Advisors LLC lifted its position 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 during the last quarter. Finally, CIBC Private Wealth Group LLC grew its stake in KB Home by 78.1% in the 3rd 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. 96.09% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on KBH shares. Truist Financial lifted their price target on KB Home from $50.00 to $56.00 and gave the stock a “hold” rating in a report on Wednesday. Barclays reiterated an “overweight” rating and set a $57.00 target price on shares of KB Home in a research note on Thursday. Weiss Ratings downgraded shares of KB Home from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, May 7th. Citizens Jmp restated a “market outperform” rating and set a $77.00 price target on shares of KB Home in a research report on Wednesday. Finally, The Goldman Sachs Group decreased their price objective on shares of KB Home from $65.00 to $56.00 and set a “neutral” rating for the company in a report on Wednesday, March 25th. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, KB Home has a consensus rating of “Hold” and a consensus price target of $60.17.

KB Home Company Profile

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.