KB Home (NYSE:KBH) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

KB Home (NYSE:KBH) posted its quarterly earnings results 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 return on equity of 9.63% and a net margin of 5.96%.The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter in the prior year, the business posted $1.50 earnings per share. The business’s revenue for the quarter was down 27.3% compared to the same quarter last year.

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 0.1%

Shares of KBH opened at $52.59 on Wednesday. The firm has a market cap of $3.29 billion, a price-to-earnings ratio of 13.35, a price-to-earnings-growth ratio of 9.27 and a beta of 1.37. The company’s fifty day moving average is $51.24 and its 200-day moving average is $56.03. KB Home has a 12 month low of $44.03 and a 12 month high of $68.71.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 7th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, May 7th. This represents a $1.00 annualized dividend and a dividend yield of 1.9%. KB Home’s dividend payout ratio is 25.38%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on KBH shares. The Goldman Sachs Group cut 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, March 25th. Truist Financial dropped their price target on shares of KB Home from $54.00 to $50.00 and set a “hold” rating on the stock in a research note on Monday, May 4th. Wall Street Zen lowered KB Home from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Citizens Jmp started coverage on KB Home in a research report on Tuesday, March 24th. They set an “outperform” rating and a $77.00 price objective for the company. Finally, Royal Bank Of Canada lowered their target price on KB Home from $54.00 to $53.00 and set a “sector perform” rating on the stock in a research note on Wednesday, March 25th. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, KB Home presently has a consensus rating of “Hold” and a consensus target price of $59.17.

Hedge Funds Weigh In On KB Home

Several hedge funds have recently bought and sold shares of the business. Parkside Financial Bank & Trust boosted 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 worth $33,000 after acquiring an additional 250 shares in the last quarter. Fulcrum Asset Management LLP bought a new position in shares of KB Home in the 3rd quarter valued at approximately $36,000. Sunbelt Securities Inc. acquired a new stake in KB Home in the 3rd quarter worth approximately $64,000. CIBC Private Wealth Group LLC lifted its stake 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 during the last quarter. Finally, Advisory Services Network LLC bought a new stake in shares of KB Home during the 3rd quarter worth $154,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about KB Home

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

• Positive Sentiment: KB Home reported revenue of $1.11 billion, topping Wall Street expectations and signaling demand was a bit better than feared despite a difficult housing backdrop. KB Home Q2 revenue tops consensus, issues solid full-year guidance
• Positive Sentiment: The company said second-quarter results met or exceeded the midpoint of its guidance ranges, and it highlighted continued shareholder returns with $75 million of common stock repurchased. KB HOME REPORTS 2026 SECOND QUARTER RESULTS
• Positive Sentiment: Shares were supported by investor reaction to the results, which were described as “mixed” but not disappointing enough to derail the stock. KB Home Delivers Mixed Q2 Results, Shares Rise
• Neutral Sentiment: KB Home earned $0.43 per share, matching estimates but down sharply from $1.50 a year earlier, showing margin and housing-market pressure remain significant. KB Home (KBH) Q2 Earnings Meet Estimates
• Negative Sentiment: Revenue fell 27.3% year over year, underscoring the impact of a softer housing market and weaker order trends. KB Home Reports Lower Revenue as Difficult Housing Market Persists
• Negative Sentiment: Management also narrowed its full-year outlook, which suggests caution about the pace of recovery in the housing market. KB Home Reports Lower Revenue as Difficult Housing Market Persists

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.