KB Home (KBH)

Over the past six months (October 2025 - April 2026), KB Home's stock price decreased by 9.98%, with a 14.90% decrease in the past month. In March 2026, KB Home lowered its guidance for Q2 2026 and the full 2026 fiscal year, citing weak demand. Delivery and revenue targets were reduced by approximately 8%, indicating a double-digit decline from 2025 levels. Margins were under pressure, with Q1 housing gross margin falling to 15.3% from 20.2% in Q1 2025, due to pricing pressure, higher land costs, regional mix, and lower operating leverage. Wolfe Research also lowered its estimates for homebuilders, including KB Home, ahead of the earnings season in April 2026, expecting gross margin guidance to disappoint.

KB Home's performance is influenced by seasonal demand trends, with higher consumer demand for home purchases and net orders typically occurring in the spring and early summer. This selling season leads to more home deliveries and higher revenues from late summer through the fall. However, recent commentary from KB Home in March 2026 indicated a weaker-than-anticipated start to the spring selling season, with demand trending below normal seasonality.

KB Home, founded in 1957, operates in the Consumer Discretionary sector, focusing on homebuilding, which constituted 99.6% of its 2025 revenues. The company constructs various homes, including single-family detached homes, townhomes, and condominiums, catering to diverse buyer segments. KB Home emphasizes personalization, allowing buyers to customize their homes, and focuses on sustainability by building energy- and water-efficient homes. Its financial services segment, accounting for 0.4% of 2025 revenues, offers insurance and title services and provides mortgage banking services through KBHS Home Loans, LLC.

KB Home operates in 49 markets across nine U.S. states, divided into West Coast, Southwest, Central, and Southeast regions. In April 2026, KB Home announced it would relocate its headquarters from Los Angeles to Tempe, Arizona, by spring 2027 to consolidate leadership, lower costs, and leverage the Phoenix metro area's business-friendly environment, while maintaining a presence in California. The company's construction footprint has shifted, with Maricopa County, Arizona, seeing significantly higher home closings than Los Angeles County, California.

KB Home has maintained a strong brand reputation, particularly in customer satisfaction and corporate responsibility. In 2024, KB Home was ranked as the #1 customer-ranked national homebuilder on TrustBuilder® for the fifth consecutive year, achieving 4.5 out of 5 stars. The company achieved its highest-ever full-year overall customer satisfaction score of 96% as measured by AvidCX and received 18 division-level AvidCX awards. In January 2026, KB Home was named to Fortune's 2026 list of World's Most Admired Companies for the tenth time. In March 2026, KB Home was named to Newsweek's 2026 America's Most Charitable Companies list, being the highest-ranked national homebuilder.

KB Home's ownership is predominantly held by institutional investors, accounting for approximately 96.89% as of April 2025 and 98.59% as of March 2025. Key institutional shareholders include Vanguard Group Inc., BlackRock Inc., and State Street Corporation. Insider ownership, representing holdings by current and former executives, accounted for 9.74% in April 2025, with key individual owners including former CEO Bruce Karatz and current Chairman and CEO Jeffrey T. Mezger.