KB Home (KBH)

In March 2026, KB Home reported disappointing Q1 2026 results, missing analyst expectations for both earnings and revenue due to weak demand, elevated mortgage rates, inflation, and geopolitical uncertainties. Revenues decreased by 23% year-over-year to $1.08 billion, and diluted earnings per share dropped by 65% to $0.52. Analysts lowered their forecasts and price targets, and the company's Q1 housing gross margin fell to 15.3%. KB Home's stock hit a new 52-week low of $48.04 in early May 2026. Despite these challenges, KB Home continued its share repurchase program, buying back approximately 0.8 million shares at a cost of $50.0 million in Q1 2026, and expects stronger financial results in the second half of fiscal 2026.

KB Home traditionally experiences higher consumer demand for home purchases in the spring and early summer, leading to more home deliveries and higher revenues from late summer through the fall. However, recent macroeconomic factors have disrupted these patterns. In Q1 2026, KB Home noted a tepid demand environment and softer-than-expected housing demand, with concerns surrounding the conflict in the Middle East adding uncertainty. The company observed solid traffic in its communities and an improvement in weekly sales after making pricing adjustments in mid-February 2026. First-time homebuyers continue to be sensitive to mortgage payment changes, showing stronger interest in smaller, energy-efficient floor plans and flexible financing options.

KB Home, operating in the Consumer Discretionary sector within the Residential Construction industry, is a U.S. homebuilder known for personalized and energy-efficient homes. The company designs, constructs, and sells various new homes, including single-family homes, townhomes, and condominiums, using a "Built to Order" approach. KB Home also offers financial services such as mortgage banking, property and casualty insurance, and title services. The company is a leader in sustainability, building ENERGY STAR certified homes with high HERS Index scores.

KB Home operates in 49 markets across nine states, categorized into West Coast, Southwest, Central, and Southeast regions. The West Coast includes California, Idaho, and Washington. The Central region includes Colorado and Texas. The Southwest region includes Arizona and Nevada. The Southeast region includes Florida and North Carolina. The company is expanding its presence in key markets like Texas, Arizona, and 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, and achieved its highest-ever full-year overall customer satisfaction score of 96% on AvidCX™. In January 2026, KB Home was named to Fortune's World's Most Admired Companies list for the 10th time. In March 2026, Newsweek® recognized KB Home on its 2026 America's Most Charitable Companies list. KB Home was also named one of America's Most Responsible Companies by Newsweek in 2023 for the third consecutive year.

KB Home's ownership is predominantly held by institutional investors, accounting for approximately 98.59% of the stock as of May 2025. Major institutional owners include BlackRock Inc., Vanguard Group Inc., FMR LLC, State Street Corp, Capital World Investors, Dimensional Fund Advisors Lp, and Geode Capital Management, Llc. Insider ownership collectively accounted for about 9.74% in April 2025, with major individual owners including Jeffrey T. Mezger, Bruce Karatz, Robert V. McGibney, Jose Miguel Barra, Stuart A. Gabriel, Thomas W. Gilligan, and Cheryl Janet Henry.