KB Home Q2 revenue falls on fewer homes delivered

KB Home

23/06/2026 21:22

Overview
U.S. homebuilder's Q2 revenue fell 27% yr/yr, slightly beating analyst expectations
Diluted EPS dropped to $0.43 from $1.50 a year earlier
Company repurchased $75 mln of common stock in Q2

Outlook
KB Home sees Q3 deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 bln
Company expects 2026 full-year deliveries of 10,500-11,000 homes and revenues of $4.90-$5.30 bln
KB Home projects sequentially higher delivery volumes and gross margins in final two quarters

Result Drivers
FEWER HOMES DELIVERED - Revenue and profitability fell mainly due to a 23% yr/yr decrease in homes delivered
LOWER SELLING PRICES AND PRICE REDUCTIONS - Average selling price declined and price reductions contributed to lower gross margins
HIGHER LAND COSTS AND REDUCED OPERATING LEVERAGE - Gross margin declined due to higher land costs and less operating leverage

Company press release: ID:nPn2XjsP1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$1.11 bln
$1.10 bln (13 Analysts)
Q2 EPS
 
$0.43
 
Q2 Net Income
 
$27.35 mln
 
Q2 Homebuilding Operating Income
 
$28.15 mln
 
Q2 Housing Adj. Gross Margin
 
15.7%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for KB Home is $56.00, about 6.6% above its June 22 closing price of $52.52
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)