Kb Home Stock Earnings Reports

KB Home reported 2Q FY26 results broadly in line with guidance: revenues of ~$1.1B and diluted EPS of $0.43. Management emphasized a strategic return to a predominantly built-to-order (BTO) model — 73% of 2Q net orders were BTO and ~60% of 2Q deliveries were BTO — which they say improves visibility, reduces margin risk, and provides negotiating leverage with trade partners. Key operational wins include a 26% sequential backlog increase to ~4.53k homes, reduced finished unsold inventory (down to 11% of production), and faster build times (down 8 days sequentially to ~100 days on BTO homes). Financial priorities remain balanced: investing in land and development (~$500M in 2Q), maintaining liquidity ($1.12B total), controlling leverage (debt-to-capital ~34%), and returning capital (repurchased 1.4M shares in 2Q and paid dividends). Management provided updated guidance: 3Q deliveries of 2.6k–2.8k homes, FY26 homes delivered narrowed to 10.5k–11.0k, FY revenues $4.9B–$5.3B, and housing gross profit margin expected to improve sequentially with 3Q guide of 16.0%–16.6% and full-year 16.1%–16.5% (excluding inventory charges). Risks called out include affordability pressure from elevated mortgage rates, material cost volatility (notably lumber), and macro/geopolitical uncertainty, but management expects sequential delivery, revenue, and margin improvement in H2 FY26 and to enter FY27 with improved backlog and operating cadence.