KB Home (NYSE:KBH – Get Free Report) posted its quarterly earnings results on Tuesday. The construction company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.01), FiscalAI reports. KB Home had a net margin of 6.88% and a return on equity of 11.40%. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.10 billion. During the same period in the prior year, the business earned $1.49 earnings per share. KB Home’s revenue was down 22.6% compared to the same quarter last year.
Here are the key takeaways from KB Home’s conference call:
- Company announced a deliberate return to a Built-to-Order (BTO) model, exiting February at 68% BTO orders (above 70% in early March) and targeting 70% BTO deliveries in H2, which management says typically yields a 300–500 basis point gross margin advantage versus inventory homes.
- KB Home lowered full‑year guidance due to Q1 net orders falling short of the level needed to sustain the prior delivery plan and near‑term uncertainty from the Middle East conflict, now guiding to 10,000–11,500 deliveries and $4.8–$5.5 billion in housing revenues for FY2026.
- Operational execution improved: company reduced BTO build time to 108 days, opened a company‑high 276 active communities, and expects a larger, more predictable sold‑not‑started backlog that should support higher H2 deliveries and margins.
- Solid balance sheet and shareholder returns: Q1 results included total revenues of $1.08 billion and EPS of $0.52, repurchase of 843,000 shares (below book value), ~$70 million returned to shareholders in Q1, $1.2 billion liquidity, and ownership/control of over 63,000 lots.
- Margins and costs remain pressured: adjusted housing gross profit margin was 15.5% (down ~480 bps YoY) due to pricing pressure, higher relative land costs and regional mix; management expects gradual margin improvement in H2 but notes risks from lumber, land cost dynamics and interest‑rate/geopolitical volatility.
KB Home Price Performance
Shares of KB Home stock opened at $53.03 on Wednesday. The firm has a market cap of $3.35 billion, a PE ratio of 10.80, a PEG ratio of 7.07 and a beta of 1.47. The stock has a 50 day moving average of $59.74 and a 200 day moving average of $61.07. The company has a current ratio of 5.77, a quick ratio of 0.53 and a debt-to-equity ratio of 0.43. KB Home has a 12 month low of $48.90 and a 12 month high of $68.71.
KB Home Announces Dividend
KB Home News Summary
Here are the key news stories impacting KB Home this week:
- Positive Sentiment: Citizens / JMP initiated coverage with a Market Outperform and $77 price target, a bullish call that signals a sizable upside vs. current levels and may attract buyers. Citizens Initiates Coverage of KB Home (KBH) with Market Outperform Recommendation
- Positive Sentiment: KBH outlined a move to ~70% built-to-order deliveries to improve H2 2026 margins — a strategic execution shift that could lift future profitability if demand stabilizes. Kb Home outlines shift to 70-percent built-to-order deliveries
- Positive Sentiment: KB Home repurchased $50 million of common stock in Q1, indicating management support for the share price and returning capital to shareholders. KB HOME REPORTS 2026 FIRST QUARTER RESULTS
- Neutral Sentiment: Some outlets note Q1 EPS of $0.52 was effectively in line with certain consensus estimates (small beat/miss debate among services), so headline earnings weren’t dramatically off consensus for all models. KB Home (KBH) Q1 Earnings Meet Estimates
- Neutral Sentiment: Management held an earnings call and provided slides/colour on order trends and execution; these materials offer detail for investors weighing whether the build-to-order pivot and backlog metrics offset softer demand. KB Home (KBH) Q1 2026 Earnings Call Highlights
- Negative Sentiment: Q1 revenue fell ~23% YoY to $1.08B and EPS $0.52 missed/was marginally below some consensus; weaker top-line performance increases near-term growth concerns. KBH Earnings: KB Homes’ Financial Results Miss Wall Street Targets Across the Board
- Negative Sentiment: KB Home cut full-year housing revenue guidance to $4.80B–$5.50B and cited geopolitical (Middle East) uncertainty dampening buyer confidence — a direct driver of the stock decline. KB Home Cuts Guidance as Middle East Instability Adds to Homebuyers’ Caution
- Negative Sentiment: Several sell-side firms reacted: Bank of America kept a Hold and cut its PT to $56, and Wells Fargo reiterated a Sell while cutting its PT to $50 — analyst downgrades/lower targets increase selling pressure. KB Home: Near-Term Headwinds Temper Outlook (BofA) KB Home: Sell Rating (Wells Fargo)
Institutional Trading of KB Home
Several hedge funds have recently modified their holdings of KBH. United Services Automobile Association purchased a new position in shares of KB Home in the first quarter valued at $226,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in KB Home by 5.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,525 shares of the construction company’s stock valued at $13,108,000 after purchasing an additional 11,103 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in KB Home by 23.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,530 shares of the construction company’s stock valued at $134,000 after purchasing an additional 482 shares during the last quarter. Marshall Wace LLP grew its stake in shares of KB Home by 341.2% in the 2nd quarter. Marshall Wace LLP now owns 86,667 shares of the construction company’s stock worth $4,591,000 after buying an additional 67,023 shares in the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in shares of KB Home in the 2nd quarter worth $711,000. 96.09% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
KBH has been the subject of several research analyst reports. Citizens Jmp assumed coverage on KB Home in a research report on Tuesday. They set an “outperform” rating and a $77.00 target price for the company. Keefe, Bruyette & Woods dropped their price target on KB Home from $67.00 to $62.00 and set a “market perform” rating for the company in a research note on Tuesday, December 23rd. Royal Bank Of Canada cut their price objective on shares of KB Home from $59.00 to $54.00 and set a “sector perform” rating for the company in a report on Friday, December 19th. Weiss Ratings reiterated a “hold (c+)” rating on shares of KB Home in a research report on Thursday, January 22nd. Finally, Barclays lowered their target price on shares of KB Home from $71.00 to $62.00 and set an “overweight” rating on the stock in a report on Monday, December 22nd. Three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, KB Home presently has an average rating of “Hold” and a consensus target price of $63.08.
View Our Latest Analysis on KBH
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.
Further Reading
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