KB Home(NYSE) KBH

KB Home builds new houses for families across America. They help people buy their first home or upgrade to a new one. Their financial team also assists with insurance and titles.

Homes for Diverse Regions

• West Coast: Single and multi-family homes in states like California and Washington; generated $620.0 million in housing revenues for the three months ended Aug. 31, 2026.
• Southwest: Residential properties in markets like Arizona and Nevada; contributed $222.1 million in housing revenues for the three months ended Aug. 31, 2026.
• Central: Detached and attached homes in Colorado and Texas; earned $205.6 million in housing revenues for the three months ended Aug. 31, 2026.
• Southeast: Community housing in Florida and North Carolina; provided $244.7 million in housing revenues for the three months ended Aug. 31, 2026.
• Financial Services: Mortgage and title processing for homebuyers; generated $4.8 million in revenue for the three months ended Aug. 31, 2026.

Strategic Focus on Customization

• Focused on the Built to Order strategy, where homes are generally sold before construction begins to allow for buyer personalization.
• Increased the average number of active selling communities by 8% year over year during the three months ended Aug. 31, 2026.
• Invested $722.3 million in land and land development during the third quarter of 2026 to support future growth.
• Returned capital to stockholders by repurchasing 900,000 shares of common stock for $50.0 million in the three months ended Aug. 31, 2026.

Efficiency and Target Buyers

The company focuses on first-time buyers, who accounted for 50% of all homes delivered in the third quarter of 2026. Despite prioritizing custom homes over pre-built inventory, the business still managed to reduce its average build time by 19% year over year.

Measuring Performance and Backlog

• Total revenues were $1.3 billion for the three months ended Aug. 31, 2026, down 20% year over year.
• Net income reached $65.3 million for the three months ended Aug. 31, 2026, a decline of 41% from the previous year.
• Ending backlog value grew 3% year over year to $2.05 billion as of Aug. 31, 2026, representing future sales not yet completed.
• Housing gross profit margin was 16.5% for the three months ended Aug. 31, 2026, down from 18.2% in the prior-year period.
• Cash and cash equivalents totaled $159.0 million at Aug. 31, 2026, compared to $228.6 million at Nov. 30, 2025.

Bottom Line

KB Home has transitioned toward a customized building model to navigate high interest rates and pricing pressure. The company maintains its growth potential by investing in land while focusing on affordability for first-time buyers.