KBH

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how KB Home (NYSE:KBH) and the rest of the home builders stocks fared in Q2. Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials. The 9 home builders stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results. The first homebuilder to be listed on the NYSE, KB Home (NYSE:KBH) is a homebuilding company targeting the first-time home buyer and move-up buyer markets. KB Home reported revenues of $1.11 billion, down 27.3% year on year. This print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates. "Operationally, our teams continued to execute well and generated meaningful results, achieving 35 new community openings, at the high end of our projection, and reducing our build times by more than a full week sequentially from home start to home completion," said Robert McGibney, President and Chief Executive Officer. KB Home delivered the slowest revenue growth in the group. Interestingly, the stock is up 2.9% since reporting and currently trades at $55.88. Read our full report on KB Home here, it’s free. Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction. Installed Building Products reported revenues of $777.8 million, up 2.3% year on year, outperforming analysts’ expectations by 4.4%. The business had a stunning quarter with a solid beat of analysts’ EBITDA and EPS estimates. Installed Building Products achieved the biggest analyst estimate beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $243.08. Is now the time to buy Installed Building Products? Access our full analysis of the earnings results here, it’s free. Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States. NVR reported revenues of $2.33 billion, down 10.5% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates. NVR delivered the weakest performance against analyst estimates of the whole group. The stock is flat since the results and currently trades at $6,293. Read our full analysis of NVR’s results here. Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US. Meritage Homes reported revenues of $1.41 billion, down 13.8% year on year. This number came in 0.9% below analysts’ expectations. All in all, it was a mixed quarter for the company. The stock is up 1.7% since reporting and currently trades at $72.85. Read our full, actionable report on Meritage Homes here, it’s free. Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States. LGI Homes reported revenues of $501.5 million, up 3.7% year on year. This print beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company. LGI Homes delivered the fastest revenue growth in the group. The stock is up 1.4% since reporting and currently trades at $56.88. Read our full, actionable report on LGI Homes here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

NVR, Inc. NVR has pulled back, but a lower share price alone does not make the stock clearly attractive. Investors have to weigh a high-quality operating model against declining earnings, lower revenues and a valuation that still looks full versus homebuilding peers.The case now rests on balance. NVR’s asset-light lot strategy and buybacks support long-term per-share value, while weaker profitability and a price target below the current market price argue for restraint. Second-quarter 2026 earnings of $83.96 per share fell 22.6% year over year and missed the Zacks Consensus Estimate by 11.5%. Homebuilding revenues of $2.28 billion also came in below the consensus mark by 5.2%. NVR, Inc. price-eps-surprise | NVR, Inc. Quote The miss reflected lower settlements, softer pricing and margin pressure. Full-year earnings are projected to decline 14.8%, keeping expectations under pressure even though net new orders rose and backlog expanded. NVR trades at about 15.9X forward 12-month earnings, above the homebuilding sub-industry’s 11.1X multiple and slightly ahead of its five-year median of 15.1X. That premium leaves less room for disappointment when earnings estimates are moving lower.The stock price of $6,381.79 also sits above the $5,425 price target, which reflects 13.55X forward earnings. KB HOME KBH gives investors another homebuilder to compare when assessing whether affordability pressure is already reflected in valuations across the group. Toll Brothers, Inc. TOL, with its luxury-home positioning, offers a different demand profile within the same cyclical industry. NVR’s biggest structural strength is its lot strategy. The company generally buys finished lots from third-party developers rather than tying up large amounts of capital in raw land development.That approach limits exposure to entitlement delays, infrastructure spending and long-duration land risk. NVR controlled 184,400 lots at the end of the second quarter, giving it future supply without abandoning a model built around capital flexibility. Capital returns remain central to NVR’s investment case. The company repurchased 144,896 shares for $989.7 million during the first half of 2026, including 54,716 shares for $357.8 million in the second quarter.The board also authorized an additional $750 million repurchase program with no expiration date. The offset is that homebuilding cash declined to $1.09 billion from $1.88 billion at year-end 2025 as inventory, contract land deposits and buybacks absorbed capital. The bottom line is that NVR’s operating discipline still deserves respect, but the stock does not offer a clean bargain after the earnings and revenue miss. Premium valuation, declining profit expectations and a price target below the market price make the risk-reward balance less favorable. NVR currently carries a Zacks Rank #3 (Hold). That rank does not point to a strong near-term buying opportunity, especially with the current-year earnings outlook still under pressure. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.The Style Scores are mixed. NVR has a VGM Score of B and Momentum Score of B, which provide some support for investors who focus on broader style characteristics and price trends. However, the Value Score of C and Growth Score of C reinforce the need for patience. Investors may find NVR’s capital efficiency and buybacks attractive, but the stock’s valuation and earnings trajectory suggest a measured stance rather than an aggressive entry point. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVR, Inc. (NVR) : Free Stock Analysis Report Toll Brothers Inc. (TOL) : Free Stock Analysis Report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in M/I Homes, Inc.? Here are five stocks we like better. Demand remained resilient: M/I Homes reported record second-quarter new contracts, with home sales up 15% year over year to 2,387 despite higher mortgage rates and economic uncertainty. The average sales pace improved to 3.4 homes per community, while the cancellation rate was 8%. Profitability declined: Revenue fell 9% to $1.1 billion, pretax income dropped 35% to $105 million, and diluted EPS decreased to $3.02 from $4.42. Gross margin was 22.1%, pressured by inventory charges and continued reliance on mortgage-rate buydowns. Balance sheet remained strong: The company ended the quarter with $736 million in cash, no revolver borrowings, an 18% debt-to-capital ratio and $3.2 billion in equity. M/I Homes also repurchased $50 million of stock and maintained a land position exceeding 49,000 owned and controlled lots. KB Home Constructs Bullish Price Action As Wider Industry Thrives M/I Homes (NYSE:MHO) reported record second-quarter new contracts as demand increased despite higher mortgage rates, economic uncertainty and what management described as a choppy housing market. The homebuilder sold 2,387 homes during the quarter, a 15% increase from a year earlier, while first-half sales rose 8% to 4,737 homes. “Despite continued challenges in the broader economy, choppy demand, economic uncertainty, rising interest rates, and the impact of the conflict in the Middle East, we are very proud of our results,” Chairman, President and CEO Bob Schottenstein said during the company’s earnings call. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Will Fed Rate-Hike Pause Lead To Small-Cap Outperformance? Second-quarter pretax income totaled $105 million, down 35% from the prior-year period, while pretax income as a percentage of revenue was 10%. Revenue declined 9% to $1.1 billion as deliveries fell and the company’s average sale price decreased. Diluted earnings per share fell to $3.02 from $4.42 a year earlier. M/I Homes said its monthly sales pace averaged 3.4 homes per community in the second quarter, compared with 3.0 homes per community a year earlier. Its cancellation rate was 8%, and 50% of second-quarter sales were to first-time buyers. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company ended the quarter with 234 active communities, unchanged from a year earlier. It opened 27 communities and closed 23 during the quarter, and management expects average community count in 2026 to rise about 5% from the prior year. Sales growth occurred across both major regions. New contracts increased 16% in the northern region and 14% in the southern region, with the Carolinas posting the largest increase. Schottenstein identified Columbus, Chicago, Minneapolis, Raleigh and Charlotte as leading divisions during the quarter. He said the Midwest performed strongly, Texas sales improved, and Florida sales were also higher. → 3 Value ETFs to Consider as Growth Stocks Lag Behind At the same time, deliveries declined 6% to 2,206 homes. Northern-region deliveries fell 8% and represented 40% of the total, while southern-region deliveries declined 5% and accounted for the remaining 60%. The company saw a modest shift toward move-up buyers. Its Smart Series homes, the company’s most affordable product line and one aimed primarily at first-time buyers, represented 43% of sales, compared with 52% a year earlier. Schottenstein said the change reflected both somewhat stronger demand for move-up homes and the company’s efforts over the past 18 to 24 months to identify more move-up opportunities in select markets. “Some of the more high-priced or move-up land opportunities penciled better in terms of underwriting,” Schottenstein said, adding that certain smaller and infill sites could support attractive returns. Second-quarter gross margin was 22.1%, including $4 million of inventory charges. Excluding those charges, gross margin was 22.5%, slightly above the first-quarter level. Chief Financial Officer Phil Creek said construction costs declined modestly from the first quarter and cycle times improved by several days. Management said mortgage-rate buydowns remained its primary sales incentive. Schottenstein said the company expects to continue promoting rate buydowns given the current interest-rate environment, while emphasizing that location and product quality remain the main drivers of sales performance. “If it weren’t for mortgage rate buydowns industry-wide … the sales environment would be bleak,” Schottenstein said. “The primary driver for our sales is our well-located communities.” Approximately 78% of second-quarter sales were spec homes, consistent with the first quarter. Of the homes delivered during the quarter, 42% were inventory homes that were both sold and delivered in the same period. Management said margins on to-be-built homes are generally higher than spec-home margins, although the difference varies by market. M/I Homes ended the quarter with 510 completed inventory homes and 2,839 total inventory homes, compared with 586 completed homes and 2,726 total inventory homes a year earlier. Creek said improved construction cycle times have helped the company manage spec inventory levels. SG&A expense increased 3% from a year ago and represented 12.6% of revenue, versus 11.3% in the prior-year quarter. Creek attributed the increase primarily to new community openings, a 3% increase in headcount, and higher spending on sales, advertising and customer leads. M/I Financial generated pretax income of $14.4 million, nearly unchanged from $14.5 million in the prior-year quarter. Revenue rose 3% to $32.3 million, helped by a higher average loan amount and slightly higher margins on loans sold, partially offset by fewer loan originations. Mortgage operations captured a record 96% of the company’s homebuilding business, up from 92% a year earlier. Loans originated declined 3% to 1,817, while loan-sale volume increased 6%. The average mortgage amount rose to $405,000 from $403,000. Average buyer credit scores were 748, and average down payments were approximately 15%. Schottenstein said the company’s government-backed spec-home mortgage program was offering rates slightly below 5% for 30-year fixed loans, while conventional spec and longer-term rate-lock programs were slightly above 5%. Management said it expects solid performance in Columbus, Cincinnati, Indianapolis, Chicago, Minneapolis, Orlando, Dallas, Charlotte and Raleigh. Tampa and Sarasota remain more challenged by local macroeconomic conditions, while Austin is improving after a weaker period, according to Schottenstein. The newer Nashville and Fort Myers/Naples operations are gaining traction but currently weigh on earnings as they build scale. The company owned approximately 23,500 lots at quarter-end, representing about a two-and-a-half-year supply, and controlled another 25,700 lots through option contracts. Its total owned and controlled lot position exceeded 49,000 lots, or roughly a five-year supply. M/I Homes spent $131 million on land purchases and $155 million on land development during the quarter. Unsold land investment totaled $1.9 billion, up from $1.7 billion a year earlier. Management said it is seeing more finished-lot opportunities in many markets from sellers, other builders and land bankers. The company ended the quarter with $736 million in cash and no borrowings under its $900 million unsecured revolving credit facility. Equity reached a record $3.2 billion, and book value per share rose $11 from a year earlier to $128. Its debt-to-capital ratio was 18%, while net debt-to-capital was negative 1%. M/I Homes repurchased $50 million of stock during the quarter and had $120 million remaining under its board authorization. Since 2022, the company has repurchased 19% of its outstanding shares. Schottenstein said the company remains confident in long-term housing fundamentals but is focused on maintaining balance-sheet strength amid uncertainty over interest rates, consumer confidence and broader economic conditions. M/I Homes, Inc is a publicly traded residential homebuilder founded in 1976 and headquartered in Columbus, Ohio. The company designs, markets and constructs single-family homes and townhome communities across the United States, offering a range of floor plans with customizable design options. Its product portfolio includes starter homes, move-up homes and luxury models, as well as multi-family residences in urban and suburban infill locations. In addition to its core homebuilding operations, M/I Homes provides mortgage, title and closing services through its in-house affiliate M/I Financial Services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "M/I Homes Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

A month has gone by since the last earnings report for KB Home (KBH). Shares have lost about 8.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is KB Home due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for KB Home before we dive into how investors and analysts have reacted as of late. KB Home reported second-quarter fiscal 2026 earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings declined 71.3% from $1.50 per share in the year-ago quarter.Total revenues of $1.112 billion beat the consensus mark of $1.090 billion by 2% but decreased 27% year over year. Results reflected lower deliveries and pricing pressure, partly offset by progress in the company’s Built to Order model, which represented 73% of net orders. Housing revenues totaled $1.11 billion, down 27% from $1.52 billion in the prior-year quarter. The decline was primarily due to a 23% decrease in homes delivered and a 5% drop in the overall average selling price (ASP).Homes delivered were 2,395 compared with 3,120 a year ago. The backlog conversion rate was 66%, down from 70% in the year-ago period, reflecting the strategic shift toward a higher mix of Built to Order homes. The ASP was $461,900, down from $488,700 a year ago. Sequentially, ASP rose 2%, supported by product and geographic mix.Net orders declined 4% year over year to 3,317 homes. Net order value also fell 4% to $1.55 billion. Monthly net orders per community were four compared with 4.5 in the prior-year quarter. Management cited elevated mortgage rates, affordability pressures, weak consumer confidence, inflation and geopolitical uncertainty as factors that weighed on traffic conversion.The cancellation rate improved to 12% of gross orders from 16% a year ago. The company ended the quarter with 280 communities, up 11% from 253 in the prior-year period.The ending backlog was 4,526 homes, down 5% year over year. Backlog value declined 7% to $2.14 billion. However, backlog improved 26% sequentially. Management said the company expects sequential backlog growth to continue in the third quarter and anticipates returning to year-over-year backlog growth during that period. Homebuilding operating income was $28.2 million compared with $131.5 million a year ago. The homebuilding operating income margin contracted to 2.5% from 8.6%.Housing gross margin was 15.2% compared with 19.3% in the prior-year quarter. Excluding inventory-related charges of $5.6 million, adjusted housing gross margin was 15.7% compared with 19.7% a year ago.The year-over-year margin contraction primarily reflected price reductions, higher relative land costs and reduced operating leverage. SG&A expenses were 12.7% of housing revenues compared with 10.7%, mainly due to lower operating leverage. The company ended the quarter with total liquidity of $1.12 billion, including $199.8 million in cash and $923.4 million of available revolver capacity. During the quarter, KBH repurchased 1.4 million shares for $75 million, bringing first-half repurchases to $125 million. For the third quarter of fiscal 2026, KBH expects deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 billion. Housing gross margin is projected between 16.0% and 16.6%, assuming no inventory-related charges.For fiscal 2026, the company expects deliveries of 10,500-11,000 homes (from 10,000-11,500 homes) and housing revenues of $4.90-$5.30 billion (from $4.8-$5.5 billion). Housing gross margin is projected between 16.1% and 16.5%, assuming no inventory-related charges. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 15.4% due to these changes. At this time, KB Home has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, KB Home has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

D.R. Horton, Inc. DHI reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.The earnings and revenue beat were driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, contributions from the Rental, Forestar and Financial Services businesses and the benefit of a lower diluted share count from share repurchases. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results.Shares of this Arlington, TX-based homebuilder gained more than 1.1% following the earnings release on Tuesday. Consolidated revenues totaled $9.227 billion compared with $9.225 billion in the prior-year quarter. Income before taxes declined 9.7% year over year to $1.23 billion, while the pre-tax margin contracted to 13.3% from 14.7%.Net income fell 11.7% to $904.9 million from a year ago. Cost of sales increased to $7.08 billion from $7.02 billion, while selling, general and administrative expenses rose 5% to $991.2 million.The lower earnings reflected margin pressure rather than a meaningful decline in consolidated revenues. Management continued to balance sales pace, pricing, incentives and inventory levels across its communities. D.R. Horton, Inc. price-consensus-eps-surprise-chart | D.R. Horton, Inc. Quote Homebuilding revenues increased 1.2% year over year to $8.69 billion. Homes closed rose 4% year over year to 23,983, reaching the high end of management’s guidance range for the quarter.Homebuilding pre-tax income declined 10.1% to $1.07 billion, while the segment’s pre-tax margin narrowed to 12.3% from 13.8%. The results show that higher delivery volume was not enough to offset the effect of weaker profitability.Net sales orders totaled 23,084 homes, nearly unchanged from the prior-year quarter level of 23,071 units. The value of orders was $8.44 billion, also broadly stable year over year. The cancellation rate increased to 20% from 17% in the year-ago period. Management said that affordability constraints and cautious consumer sentiment continued to affect new-home demand.Home sales revenues increased to $8.68 billion from $8.56 billion. The home sales gross margin fell to 20.7% from 21.8%, though it improved from 20.1% in the second quarter of fiscal 2026.Gross margin before interest and other costs was 24.7%, down from 25.7% a year earlier. Management expects sales incentives to remain elevated in the fiscal fourth quarter, with incentive levels depending on demand, mortgage rates and broader market conditions. The company ended the quarter with 38,000 homes in inventory, including 23,300 unsold homes. Completed unsold homes totaled 7,600, of which 600 had been completed for more than six months.During the first nine months of fiscal 2026, 67% of homes closed were built on lots developed by Forestar or third parties, up from 65% a year ago. This structure supports D.R. Horton’s effort to maintain flexibility in its land and lot investments.Homebuilding return on inventory declined to 17% for the trailing 12 months from 22.1% a year earlier. The decrease reflected lower trailing homebuilding pre-tax income against a relatively stable average inventory base. Rental operations generated revenues of $266.1 million (down 30.1% from a year ago) from the sale of 601 single-family rental homes and 339 multifamily rental units. The segment posted pre-tax income of $31 million (down 43.4% year over year) and a pre-tax margin of 11.6% (contracted from 14.4%).Forestar sold 3,659 lots and generated revenues of $407 million (up 4.2% from a year ago). Pre-tax income was $48.7 million (up 11.7% year over year), resulting in a margin of 12% from 11.2% a year ago.Financial Services recorded revenues of $220.7 million (down 3.1% year over year) and pre-tax income of $70.3 million (down 13.5%). The segment’s pre-tax margin was down to 31.9% from 35.7% a year ago, yet making it the company’s most profitable business by margin during the quarter. D.R. Horton continued to return cash to shareholders during the quarter. The company repurchased 4.2 million shares for $615.7 million and paid $127.1 million in cash dividends. Common shares outstanding totaled 280.7 million as of June 30, 2026, down 6% year over year, while the remaining repurchase authorization was $1.1 billion.Cash, cash equivalents and restricted cash totaled $2.13 billion at quarter-end compared with $3.03 billion at the end of fiscal 2025. Total liquidity remained solid at $6.1 billion, while the debt-to-total-capital ratio was 23%. The company also had $600 million of homebuilding senior notes maturing within the next 12 months. The board declared a quarterly dividend of 45 cents per share.Cash provided by operations was $880.8 million for the first nine months of fiscal 2026 compared with $949.1 million a year ago. Trailing 12-month return on equity was 12.8%, while return on assets was 8.5%, reflecting continued profitability despite lower year-over-year earnings. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier. This compares with $34.25 billion in fiscal 2025.Homebuilding closings are projected to be between 83,800 and 84,300 homes (versus earlier projection of 86,000-87,500 homes). This compares with 84,863 in fiscal 2025.Income tax rate is expected to be approximately 25%.The company reiterated its expectations for at least $3 billion in operating cash flow, approximately $2.5 billion in share repurchases and about $500 million in dividend payments. D.R. Horton currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KB Home KBH reported second-quarter fiscal 2026 earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings declined 71.3% from $1.50 per share in the year-ago quarter. Total revenues of $1.112 billion beat the consensus mark of $1.090 billion by 2% but decreased 27% year over year. Results reflected lower deliveries and pricing pressure, partly offset by progress in the company’s Built to Order model, which represented 73% of net orders.For the third quarter of fiscal 2026, KBH expects deliveries of 2,600-2,800 homes and housing revenues of $1.20-$1.35 billion. Housing gross margin is projected to be between 16.0% and 16.6%, assuming no inventory-related charges.Lennar Corporation LEN reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate by 6.5% while revenues missed the same by 1.6%. On a year-over-year basis, both metrics declined 31.1% and 5.2%, respectively, given ongoing softness in housing demand and a lower average sales price (ASP) for homes delivered.For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 homes and new orders between 21,000 and 22,000 homes. The company expects the ASP to be between $375,000 and $380,000. Gross margin on home sales is expected to be approximately 16%, while SG&A expenses are projected to be between 8.8% and 9% of home sales.PulteGroup, Inc. PHM is scheduled to report its second-quarter 2026 results on July 22, 2026. Earnings for the to-be-reported quarter are expected to decline 21.5% on 9.6% lower revenues. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report D.R. Horton, Inc. (DHI) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report KB Home (KBH) : Free Stock Analysis Report Lennar Corporation (LEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In June 2026, KB Home reported past fiscal second-quarter 2026 results showing revenue of US$1,112.44 million and net income of US$27.35 million, both lower than a year earlier, while earnings per share from continuing operations also decreased on a basic and diluted basis. Despite these weaker results and a softer housing backdrop, management issued housing revenue guidance for third-quarter and full-year 2026 that implies sequential growth and highlighted its pivot back to a built-to-order model for improved margin visibility and operational control. Next, we’ll examine how KB Home’s stronger-than-expected Q2 revenue and upbeat housing revenue guidance affect its existing investment narrative. Rare earth metals are the new gold rush. Find out which 29 stocks are leading the charge. To own KB Home today, you need to believe its built to order focus, operational efficiency and community expansion can offset softer demand and recent margin pressure. The key near term catalyst is management’s expectation for sequential growth in deliveries and housing revenue, while the biggest risk remains weak homebuyer demand in a higher rate backdrop. The latest Q2 miss versus prior-year results does not fundamentally change those drivers but keeps execution risk front and center. The most relevant update is KB Home’s new housing revenue guidance of US$1.20 billion to US$1.35 billion for Q3 2026 and US$4.90 billion to US$5.30 billion for the full year. This guidance, along with management’s emphasis on a predominantly built to order model, directly ties into the growth catalyst of faster build times and better margin visibility, while also testing how resilient those plans are against ongoing demand softness and regional volatility. Yet, even with upbeat revenue guidance, the risk that softer demand and regional volatility could pressure margins and earnings is something investors should be aware of... Read the full narrative on KB Home (it's free!) KB Home’s narrative projects $6.8 billion revenue and $496.4 million earnings by 2028. This implies a 0.2% annual revenue decline and an earnings decrease of $125.1 million from $621.5 million today. Uncover how KB Home's forecasts yield a $61.42 fair value, in line with its current price. The most optimistic analysts were already assuming roughly flat revenue near US$6.0 billion and earnings of about US$369 million, which is far more upbeat than consensus and leans heavily on faster build to order cycles; after this Q2 reset and new guidance, you can decide whether that bullish view or the more cautious demand risk story feels closer to reality, knowing both could shift as new data comes in. Explore 3 other fair value estimates on KB Home - why the stock might be worth less than half the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your KB Home research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free KB Home research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KB Home's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. Uncover the next big thing with 21 elite penny stocks that balance risk and reward. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KBH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

KB Home KBH used its second-quarter fiscal 2026 earnings call to press a single message — the company’s return to a built-to-order model is now far enough to support better visibility, steadier deliveries and improving margins in the back half of fiscal 2026. That message mattered because the quarter still reflected a difficult spring selling season. KB Home reported revenues of $1.11 billion, which beat the Zacks Consensus Estimate of $1.09 billion by 2%. The company reported earnings per share of $0.43, meeting the consensus mark. KB Home price-consensus-eps-surprise-chart | KB Home Quote Executive chairman Jeffrey Mezger said that the fiscal second-quarter results met or exceeded the midpoint of the key guidance ranges, but management spent more time explaining the structural benefits of built-to-order than recapping quarterly figures. Mezger framed the shift as a lower-risk operating model that improves delivery predictability and margin quality. Chief executive officer Rob McGibney said that 73% of fiscal second-quarter net orders were built-to-order homes, which he described as evidence that the company is rebuilding a sold backlog before construction begins. McGibney said that creates visibility on buyer, price, costs and expected close date much earlier in the cycle. McGibney also tied the strategy to cost control. The quarter itself showed why management is leaning on that transition. Housing revenues fell 27% year over year to $1.11 billion, while the housing gross margin was 15.2%, down from 19.3% a year earlier. Excluding inventory-related charges, the gross margin was 15.7%. Still, chief accounting officer William Hollinger laid out a more constructive second-half setup. Hollinger guided to a fiscal third-quarter housing gross margin of 16-16.6% and a full-year margin of 16.1-16.5%, assuming no inventory-related charges. Hollinger said that the improvement should come from better operating leverage, a higher mix of built-to-order deliveries and a more favorable West Coast mix, particularly from Northern California. He added that more than 80% of expected fiscal third-quarter deliveries were already in backlog, reinforcing the company’s visibility argument. Management also emphasized balance sheet flexibility. KB Home ended the quarter with $1.12 billion of total liquidity, including about $200 million in cash and no debt maturities until June 2027. Mezger said that the company remained balanced in capital allocation, investing for growth while returning capital to shareholders. KB Home repurchased 1.4 million shares for $75 million in the quarter and paid out roughly $15 million in dividends. Land spending stayed active but disciplined. Management said that the fiscal second-quarter land acquisition and development investment was just under $500 million, with roughly three-fourths directed to development and fees on land already owned. Analysts pressed hardest on two points in Q&A: how much of the expected margin step-up comes from built-to-order versus California and whether spring demand softness has extended into June. Management’s answers were steady and more explicit than in prepared remarks. Responding to Barclays and Evercore ISI, McGibney said that fiscal fourth-quarter built-to-order deliveries should reach roughly 70%, but not yet the full target rate. He also described the Bay Area contribution as more than a one-quarter event, saying that the region now has a healthier pipeline of larger, higher-ASP communities. On demand, management acknowledged that March was the weakest month of the spring season, while April and May improved. McGibney said that June trends were tracking in line with expectations and reflected a normal seasonal slowdown rather than a fresh deterioration. Beyond the near term, Mezger highlighted Atlanta as the company’s latest market reentry. He called it a top-10 housing market with strong population and job growth, and said that KB Home has already acquired its first parcel there for an early 2027 opening. That move fits management’s broader growth posture. The company expected Seattle, Boise and Charlotte to represent about 10% of the fiscal 2026 volume, showing how KB Home is still willing to expand, but within a familiar operating template. At the same time, executives stressed discipline in the land market. McGibney said that the company has walked away from optioned deals that no longer met return hurdles, even as sellers have begun to grow more realistic on terms and pricing. The clearest takeaway from the call was not that conditions have turned easy. Management repeatedly pointed to weak consumer confidence, elevated mortgage rates and affordability pressure as continuing obstacles. What changed was the company’s confidence in its operating setup. Faster build times, lower finished unsold inventory and sequential backlog growth gave executives a firmer basis to talk about improving deliveries, margins and backlog comparisons through the rest of fiscal 2026. KBH currently carries a Zacks Rank #4 (Sell), along with a Value Score of B, a Growth Score of C, a Momentum Score of A and a VGM Score of A. Under Zacks’ framework, Style Scores help identify attractive value, growth and momentum traits, but they are meant to complement, not override, the rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The above-mentioned combination leaves a mixed signal. The strong Momentum and VGM grades indicate favorable style characteristics, but Zacks’ guidance says stocks with a Zacks Rank #4 or #5 (Strong Sell) should not be favored even when Style Scores are strong. The rank can also change as earnings estimate revisions adjust after the quarter’s results and management outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

KB Home (KBH) came out with quarterly earnings of $0.43 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.99%. A quarter ago, it was expected that this homebuilder would post earnings of $0.52 per share when it actually produced earnings of $0.52, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. KB Home, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $1.11 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $1.53 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. KB Home shares have lost about 6.9% since the beginning of the year versus the S&P 500's gain of 9.2%. While KB Home has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for KB Home was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.76 on $1.29 billion in revenues for the coming quarter and $3.10 on $5.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, PulteGroup (PHM), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22. This homebuilder is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of -22.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PulteGroup's revenues are expected to be $4.03 billion, down 8.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenues of $1.11 Billion; Diluted Earnings Per Share of $.43Repurchased $75.0 Million of Common Stock LOS ANGELES, June 23, 2026 /PRNewswire/ -- KB Home (NYSE: KBH) today reported results for its second quarter ended May 31, 2026. "We produced solid second-quarter results that met or exceeded the mid-point of our key guidance ranges," said Jeffrey Mezger, Executive Chairman. "Our return to a predominantly Built to Order business model continued to gain momentum, with these homes representing 73% of our net orders in the quarter, progress that we believe supports stronger, more sustainable performance over time and across market cycles." "Operationally, our teams continued to execute well and generated meaningful results, achieving 35 new community openings, at the high end of our projection, and reducing our build times by more than a full week sequentially from home start to home completion," said Robert McGibney, President and Chief Executive Officer. "At the same time, we remained disciplined as we continued to successfully navigate a difficult and fluid market environment, balancing pace and price while tightly managing costs." "The progress in our second quarter sets the foundation for the remainder of fiscal 2026, with sequentially higher delivery volumes and gross margins projected for each of the final two quarters. We remain committed to increasing shareholder value through improved performance, as well as our continued focus on operational excellence, strong financial flexibility and ongoing balanced approach to capital allocation," concluded Mezger. Three Months Ended May 31, 2026 (comparisons on a year-over-year basis) Revenues were down 27% to $1.11 billion. Homes delivered decreased 23% to 2,395. Average selling price was $461,900, compared to $488,700. Homebuilding operating income was $28.2 million, compared to $131.5 million. The homebuilding operating income margin was 2.5%, compared to 8.6%, due to a lower housing gross profit margin and higher selling, general and administrative expense ratio. Excluding inventory-related charges of $5.6 million for both the current quarter and the year-earlier quarter, homebuilding operating income was 3.0%, compared to 9.0%. Financial services pretax income totaled $6.7 million, compared to $8.2 million, primarily due to lower equity in income from the Company's mortgage banking joint venture. The joint venture's results mainly reflected reduced loan origination volume driven by fewer homes delivered. Net income was $27.3 million, compared to $107.9 million. Diluted earnings per share was $.43, compared to $1.50, reflecting current quarter net income, partly offset by the favorable impact of the Company's common stock repurchases. Six Months Ended May 31, 2026 (comparisons on a year-over-year basis) Revenues totaled $2.19 billion, compared to $2.92 billion. Homes delivered of 4,765 were down 19%. Average selling price decreased 8% to $457,000. Net income was $60.8 million, compared to $217.4 million. Diluted earnings per share was $.96, compared to $3.00. Net Orders and Backlog (comparisons on a year-over-year basis) Net orders of 3,317 declined 4%. The Company's ending backlog was down 5% to 4,526 homes, and backlog value decreased 7% to $2.14 billion. The average community count for the quarter grew 9% to 278, and the ending community count was up 11% to 280. Balance Sheet as of May 31, 2026 (comparisons to November 30, 2025) The Company had total liquidity of $1.12 billion, including $199.8 million of cash and cash equivalents and $923.4 million of available capacity under its unsecured revolving credit facility ("Credit Facility"), with $275.0 million of cash borrowings outstanding. Inventories increased slightly to $5.73 billion. Notes payable were $1.97 billion, compared to $1.69 billion, reflecting cash borrowings outstanding under the Credit Facility. The debt to capital ratio was 34.1%, compared to 30.3%. Stockholders' equity totaled $3.80 billion, compared to $3.90 billion, primarily reflecting current quarter common stock repurchases and cash dividends, partly offset by net income for the same period. Guidance The Company is providing the following guidance for its 2026 third quarter and full year as to certain metrics: 2026 Third Quarter — Deliveries in the range of 2,600 to 2,800 homes. Housing revenues in the range of $1.20 billion to $1.35 billion. Housing gross profit margin in the range of 16.0% to 16.6%, assuming no inventory-related charges. Selling, general and administrative expenses as a percentage of revenues in the range of 11.3% to 11.9%. Effective tax rate in the range of 19% to 21%. Ending community count in the range of 270 to 280. 2026 Full Year — Deliveries in the range of 10,500 to 11,000 homes. Housing revenues in the range of $4.90 billion to $5.30 billion. Housing gross profit margin in the range of 16.1% to 16.5%, assuming no inventory-related charges. Selling, general and administrative expenses as a percentage of revenues in the range of 11.4% to 11.8%. Effective tax rate in the range of 22% to 24%. Conference Call The conference call to discuss the Company's 2026 second quarter earnings will be broadcast live TODAY at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To listen, please go to the Investor Relations section of the Company's website at kbhome.com. About KB Home KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 50 markets, have built over 700,000 quality homes in our nearly 70-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional homebuying experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership. For more information, visit kbhome.com. Forward-Looking and Cautionary Statements Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. If we update or revise any such statement(s), no assumption should be made that we will further update or revise that statement(s) or update or revise any other such statement(s). In addition, such forward-looking statements may be based in whole or in part on general observations or opinions of our management, limited or anecdotal evidence and/or business or industry experience without in-depth or any particular empirical investigation, inquiry or analysis and are not intended, and do not express, factual assertions about past events. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions; population growth or decline, household formations and demographic trends; conditions in the capital, credit and financial markets; our ability to access external financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; the execution of any securities repurchases pursuant to our board of directors' authorization; material and trade costs and availability, including the costs associated with achieving the standards for ENERGY STAR certified homes, and delays related to state and municipal construction, permitting, inspection and utility processes, which have been disrupted by key equipment shortages; rising consumer and producer price inflation; changes in interest rates, including those set by the Federal Reserve and those available in the capital markets or from financial institutions and other lenders, and applicable to mortgage loans; our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our unsecured revolving credit facility and our senior unsecured term loan; the ability and willingness of the applicable lenders and financial institutions, or any substitute or additional lenders and financial institutions, to meet their commitments or fund borrowings, extend credit or provide payment guarantees to or for us under our unsecured revolving credit facility or unsecured letter of credit facility; volatility in the market price of our common stock; our obtaining adequate levels of affordable insurance for our business and our ability to cover any incurred costs, liabilities or losses that are not covered by the insurance we have procured or that are due to our deciding not to procure certain types or amounts of insurance coverage; home selling prices, including our homes' selling prices, being unaffordable relative to consumer incomes; weak or declining consumer confidence, either generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes, particularly homebuilders with significant unsold inventory; weather events, significant natural disasters and other climate and environmental factors, such as a lack of adequate water supply to permit new home communities in certain areas; potential instability associated with the regulatory and executive policies, proposals and orders of the U.S. presidential administration, including any directed at our operations, business practices or capital allocation strategies; government actions, policies, programs and regulations directed at or affecting the housing market (including the tax benefits associated with purchasing and owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by government-sponsored enterprises and government agencies, and the potential significant scaling back or ending of the federal conservatorship of the government-sponsored enterprises), the homebuilding industry, or construction activities; changes in existing tax laws or enacted corporate income tax rates, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as Internal Revenue Service guidance regarding heightened qualification requirements for federal tax credits for building energy-efficient homes and the pending expiration of such tax credits in 2026; changes in U.S. trade policies, including the imposition of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory measures taken by other countries, and financial markets' and business' reactions to any such policies; disruptions in world and regional trade flows, economic activity and supply chains due to the military conflicts in the Middle East and in Ukraine, including those stemming from wide-ranging sanctions and other restrictions the U.S. and other countries have imposed or may further impose respectively on Iranian or Russian business sectors, financial organizations, individuals and raw materials, the impact of which may, among other things, increase our operational costs, exacerbate building materials and appliance shortages and/or reduce our revenues and earnings; the adoption of new or amended financial accounting standards and the guidance and/or interpretations with respect thereto; the availability and cost of land in desirable areas and our ability to timely and efficiently develop acquired land parcels and open new home communities; impairment, land option contract abandonment or other inventory-related charges, including any stemming from decreases in the value of our land assets; our warranty claims experience with respect to homes previously delivered and actual warranty costs incurred; costs and/or charges arising from regulatory compliance requirements or from legal, arbitral or regulatory proceedings, investigations, claims or settlements, including unfavorable outcomes in any such matters resulting in actual or potential monetary damage awards, penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or involuntary restrictions or adjustments to our business operations or practices that are beyond our current expectations and/or accruals; our ability to use/realize the net deferred tax assets we have generated; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gaining share and scale in our served markets, through, among other things, our making substantial investments in land and land development, which, in some cases, involves putting significant capital over several years into large projects in one location, and in entering into new markets; our operational and investment concentration in markets in California; consumer interest in and responsiveness to our new home communities, products and simplified selling process with transparent pricing and limited incentives, particularly from first-time homebuyers and higher-income consumers; our ability to generate orders and convert our backlog of orders to home deliveries and revenues, particularly in key markets in California; our ability to successfully implement our business strategies and achieve any associated financial and operational targets and objectives, including those discussed in this release, during today's conference call or in any of our other public filings, presentations or disclosures; income tax expense volatility associated with stock-based compensation; the costs we incur in connection with relocating our corporate headquarters office from Los Angeles, California to Tempe, Arizona in 2027, including costs for employee-related severance, retention, and relocation, as well as recruitment and onboarding; the ability of our homebuyers to obtain homeowners and flood insurance policies, and/or typical or lender-required policies for other hazards or events, for their homes, which may depend on the ability and willingness of insurers or government-funded or -sponsored programs to offer coverage at an affordable price or at all; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services, which may depend on the ability and willingness of lenders and financial institutions to offer such loans and services to our homebuyers; the performance of mortgage lenders to our homebuyers; the performance of KBHS Home Loans, LLC ("KBHS"); the ability and willingness of lenders and financial institutions to extend credit facilities to KBHS to fund its originated mortgage loans; information technology failures and data security breaches; an epidemic, pandemic or significant seasonal or other disease outbreak, and the control response measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; widespread protests and/or civil unrest, whether due to political events, social movements or other reasons; and other events outside of our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business. (Tables Follow) KB HOMERECONCILIATION OF NON-GAAP FINANCIAL MEASURES(In Thousands, Except Percentages – Unaudited) Company management's discussion of the results presented in this press release may include information about the Company's adjusted housing gross profit margin, which is not calculated in accordance with generally accepted accounting principles ("GAAP"). The Company believes this non-GAAP financial measure is relevant and useful to investors in understanding its operations, and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. However, because it is not calculated in accordance with GAAP, this non-GAAP financial measure may not be completely comparable to other companies in the homebuilding industry and, thus, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the most directly comparable GAAP financial measure in order to provide a greater understanding of the factors and trends affecting the Company's operations. Adjusted Housing Gross Profit Margin The following table reconciles the Company's housing gross profit margin calculated in accordance with GAAP to the non-GAAP financial measure of the Company's adjusted housing gross profit margin: Adjusted housing gross profit margin is a non-GAAP financial measure, which the Company calculates by dividing housing revenues less housing construction and land costs excluding housing inventory impairment and land option contract abandonment charges (as applicable) recorded during a given period, by housing revenues. The most directly comparable GAAP financial measure is housing gross profit margin. The Company believes adjusted housing gross profit margin is a relevant and useful financial measure to investors in evaluating the Company's performance as it measures the gross profits the Company generated specifically on the homes delivered during a given period. This non-GAAP financial measure isolates the impact that housing inventory impairment and land option contract abandonment charges have on housing gross profit margins, and allows investors to make comparisons with the Company's competitors that adjust housing gross profit margins in a similar manner. The Company also believes investors will find adjusted housing gross profit margin relevant and useful because it represents a profitability measure that may be compared to a prior period without regard to variability of housing inventory impairment and land option contract abandonment charges. This financial measure assists management in making strategic decisions regarding community location and product mix, product pricing and construction pace. For Further Information:Jill Peters, Investor Relations Contact(310) 893-7456 or [email protected] Kane, Media Contact(321) 299-6844 or [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/kb-home-reports-2026-second-quarter-results-302807061.html