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Get filing alertsKB Home reports Q2 2026 results: revenues down 27% to $1.11B, EPS falls to $0.43
Filed June 23, 2026 · Period ending June 23, 2026 · ~1 min read
Key Changes
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Q2 revenues fell 27% to $1.11B as deliveries dropped 23% to 2,395 homes and average selling price declined to $461,900 from $488,700; diluted EPS fell to $0.43 from $1.50 year-over-year.
Exhibit 99.1 view on EDGAR → -
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Homebuilding operating margin compressed to 2.5% from 8.6%, and housing gross profit margin fell to 15.2% from 19.3%, driven by price reductions, higher relative land costs, and reduced operating leverage.
Exhibit 99.1 view on EDGAR → -
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Company guides FY 2026 deliveries to 10,500–11,000 homes, revenues to $4.90B–$5.30B, and housing gross profit margin to 16.1%–16.5% (excluding inventory charges).
Exhibit 99.1 view on EDGAR → -
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KB Home repurchased 1.4M shares for $75M in Q2, bringing first-half 2026 repurchases to 2.2M shares for $125M total; $775M remains under current authorization.
Exhibit 99.1 view on EDGAR → -
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Built to Order homes now represent 73% of net orders, reflecting progress in strategic shift; company opened 35 new communities and reduced build times by over a week sequentially.
Exhibit 99.1 view on EDGAR →
Summary
KB Home disclosed second quarter 2026 results showing significant year-over-year contraction across key metrics. Revenues fell 27% to $1.11 billion as the company delivered 23% fewer homes at lower average selling prices.
Profitability deteriorated sharply: homebuilding operating margin compressed from 8.6% to 2.5%, and housing gross profit margin fell from 19.3% to 15.2%, driven by price reductions, higher relative land costs, and reduced operating leverage. Diluted earnings per share fell to $0.43 from $1.50.
Despite the near-term pressure, KB Home is executing its strategic pivot to a Built to Order model, which now represents 73% of net orders. The company opened 35 new communities at the high end of guidance and reduced build times by over a week. Management returned $75 million to shareholders through stock repurchases in the quarter. Full-year 2026 guidance projects deliveries of 10,500–11,000 homes and revenues of $4.90–$5.30 billion, with housing gross profit margin expected to improve to 16.1%–16.5%. The results reflect a challenging operating environment, but the company is positioning for more sustainable performance through its business model shift and operational improvements.
Section-by-Section Diff
Event · Exhibit 99.1
KB Home reported Q2 2026 results with revenues of $1.11B, diluted EPS of $0.43, and repurchased $75M of common stock.
Added in current filing · view on EDGAR → · paraphrased
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%. The housing gross profit margin was 15.2%, compared to 19.3%. Excluding the above-mentioned inventory-related charges, the housing gross profit margin was 15.7%, compared to 19.7%, primarily reflecting price reductions, higher relative land costs and reduced operating leverage. Selling, general and administrative expenses were 12.7% of housing revenues, compared to 10.7%, mainly due to a decrease in operating leverage. 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.
KB Home reported second quarter 2026 results showing significant year-over-year declines. Revenues fell 27% to $1.11 billion as homes delivered decreased 23% to 2,395 units and average selling price declined to $461,900 from $488,700. Profitability was pressured: homebuilding operating income margin compressed to 2.5% from 8.6%, and housing gross profit margin fell to 15.2% from 19.3%, primarily due to price reductions, higher relative land costs, and reduced operating leverage. Net income declined to $27.3 million from $107.9 million, and diluted EPS fell to $0.43 from $1.50.
Added in current filing · view on EDGAR →
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.
KB Home disclosed that Built to Order homes now represent 73% of net orders in the quarter, reflecting progress in the company's strategic shift toward this business model. Management believes this approach will support stronger and more sustainable performance across market cycles.
Added in current filing · view on EDGAR → · paraphrased
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%.
KB Home provided full-year 2026 guidance projecting deliveries of 10,500 to 11,000 homes, housing revenues of $4.90 billion to $5.30 billion, and housing gross profit margin of 16.1% to 16.5% (excluding inventory charges). The company expects selling, general and administrative expenses as a percentage of revenues in the range of 11.4% to 11.8%, and an effective tax rate of 22% to 24%.
Added in current filing · view on EDGAR → · paraphrased
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. The average community count for the quarter grew 9% to 278, and the ending community count was up 11% to 280.
KB Home achieved 35 new community openings in Q2 2026, at the high end of projections, and reduced build times by more than a week sequentially. The average community count grew 9% year-over-year to 278, with ending community count up 11% to 280, reflecting the company's expansion efforts.
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