Tuesday, KB Home (NYSE: KBH) disclosed its second quarter results after market close.
Quarterly results reflected earnings of $0.43 per share, below analyst forecasts of $0.45 per share by a margin of $-0.02.
The company reported quarterly sales of $1.11 billion, beating analyst estimates by $10.00 million against projections of $1.10 billion.
KB Home recorded lower earnings and revenue from the same period last year, with earnings down 71.3 percent and revenue decreasing 27.5 percent.
For the second quarter, the homebuilding operating income margin was 2.5 percent, compared to 8.6 percent. The housing gross profit margin was 15.2 percent, compared to 19.3 percent.
For the six months ended May 31, 2026, revenues totaled $2.19 billion, compared to $2.92 billion. The earnings per share was $0.96, compared to $3.00.
Looking ahead, the company expects third quarter housing revenues in the range of $1.20 billion to $1.35 billion. Housing gross profit margin is anticipated to be between 16.0 percent and 16.6 percent, assuming no inventory-related charges. Deliveries are projected to be in the range of 2,600 to 2,800 homes.
Additionally, for the full year 2026, KBH expects deliveries in the range of 10,500 to 11,000 homes. Housing revenues are expected to be between $4.90 billion and $5.30 billion. Housing gross profit margin is projected to be between 16.1 percent and 16.5 percent, assuming no inventory-related charges.
Jeffrey Mezger, Executive Chairman, commented, “We produced solid second-quarter results that met or exceeded the mid-point of our key guidance ranges.”
In after-hours trading, KB Home fell 15.95 percent to 54.44. This represents a decrease of 10.33 from the closing price of 52.74. During the regular trading session, the shares continue to trade between their 52-week low of 44.03 and high of 68.71.
