KB Home
KBH.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
KB Home posted Q2 revenue of $1.11 billion and an adjusted housing gross margin of 15.7%, exceeding the high end of its guidance while accelerating its shift to a Built‑to‑Order (BTO) model. BTO homes now comprise 73% of net orders, up from the prior quarter, and build times fell another eight days to a decade‑low 100 days. Management reaffirmed full‑year outlook and mapped a 60‑bp margin lift in Q3 followed by a 100‑bp improvement in Q4, driven by higher volumes, a higher‑margin BTO mix, and a geographic shift toward premium Northern‑California communities.
Adjusted Housing Gross Margin
15.7%
-400 bps
FY2026 Housing Revenue Guidance
$4.90B – $5.30B
Range Narrowed
Built-to-Order (BTO) Net Order Mix
73%
+500 bps
BTO Build Time (Start to Completion)
100 Days
-8 Days
Monthly Net Orders per Community
4.0
-0.5
What We're Watching
Strategic / Opportunity
Northern California Recovery & Sustainability
📅
Next Quarter & Ongoing
What to Monitor
Any quantification of the Bay Area's contribution to deliveries, ASP, and gross margin in Q3 results and Q4 guidance. Also, monitor commentary on the pace of new land acquisitions in the region.
Why It Matters
The resurgence of this high-margin business is the single largest catalyst underpinning the guided second-half margin recovery. Validating its scale and the durability of the pipeline is critical to the investment thesis.
Operational / Opportunity
Backlog Growth Inflection Point
📅
Q3 2026
What to Monitor
Confirmation in the next earnings report that the company achieved positive year-over-year backlog growth, as management explicitly projected for the third quarter.
Why It Matters
This is a key milestone that would validate the success of the BTO pivot, de-risk the outlook for the remainder of FY2026, and provide a tangible foundation for growth entering FY2027.
Operational
BTO Model Execution at Scale
📅
Ongoing
What to Monitor
The BTO delivery mix (tracking toward ~70% in Q4), build times (sustaining the ~100-day level), and the cancellation rate (maintaining its low level as the backlog seasons).
Why It Matters
The entire strategic reset hinges on the BTO model delivering superior, predictable margins. These metrics are the primary indicators of the model's operational and financial effectiveness as it scales.
Risk / Strategic
Land Pipeline Replenishment
📅
Ongoing
What to Monitor
The trend in total lots owned and controlled and management commentary on the pace of new land acquisitions, particularly the "finished lot deals" they are now targeting.
Why It Matters
A continued decline in the lot pipeline could create an "air pocket" in community count and revenue growth in FY2027 and beyond. A pickup in acquisition activity is necessary to fuel future growth.
Strategic / Opportunity
New Market Entry Progress (Atlanta)
📅
Ongoing
What to Monitor
Any updates on land acquisition and community development progress in the Atlanta market, including the number of communities planned and their expected opening cadence beyond the initial early 2027 target.
Why It Matters
This represents a key avenue for long-term, incremental growth and geographic diversification. Successful execution would validate the company's template for entering new markets.
