KB Home (KBH) Earnings Call Transcripts

KB Home's Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal 2026, KB Home reported total revenues of $1.1 billion and diluted earnings per share of $0.43, reflecting a significant decline from the previous year's $1.52 billion and $1.50 per share, respectively. Despite these challenges, management highlighted a strategic shift back to a built-to-order (BTO) model, which they believe will enhance margin predictability and operational efficiency. Guidance for the third quarter anticipates housing revenues between $1.2 billion and $1.35 billion, with homes delivered expected to range from 2,600 to 2,800, indicating a potential recovery in performance as the year progresses.

Reported metrics

Guidance from management

For the third quarter, KB Home expects housing revenues between $1.2 billion and $1.35 billion, with homes delivered anticipated to range from 2,600 to 2,800. The full-year guidance for homes delivered is maintained at 10,500 to 11,000 homes.

What management said

Yes, John, I think it's a pretty normal trend. We always deliver more in the second half than we do the first half. It's probably -- there was less leverage in Q2 because we had the trough in deliveries than we would have in a normal Q2. And we have an overhead structure in place that can continue to handle the scale as we get into '27 as well. In part, it's what we're seeing in Q3 and Q4, but we think we can continu...

I think you've really got them all 3 there, John, between the leverage from the scale, the BTO shift and then what we're expecting is a mix change that's favorable for both the ASP and margin and revenue in Q4. Yes, we haven't really parsed through outside of the leverage piece, the specific drivers from the other part of that incremental step-up.

What analysts pressed on

Analysts expressed concerns regarding the impact of rising mortgage rates and inflation on consumer confidence and sales conversion rates. There were also questions about the sustainability of the gross margin improvements and the company's ability to maintain community count amidst declining lot availability.

Main topics on the call

• Shift to Built-to-Order Model — Management emphasized a strategic return to a predominantly built-to-order business model, stating, "Our BTO approach and the benefits of it extend beyond any single quarter's results." This shift is expected to enhance ...
• Sequential Improvement in Backlog — The backlog at quarter end was 4,526 homes, growing 26% sequentially. Management noted, "We expect to continue growing our backlog sequentially in the third quarter and believe this will also be the quarter in which we r...
• Community Count Growth — KB Home ended the quarter with 280 active communities, up 11% year over year. Management stated, "We achieved the high end of our target for new communities," indicating a robust expansion strategy.
• Gross Margin Challenges — The housing gross profit margin was reported at 15.2%, down from 19.3% year over year. Management acknowledged, "We acknowledge that we have more work to do on further improving our gross margin," signaling ongoing conce...

Read the full KB Home transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 35 KB Home earnings call transcripts on record, spanning January 9, 2020 to June 23, 2026. Based on this history, KB Home reports quarterly. The most recent call on file is dated June 23, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

KBH

Exchange

NYSE

Country

US

Sector

Consumer Discretionary

Industry

Household Durables

Calls on record

35

First call

January 9, 2020

Most recent

June 23, 2026

Reporting cadence

quarterly