Overview
- KB Home reported weaker first‑quarter results, with earnings of 52 cents per share versus a 58‑cent estimate and revenue of $1.08 billion versus $1.1 billion expected.
- The company trimmed its 2026 outlook, guiding housing revenue to $4.80 billion to $5.50 billion and deliveries to 10,000 to 11,500 homes, and it now sees the margin low point in the second quarter.
- Leaders said recent conflict involving Iran has weighed on shopper sentiment and could lift oil‑linked building costs, a risk for its key California and Washington markets with high gas prices.
- Operating trends worsened from a year ago, as deliveries fell 14% to 2,370 homes, the average selling price dropped to $452,100, housing gross margin slipped to 15.3%, and backlog value declined to $1.70 billion.
- Shares fell 1.6% to close at $52.12 after the report, analysts cut forecasts and targets, and trade press highlighted a shift back to build‑to‑order homes that aims to protect margins even if it slows near‑term closings.