KB Home Revenue Slides as Market Headwinds Persist

The Los Angeles-based homebuilder reported net income of $27.3 million, a significant drop from the $107.9 million recorded in the same period last year. Diluted earnings per share plummeted to $0.43, down from $1.50, even as the company utilized share repurchases to mitigate the impact. The contraction in profitability reflects a 23% decrease in home deliveries and a lower average selling price of $461,900.

Executive Chairman Jeffrey Mezger emphasized that the company’s pivot toward a "Built to Order" model, which now accounts for 73% of net orders, provides a foundation for future stability. Operationally, the firm managed to open 35 new communities and successfully reduced build times by more than a week. Despite these efficiencies, the company continues to navigate a landscape defined by higher land costs and reduced operating leverage, which pressured margins. Looking ahead, KB Home anticipates higher delivery volumes in the final two quarters of the fiscal year, targeting up to 11,000 home deliveries for the full year.