1838 ET - KB Home is trying to return to its historical reliance on homes built-to-order rather than built on speculation, the company said in its earnings call. Right now, the company is at about 50% built-to-order, but, as recently as 2022, it was at 70%. Supply-chain shocks increased construction time, making built-to-order homes, which have a margin 250 to 400 basis points better than speculation homes, infeasible for buyers. "It's not going to be an overnight change," said COO Rob McGibney. "As we get into the early part of 2026, we expect to shift back to that 70/30-or-better ratio at higher margins." (nicholas.miller@wsj.com)
(END) Dow Jones Newswires
September 24, 2025 18:38 ET (22:38 GMT)
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