KB Home Trying to Get Back to Built-to-Order Roots -- Market Talk
Dow Jones
Sep 25
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)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.