By Elias Schisgall
KB Home reported lower revenue and profit in the second quarter, as it continued to contend with a difficult housing market.
The home builder on Tuesday reported a profit of $27.3 million, or 43 cents a share, compared with a profit of $107.9 million, or $1.50 a share, a year earlier. Analysts polled by FactSet were expecting 45 cents a share.
Revenue fell to $1.11 billion from $1.53 billion a year prior. Analysts were expecting $1.09 billion.
The company delivered 23% fewer homes during the quarter, with 2,395 deliveries. The average selling price fell to $461,900 from $488,700.
Net orders fell 4%. The company's home order backlog was down 5% at the end of the quarter.
"We remained disciplined as we continued to successfully navigate a difficult and fluid market environment, balancing pace and price while tightly managing costs," Chief Executive Officer Robert McGibney said.
Executive Chairman Jeffrey Mezger said that homes under the company's Built to Order model represented 73% of net orders during the quarter, describing it as "progress that we believe supports stronger, more sustainable performance over time and across market cycles."
For the current third quarter, the company is expecting housing revenues between $1.2 billion and $1.35 billion, with between 2,600 and 2,800 projected home deliveries.
The company narrowed its full-year outlook, projecting housing revenues between $4.9 billion and $5.3 billion, with home deliveries in a range of 10,500 to 11,000.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
June 23, 2026 16:58 ET (20:58 GMT)
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