KB Home announced that the temporary delivery trough caused by its shift to a predominantly built-to-order model is now over, with sequential volume and revenue growth expected for the remainder of the year. The built-to-order strategy reached 73% of net orders this quarter and carries a gross margin premium of approximately 400 basis points over speculative homes. Build times improved by 8 days sequentially to a decade-best 100 days, while a softer-than-expected spring selling season weighed on second-quarter performance. The company guided for significant margin expansion in the second half of 2026, driven by operating leverage and a mix shift toward high-ASP West Coast communities, and plans to repurchase between $50 million and $100 million of common stock in the third quarter. KB Home also announced a corporate headquarters relocation to Tempe, Arizona, in 2027, recorded $5.6 million in inventory charges including a $3.1 million impairment on a single community, and noted that energy tax credits will be eliminated for homes delivered after June 30, 2026, raising the effective tax rate.
KB HomeKB Home announced the BTO transition trough is over, expects sequential growth, significant margin expansion, and a $50-$100M buyback.
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