Revenue contracted to $1.11 billion, down from $1.53 billion, as the company delivered 23% fewer homes. With total deliveries dropping to 2,395 units and the average selling price sliding to $461,900, the builder is feeling the squeeze of a cooling demand environment. Net orders also saw a 4% decline, leaving the company’s backlog 5% thinner than it stood at the end of the previous quarter.
In section Market Quotes
KB Home Profits Slide as Housing Market Headwinds Persist
A 75% plunge in quarterly profit highlights the mounting pressures facing KB Home, as the builder struggles against a volatile housing market. The company reported earnings of $27.3 million for the second quarter, falling significantly short of the $107.9 million net income recorded during the same period last year.
Chief Executive Officer Robert McGibney characterized the results as a product of disciplined management in a fluid environment, emphasizing the need to balance construction pace with pricing strategies. Meanwhile, the firm’s Built to Order model accounted for 73% of net orders, a pivot Executive Chairman Jeffrey Mezger argues will foster stability across shifting market cycles. Looking ahead, KB Home anticipates third-quarter revenues between $1.2 billion and $1.35 billion, while narrowing its full-year revenue guidance to a range of $4.9 billion to $5.3 billion.
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