KB Home reports Q4 revenue decline amid market strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 25 2025
0mins
Should l Buy KBH?
Source: Investing
KB Home's stock fell by 5.99% as it hit a 5-day low, reflecting ongoing challenges in the housing market.
This decline comes amid broader market strength, with the Nasdaq-100 up 0.76% and the S&P 500 up 0.20%. The company's fourth-quarter revenue of $1.69 billion represented a 10% decline year-over-year, driven by low consumer confidence and high mortgage rates, which have impacted home deliveries and overall performance. Despite these challenges, KB Home's commitment to shareholder returns and financial flexibility remains strong.
The implications of this revenue decline suggest that while the broader market is performing well, KB Home faces significant headwinds in the housing sector, which could affect its future growth and stock performance.
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Analyst Views on KBH
Wall Street analysts forecast KBH stock price to fall
9 Analyst Rating
2 Buy
6 Hold
1 Sell
Hold
Current: 65.800
Low
50.00
Averages
58.38
High
71.00
Current: 65.800
Low
50.00
Averages
58.38
High
71.00
About KBH
KB Home is a homebuilding company, which builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult homebuyers. It offers homes in development communities, in urban in-fill locations and as part of mixed-use projects. The Company's segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers various insurance products to its homebuyers in the markets where the Company builds homes and provides title services in certain of those markets. Its financial services also provide mortgage banking services, including residential consumer mortgage loan originations, to its homebuyers indirectly through KBHS Home Loans, LLC, an unconsolidated joint venture between the Company and a third party.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Personalized Homebuying Experience: KB Home emphasizes building strong personal relationships with customers, offering a unique design studio experience that allows each family to customize their home according to their style and budget, thereby enhancing customer satisfaction and solidifying its market leadership.
- Sustainability Commitment: Homes in the Point Martin community are designed to meet ENERGY STAR® standards, featuring high energy and water efficiency that help buyers reduce long-term living costs while enhancing comfort, reflecting KB Home's industry-leading position in sustainable building practices.
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- Walmart Earnings Release: Walmart is set to report its quarterly earnings live from Nasdaq in Times Square, which is expected to have a direct impact on its stock price, especially as it has already fallen 6% from its 52-week high.
- Market Performance Analysis: The S&P 500 has risen 1.8% this week, although it remains the worst performer year-to-date, down nearly 4.3%, indicating market volatility and investor caution.
- Global Payments Strong Rebound: Global Payments shares surged 16% on Wednesday, driven by better-than-expected earnings and guidance, reflecting market confidence in its future growth prospects.
- Real Estate Market Dynamics: Cushman & Wakefield is set to report quarterly results, with its stock down 8% over the past three months, highlighting challenges in the commercial real estate market, and investors should pay attention to the upcoming pending home sales data.
See More
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- Housing Shortage Reality: According to Goldman Sachs, the U.S. faces a shortage of 3 to 4 million homes, significantly exceeding the normal annual construction of 1.5 million, leading to fierce competition among buyers and rising prices, thus providing sustained market opportunities for major homebuilders.
- Growth Potential of LGI Homes: LGI Homes is projected to achieve an 11% sales growth this year and 6% next year, reaching $2 billion in sales by 2027, showcasing its ability to stand out in a competitive market, particularly among first-time homebuyers.
- Market Leadership of D.R. Horton: As the largest homebuilder in the U.S., D.R. Horton reported $34.3 billion in sales last year, with expectations to grow sales to nearly $40 billion in the coming years, and its reasonable 10x P/E ratio offers a compelling value proposition for investors.
- Income Model of Invitation Homes: Invitation Homes owns and manages over 100,000 homes, with projected sales growth of only 3%, but its 4.34% dividend yield significantly surpasses the market average, attracting more income-focused investors.
See More
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- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
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- Community Launch: KB Home has unveiled Quarry Row, a new residential community in Rocklin, California, with homes starting from the low $500,000s, catering to families seeking modern living spaces and enhancing the area's real estate appeal.
- Personalized Design: Each KB Home is uniquely customizable, allowing buyers to choose from various floor plans and exterior styles, which increases customer engagement and satisfaction, thereby enhancing brand loyalty.
- Prime Location: The Quarry Row community is within walking distance to Rocklin Elementary and Springview Middle Schools, attracting families who prioritize educational resources, further driving housing demand in the area.
- Sustainability Focus: KB Home's designs meet ENERGY STAR® standards, offering higher energy efficiency and healthier indoor environments, helping homeowners reduce long-term living costs and showcasing the company's leadership in sustainable building practices.
See More
KB Home Named to Fortune's Most Admired Companies List for 10th Time
- Industry Leadership: KB Home has been named to Fortune's 2026 list of World's Most Admired Companies for the 10th time, showcasing its outstanding performance across key areas such as innovation, financial soundness, and social responsibility, further solidifying its leadership position in the U.S. homebuilding sector.
- Customer Trust: CEO Jeffrey Mezger stated that this honor reflects the consistency of the company's strategy and the trust built with customers, partners, and communities, emphasizing its mission to help families achieve homeownership.
- Global Assessment Standards: The selection process, conducted in collaboration with Korn Ferry, evaluated approximately 1,500 companies based on criteria including investment value, management quality, and social responsibility, with KB Home scoring in the top half of its industry to qualify for the list.
- Commitment to Sustainability: As a leader in sustainability, KB Home has achieved significant milestones in residential energy efficiency, delivering more ENERGY STAR® certified homes than any other builder, thereby helping to lower the total cost of homeownership and demonstrating its focus on customer value.
See More
KB Home Launches New Community Point Martin in Daly City
- Community Launch: KB Home has unveiled its new community, Point Martin, in Daly City, California, with prices starting from mid $1 million, offering modern three-story townhomes designed to meet contemporary living needs, which is expected to attract numerous Bay Area homebuyers.
- Prime Location: The community is strategically located in the heart of the San Francisco Peninsula, close to schools, parks, and the Cow Palace Arena, providing residents with access to a vibrant entertainment scene while facilitating commutes to major employers in San Francisco and Silicon Valley.
- Personalized Homebuying Experience: KB Home emphasizes building strong personal relationships with customers, offering a unique design studio experience that allows each family to customize their home according to their style and budget, thereby enhancing customer satisfaction and solidifying its market leadership.
- Sustainability Commitment: Homes in the Point Martin community are designed to meet ENERGY STAR® standards, featuring high energy and water efficiency that help buyers reduce long-term living costs while enhancing comfort, reflecting KB Home's industry-leading position in sustainable building practices.
See More
