NEW YORK, June 23, 2026, 19:02 (EDT)
- KB Home climbed roughly 4% in after-hours trading. This came as the homebuilder’s quarterly profit came in below Wall Street targets.
- The 2026 delivery outlook from the company points to a bigger second half for deliveries compared to the first half.
- The stock traded in after-hours near the average analyst target. Shares stayed under book value.
KB Home shares moved higher in late trading Tuesday as the company pitched a 2026 plan to investors. The strategy banks on higher home closings later and some margin improvement in the back half, giving investors an alternative to focus on after a steep profit fall.
The stock finished the day at $52.73, up 0.4%, and then moved to $54.87 in after-hours trading, up 4.1%, MarketWatch reported. Regular session volume was over double the 65-day average. That points to strong trading around the earnings report, not just a light after-hours reaction.
KB Home posted second-quarter earnings of 43 cents a share, missing the 45-cent estimate from analysts surveyed by FactSet, according to the Wall Street Journal. Revenue came in at $1.11 billion, down from $1.53 billion last year, but slightly ahead of the $1.09 billion consensus.
KB Home’s stock moved more on the numbers behind the quarter. The company delivered 4,765 homes in the first half and put out full-year guidance of 10,500 to 11,000 homes. So they’ll need to deliver 5,735 to 6,235 in the back half, which is about 26% more than the first six months at the midpoint. PR Newswire
KB Home’s fourth quarter is shaping up to be key. Based on the company’s third-quarter delivery outlook midpoint, the full-year goal means about 3,285 homes would need to be delivered in Q4—37% more than the 2,395 homes delivered in Q2. That’s driving the stock now. Investors aren’t reacting to last quarter’s numbers. They’re looking at whether KB Home can convert its backlog and new community openings into actual closings before year-end.
KB Home’s margins slipped again. Housing gross profit margin dropped to 15.2% from 19.3% last year. Stripping out inventory charges, it came in at 15.7%. The company put third-quarter margin guidance at 16.0% to 16.6%, a slight uptick. PR Newswire
Executive Chairman Jeffrey Mezger said the quarter was “solid” and pointed to 73% of net orders tied to KB Home’s built-to-order approach, with buyers signing up before their homes are finished. CEO Robert McGibney said the company remains in a “difficult and fluid market environment” and is “balancing pace and price.” PR Newswire
KB Home bought back $75 million in stock during the quarter and $125 million in the first half, leaving $775 million on its current buyback authorization. Book value per share stood at $61.93. The stock closed Tuesday trading near 0.85 times book value, then changed hands after hours at about 0.89 times book. PR Newswire
The stock trades at a discount, which could be why it’s up on mixed earnings. That same discount may keep the rally in check. MarketWatch listed an average analyst price target of $55.33, with a consensus “hold” from 17 analysts before any updates after results. The site also reported that 2026 earnings estimates had dropped to $3.19, down from $4.13 three months ago. MarketWatch
KB Home’s move in after-hours looked like more of a reaction to its own guidance, buyback plan and valuation. The rest of the group was steady during the day. The iShares U.S. Home Construction ETF barely budged. D.R. Horton edged up 0.1%, Lennar dipped 0.1%, and PulteGroup added 0.7%.
Second-half ramp looks heavy here for the market. Freddie Mac’s latest weekly survey shows the 30-year fixed mortgage at 6.47%, still holding affordability down for many buyers. KB Home’s cancellation rate dropped to 12% from 16%, but higher rates, more price cuts, or weaker buyer traffic could drive cancellations back up and threaten the delivery forecast. Freddie Mac
