At a glance
KB Home is worth $2.81B, about 8 times its fiscal 2025 earnings. Revenue fell 10.0% to $6.24B in fiscal 2025, with 6.9% kept as profit; over 5 years it has grown 8.3% a year. It pays a 2.17% dividend yield, raised every year for at least 8 years, and returned $1.95B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −26.4% over the past year with dividends reinvested and +4.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 72.4% in the 2020 crash (S&P 500: 33.7%) and 47.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 12 months after the lows.
The business in plain English
KB Home builds and sells new homes in the U.S., more than 700,000 of them since 1957. Its detached houses, townhomes and condominiums are aimed mainly at first-time buyers and "first move-up" buyers (people trading up from a starter home). They are generally priced for households earning near their area's median income. Homebuilding produced 99.6% of total revenue in fiscal 2025 (the year ended November 30, 2025), when revenue was $6.24 billion.
Its signature "Built to Order" process lets buyers choose their lot, floor plan, exterior style and structural options. They then pick finishes at a KB Home Design Studio, and these choices can raise the price. KB Home usually starts building only after a buyer signs a contract and shows they can get financing, which limits the risk of unsold homes. Historically, 60% to 70% of homes delivered were Built to Order. In fiscal 2025 the figure was around 55%.
The remaining 0.4% of revenue came from financial services: insurance and title services (which confirm and insure legal ownership of a home) for its buyers. Mortgages are offered through KBHS Home Loans, a joint venture with a third party. KB Home reports homebuilding in four segments: West Coast (California, Idaho, Washington), Southwest (Arizona, Nevada), Central (Colorado, Texas) and Southeast (Florida, North Carolina). Together they span 49 major markets in nine states.
Price history
The interactive chart needs JavaScript.
KBH -26.4% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Aug 31, 2026), revenue was $1.30B, down 20% from a year earlier, and net income was $65.3M (-40.6%).
- For fiscal 2025, revenue was $6.24B (-10.0% year over year; +8.3% a year from FY2020 to FY2025) with a 6.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.3% good |
|---|---|
| Free cash flow margin | 4.6% watch |
| Return on equity (FY2025) | 11% watch |
| Return on assets (FY2025) | 6.4% watch |
| Cash and investments | $160.1M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $4.18B | $296.2M | $281.8M |
| FY2021 | $5.72B | $564.7M | $-76.7M |
| FY2022 | $6.90B | $816.7M | $138.2M |
| FY2023 | $6.41B | $590.2M | $1.05B |
| FY2024 | $6.93B | $655.0M | $323.4M |
| FY2025 | $6.24B | $428.8M | $287.3M |
Valuation snapshot
| Market value | $2.81B |
|---|---|
| P/E ratio | 7.5 |
| Dividend yield | 2.17% |
Rank among 1514 US companies
Market value at each year end
KB Home’s market value went from $1.34B at the end of 2016 to $2.81B on Oct 28, 2026, about 2.1 times as much; since the end of 2025 it is down 21%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.81B | -21.3% |
| 2025 | $3.56B | -24.9% |
| 2024 | $4.74B | -4.3% |
| 2023 | $4.95B | +81.7% |
| 2022 | $2.73B | -30.9% |
| 2021 | $3.95B | +28.5% |
| 2020 | $3.07B | +0.0% |
| 2019 | $3.07B | +85.0% |
| 2018 | $1.66B | -39.9% |
| 2017 | $2.76B | +106.2% |
| 2016 | $1.34B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KBH price data to Oct 28, 2026 | -17.0% | -26.4% | +3.9% | +4.4% | +13.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -17.0% |
| 2025 | -12.7% |
| 2024 | +6.6% |
| 2023 | +99.0% |
| 2022 | -27.5% |
| 2021 | +35.3% |
| 2020 | -0.9% |
| 2019 | +82.4% |
| 2018 | -39.9% |
| 2017 | +103.2% |
| 2016 | +29.4% |
| 2015 | -24.9% |
| 2014 | -8.8% |
| 2013 | +16.4% |
| 2012 | +140.0% |
| 2011 | -48.9% |
| 2010 | +0.4% |
| 2009 | +2.0% |
| 2008 | -34.4% |
| 2007 | -56.7% |
| 2006 | -28.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 70.2% over that stretch · deepest drop along the way 71.8%, back to its old high 106.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 71.6% over that stretch · deepest drop along the way 72.4%, back to its old high 6.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 35.3% over that stretch · deepest drop along the way 47.8%, back to its old high 11.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 10 sales ($19.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 14, 2026 | Jeffrey T Mezger Executive Chairman, Director | sell | $4.9M |
| Jul 13, 2026 | Jeffrey T Mezger Executive Chairman, Director | sell | $4.5M |
| Jul 14, 2026 | Jeffrey T Mezger Executive Chairman, Director | sell | $2.2M |
| Jul 15, 2026 | Jeffrey T Mezger Executive Chairman, Director | sell | $1.7M |
| Aug 5, 2026 | Albert Z Praw EVP, Real Estate & Bus. Dev. | sell | $1.3M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.6% | Sep 30, 2026 |
| FMR LLC | 8.1% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.21% | Jun 30, 2026 |
| Vanguard Capital Management | 5.11% | Jun 30, 2026 |
| STATE STREET CORPORATION | 5.1% | Sep 30, 2025 |
ETFs with the most weight in KBH
| OSCV Opus Small Cap Value ETF | 1.72% |
| ITB iShares U.S. Home Construction ETF | 1.55% |
| MBOX Freedom Day Dividend ETF | 1.5% |
| GRPM Invesco S&P MidCap 400 GARP ETF | 1.1% |
| MYLD Cambria Micro and SmallCap Shareholder Yield ETF | 1.03% |
| XMHQ Invesco S&P MidCap Quality ETF | 0.72% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.58% |
| SDVD FT Vest SMID Rising Dividend Achievers Target Income ETF | 0.52% |
What could go wrong
- Core buyers are most exposed to job losses. KB Home mainly sells to first-time and first move-up buyers. Its annual report warns that rising unemployment could hit these buyers hardest, hurting KB Home more than builders aimed at other buyer groups.
- New pricing approach may not hold up. Starting in mid-February 2025, KB Home cut selling prices and scaled back incentives to draw buyers. The company cannot promise this will sustain demand, and it may need to add incentives again, squeezing margins.
- Heavy presence in California. California holds more of KB Home's major markets than any other state. The company flags delayed or canceled federal funding to certain states, particularly California, as a threat to local economies and housing demand.
- Affordability strain on entry-level buyers. Elevated mortgage rates in 2024 and 2025 and a shortage of homes have stretched budgets. KB Home added smaller floor plans and townhomes, but may still need price cuts or buyer incentives that lower profit margins.
- Housing slumps, cancellations and price pressure. A weak economy could cut traffic at KB Home's communities, raise contract cancellations and add resale and foreclosed homes to the market, forcing lower prices or mortgage rate buydowns (builder-paid cuts to buyers' interest rates).
- Slower population and household growth. KB Home's long-term plans rest on population growth and a shortage of homes. Shifts in birth rates, economic factors or U.S. immigration policy could leave demand below its forecasts.
Recent events
- Executive or board change
- Quarterly results released
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Executive or board change
- Quarterly results released
- Major agreement signed; Major agreement ended; New debt or financial obligation
For income and retirement investors
KB Home pays a modest but growing dividend. It has raised the payout for 8 years in a row, and dividends per share climbed from about $0.40 in fiscal 2020 to $1.00 in fiscal 2025, about 19.8% a year. That used only 16% of earnings and about 24% of free cash flow (cash left after operating costs and capital spending). The yield was 2.17% as of October 28, 2026. Buybacks returned far more cash: KB Home spent $1.64 billion repurchasing shares in fiscal 2021–2025, versus $303 million in dividends. Its share count fell 31.1% from December 31, 2021, to August 31, 2026.
The stock has fallen hard in downturns. It dropped 71.8% in the 2008 financial crisis and needed about 106 months to recover. It fell 72.4% in the 2020 COVID crash but recovered in about six months, and it lost 47.8% in the 2022 bear market. A single stock carries more risk than a diversified fund.
Questions investors ask
How does KB Home make money?
Almost entirely by building and selling new homes. Homebuilding produced 99.6% of KB Home's revenue in fiscal 2025 (the year ended November 30, 2025), when total revenue was $6.24 billion and net income was $428.8 million. The other 0.4% came from financial services, which provide insurance and title services for its homebuyers. Mortgages are arranged through KBHS Home Loans, a joint venture with a third party that KB Home does not consolidate (fully include) in its financial statements.
Where does KB Home build houses?
KB Home builds in 49 major markets across nine states, grouped into four segments. West Coast covers California, Idaho and Washington; Southwest covers Arizona and Nevada; Central covers Colorado and Texas; and Southeast covers Florida and North Carolina. California has the most major markets, including Los Angeles, San Diego, Sacramento and San Jose. In 2025 the company announced a return to Atlanta, Georgia. As of November 30, 2025, it had not bought land or started selling homes there.
Does KB Home raise its dividend every year?
It has for eight straight years, though future increases are not guaranteed. Dividends per share rose from about $0.40 in fiscal 2020 to $1.00 in fiscal 2025, an average of 19.8% a year. The fiscal 2025 dividend used only 16% of earnings. That is a low payout ratio (the share of profit paid out), which gives some room to keep paying if profits fall further. The dividend yield was 2.17% as of October 28, 2026.
Does KB Home buy back its own stock?
Yes, on a large scale. KB Home spent $1.64 billion on buybacks from fiscal 2021 through fiscal 2025, far more than the $303 million it paid in dividends. That included $541.3 million in fiscal 2025 alone. Its share count fell 31.1%, from about 88.2 million on December 31, 2021, to about 60.8 million on August 31, 2026. With fewer shares, each remaining share claims a larger slice of profits, which can lift earnings per share.
How has KB Home stock performed?
Weakly over one year, better over 10 years. As of October 28, 2026, the share price was down 26.4% over one year and 17% year to date, but it had gained 13.9% a year over 10 years. Profits have fallen: fiscal 2025 net income dropped 34.5%. In the quarter ended August 31, 2026, revenue fell 20% and net income fell 40.6% from a year earlier. The price-to-earnings ratio (share price divided by earnings per share) was 7.5, based on fiscal 2025 earnings.