KB Home Stock Falls On Q4 Earnings: 'Housing Market Conditions Remained Challenging'

Core Insights - KB Home reported fourth-quarter revenue of $1.69 billion, exceeding analyst estimates of $1.66 billion, with adjusted earnings of $1.92 per share, surpassing expectations of $1.80 per share [2] Financial Performance - The company delivered 3,619 homes in the quarter, representing a 9% decrease year-over-year - The average selling price of homes declined by 7% year-over-year to $465,600 - Net orders fell by 10% year-over-year to 2,414 - Ending backlog value was $1.40 billion, while inventories increased by 3% to $5.67 billion [3] Shareholder Actions - KB Home repurchased approximately $100 million of its common stock during the quarter - The company ended the period with total cash and cash equivalents of $228.6 million [3] Market Conditions - The housing market remains challenging due to lower consumer confidence, affordability concerns, and elevated mortgage interest rates [4] Future Outlook - KB Home expects housing revenue in the first quarter to be between $1.05 billion and $1.15 billion - The company guided for full-year 2026 housing revenue of $5.1 billion to $6.1 billion [5]