KB Home (NYSE:KBH) Q2 2024 Earnings Conference Call June 18, 2024 5:00 PM ET Company Participants Jill Peters - Senior Vice President of Investor Relations Jeffrey Mezger - Chairman and Chief Executive Officer Robert McGibney - President and Chief Operating Officer Jeff Kaminski - Executive Vice President and Chief Financial Officer Conference Call Participants John Lovallo - UBS Stephen Kim - Evercore ISI Michael Rehaut - JPMorgan Chase & Co. Anika Dholakia - Barclays Alan Ratner - Zelman & Associates Susa ...

Investor Presentation Second Quarter 2024 ...

Revenue Performance - Revenues for Q2 2024 totaled $1.71 billion, a decrease from $1.77 billion in Q2 2023[4] - Total revenues for the three months ended May 31, 2024, were $1,709,813, a decrease of 3.1% compared to $1,765,316 in the same period of 2023[16] - Homebuilding revenues for the three months ended May 31, 2024, were $1,701,512, down 3.2% from $1,757,846 in 2023[21] Earnings and Profitability - Diluted earnings per share increased by 11% to $2.15, reflecting a net income rise of 2% to $168.4 million[8] - Net income for the three months ended May 31, 2024, was $168,419, an increase of 2.4% from $164,442 in 2023[16] - Basic earnings per share for the three months ended May 31, 2024, were $2.21, compared to $2.00 in 2023, reflecting a 10.5% increase[16] - Homebuilding operating income margin was 11.1%, slightly down from 11.5% year-over-year[4] - Adjusted housing gross profit margin for the three months ended May 31, 2024, was 21.2%, slightly down from 21.4% in 2023[25] Orders and Deliveries - Net orders rose by 2% to 3,997, with net order value increasing by 7% to $2.03 billion[8] - Total net orders for the three months ended May 31, 2024, were 3,997, an increase of 1.5% compared to 3,936 in 2023[23] - Homes delivered in the three months ended May 31, 2024, totaled 3,523, a decrease of 3.9% from 3,666 in 2023[23] Financial Services - Financial services pretax income increased by 16% to $13.3 million, driven by higher loan originations[4] Shareholder Returns - The company repurchased 764,742 shares for a total cost of $50 million in Q2 2024, with a total of $100 million spent in the first half of 2024[12] - The company plans to increase its quarterly cash dividend to $0.25 per share from $0.20 per share[12] Guidance and Outlook - Guidance for full-year 2024 includes revenues between $6.70 billion and $6.90 billion, with an average selling price range of $485,000 to $495,000[12] Asset and Liquidity Position - Total liquidity as of May 31, 2024, was $1.73 billion, including $643.5 million in cash[8] - Total assets as of May 31, 2024, were $6,805,680, an increase from $6,648,362 as of November 30, 2023[19] Backlog and Inventory - Backlog homes as of May 31, 2024, totaled 6,270 with a value of $3,122,135, compared to 7,286 homes valued at $3,456,693 in 2023, indicating a decrease in both homes and value[23] Non-GAAP Financial Measures - Adjusted housing gross profit margin is a non-GAAP financial measure calculated by dividing housing revenues less housing construction and land costs by housing revenues[26] - The Company believes adjusted housing gross profit margin is relevant for evaluating performance as it isolates the impact of housing inventory impairment and land option contract abandonment charges[26] - This financial measure assists management in making strategic decisions regarding community location, product mix, product pricing, and construction pace[26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended February 29, 2024. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from [ ] to [ ]. Commission File No. 001-09195 KB HOME (Exact name of registrant as specified in its charter) Delaware 95-3666267 (State of incorporation) (IRS employer ...

Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current (at the time made) expectations and projections about future events and are subject to risks, uncertainties, and assumptions about our operations, economic and market factors, and the homebuilding industry, among ...

KB Home (NYSE:KBH) Q1 2024 Earnings Conference Call March 20, 2024 5:00 PM ET Company Participants Jill Peters - Senior Vice President, Investor Relations Jeff Mezger - Chairman and CEO Rob McGibney - President and COO Jeff Kaminski - Executive Vice President and CFO Bill Hollinger - Senior Vice President and CAO Thad Johnson - Senior Vice President and Treasurer Conference Call Participants Elizabeth Langan - Barclays Stephen Kim - Evercore ISI Alan Ratner - Zelman & Associates John Lovallo - UBS Susan McC ...

Exhibit 99.1 FOR RELEASE, Wednesday, March 20, 2024 For Further Information: 1:10 p.m. Pacific Time Jill Peters, Investor Relations Contact (310) 893-7456 or jpeters@kbhome.com Cara Kane, Media Contact (321) 299-6844 or ckane@kbhome.com KB HOME REPORTS 2024 FIRST QUARTER RESULTS Revenues Grew 6% to $1.47 Billion; Diluted Earnings Per Share Increased 21% to $1.76 Net Orders Up 55%; Net Order Value Increased 58% to $1.58 billion Repurchased $50 Million of Common Stock LOS ANGELES (March 20, 2024) — KB Home (N ...

Workforce and Employee Management - As of November 30, 2023, the company had approximately 2,205 full-time employees, down from 2,366 in 2022, with a turnover rate of 27% in 2023 compared to 21% in 2022[52] - The company’s workforce diversity includes approximately 42% females and 37% ethnic and racial minorities as of November 30, 2023[58] - The company’s training platform, KBU, provided over 28,169 courses completed by employees in 2023, averaging approximately 13 courses per employee[59] - The company’s leadership team has an average tenure of 21 years, contributing to consistency in management and company culture[55] Financial Performance and Debt Management - The company has total fixed rate debt of $1.34 billion as of November 30, 2023, with a fair value of $1.26 billion[314] - The weighted average effective interest rate for fixed rate debt is 5.9%[314] - The company has variable rate debt of $360 million, with a weighted average effective interest rate of 6.8%[314] - A 100 basis-point increase in the interest rate would increase annual interest expenses by approximately $3.6 million[314] - The company does not use interest rate derivative instruments to manage exposure to interest rate changes[313] - KBHS, the financial services joint venture, manages interest rate risk through best efforts forward sale commitments[318] - The company’s unconsolidated joint ventures' debt is not included in the primary debt tables[317] - The company intends to provide financial reports free of charge upon request, enhancing transparency for investors[89] - The investor relations website serves as the primary source for financial and operational performance updates[89] - The company does not engage in speculative or trading derivative activities related to its lending operations[318] Construction and Delivery Performance - The backlog at the end of the period consists of homes under contract but not yet delivered, influenced by cancellations, deliveries, and community count[46] - In 2023, net orders increased by 19% in Q1, 36% in Q2, 28% in Q3, and 17% in Q4, while homes delivered increased by 21% in Q1, 28% in Q2, 25% in Q3, and 26% in Q4[51] Sustainability and Environmental Initiatives - The company has built over 188,000 ENERGY STAR certified homes since 2000, achieving an average energy efficiency improvement of 20% compared to local code homes[66] - The average annual savings for homeowners in utility bills is estimated at $1,400 compared to typical resale homes[66] - The company’s sustainability initiatives are guided by a National Advisory Board established in 2009, focusing on energy efficiency and reducing greenhouse gas emissions[64] - The company aims to reduce GHG emissions from homes built in 2025 by 0.5 metric tons per year, or 8%, from the estimated 6 metric tons per year average for homes built in 2020, targeting a HERS Index score reduction from 50 to 45 by 2025[67] - Over 20,000 homes with solar-paneled power systems have been delivered, producing an estimated total of 860 million kilowatt hours of electrical power; in 2023, over 3,000 solar homes were built in California, representing approximately 100% of homes built in the state that year[68] - Approximately 38% of total homes delivered in 2023 were all-electric, producing about 3,800 pounds less CO per year compared to dual-fuel homes[70] - In 2023, more than 2,800 WaterSense labeled homes were built, compared to 1,760 in 2022, contributing to an estimated savings of 1.7 billion gallons of water per year[74] - The company has received 29 ENERGY STAR Market Leader Awards in 2023, setting a new industry record for energy-efficient homes[76] - The company was recognized as the highest-ranked homebuilder on Newsweek's 2023 list of America's Climate Leaders, based on annualized reductions in emission intensity[77] - The company has committed to using WaterSense labeled products, which use at least 20% less water compared to non-labeled products, and aims for homes to be at least 30% more water efficient than typical new homes[73] - The company has implemented high-performance ventilation systems and MERV-13 rated air filters in all new homes since mid-2021 to improve indoor air quality[70] - The company has a Supplier Code of Conduct that encourages suppliers to operate in an environmentally responsible manner and minimize waste[82] - The company has partnered with local nonprofits to contribute to community initiatives, including planting 50 million trees in collaboration with the National Forest Foundation[81]

Financial Data and Key Metrics Changes - The company reported total revenues of $1.7 billion for Q4 2023, with diluted earnings per share of $1.85, exceeding guidance across key financial metrics [6][26] - For the full year 2023, the company delivered over 13,200 homes, generating revenues of $6.4 billion and diluted earnings above $7 per share [6][33] - The operating income margin for Q4 was 11%, while the housing gross profit margin was 20.7%, down from 23.9% in the previous year [29][30] Business Line Data and Key Metrics Changes - The company achieved over 3,400 home closings in Q4, driven by improved build times and a strong backlog [6][10] - The average selling price of homes delivered in Q4 decreased to approximately $487,000, influenced by pricing adjustments and buyer concessions [28][30] Market Data and Key Metrics Changes - The company noted improving market conditions with declining interest rates and increasing consumer confidence, alongside low resale inventory [7][8] - In the first five weeks of Q1 2024, net orders reached 904, significantly higher than 403 in the same period last year [11][12] Company Strategy and Development Direction - The company plans to continue optimizing its built-to-order model while focusing on reducing build times and increasing community count [19][39] - The strategy includes maintaining a strong backlog and managing inventory effectively to support growth through 2025 [22][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market, citing favorable demographic trends and a strong desire for homeownership among millennials and Gen Z [8][39] - The company anticipates improved housing market conditions and a forecasted revenue range of $6.4 billion to $6.8 billion for 2024 [28][33] Other Important Information - The company returned nearly $180 million to shareholders through share repurchases in 2023, with a total of approximately $750 million deployed since the repurchase initiative began [6][24] - The company ended Q4 with a backlog of over 5,500 homes valued at approximately $2.7 billion, representing about 40% of anticipated deliveries for 2024 [10][34] Q&A Session Summary Question: Impact of lower Q4 orders on full-year guidance - Management acknowledged that the slight downshift in guidance was primarily due to lower Q4 orders but remains optimistic about the potential for 2024 [41][43] Question: Expectations for gross margin consistency - Management indicated expectations for relatively flat gross margins throughout the year, influenced by current market conditions and sales rates [44][46] Question: Absorption rates and historical performance - Management expects absorption rates in 2024 to be higher than in 2023, with a target of around five homes per community per month [48][49] Question: Incentives and pricing strategies - Management confirmed that they have not significantly altered incentives and plan to reduce them as demand increases [50][52] Question: Community pricing actions and competition - Management noted that while they have raised prices in some communities, the competitive landscape is more stable compared to previous years [76][77]

Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current (at the time made) expectations and projections about future events and are subject to risks, uncertainties, and assumptions about our operations, economic and market factors, and the homebuilding industry, among ...