Core Viewpoint - KB Home has reported strong fourth-quarter fiscal 2025 results, surpassing earnings and revenue estimates, but faces ongoing challenges in the housing market that have led to a cautious outlook for fiscal 2026 [2][6]. Financial Performance - KB Home posted earnings per share of $1.92 and revenues of $1.69 billion, exceeding the Zacks Consensus Estimate [2][6]. - Despite strong results, the company experienced a year-over-year decline due to low consumer confidence, affordability issues, and high mortgage rates [2][3]. Market Response - Following the earnings report, KB Home shares dropped 9.3% to $56.92, reflecting broader market pressures and a decrease in the number of homes delivered [4][6]. - The stock has decreased by over 10% in 2025, with a current price of $57.39, down 8.54% or $5.36 [5]. Future Outlook - KB Home has adopted a cautious outlook for the first quarter and the full fiscal year 2026, anticipating lower revenues and margins [3][6]. - The company is focusing on a build-to-order mix, cost reductions, and enhancing returns to navigate current market challenges [3].