KB Home's Q4: Affordability, Rates, and Margins
Update: 2025-12-25
Description
KB Homes Q4 earnings missed expectations, with revenue down 15% and operating margins dropping to 7.3%. The company blamed tough affordability and high mortgage rates, leading to a 37% drop in backlog. Despite pricing discipline, older inventory weighed on profits. Analysts questioned conservative margin guidance and the impact of aged inventory. KB Home plans to open new communities in pricier markets and expects a built-to-order mix to climb later in the year. Investors are watching for signs of demand recovery and margin stabilization amid easing rates.
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