KB Home (NYSE: KBH) Faces Housing Market Challenges Despite Strong Earnings

Font: Financial Modeling Prep  • Dec 22, 2025

• KB Home (NYSE:KBH) reported strong fourth-quarter fiscal 2025 results, with earnings per share of $1.92 and revenues of $1.69 billion, surpassing Zacks Consensus Estimate.
• The company has adopted a cautious outlook for fiscal 2026, anticipating lower revenues and margins due to ongoing challenges in the housing market.
• Despite surpassing earnings and revenue expectations, KB Home shares dropped 9.3% to $56.92, reflecting broader market pressures and a decrease in the number of homes delivered.

KB Home (NYSE:KBH) is a prominent homebuilding company in the United States, known for its focus on building energy-efficient homes. The company operates in various regions, offering a range of home designs and price points. KB Home competes with other major homebuilders like Lennar Corporation and D.R. Horton. On December 22, 2025, Barclays adjusted its rating for KBH to "Overweight," maintaining its previous grade. At the time, the stock was priced at $57.39. Barclays also revised the price target for KBH, lowering it from $71 to $62.

Despite the challenges in the housing market, KB Home reported strong fourth-quarter fiscal 2025 results, surpassing earnings and revenue estimates. The company posted earnings per share of $1.92 and revenues of $1.69 billion, exceeding the Zacks Consensus Estimate. However, these results reflect a year-over-year decline due to ongoing challenges such as low consumer confidence, affordability issues, and high mortgage rates, which continue to pressure demand.

In response to these challenges, KB Home has adopted a cautious outlook for the first quarter and the full fiscal year 2026. The company anticipates lower revenues and margins in the first quarter of fiscal 2026. To navigate these headwinds, KB Home is focusing on a build-to-order mix, cost reductions, and enhancing returns. Despite the current pressures, management remains confident in its operating strategy and the value-driven, transparent approach to its business model.

Following the earnings report, KB Home shares dropped 9.3% to $56.92. The stock has fallen by 7.9%, trading at $57.81, despite the company reporting fiscal fourth-quarter earnings and revenue that surpassed expectations. The decline in stock price is attributed to ongoing challenges in the housing market and a reduction in the number of homes delivered throughout 2025. The stock has dropped below its 160-day moving average, a level that previously provided support in October and November.

Overall, KB Home's stock has decreased by over 10% in 2025, amid increased bearish options activity. The current stock price of KBH is $57.39, reflecting a decrease of 8.54% or $5.36. During the trading day, the stock reached a low of $56.45 and a high of $59.62. Over the past year, KBH has seen a high of $72.64 and a low of $48.90. The company's market capitalization stands at approximately $3.9 billion, with a trading volume of 3,575,982 shares on the NYSE.