KB HOME (KBH) SEC Filings

KB Home approved performance-based restricted stock unit (PSU) awards for its named executive officers on October 8, 2026, with target Award Shares of 135,227 for Robert V. McGibney, 112,689 for Jeffrey T. Mezger, and 21,411 for Brian J. Woram. Each PSU can deliver between 0% and 200% of target Award Shares based on performance during the three-year period from December 1, 2026, through November 30, 2029. Cumulative adjusted earnings per share determines 40% of final shares, average adjusted return on invested capital 35%, and revenue growth relative to a peer group of high-production public homebuilding companies 25%.

Recipients may also receive a cash dividend-equivalent payment based on final shares issued relative to target Award Shares and credited dividends. If all three performance measures are below their specified thresholds, no shares or credited dividend-equivalent cash amount is paid. Recipients generally forfeit award rights upon termination of service, except that they vest in the final award and cash payout, if any, upon death, disability, or attaining or having attained at least 55 years of age and 15 consecutive years of service with KB Home.

KB HOME (KBH) reported third-quarter revenue of $1,297.1 million, down 20% year over year, and net income of $65.3 million, down 41%; diluted earnings per share were $1.05 versus $1.61. For the nine months ended August 31, 2026, revenue was $3,486.5 million and net income was $126.1 million, compared with $4,541.8 million and $327.3 million a year earlier; diluted EPS was $2.00 versus $4.60.

Third-quarter net orders were 2,604, down 12%, while average selling price rose 4% to $463,600 and ending community count was 277. Management cited higher mortgage rates, resale home inventory at its highest levels in a decade and downward pricing trends in several markets. Nine-month operating cash flow was a $228.9 million outflow, compared with $31.8 million provided in the prior-year period.

KB HOME sold a privately held technology-company investment for $20.0 million cash on August 21, 2026, and recognized a $3.5 million gain. It plans to relocate its headquarters from Los Angeles to Tempe, Arizona, with estimated costs of $8.0 million to $12.0 million, subject to relocation efforts proceeding as planned. The larger phase is anticipated to be substantially complete in 2027, with a smaller phase expected to continue into 2028.

KB HOME (KBH) reported weaker results for the quarter ended August 31, 2026, with revenue of $1.30 billion, down 20% year over year, and diluted EPS of $1.05 versus $1.61. Homes delivered fell 19% to 2,732 and the housing gross profit margin declined to 16.5% from 18.2%.

Pretax income was $81.2 million and net income was $65.3 million. Total liquidity was $942.4 million, including $159.0 million of cash. The company increased investment in land and development in the quarter and ended with a debt to capital ratio of 35.7%. KB Home repurchased 0.9 million shares for $50.0 million in the quarter, 3.1 million shares for $175.0 million year to date.

Net orders declined 12% to 2,604, but backlog rose for the first time in four years to 4,398 homes valued at $2.05 billion. Management reaffirmed expectations that full-year 2026 deliveries, housing revenues and margins will be within previously provided ranges and issued detailed guidance for fourth-quarter and full-year volumes, margins, and tax rates.

KB Home director Arthur Reginald Collins reported selling 4,000 shares of KB Home common stock on August 6, 2026 in an open-market or private transaction. The weighted average sale price was $56.96 per share, with individual trades between $56.93 and $57.09. Following this sale, Collins directly owns 9,157 shares of KB Home common stock.

KB Home executive Albert Z. Praw, EVP, Real Estate & Business Development, sold 22,015 shares of common stock on 2026-08-05 at a weighted average price of $58.70 per share in multiple trades between $58.68 and $58.77. After this sale, he directly holds 104,062 shares of KB Home common stock. The transaction was not made under a Rule 10b5-1 trading plan.

Vanguard Portfolio Management LLC reports beneficial ownership of KB Home common stock. It reports holding 3,269,285 shares, representing 5.21% of the outstanding common stock. Vanguard has sole power to vote or direct the vote over 46,834 shares and sole power to dispose or direct the disposition of 3,269,285 shares, with no shared voting or dispositive power.

The disclosure explains that these securities are beneficially owned, or deemed beneficially owned, by Vanguard Portfolio Management LLC together with certain affiliates, including Vanguard Fiduciary Trust Company and Vanguard Global Advisers, LLC, largely on behalf of Vanguard funds and other managed accounts.

Vanguard Capital Management reported passive ownership of KB Home common stock on a beneficial ownership basis. Vanguard and certain affiliated entities reported 3,203,677 shares beneficially owned, representing 5.11% of the outstanding common stock of KB Home.

Within this position, Vanguard reported sole voting power over 489,148 shares and sole dispositive power over 3,203,677 shares, with no shared voting or dispositive power. The holdings include securities held by various Vanguard funds and managed accounts over which Vanguard or its designated affiliates exercise voting and/or dispositive authority, and exclude securities held by other disaggregated Vanguard affiliates. No other single person has an interest in more than 5% of the class through these holdings.