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• Ford for new homes
• Dell for houses

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• New Homes: Design, construction, and sale of personalized single-family homes, townhomes, and condominiums to various buyer groups.
• Mortgage Lending: Providing mortgage loan services to homebuyers through joint ventures to facilitate their home purchases.
• Title and Escrow Services: Offering title insurance and escrow services to homebuyers, typically through joint ventures, to streamline the closing process.

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KB Home (symbol: KBH) primarily sells new homes directly to **individual homebuyers** rather than to other companies. As such, it does not have "major customer companies."

The company serves various categories of individual customers, which can be broadly described as:

• First-time Homebuyers: Individuals or young families purchasing their first home. These buyers often prioritize affordability, efficiency, and the ability to customize certain features to fit their budget and lifestyle. KB Home's focus on personalization and diverse community locations caters well to this segment.
• Move-up Buyers: Existing homeowners who are selling their current residence to purchase a larger, newer, or more amenity-rich home. Their decision is often driven by evolving family needs, such as a growing family, a desire for more space, or an upgrade in community features and schools. They often have equity from a previous home to leverage.
• Active Adult/Empty Nesters: Buyers whose children have grown and moved out, or those nearing/in retirement. This segment often seeks smaller, lower-maintenance homes, often in communities with specific lifestyle amenities (e.g., clubhouses, fitness centers), and may prefer single-story living for convenience and accessibility.

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Jeffrey T. Mezger Chairman of the Board, President and Chief Executive Officer

Jeffrey T. Mezger joined KB Home in 1993, serving as Executive Vice President and Chief Operating Officer from 1999 to 2006. He was appointed Chief Executive Officer in 2006 and Chairman of the Board in 2016. A homebuilding industry veteran of over 40 years, Mr. Mezger previously spent 15 years with U.S. Home, where he served as President of the company's Central California division from 1983 to 1993. He was the founding chairman of the Leading Builders of America.

Jeff J. Kaminski Executive Vice President and Chief Financial Officer

Jeff J. Kaminski has served as Executive Vice President and Chief Financial Officer of KB Home since joining the company on June 7, 2010. In this role, he is responsible for KB Home's accounting, finance, internal audit, investor relations, tax, and treasury functions. Prior to KB Home, Mr. Kaminski was Senior Vice President, Chief Financial Officer, and a member of the Strategy Board of Federal-Mogul Corporation, a leading global supplier of automotive powertrain and safety technologies, where he spent over 20 years in various financial and operational leadership positions. He began his career in public accounting at Deloitte & Touche LLP. Mr. Kaminski is scheduled to retire in early 2025.

Robert McGibney President and Chief Operating Officer

Robert McGibney is the President and Chief Operating Officer of KB Home, responsible for overall operations, business strategy, community count, revenue growth, and leadership development, as well as directing key strategic support functions like architecture, design studio, national contracts, sustainability, and financial services operations. He joined KB Home in 2000 as a Financial Analyst in the Las Vegas division and has since held various roles of increasing responsibility, including leading land development, purchasing, and operations, before being promoted to Senior Vice President and Executive Vice President.

Brian Woram Executive Vice President and General Counsel

Brian Woram has been Executive Vice President and General Counsel of KB Home since July 15, 2010. He is responsible for the companywide legal and compliance functions. Before joining KB Home, Mr. Woram spent 14 years at Centex Corporation, a major public homebuilder, where he held several lead roles, ultimately serving as Senior Vice President, Chief Legal Officer, and Chief Compliance Officer.

Albert Z. Praw Executive Vice President, Real Estate and Business Development

Albert Z. Praw serves as Executive Vice President of Real Estate and Business Development at KB Home.

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Key Risks to KB Home's Business

KB Home (KBH) faces several key risks inherent to the homebuilding industry, primarily driven by broader economic factors and operational challenges. The most significant risks include volatile macroeconomic conditions, supply chain disruptions coupled with inflationary pressures, and intense competitive pressures related to land acquisition and market share.

The most significant risk stems from the highly sensitive nature of the housing market to overall macroeconomic conditions and interest rate fluctuations. Demand for new homes is directly impacted by factors such as interest rates, employment levels, consumer confidence, and housing affordability. Increases in mortgage interest rates can reduce housing affordability, dampen consumer demand, and consequently lead to lower sales volumes and prices for KB Home. Economic downturns further exacerbate this risk by leading to reduced consumer spending, which directly affects the company's revenues and profitability. Additionally, fluctuations in interest rates can increase KB Home's borrowing costs.

Another prominent risk involves supply chain disruptions, inflation, and associated cost pressures. KB Home's profitability can be significantly impacted by disruptions in the supply chain, which often result in construction delays and increased costs for materials and labor. Rising inflation also contributes to higher costs for land, materials, and labor, thereby pressuring profit margins. For instance, land purchases have been noted to contribute to a decline in homebuilding margins.

Lastly, KB Home operates in a highly competitive residential construction industry, facing competition from national, regional, and local homebuilders. This competitive environment can affect the company's ability to acquire desirable land, sell homes, and maintain healthy profit margins. The availability and cost of suitable land for development can fluctuate, directly impacting KB Home's capacity for operational expansion. Overexposure to certain markets due to substantial land holdings also presents a risk, particularly if those markets experience a downturn.

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The addressable market for KB Home's main products and services, primarily the construction of new homes, is the U.S. homebuilding market. KB Home builds attached and detached single-family residential homes, townhomes, and condominiums across various regions in the United States, including the West Coast, Southwest, Central, and Southeast regions.

The market size for Home Builders in the U.S. industry is estimated to be $166.9 billion in 2025. This market has experienced a compound annual growth rate (CAGR) of 2.9% over the past five years, from 2020 to 2025.

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Here are 3-5 expected drivers of future revenue growth for KB Home (KBH) over the next 2-3 years:

1. Expansion of Community Count: KB Home plans to increase its investment in land acquisition and development in 2025, building on significant investments made in 2024. This strategy is aimed at growing the company's community count, with a projected ending community count of approximately 250 in 2025, and further growth anticipated in early 2026. A higher number of active communities directly contributes to a greater potential for home sales and, consequently, increased revenue.
2. Growth in Home Deliveries: The company anticipates increasing its number of homes delivered, a key component of revenue generation. This increase is expected to be driven by the expansion of community count and operational improvements such as significantly reduced build times. KB Home reported an 8% increase in homes delivered in Q3 2024 and a 17% increase in Q4 2024.
3. Leveraging the Built-to-Order Model and Personalization: KB Home emphasizes its "Built to Order" model, which allows homebuyers to personalize their homes based on their preferences and budget. This model is considered a core competency and a competitive differentiator, with the company aiming to increase its built-to-order mix to 70% from around 50% currently. This approach can drive demand and potentially command higher revenue per home by offering customized features and options.
4. Sustained Buyer Demand and Improved Market Conditions: Management commentary consistently points to an ongoing desire for homeownership and improving housing market conditions, including the moderation of mortgage interest rates, as factors supporting buyer demand. These favorable market dynamics are expected to continue driving net orders and home sales for KB Home.
5. Average Selling Price (ASP): While there may be some regional mix shifts influencing the overall average, KB Home's average selling price has generally shown year-over-year increases in recent quarters. The company has provided guidance for its average selling price in 2025 to be in the range of $488,000 to $498,000. An increase in ASP, combined with higher home deliveries, will contribute to overall revenue growth.

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Share Repurchases

• KB Home authorized a new $1 billion share repurchase program on October 27, 2025, replacing its prior authorization.
• Since initiating its repurchase program in 2021, KB Home has repurchased over $1.5 billion of shares, representing more than 34% of its outstanding shares.
• In fiscal year 2024, the company returned over $420 million to shareholders through both repurchases and dividends.

Capital Expenditures

• KB Home invested over $2.8 billion in land acquisition and development in fiscal year 2024, with plans to increase this investment in 2025.
• Investments in land and land development for the twelve months ended November 30, 2024, increased 58% to $2.84 billion compared to the year-earlier period.
• In the second quarter of fiscal year 2025, the company scaled back land acquisition and development investments, decreasing to $513.9 million from the prior-year quarter, and canceled contracts on approximately 9,700 lots that did not meet updated underwriting criteria.