KB Home's Q2 Margin Strength Offset by Weak Orders, Demand, RBC Says

MT Newswires Live06-24

KB Home's (KBH) Q2 results showed stronger gross margins, but homebuyer demand and order growth remained weak, RBC Capital Markets said in a note Wednesday.

The analysts said the company reported a mixed quarter. Gross margins came in better than expected, supported by its continued shift toward a build-to-order model and a greater mix of higher-margin homes in the West Coast and Bay Area markets.

The analysts said Q3 and full-year 2026 guidance pointed to stronger near-term margins, but softer orders are expected to weigh on revenue and selling, general and administrative expenses. Traffic remained healthy, but weak consumer confidence continued to limit conversion rates.

"March was softer, April improved after some price cuts, May became more challenged but orders were 'resilient', while June has decelerated in-line with seasonal norms," the analysts added.

The analysts lowered their 2026 and 2027 earnings per share estimates to $3.19 and $3.88, respectively, from $3.28 and $4.37. These compare with prior Street estimates of $3.20 for 2026 and $4.45 for 2027.

RBC maintained its sector perform rating and $53 price target on KB Home.

Price: 61.16, Change: +8.43, Percent Change: +15.98

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These compare with prior Street estimates of $3.20 for 2026 and $4.45 for 2027.</p><p>RBC maintained its sector perform rating and $53 price target on KB Home.</p><p>Price: 61.16, Change: +8.43, Percent Change: +15.98</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KB","symbol_name":"韩国国民银行","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2645811755","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2645811755","pubTimestamp":1782313944,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. 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