KB Home — Sep 24, 2025 release

As the quarter progressed, we were encouraged to see affordability improving, as mortgage interest rates began to ease.” “Our healthy balance sheet is enabling us to both position our business for future growth and reward our stockholders through a substantial return of capital. In the first nine months of this fiscal year, we have returned more than $490 million to stockholders through share repurchases that represent approximately 11% of our shares outstanding, as well as dividends. We expect to continue repurchasing our shares in our 2025 fourth quarter and 2026 fiscal year, as we remain committed to enhancing long-term stockholder value,” concluded Mezger. Three Months Ended August 31, 2025 (comparisons on a year-over-year basis) • Revenues totaled $1.62 billion, compared to $1.75 billion. • Homes delivered decreased 7% to 3,393. • Average selling price was down slightly to $475,700. • Homebuilding operating income was $131.2 million, compared to $189.0 million. The homebuilding operating income margin was 8.1%, compared to 10.8%, mainly due to a lower housing gross profit margin. Excluding total inventory-related charges of $11.3 million for the current quarter and $1.2 million for the year-earlier quarter, the homebuilding operating income margin was 8.8%, compared to 10.9%. ◦ The housing gross profit margin was 18.2%, compared to 20.6%. Excluding the above-mentioned inventory-related charges, the housing gross profit margin was 18.9%, compared to 20.7%, reflecting price reductions, higher relative land costs, and geographic mix, partly offset by lower construction costs. ◦ Selling, general and administrative expenses as a percentage of housing revenues were 10.0%, compared to 9.8%, primarily due to