KB Home Cuts 2026 Sales Guidance as Q1 Revenue Drops 23%
KB Home’s first-quarter revenue plunged 23% year-over-year as home deliveries fell 14% to 2,370 units and average selling price dropped to $452,100. CEO Rob McGibney warned that the ongoing Middle East conflict is dampening buyer confidence, while the company cut full-year sales guidance to $4.8–5.5 billion.
1. CEO Warns of Conflict's Impact on Demand
CEO Rob McGibney said that since late February sales softened after initial strength in March as the ongoing war in the Middle East weighs on consumer psyche and confidence.
2. Q1 Financial Results Reveal Sharp Declines
In the first quarter, revenue plunged 23% year-over-year as deliveries fell 14% to 2,370 homes, average selling price dropped to $452,100 from $500,700, and housing gross margin fell to 15.3% from 20.2%, reflecting broad market headwinds.
3. Full-Year Guidance Cuts Reflect Market Caution
The company trimmed its full-year sales forecast to $4.8–5.5 billion and reduced projected home deliveries to 10,000–11,500 units, down from previous estimates of $5.1–6.1 billion in sales and 11,000–12,500 homes, citing challenging conditions across its 49 markets.