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1 Presentation Third Quarter 2026 Investor
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2 Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. If we update or revise any such statement(s), no assumption should be made that we will further update or revise that statement(s) or update or revise any other such statement(s). In addition, such forward-looking statements may be based in whole or in part on general observations or opinions of our management, limited or anecdotal evidence and/or business or industry experience without in-depth or any particular empirical investigation, inquiry or analysis and are not intended, and do not express, factual assertions about past events. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions (including, without limitation, consumer and producer price inflation; interest rates and terms available from outside financing sources for our business and for consumer mortgage loans; and consumer confidence, either generally or specifically with respect to purchasing homes); material and trade costs and availability; disruptions in world and regional trade flows and supply chains due to the military conflicts in the Middle East and in Ukraine and/or U.S. trade policies, including the imposition of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory measures taken by other countries; population, household formations and demographic trends; government actions, policies, programs and regulations, including tax-related, directed at or affecting, directly or indirectly, the housing market, the homebuilding industry, or our business; our ability to successfully implement our business strategies, achieve any associated financial and operational targets and objectives, and manage the related challenges or risks, including those identified or discussed in this press release, during today’s webcast conference call or in any of our other public filings, presentations or disclosures; homebuyer interest in and ability to afford to purchase our homes (including their ability to obtain typical or lender-required insurance or other policies to cover hazards to their homes); our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our unsecured revolving credit facility and our senior unsecured term loan; the execution of any securities repurchases pursuant to our board of directors’ authorization; impairment, land option contract abandonment or other inventory-related charges, including any stemming from decreases in the value of our land assets; volatility in the market price of our common stock; the costs we incur in connection with relocating our corporate headquarters office from Los Angeles, California to Tempe, Arizona in 2027; the performance of mortgage lenders to our homebuyers; the performance of KBHS Home Loans, LLC (“KBHS”); information technology failures and data security breaches; and other events outside of our control. Please see our filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q. Forward- Looking Statements
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3 KB Home: At a Glance 50 markets 10 states 1957 BUILT OVER 700K HOMES SINCE OUR FOUNDING IN 1957 Leading brand awareness BTO DIFFERENTIATED BUILT TO ORDER® MODEL Simple, affordable, personalized ~72% 1ST TIME & 1st MOVE UP BUYERS Millennials & Gen Z’s: 150 million people; largest demographic opportunity LEADER CUSTOMER SATISFACTION One of the top customer-ranked national homebuilders based on third-party buyer surveys >217,000 ENERGY STAR CERTIFIED HOMES Leader in energy efficiency, conserving resources and helping customers lower their total cost of homeownership >$2.1B RETURNED TO STOCKHOLDERS through repurchases and dividends since Q2 2021 As of 8/31/26, unless otherwise noted West Coast Southwest California Idaho Washington Arizona Nevada Central Southeast Colorado Texas Florida Georgia North Carolina 3
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4 Long-Term Investment Thesis for KBH A Brand that has Endured for Nearly 70 Years • One of the largest and most trusted homebuilders in the U.S. • Industry-leading brand awareness • Customer satisfaction: One of the top customer-ranked national homebuilders based on third-party buyer surveys; record 96% score on AvidCX®1 Differentiated Business Model: Built to Order • Buyers personalize their homes based on a simple process focused on what they value and can afford • Ability to significantly influence final sales price – buyers select their floor plan, lot, square footage, elevation and finishes in our Design Studios • KB has among the highest absorption rates in the industry, which we believe is driven by our affordable, personalized model 1 st Time and 1st Move-Up Focus Provides Long-Term Market Opportunity • Poised to benefit from favorable demographics: Millennials and Gen-Zs, the largest population cohorts (150 million people) are contributing to growth in household formations—a key driver of homeownership Geographically Focused: 50 Major Markets in 10 States • Markets selected for their long-term economic and demographic growth potential • Substantial opportunity to expand our volume in the future with this footprint Industry-Leading Capital Distribution • Led our peer group in return of capital yield in the past five years; repurchased more than one-third of our shares outstanding • Healthy quarterly cash dividend, which we have paid for the longest period in our industry, without interruption • Returned over $2.1 billion in cash to our shareholders through repurchases and dividends since Q2 2021 1AvidCX is a trusted platform of homebuyer experiences
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5 Built to Order Model Provides Competitive Advantages Data-Driven Process Our standard floor plans and features are the result of local market surveys of what buyers want in their homes. Standardization across our divisions enhances our ability to provide affordable choices. Buyers Value Choice Buyers select their floor plan, lot, square footage and elevation, as well as personalized finishes in our Design Studios, based on what they value and can afford. Our process is simple and personalized, and the choices are affordable. Choice Influences Affordability Buyers are empowered to significantly influence their overall sales price based on their selections. Approximately 64% of our communities offer plans with square footage below 1,600 — smaller homes with similar room counts and livability, at lower starting base prices without compromising gross margin percentages. Creates a Stronger Company Drives greater predictability and lower volatility through alignment of sales, starts and deliveries. Reduces reliance on speculative inventory and exposure to pricing swings, enabling more disciplined capital deployment. Enhances visibility into future deliveries and revenues, supporting more sustainable and consistent margins and returns across cycles. Competitive Differentiator Resale homes are our largest competitor. Our affordable personalization provides an important point of differentiation in attracting buyers. Sources: Sell-Side Analyst Research and Form 10-K Filings * Includes CCS, DHI, LEN, MTH, NVR, PHM, TOL 6.3 4.1 3.8 4.4 3.74.2 3.3 3.5 3.7 3.3 2021 2022 2023 2024 2025 Buyers Value Choice Affordable Personalization Drives Industry-Leading Monthly Absorption per Community KBH Peer Group Average*
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6 Built to Order Attracts Largest Demand Segments of Market Q3 2026 Buyer Profile (Based on Homes Delivered) A Leader in the 1st Time Buyer Segment While Drawing a Mix of Buyers to Our Communities Invest in land positions within prime growth submarkets Position our product to target the median household income in each submarket BTO enhances value and affordability through choice of lot, square footage, floor plan and elevation, and the ability to personalize in our Design Studios While we primarily target 1st time and affordable 1st move-up buyers, our BTO business model also appeals to 2nd move-up buyers and empty nesters who can make a different set of choices in the same community 50% 22% 11% 17% 1st Time 1st Move-Up 2nd Move-Up Active Adult
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7 100% Committed to Our Customers’ Satisfaction • KB Home’s unique Built to Order business model begins and ends with the needs of our homebuyers. • We survey homebuyers to find out their priorities and design our homes to meet those needs. Our buyers have choice in personalizing their home to suit their lifestyle and budget. Each of our homebuyers is supported by a dedicated team that guides them every step of the way, helping to ensure an exceptional buying experience. • In FY 2025, KB Home was the #1 customer- ranked national homebuilder on TrustBuilder, a leading independent homebuilding review site, marking the fifth consecutive year we earned the spot. • Additionally, 2025 marked our highest-ever full- year overall customer satisfaction score to date, at just over 96%, as measured through a comprehensive post move-in survey conducted via AvidCX, a trusted platform of homebuyer experience insights. We utilize a systematic internal survey process to ask every customer about their experience of buying a KB home at two key intervals: 30 days and 11 months. TrustBuilder data as of 12/8/25 | AvidCX data are FY 2025 averages
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8 38,060 35,582 34,944 39,482 38,039 40,047 48,525 48,055 40,800 38,862 37,137 37,129 9,339 9,243 11,427 14,145 26,871 26,991 38,243 20,740 15,176 37,841 27,475 24,452 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3 2026 Primed for Growth through Investments in Land Acquisition $3,084 $3,254 $3,166 $3,460 $3,585 $3,792 $4,664 $5,453 $5,049 $5,386 $5,512 $5,817 $230 $149 $97 $122 $120 $105 $139 $90 $85 $142 $159 $164 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q3 2026 Land Portfolio Focused on Long-Term Economic & Demographic Growth Markets Optioned Lots Lot Position Continues to Support Future Growth Owned Lots ($ in millions)
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9 $9 $9 $20 $38 $54 $52 $57 $72 $69 $64 $86 $35 $188 $150 $411 $350 $538 $275 $9 $94 $9 $44 $242 $202 $468 $422 $607 $339 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM Q3 '26 Dividends Investing in Growth while Returning Capital to Shareholders Generating Significant Cash from Homes Delivered $1,148 $1,550 $2,029 $2,110 $1,875 $2,005 $2,496 $2,586 $2,884 $3,207 $2,949 $2,526 $987 $1,227 $1,524 $1,518 $1,466 $1,384 $1,809 $1,862 $1,652 $1,982 $1,985 $1,768 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM Q3 '26 Gross Operating Cash Improved Lot Costs $967 $1,362 $1,516 $1,888 $1,624 $1,695 $2,533 $2,403 $1,801 $2,844 $2,614 $2,451 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LTM Q3 '26 Land Spend Returning Capital to Shareholders ($ in millions) Repurchases Gross Operating Cash defined as Net Cash provided by (used in) Operating Activities, as reported, before Land Acquisition and Development Investment
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10 Creating Value for Shareholders 94,926 90,696 82,572 72,157 63,174 60,763 2021 2022 2023 2024 2025 Q3 '26 Shares Outstanding (thousands) 4,669 4,927 9,244 4,725 9,385 2021 2022 2023 2024 2025 Shares Repurchased (thousands) $34.23 $43.59 $50.22 $56.27 $61.75 $62.56 2021 2022 2023 2024 2025 Q3 '26 Book Value Per Share $6.01 $9.09 $7.03 $8.45 $6.15 2021 2022 2023 2024 2025 Diluted Earnings Per Share
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11 Balance Sheet Strength Fuels Industry-Leading Return of Capital $188 $150 $411 $350 $538 $175 2021 2022 2023 2024 2025 YTD 2026 Share Repurchases ($ in millions) 4.7m shares repurchased 4.9m shares repurchased 9.2m shares repurchased 4.7m shares repurchased 9.4m shares repurchased 3.1m shares repurchased 5% of outstanding 6% of outstanding 11% of outstanding 6% of outstanding 13% of outstanding 5% of outstanding Return of Capital Yield(1) vs. Peers | Since Q2 2021 7.7% 4.2% 6.1% 43.2% 29.1% 22.0% 50.9% 33.3% 28.1% KBH Large-Cap Peer Average* Mid-Cap Peer Average* Dividend Yield Net Share Repurchase Yield *Source: FactSet as of September 9, 2026 (Large-Cap: PHM, NVR, LEN, DHI | Mid-Cap: TOL, CCS, MTH) (1) Return on capital yield defined as share repurchase yield plus dividend yield. (2) Dividend yield calculated as dividends paid divided by average equity market capitalization. (3) Net share repurchase calculated as share repurchases less shares issuances divided by average equity market capitalization. (3)(2)
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12 Third Quarter 2026
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13 West Coast Southwest Central Southeast CA WA ID NV AZ TX CO NC FL Q3 2026 Homebuilding Revenues $475.5 37% $99.9 8% $44.6 3% $144.1 11% $78.0 6% $139.2 11% $66.4 5% $67.2 5% $177.5 14% YTD 2026 Homebuilding Revenues $1,239.9 36% $222.8 6% $118.1 3% $380.0 11% $188.9 6% $460.9 13% $174.1 5% $209.4 6% $477.4 14% FY 2025 Homebuilding Revenues $2,332.5 38% $282.3 4% $76.9 1% $751.3 12% $494.2 8% $970.5 16% $206.3 3% $348.0 6% $749.9 12% FY 2020 Homebuilding Revenues $1,688.4 41% $60.2 1% - $550.8 13% $246.0 6% $932.2 22% $260.6 6% $29.2 1% $400.3 10% FY 2015* Homebuilding Revenues $1,402.3 46% - - $266.5 9% $131.8 4% $609.4 20% $200.4 7% $57.1 2% $278.0 9% Diversification of our Growth-Oriented Geographic Footprint * In FY 2015, KB Home also operated in Washington DC which accounted for 3% of the homebuilding revenue. ($ in millions)
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14 Third Quarter 2026 Highlights (all comparisons on a year-over-year basis) Q3 2026 Q3 2025 % Change Housing Revenues $1.29 billion $1.61 billion -20% Deliveries 2,732 3,393 -19% Average Selling Price $473,000 $475,700 -1% Net Orders 2,604 2,950 -12% Net Order Value $1.21 billion $1.31 billion -8% Backlog Homes 4,398 4,333 2% Backlog Value $2.05 billion $1.99 billion 3% Ending Community Count 277 264 5% Average Community Count 279 259 8% Absorption (net orders per community, per month) 3.1 3.8 -19% • Revenues totaled $1.30 billion • Homebuilding operating income was $67.1 million, compared to $131.2 million – Homebuilding operating income margin was 5.2%, compared to 8.1%. Excluding inventory-related charges, homebuilding operating income margin was 5.4%, compared to 8.8%. – Housing gross profit margin was 16.5%, compared to 18.2%. Excluding inventory- related charges, housing gross profit margin was 16.8%, compared to 18.9%, primarily reflecting continued pricing pressure, higher relative land costs and reduced operating leverage. • Selling, general and administrative expenses were 11.3% of housing revenues compared to 10.0%, mainly due to a decrease in operating leverage, partly offset by lower costs associated with certain performance-based employee compensation plans and a reduction in personnel • Pretax income totaled $81.2 million, including a $3.5 million gain on the sale of an equity investment in a privately held technology company, and $7.4 million of financial services pretax income • Net income was $65.3 million and diluted earnings per share was $1.05 • Total liquidity was $942.4 million, including $159.0 million of cash and cash equivalents and $783.4 million of available capacity under the Company’s unsecured revolving credit facility, with $415.0 million of cash borrowings outstanding • During the quarter, the Company repurchased .9 million shares of its outstanding common stock at a cost of $50.0 million • Stockholders’ equity totaled $3.80 billion, and book value per share increased 4% to $62.56
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15 $1,458 $1,387 $1,071 $1,702 $1,525 $1,106 $1,746 $1,614 $1,292 $1,993 $1,685 '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Housing Revenues ($ in millions) Second Quarter Third Quarter Fourth QuarterFirst Quarter
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16 Average Selling Price $480 $501 $452 $483 $489 $462 $481 $476 $473 $501 $466 '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter ($ in thousands)
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17 Homebuilding Operating Income Margin* 10.9% 9.3% 3.3% 11.1% 9.0% 3.0% 10.9% 8.8% 5.4% 11.5% 7.8%(1) '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter * Excluding inventory-related charges. See Appendix: Reconciliation of Non-GAAP Financial Measures. (1) Includes $16 million of accelerated equity-based compensation expense recognized under applicable accounting guidance. Excluding this item, homebuilding operating income margin was 8.7%.
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18 Housing Gross Profit Margin – Reported 21.5% 20.2% 15.3% 21.1% 19.3% 15.2% 20.6% 18.2% 16.5% 20.9% 17.0% '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter
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19 Housing Gross Profit Margin – As Adjusted* 21.6% 20.3% 15.5% 21.2% 19.7% 15.7% 20.7% 18.9% 16.8% 20.9% 17.8% '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter * Excluding inventory-related charges. See Appendix: Reconciliation of Non-GAAP Financial Measures.
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20 SG&A Expense Ratio 10.8% 11.0% 12.2% 10.1% 10.7% 12.7% 9.8% 10.0% 11.3% 9.4% 10.0%(1) '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter (1) Includes $16 million of accelerated equity-based compensation expense recognized under applicable accounting guidance. Excluding this item, SG&A expense ratio was 9.1%.
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21 Net Orders per Community per Month Second Quarter Third Quarter Fourth QuarterFirst Quarter 4.6 3.6 3.5 5.5 4.5 4.0 4.1 3.8 3.1 3.5 3.0 '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26
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22 Average Community Count 240 243 251 256 257 254 259 268 274 278 279 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 2026
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23 $1,582 $1,346 $1,364 $2,032 $1,611 $1,548 $1,543 $1,315 $1,207 $1,317 $1,099 '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Net Order Value Second Quarter Third Quarter Fourth QuarterFirst Quarter ($ in millions)
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24 Backlog Value $2,792 $2,202 $1,696 $3,122 $2,288 $2,138 $2,919 $1,989 $2,053 $2,243 $1,403 '24 '25 '26 '24 '25 '26 '24 '25 '26 '24 '25 '26 Second Quarter Third Quarter Fourth QuarterFirst Quarter ($ in millions)
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25 Highlights BB Credit Profile Optimal for our Business • Provides reliable access to capital at low cost, with investment grade-like covenants and significant flexibility • We are comfortable with our current debt-to-capital ratio, which will vary from quarter-to-quarter as we utilize the revolver to manage seasonal working capital needs Strong Liquidity to Support our Business • Total liquidity, including cash and revolver availability, was approximately $942 million at August 31, 2026 • We had $415 million of cash borrowings outstanding on our revolving credit facility with $783 million available to draw Debt Maturities • Our next maturity is in June 2027 when our $300 million 6.875% Senior Notes mature • The maturity of our $360 million Term Loan is in November 2029 • Our $1.2 billion revolving credit facility has a November 2030 maturity Healthy Capital Structure 33.4% 30.7% 29.4% 30.3% 35.7% 2022 2023 2024 2025 Q3 2026 Debt-to-Capital Ratio Liquidity and Debt Maturity Summary at August 31, 2026 $783 $159 $300 $300 $350 $390 $360 Liquidity 2026 2027 2028 2029 2030 2031 Revolver Availability Unrestricted Cash Senior Notes Term Loan Coupon: 6.875% 4.8% 7.25% 4.0% ($ in millions)
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26 The Sustainability Difference
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27 Leadership in Sustainable Homebuilding Energy Savings Comparison Our proprietary tool demonstrating the lower total cost of homeownership possible with a KB home** KB Home provides this comparison for every floor plan at each of our communities * Data as of November 30, 2025 ** Estimated | Lower cost of homeownership is relative to a typical resale home. 217,000+ Total U.S. EPA ENERGY STAR Certified New Homes 29,000+ Cumulative Solar Homes 31,000+ Total U.S. EPA WaterSense & Water Smart Homes Approx. $1.3 Billion* Cumulative Utility Bill Savings Approx. 2.3 Billion Gallons* Water Conserved Annually Approx. 8.8 Billion Pounds* Fewer CO2 Emissions In 2025, KB Home unveiled the nation’s first new-home community that meets the home- and neighborhood-level wildfire resilience standards developed by the Insurance Institute for Business & Home Safety. In 2026, a second community was unveiled. KB Home intends to continue to expand the standards to other communities. Fortune Newsweek Newsweek Time Time World’s Most Admired Companies 2026 America’s Greenest Companies 2025 America’s Most Responsible Companies 2026 100 Most Influential Companies 2026 America’s Best Companies 2026 In 2025 and early 2026, we were recognized for our environmental, social, and governance leadership by a number of organizations, including: Awards & Recognition
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28 Giving Back to Our Communities Phoenix, AZ - Volunteers assembled 120 beds for Sleep in Heavenly Peace Denver, CO - Volunteers helped package over 2,000 food bags at Food for Thought Los Angeles, CA – Volunteers organized food items at the Westside Food Bank Raleigh, NC – Volunteers delivered essential items to Samaritan's Purse for victims of Hurricane Helen Austin, TX – Volunteers wrapped and donated gifts for families through the Center for Child Protection. Orlando, FL – Volunteers donated over 1,300 food items to Serenity Grace Inland Empire, CA - Volunteers collected over 2,000 toys for Toys for Tots
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29 Independent • Eight of our ten directors are independent • We have a Lead Independent Director • Independent directors lead all Board committees Accountable • Directors are elected annually under a majority voting standard At our 2026 Annual Meeting of Stockholders, directors received an average of 98% support • Directors and senior executives are subject to robust stock ownership requirements Aligned • We have one class of outstanding voting securities that allows each holder one vote for each share held • No supermajority voting requirements Strong Corporate Governance Governance Practices: A Snapshot
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30 Summary
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31 Long-Term Investment Thesis for KBH A Brand that has Endured for Nearly 70 Years • One of the largest and most trusted homebuilders in the U.S. • Industry-leading brand awareness • Customer satisfaction: One of the top customer-ranked national homebuilders based on third-party buyer surveys; record 96% score on AvidCX®1 Differentiated Business Model: Built to Order • Buyers personalize their homes based on a simple process focused on what they value and can afford • Ability to significantly influence final sales price – buyers select their floor plan, lot, square footage, elevation and finishes in our Design Studios • KB has among the highest absorption rates in the industry, which we believe is driven by our affordable, personalized model 1 st Time and 1st Move-Up Focus Provides Long-Term Market Opportunity • Poised to benefit from favorable demographics: Millennials and Gen-Zs, the largest population cohorts (150 million people) are contributing to growth in household formations—a key driver of homeownership Geographically Focused: 50 Major Markets in 10 States • Markets selected for their long-term economic and demographic growth potential • Substantial opportunity to expand our volume in the future with this footprint Industry-Leading Capital Distribution • Led our peer group in return of capital yield in the past five years; repurchased more than one-third of our shares outstanding • Healthy quarterly cash dividend, which we have paid for the longest period in our industry, without interruption • Returned over $2.1 billion in cash to our shareholders through repurchases and dividends since Q2 2021 1AvidCX is a trusted platform of homebuyer experiences
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32 $1.55 $3.58 $4.51 $6.37 $6.90 $6.21 2012 2016 2019 2023 2024 2025 Housing Revenues ($ in billions) 0.5% 5.7% 7.7% 11.4% 11.1% 8.7% 2012 2016 2019 2023 2024 2025 Homebuilding Operating Income Margin(1) 15.8% 16.6% 18.7% 21.4% 21.1% 19.1% 2012 2016 2019 2023 2024 2025 Housing Gross Margin(1) ($0.76) $1.12 $2.85 $7.03 $8.45 $6.15 2012 2016 2019 2023 2024 2025 Diluted Earnings (Loss) per Share KB Home is a Stronger, More Profitable Company Today The growth in our scale and profitability, together with the health of our balance sheet, have transformed KB Home into a larger and stronger company. (1) Excluding inventory-related charges. See Appendix: Reconciliation of Non-GAAP Financial Measures.
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33 KB Home is a Stronger, More Profitable Company Today 82.1% 60.5% 42.3% 30.7% 29.4% 30.3% 2012 2016 2019 2023 2024 2025 Debt-to-Capital Ratio (15.1%) 6.3% 12.2% 15.7% 16.6% 10.7% 2012 2016 2019 2023 2024 2025 Return on Equity $12 $97 $20 $468 $422 $607 2012 2016 2019 2023 2024 2025 Capital Returned to Stockholders ($ in millions) $4.88 $20.25 $26.60 $50.22 $56.27 $61.75 2012 2016 2019 2023 2024 2025 Book Value per Share
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34 Appendix
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35 Reconciliation of Non-GAAP Financial Measures The Company believes these non-GAAP financial measures, which assist management in making certain decisions, are relevant and useful to investors in understanding its operations and in providing meaningful period-to-period comparisons and may be helpful in comparing the Company with other homebuilding companies to the extent they provide similar information. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Housing Gross Profit Margin Housing Gross Profit Margin - As Reported 21.5% 21.1% 21.5% 20.7% 21.5% 21.1% 20.6% 20.9% 20.2% 19.3% 18.2% 17.0% 15.3% 15.2% 16.5% Housing inventory-related charges 0.3 0.3 - 0.1 0.1 0.1 0.1 - 0.1 0.4 0.7 0.8 0.2 0.5 0.3 Housing Gross Profit Margin - As Adjusted 21.8% 21.4% 21.5% 20.8% 21.6% 21.2% 20.7% 20.9% 20.3% 19.7% 18.9% 17.8% 15.5% 15.7% 16.8% Homebuilding Operating Income Margin Homebuilding Operating Income Margin - As Reported 11.4% 11.5% 11.3% 10.9% 10.8% 11.1% 10.8% 11.5% 9.2% 8.6% 8.1% 6.9% 3.1% 2.5% 5.2% Homebuilding inventory-related charges 0.3 0.2 0.1 - 0.1 - 0.1 - 0.1 0.4 0.7 0.9 0.2 0.5 0.2 Homebuilding operating income margin excluding inventory-related charges 11.7% 11.7% 11.4% 10.9% 10.9% 11.1% 10.9% 11.5% 9.3% 9.0% 8.8% 7.8% 3.3% 3.0% 5.4% 2026202520242023
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36 For further information, please contact us: Investor Relations (310) 231-4000 investorrelations@kbhome.com Thank you for your interest in KB Home.