Detailed financial statements for KB Home (KBH): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
KB Home functions as a prominent residential construction enterprise across the United States. Its operations are strategically divided into four key geographical areas: the West Coast, Southwest, Central, and Southeast regions. The company is engaged in both constructing and selling a wide range of housing types, from attached and detached single-family dwellings to multi-family options like townhouses and condominiums.
Analysis Summary
KB Home reported revenue of $6.24B in the most recent fiscal year, growing at a 5-year CAGR of 8.3%. Net income reached $428.8M, with a 7.7% 5-year CAGR.
Trailing-twelve-month margins: gross margin 16.5%, operating margin 5.1%, net margin 4.4%. Free cash flow grew at 0.4% CAGR over 5 years.
At $46.17 (closing price, October 28, 2026), KBH trades at a P/E of 13.01 and an ROE of 5.93%. Market capitalisation stands at $2.8B.
Balance sheet quality for KBH: current ratio of 4.6, net debt of $1.50B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $287.3M represents 67% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.59B | $4.37B | $4.55B | $4.55B | $4.18B | $5.72B | $6.90B | $6.41B | $6.93B | $6.24B |
| Cost of Revenue | $3.04B | $3.65B | $3.75B | $3.71B | $3.38B | $4.47B | $5.22B | $5.04B | $5.46B | $5.06B |
| Gross Profit | $549.7M | $718.6M | $799.2M | $839.5M | $802.7M | $1.25B | $1.68B | $1.37B | $1.47B | $1.17B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $389.4M | $426.4M | $444.2M | $497.4M | $470.8M | $574.4M | $629.6M | $632.1M | $686.8M | $646.2M |
| Operating Expenses | $397.3M | $435.2M | $453.5M | $508.1M | $486.3M | $589.2M | $629.6M | $632.1M | $686.8M | $646.2M |
| Operating Income | $152.4M | $283.4M | $345.7M | $331.4M | $316.5M | $661.3M | $1.06B | $742.5M | $785.6M | $525.3M |
| EBITDA | $158.9M | $293.4M | $357.6M | $369.3M | $356.3M | $704.8M | $1.10B | $807.7M | $888.2M | $591.5M |
| Interest Expense | $5.9M | $621,999 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pre-tax Income | $149.3M | $290.0M | $368.0M | $348.2M | $364.0M | $695.3M | $1.07B | $771.3M | $850.9M | $554.2M |
| Income Tax | $43.7M | $109.4M | $197.6M | $79.4M | $67.8M | $130.6M | $255.4M | $181.1M | $195.9M | $125.4M |
| Net Income | $105.6M | $180.6M | $170.4M | $268.8M | $296.2M | $564.7M | $816.7M | $590.2M | $655.0M | $428.8M |
| EPS | $1.23 | $2.10 | $1.72 | $3.04 | $3.26 | $6.22 | $9.35 | $7.25 | $8.70 | $6.31 |
| EPS (Diluted) | $1.10 | $1.84 | $1.69 | $2.85 | $3.13 | $6.01 | $9.09 | $7.03 | $8.45 | $6.15 |
| Shares Outstanding (Diluted) | 96.3 M | 98.3 M | 101.1 M | 93.8 M | 94.1 M | 93.6 M | 89.3 M | 83.4 M | 77.0 M | 69.3 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $1.69B | $1.08B | $1.11B | $1.30B |
| Gross Profit | $292.9M | $167.4M | $174.0M | $218.5M |
| Operating Income | $124.4M | $36.4M | $32.0M | $70.4M |
| EBITDA | $139.1M | $50.4M | $42.4M | $91.8M |
| Net Income | $101.5M | $33.4M | $27.3M | $65.3M |
| EPS | $1.59 | $0.53 | $0.44 | $1.07 |
| EPS (Diluted) | $1.55 | $0.52 | $0.43 | $1.05 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $593.0M | $720.9M | $575.1M | $454.9M | $682.5M | $292.1M | $330.2M | $727.3M | $599.2M | $230.4M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $233.4M | $245.9M | $295.7M | $251.3M | $274.6M | $306.4M | $326.2M | $369.6M | $382.9M | $356.2M |
| Inventory | $3.40B | $3.26B | $3.58B | $3.70B | $3.90B | $4.80B | $5.54B | $5.13B | $5.53B | $5.67B |
| Total Current Assets | $4.23B | $4.24B | $4.46B | $4.42B | $4.87B | $5.41B | $6.22B | $6.25B | $6.53B | $6.27B |
| Property, Plant & Equipment | $14.2M | $19.5M | $24.3M | $65.0M | $101.5M | $103.8M | $114.7M | $113.0M | $109.1M | $119.0M |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | $5.13B | $5.04B | $5.07B | $5.02B | $5.36B | $5.84B | $6.65B | $6.65B | $6.94B | $6.72B |
| Accounts Payable | $217.3M | $214.4M | $259.5M | $264.8M | $276.0M | $374.5M | $415.7M | $390.1M | $387.6M | $354.4M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | $507.5M | 0 | 0 | $350.0M |
| Total Current Liabilities | $498.6M | $546.5M | $653.9M | $604.9M | $617.7M | $777.3M | $1.07B | $908.9M | $936.1M | $1.37B |
| Long-term Debt | $2.64B | $2.32B | $2.06B | $1.75B | $1.75B | $1.69B | $1.84B | $1.69B | $1.69B | $1.36B |
| Total Liabilities | $3.41B | $3.12B | $2.99B | $2.63B | $2.69B | $2.82B | $2.99B | $2.84B | $2.88B | $2.82B |
| Retained Earnings | $1.56B | $1.74B | $1.90B | $2.16B | $1.87B | $2.38B | $3.14B | $3.68B | $3.27B | $3.63B |
| Total Equity | $1.72B | $1.93B | $2.09B | $2.38B | $2.67B | $3.02B | $3.66B | $3.81B | $4.06B | $3.90B |
| Total Debt | $2.64B | $2.32B | $2.06B | $1.75B | $1.78B | $1.71B | $2.37B | $1.72B | $1.71B | $1.73B |
| Net Debt | $2.05B | $1.60B | $1.49B | $1.29B | $1.10B | $1.42B | $2.04B | $989.1M | $1.11B | $1.50B |
| Working Capital | $3.74B | $3.69B | $3.81B | $3.81B | $4.25B | $4.63B | $5.14B | $5.34B | $5.59B | $4.90B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $230.4M | $200.5M | $199.8M | $159.0M |
| Total Assets | $6.72B | $6.70B | $6.78B | $6.97B |
| Total Liabilities | $2.82B | $2.85B | $2.98B | $3.17B |
| Total Equity | $3.90B | $3.86B | $3.80B | $3.80B |
| Total Debt | $1.73B | $1.92B | $2.00B | $2.11B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $105.6M | $180.6M | $170.4M | $268.8M | $296.2M | $564.7M | $816.7M | $590.2M | $655.0M | $428.8M |
| Depreciation & Amortization | $3.6M | $2.8M | $2.5M | $27.2M | $28.4M | $28.6M | $32.3M | $36.4M | $37.3M | $37.3M |
| Stock-based Compensation | $16.9M | $14.6M | $15.9M | $18.3M | $21.5M | $28.9M | $29.5M | $34.6M | $34.5M | $46.2M |
| Change in Working Capital | -$46.5M | $176.1M | -$194.0M | -$160.8M | -$119.0M | -$728.6M | -$745.9M | $357.1M | -$370.2M | -$237.8M |
| Operating Cash Flow | $188.7M | $513.2M | $221.5M | $251.0M | $310.7M | -$37.3M | $183.4M | $1.08B | $362.7M | $335.7M |
| Capital Expenditure | -$4.8M | -$8.1M | -$7.4M | -$40.5M | -$28.8M | -$39.4M | -$45.2M | -$35.5M | -$39.3M | -$48.4M |
| Acquisitions | 0 | -$7.7M | -$12.7M | -$6.3M | $2.3M | $1.3M | -$26.5M | -$22.6M | -$12.5M | -$13.4M |
| Stock Repurchased | -$88.4M | -$6.7M | -$35.0M | 0 | -$16.1M | -$188.2M | -$150.0M | -$411.4M | -$353.7M | -$541.3M |
| Dividends Paid | -$8.6M | -$8.6M | -$8.9M | -$20.4M | -$38.1M | -$54.1M | -$52.5M | -$56.8M | -$71.6M | -$68.6M |
| Free Cash Flow | $183.9M | $505.1M | $214.1M | $210.6M | $281.8M | -$76.7M | $138.2M | $1.05B | $323.4M | $287.3M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $306.8M | -$125.4M | $31.9M | -$135.4M |
| Capital Expenditure | -$13.8M | -$13.2M | -$9.7M | -$9.6M |
| Free Cash Flow | $293.0M | -$138.6M | $22.2M | -$145.0M |
| Dividends Paid | -$15.8M | -$17.3M | -$15.3M | -$15.2M |
| Stock-based Compensation | $21.1M | $6.0M | $5.5M | -$215,000 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +21.5% | +4.1% | +0.1% | -8.1% | +36.9% | +20.6% | -7.1% | +8.1% | -10.0% | |
| Net Income Growth (YoY) | +71.0% | -5.7% | +57.8% | +10.2% | +90.6% | +44.6% | -27.7% | +11.0% | -34.5% | |
| EPS Growth (YoY) | +70.7% | -18.1% | +76.7% | +7.2% | +90.8% | +50.3% | -22.5% | +20.0% | -27.5% | |
| Shares Change (YoY) | +2.1% | +2.8% | -7.1% | +0.3% | -0.5% | -4.5% | -6.7% | -7.7% | -10.0% | |
| FCF Growth (YoY) | +174.7% | -57.6% | -1.7% | +33.8% | -127.2% | +280.2% | +657.9% | -69.1% | -11.2% | |
| Gross Margin | 15.3% | 16.5% | 17.6% | 18.4% | 19.2% | 21.8% | 24.4% | 21.4% | 21.2% | 18.8% |
| Operating Margin | 4.2% | 6.5% | 7.6% | 7.3% | 7.6% | 11.6% | 15.3% | 11.6% | 11.3% | 8.4% |
| EBITDA Margin | 4.4% | 6.7% | 7.9% | 8.1% | 8.5% | 12.3% | 16.0% | 12.6% | 12.8% | 9.5% |
| Net Margin | 2.9% | 4.1% | 3.7% | 5.9% | 7.1% | 9.9% | 11.8% | 9.2% | 9.5% | 6.9% |
| FCF Margin | 5.1% | 11.6% | 4.7% | 4.6% | 6.7% | -1.3% | 2.0% | 16.3% | 4.7% | 4.6% |
| Effective Tax Rate | 29.3% | 37.7% | 53.7% | 22.8% | 18.6% | 18.8% | 23.8% | 23.5% | 23.0% | 22.6% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.91 | $5.14 | $2.12 | $2.24 | $3.00 | $-0.82 | $1.55 | $12.56 | $4.20 | $4.15 |
| Dividends Per Share | $0.09 | $0.09 | $0.09 | $0.22 | $0.40 | $0.58 | $0.59 | $0.68 | $0.93 | $0.99 |
| Shares Outstanding (Basic) | 85.7 M | 85.8 M | 99.1 M | 88.0 M | 90.5 M | 90.4 M | 86.9 M | 80.8 M | 74.8 M | 67.9 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 5.93% |
| Return on Invested Capital | 3.50% |
| Return on Assets | 3.27% |
| Gross Margin | 16.46% |
| Operating Margin | 5.08% |
| Net Margin | 4.39% |
Financial Health
| Debt / Equity | 0.56 |
| Current Ratio | 6.39 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 3.74 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 12.88 | 14.93 | 12.27 | 11.38 | 10.80 | 6.43 | 3.36 | 7.19 | 9.51 | 10.16 |
| P/B | 0.79 | 1.40 | 1.00 | 1.28 | 1.19 | 1.20 | 0.74 | 1.11 | 1.52 | 1.12 |
| P/S | 0.38 | 0.62 | 0.46 | 0.67 | 0.76 | 0.63 | 0.39 | 0.66 | 0.89 | 0.70 |
| Gross Margin | 15.3% | 16.5% | 17.6% | 18.4% | 19.2% | 21.8% | 24.4% | 21.4% | 21.2% | 18.8% |
| Operating Margin | 4.2% | 6.5% | 7.6% | 7.3% | 7.6% | 11.6% | 15.3% | 11.6% | 11.3% | 8.4% |
| Net Margin | 2.9% | 4.1% | 3.7% | 5.9% | 7.1% | 9.9% | 11.8% | 9.2% | 9.5% | 6.9% |
Related companies: CVCO · CHH · TNL · MTH · SKY · ABG
Explore sector: Consumer Cyclical · Residential Construction
More sections of KBH: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks