KB Home

Good afternoon. My name is John, and I will be your conference operator today. I would like to welcome everyone to the KB Home 2026 Second Quarter Earnings Conference Call. All participant lines are in a listen-only mode. Following the company's opening remarks, we will open the lines for questions. This conference call is being recorded, and a replay will be accessible on the KB Home website until July 23, 2026. I will now turn the call over to Jill Peters, Senior Vice President, Investor Relations. Thank you, Jill. You may begin.

Thank you, John. Good afternoon, everyone, and thank you for joining us today to review our results for the second quarter of fiscal 2026. On the call are Jeff Mezger, Executive Chairman, Rob McGivney, President and Chief Executive Officer, Bill Hollinger, Senior Vice President and Chief Accounting Officer, and Thad Johnson, Senior Vice President and Treasurer. During this call, items will be discussed that are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results, and the company does not undertake any obligation to update them. Due to various factors, including those detailed in today's press release and in our filings with the Securities and Exchange Commission, Actual results could be materially different from those stated or implied in the forward-looking statements. In addition, an explanation and or reconciliation of the non-GAAP measure of adjusted housing gross profit margin as well as any other non-GAAP measure referenced during today's discussion to its most directly comparable GAAP measure can be found in today's press release and or on the investor relations page of our website at kbhome.com. And finally, please note all figures are based on our quarter ended May 31, and all comparisons are on a year-over-year basis unless otherwise stated. And with that, here is Jeff Mezger.

Thank you, Jill, and good afternoon, everyone. We are pleased to report second quarter results that met or exceeded the midpoint of our key guidance ranges and reflected sequential improvement in our adjusted housing gross profit margin. Operationally, our execution remained strong as we achieved double-digit year-over-year community count growth and further reduced our build times. We exceeded our expected mix of built-to-order sales during the quarter, and with the return to this core business model, we expect to have more predictability and delivers at better gross margins than we would achieve by relying on selling inventory homes. At a high level, our second quarter results included total revenues of $1.1 billion and diluted earnings per share of 43 cents. With our significant financial flexibility, we remained balanced in our capital allocation, investing for growth, while also returning capital to our shareholders. We repurchased 1.4 million shares of our common stock at an average price below our current book value per share. We believe this is an excellent use of our cash, accretive to both our earnings and book value per share, contributing to improving our return on equity over time. Inclusive of dividends, we returned over $90 million in capital to our shareholders in the second quarter. In addition, we continue to expand our book value per share to nearly $62. At this time, let me turn the call over to Rob.