Revenue distribution by industry:

• Residential construction: approx. 95%
• Financial services: approx. 5%

TOP 3 markets and their percentage shares:

• California: approx. 40%
• Texas: approx. 30%
• Florida: approx. 15%

KB Home is mainly active in residential construction, with the majority of revenues coming from the construction and sale of single-family homes. The financial services they offer mainly include mortgage financing for their customers.

California remains the largest market for KB Home, driven by high demand for housing and high real estate prices in the region. Texas and Florida follow, both benefiting from strong population growth and a robust economy driving residential construction in these states.

Production Sites: USA (As of 2023)

KB Home is a leading construction company in the USA, focusing on building residential properties. The company mainly produces its houses in the United States and operates in various regions including California, Texas, Florida, and Arizona.

This geographical diversification within the USA enables KB Home to respond to different regional market conditions and effectively meet demand. The company adapts its construction projects to local needs and regulations, ensuring efficient production and delivery.

Revenue Growth: Estimated 8-10% (2025, based on historical trends and market analysis)

Profit Growth: Estimated 6-8% (2025, based on industry comparisons)

KB Home pursues a growth strategy based on several pillars. Firstly, the company focuses on geographic expansion, particularly in high-growth regions of the USA, to benefit from the increasing demand for housing.

Secondly, KB Home invests in sustainable construction and energy-efficient homes to meet consumers' growing demand for environmentally friendly housing solutions. This strategy aims to strengthen market position and tap into new customer segments.

Additionally, the company is focused on optimizing construction costs and improving operational efficiency to increase profit margins. By leveraging modern technologies and digital solutions, KB Home aims to accelerate the construction process and enhance customer satisfaction.

These strategic initiatives are intended to secure long-term growth and strengthen the company's competitiveness in the fiercely competitive real estate market.

Main raw materials: Wood, steel, concrete, gypsum board

Countries of origin:

• Wood: Canada, USA
• Steel: China, Mexico
• Concrete: USA (local sources)
• Gypsum board: USA, Mexico

KB Home, as one of the leading construction companies in the USA, imports and sources a variety of raw materials and supplies for home construction. Wood is one of the key raw materials and is mainly sourced from Canada and the USA, as these countries have large forest resources.

Steel, another critical building material, is often imported from China and Mexico, as these countries offer large production capacities and competitive prices. Concrete is typically sourced locally in the USA to minimize transportation costs and ensure the freshness of the material.

Gypsum boards, used for interior walls, come from both the USA and Mexico, as these countries have well-developed production capacities. The choice of countries of origin is based on a combination of costs, availability, and logistical considerations.

Market Share: 2.5% (estimated 2025)
Gross Margin: 21.4% (2024)
Return on Equity (ROE): 18.2% (2024)

KB Home is a significant player in the US construction industry, especially in the single-family homes sector. The company's competitive advantage lies in its ability to build cost-effectively while ensuring high quality, as evidenced by a solid gross margin of 21.4% in 2024.

Another advantage is its strong brand recognition and the ability to adapt to regional market needs. In recent years, KB Home has also invested in sustainable construction practices, which are becoming increasingly important in the industry.

Despite a relatively small market share estimated at 2.5% in 2025, the company demonstrates a strong Return on Equity (ROE) of 18.2%, indicating efficient use of equity. These factors together strengthen KB Home's competitive position in a fiercely competitive market.

Institutional Investor Share: 75% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant changes in the last year (estimated for 2025)

The institutional investor share at KB Home traditionally stands at around 70-80%, indicating a strong trust by institutional investors in the company's long-term performance. These investors include large funds and asset managers who typically pursue a long-term investment strategy.

Regarding insider buys and sells, there have been no significant transactions in recent years that would suggest a change in the internal assessment of the company's development. This indicates that the management has confidence in KB Home's current strategic direction and market position.

Market share of KB Home: Estimated around 2-3% (2025)

Main competitors and their market shares:

1. D.R. Horton (NYSE:DHI): around 9-10%
2. Lennar Corporation (NYSE:LEN): around 8-9%
3. PulteGroup (NYSE:PHM): around 5-6%
4. NVR, Inc. (NYSE:NVR): around 4-5%
5. Toll Brothers (NYSE:TOL): around 3-4%
6. KB Home (NYSE:KBH): around 2-3%
7. Meritage Homes Corporation (NYSE:MTH): around 2-3%
8. Taylor Morrison Home Corporation (NYSE:TMHC): around 2-3%
9. Beazer Homes USA, Inc. (NYSE:BZH): around 1-2%
10. M.D.C. Holdings, Inc. (NYSE:MDC): around 1-2%

Moat of KB Home:

KB Home has a moderate moat, mainly based on its brand recognition and the ability to offer customized housing solutions. The company has made a name for itself by allowing customers to personalize their homes, providing a certain competitive advantage.

However, compared to larger competitors like D.R. Horton and Lennar, which have more extensive resources and a broader geographic presence, the moat of KB Home is less pronounced. These larger companies benefit from economies of scale, stronger negotiation power with suppliers, and a more diversified product range.

In summary, while KB Home offers some advantages in customer engagement and customization, it does not have a significant moat compared to the market leaders. The larger competitors tend to have stronger competitive advantages due to their size and market presence.

Revenue Growth: 10% (2024) Profit Growth: 8% (2024) Market Share in Residential Construction: 5% (2024)

KB Home recorded a revenue growth of 10% in 2024, attributed to strong demand in residential construction and effective cost control. The 8% profit growth during the same period indicates that the company was able to maintain its profitability despite increased construction costs and interest rate changes.

KB Home's market share in residential construction is approximately 5%, making the company a significant player in the industry. The strategic focus on affordable housing solutions and sustainable construction bodes well for positive future development.

Analysts expect KB Home to benefit from sustained demand for housing and the recovery of the real estate market. Investments in sustainable construction practices and the exploration of new markets could offer further growth potential.

Dividend yield: 1.5% (2025)

Dividend history: Continuous payout for several years

KB Home pays a dividend with a current yield of 1.5%. The company has consistently distributed dividends in recent years, indicating a reliable dividend policy.

The consistency of the payout demonstrates that KB Home is able to generate stable cash flows to support the dividend payments. This is a positive signal for investors who rely on regular income from their investments.