← KB Home overview

KB Home vs DR Horton: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

KB Home (KBH)

Q3 2026
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KB Home's Profit Beat Can't Offset Shrinking Sales and Weak Guidance

  • Q2 Sales and Profit Collapse KB Home's fiscal Q2 revenue fell 27% to $1.11 billion, EPS dropped 71% to 43 cents, deliveries fell 23%, and the operating margin shrank to 2.5% from 8.6%. This weak result, plus a lowered full-year outlook, pushed the stock down 8.2% and set a negative tone for the period.

    It shows the core earnings deterioration that drove the stock lower and frames the period's weak backdrop.

  • Housing Market Pressures Persist Mortgage rates hit a two-year high of 7.12%, hurting affordability. Rival Lennar reported orders down 9% and cut its delivery target, and Jim Cramer warned KB Home would face the same weak demand. This matters because fewer buyers and high rates directly reduce KB Home's sales and pricing power.

    It explains the external demand and affordability headwinds that keep pressure on KBH's sales and margins.

  • Built-to-Order Shift Lifts Margins KB Home beat Q3 EPS estimates ($1.05 vs. $0.90) and improved its housing gross margin to 16.5% from 15.2% in Q2, as built-to-order homes reached nearly three-quarters of deliveries. This strategic shift gives the company better control over costs and margins, a real positive for future profits.

    It highlights the one clear operational improvement that supports KBH's profitability despite weak sales.

  • Q4 Outlook Disappoints, Orders Fall KB Home projected Q4 deliveries below expectations and gross margins of 16%-16.6%, short of the 17.2% analysts wanted. Net orders fell 12% and cancellations rose to 18%. The stock fell over 1% as investors worried that weak demand and high rates will keep squeezing future sales and profits.

    It shows forward guidance and order trends that signal continued weakness, weighing on the stock after the earnings beat.

August 2026
▼3▲1

KB Home's Profit Beat Can't Offset Shrinking Sales and Weak Guidance

  • Q2 Sales and Profit Collapse KB Home's fiscal Q2 revenue fell 27% to $1.11 billion, EPS dropped 71% to 43 cents, deliveries fell 23%, and the operating margin shrank to 2.5% from 8.6%. This weak result, plus a lowered full-year outlook, pushed the stock down 8.2% and set a negative tone for the period.

    It shows the core earnings deterioration that drove the stock lower and frames the period's weak backdrop.

  • Housing Market Pressures Persist Mortgage rates hit a two-year high of 7.12%, hurting affordability. Rival Lennar reported orders down 9% and cut its delivery target, and Jim Cramer warned KB Home would face the same weak demand. This matters because fewer buyers and high rates directly reduce KB Home's sales and pricing power.

    It explains the external demand and affordability headwinds that keep pressure on KBH's sales and margins.

  • Built-to-Order Shift Lifts Margins KB Home beat Q3 EPS estimates ($1.05 vs. $0.90) and improved its housing gross margin to 16.5% from 15.2% in Q2, as built-to-order homes reached nearly three-quarters of deliveries. This strategic shift gives the company better control over costs and margins, a real positive for future profits.

    It highlights the one clear operational improvement that supports KBH's profitability despite weak sales.

  • Q4 Outlook Disappoints, Orders Fall KB Home projected Q4 deliveries below expectations and gross margins of 16%-16.6%, short of the 17.2% analysts wanted. Net orders fell 12% and cancellations rose to 18%. The stock fell over 1% as investors worried that weak demand and high rates will keep squeezing future sales and profits.

    It shows forward guidance and order trends that signal continued weakness, weighing on the stock after the earnings beat.

Latest
▼3▲1

KB Home's Profit Beat Can't Offset Shrinking Sales and Weak Guidance

  • Q2 Sales and Profit Collapse KB Home's fiscal Q2 revenue fell 27% to $1.11 billion, EPS dropped 71% to 43 cents, deliveries fell 23%, and the operating margin shrank to 2.5% from 8.6%. This weak result, plus a lowered full-year outlook, pushed the stock down 8.2% and set a negative tone for the period.

    It shows the core earnings deterioration that drove the stock lower and frames the period's weak backdrop.

  • Housing Market Pressures Persist Mortgage rates hit a two-year high of 7.12%, hurting affordability. Rival Lennar reported orders down 9% and cut its delivery target, and Jim Cramer warned KB Home would face the same weak demand. This matters because fewer buyers and high rates directly reduce KB Home's sales and pricing power.

    It explains the external demand and affordability headwinds that keep pressure on KBH's sales and margins.

  • Built-to-Order Shift Lifts Margins KB Home beat Q3 EPS estimates ($1.05 vs. $0.90) and improved its housing gross margin to 16.5% from 15.2% in Q2, as built-to-order homes reached nearly three-quarters of deliveries. This strategic shift gives the company better control over costs and margins, a real positive for future profits.

    It highlights the one clear operational improvement that supports KBH's profitability despite weak sales.

  • Q4 Outlook Disappoints, Orders Fall KB Home projected Q4 deliveries below expectations and gross margins of 16%-16.6%, short of the 17.2% analysts wanted. Net orders fell 12% and cancellations rose to 18%. The stock fell over 1% as investors worried that weak demand and high rates will keep squeezing future sales and profits.

    It shows forward guidance and order trends that signal continued weakness, weighing on the stock after the earnings beat.

Q2 2026
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KBH Surges on Housing Bill and Turnaround Plan Despite Weak Q2

  • Housing Bill Passed Congress passed the 21st Century Road to Housing Act, which cuts red tape, streamlines permits, and bars large institutional investors from buying more single-family homes. This reduces competition and lowers costs, boosting KBH and peers. KBH jumped 17.8% on the news.

    This is the biggest new catalyst driving KBH's stock this period.

  • BTO Transition Trough Over KB Home said the temporary delivery dip from its shift to built-to-order homes is over. It expects sequential growth, margin expansion, and a $50-$100 million buyback. Built-to-order homes now make up 73% of orders and earn higher margins.

    This is a new company-specific positive that signals a turnaround.

  • Weak Q2 Earnings KB Home reported Q2 revenue of $1.11 billion and EPS of $0.43, missing EPS estimates. Net income fell to $27.3 million from $107.9 million a year ago, and deliveries dropped 23%. This shows the company is still struggling with soft demand.

    This is a new negative that explains why KBH's stock might face pressure despite the rally.

  • Lower Mortgage Rates Falling oil prices pushed bond yields down, with the 10-year Treasury yield dropping below 4.5%. Lower yields typically lead to lower mortgage rates, making homes more affordable and boosting demand for builders like KBH.

    This is a new macro tailwind that supports the housing sector.

June 2026
▲3▼1

KBH Surges on Housing Bill and Turnaround Plan Despite Weak Q2

  • Housing Bill Passed Congress passed the 21st Century Road to Housing Act, which cuts red tape, streamlines permits, and bars large institutional investors from buying more single-family homes. This reduces competition and lowers costs, boosting KBH and peers. KBH jumped 17.8% on the news.

    This is the biggest new catalyst driving KBH's stock this period.

  • BTO Transition Trough Over KB Home said the temporary delivery dip from its shift to built-to-order homes is over. It expects sequential growth, margin expansion, and a $50-$100 million buyback. Built-to-order homes now make up 73% of orders and earn higher margins.

    This is a new company-specific positive that signals a turnaround.

  • Weak Q2 Earnings KB Home reported Q2 revenue of $1.11 billion and EPS of $0.43, missing EPS estimates. Net income fell to $27.3 million from $107.9 million a year ago, and deliveries dropped 23%. This shows the company is still struggling with soft demand.

    This is a new negative that explains why KBH's stock might face pressure despite the rally.

  • Lower Mortgage Rates Falling oil prices pushed bond yields down, with the 10-year Treasury yield dropping below 4.5%. Lower yields typically lead to lower mortgage rates, making homes more affordable and boosting demand for builders like KBH.

    This is a new macro tailwind that supports the housing sector.

▲3▼1

KBH Surges on Housing Bill and Turnaround Plan Despite Weak Q2

  • Housing Bill Passed Congress passed the 21st Century Road to Housing Act, which cuts red tape, streamlines permits, and bars large institutional investors from buying more single-family homes. This reduces competition and lowers costs, boosting KBH and peers. KBH jumped 17.8% on the news.

    This is the biggest new catalyst driving KBH's stock this period.

  • BTO Transition Trough Over KB Home said the temporary delivery dip from its shift to built-to-order homes is over. It expects sequential growth, margin expansion, and a $50-$100 million buyback. Built-to-order homes now make up 73% of orders and earn higher margins.

    This is a new company-specific positive that signals a turnaround.

  • Weak Q2 Earnings KB Home reported Q2 revenue of $1.11 billion and EPS of $0.43, missing EPS estimates. Net income fell to $27.3 million from $107.9 million a year ago, and deliveries dropped 23%. This shows the company is still struggling with soft demand.

    This is a new negative that explains why KBH's stock might face pressure despite the rally.

  • Lower Mortgage Rates Falling oil prices pushed bond yields down, with the 10-year Treasury yield dropping below 4.5%. Lower yields typically lead to lower mortgage rates, making homes more affordable and boosting demand for builders like KBH.

    This is a new macro tailwind that supports the housing sector.

DR Horton Inc (DHI)

Q3 2026
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DHI pressured by higher rates and profit decline despite policy boost

  • Mortgage rates rise, cooling demand The 30-year mortgage rate climbed to about 6.67% even as the Federal Reserve held steady, making monthly payments pricier and discouraging homebuyers. This directly weighed on D.R. Horton's sales and stock price.

    Higher mortgage rates are a key near-term negative driver of demand and DHI's price.

  • Profit falls and guidance cut Q3 profit dropped to $904.9 million from $1.024 billion a year earlier, with flat revenue. Management cut full-year guidance to $32.5–$33 billion, signaling weaker expectations ahead.

    Earnings decline and reduced guidance are direct negative drivers of investor sentiment and DHI's price.

  • Cancellations rise, margins shrink Cancellation rates increased to 20% from 17%, and gross margins fell to 20.7%. More buyers backing out and thinner profits point to persistent pressure on sales and profitability.

    Rising cancellations and shrinking margins are operational negatives that hurt DHI's financial performance.

  • Housing law and Berkshire stake Congress passed the 21st Century ROAD to Housing Act, cutting red tape and limiting large investors from buying existing homes, which could boost new-home demand over time. Berkshire Hathaway also opened a new stake in DHI, signaling long-term confidence.

    These are positive developments that could support future demand and investor sentiment, though benefits are longer-term.

August 2026
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Berkshire's new DHI stake meets weak housing demand and high mortgage rates

  • Berkshire Hathaway opens a new position in D.R. Horton Berkshire Hathaway, now run by Greg Abel, bought a small new stake in D.R. Horton and raised its Lennar stake by nearly 30% as part of a roughly $23.5 billion stock-buying quarter. A famous long-term investor choosing to own the stock can support DHI's price by improving how other investors see the company.

    A well-known investor buying DHI is a fresh, price-relevant signal of confidence.

  • Mortgage rates stay near 6.5% even as the Fed holds steady The Fed has kept its rate at 3.75% for 231 days, but 30-year mortgage rates have climbed to about 6.67% because long-term Treasury yields are high. Costlier loans make monthly payments harder for buyers, which cools demand for new homes and pressures DHI's sales and price.

    High mortgage rates are the main force squeezing homebuyer demand and DHI's results.

  • DHI beats Q3 estimates but cuts full-year guidance D.R. Horton earned $3.20 per share, beating expectations, yet management lowered its fiscal 2026 revenue outlook to $32.5-$33 billion and cut its home-closing forecast. A guidance cut tells investors future sales and profits will be weaker than previously thought, which weighs on the stock.

    The lowered guidance is the clearest company-specific reason for negative pressure on DHI.

  • Cancellations rise and margins shrink as yields stay high DHI's cancellation rate jumped to 20% from 17% a year earlier, and home-sales gross margin fell to 20.7% as buyers walked away or demanded incentives. Long-term Treasury yields near year highs keep mortgage rates elevated, so this pressure on sales and profitability is likely to persist.

    It shows the concrete damage high rates are doing to DHI's orders and profit margins.

Latest
▼3▲1

Berkshire's new DHI stake meets weak housing demand and high mortgage rates

  • Berkshire Hathaway opens a new position in D.R. Horton Berkshire Hathaway, now run by Greg Abel, bought a small new stake in D.R. Horton and raised its Lennar stake by nearly 30% as part of a roughly $23.5 billion stock-buying quarter. A famous long-term investor choosing to own the stock can support DHI's price by improving how other investors see the company.

    A well-known investor buying DHI is a fresh, price-relevant signal of confidence.

  • Mortgage rates stay near 6.5% even as the Fed holds steady The Fed has kept its rate at 3.75% for 231 days, but 30-year mortgage rates have climbed to about 6.67% because long-term Treasury yields are high. Costlier loans make monthly payments harder for buyers, which cools demand for new homes and pressures DHI's sales and price.

    High mortgage rates are the main force squeezing homebuyer demand and DHI's results.

  • DHI beats Q3 estimates but cuts full-year guidance D.R. Horton earned $3.20 per share, beating expectations, yet management lowered its fiscal 2026 revenue outlook to $32.5-$33 billion and cut its home-closing forecast. A guidance cut tells investors future sales and profits will be weaker than previously thought, which weighs on the stock.

    The lowered guidance is the clearest company-specific reason for negative pressure on DHI.

  • Cancellations rise and margins shrink as yields stay high DHI's cancellation rate jumped to 20% from 17% a year earlier, and home-sales gross margin fell to 20.7% as buyers walked away or demanded incentives. Long-term Treasury yields near year highs keep mortgage rates elevated, so this pressure on sales and profitability is likely to persist.

    It shows the concrete damage high rates are doing to DHI's orders and profit margins.

July 2026
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Housing bill passed, but mortgage rates and weak Q3 profit pressure DHI

  • Housing supply bill becomes law Congress passed the 21st Century ROAD to Housing Act, which cuts red tape and limits large investors from buying existing homes. This should boost new home demand and lower costs for D.R. Horton over time, but the benefit will take years to show up.

    This is a major new regulation that directly benefits DHI's business by increasing demand for new homes and reducing construction friction.

  • Mortgage rates rise to 6.49% The 30-year fixed mortgage rate climbed to 6.49%, making monthly payments more expensive for buyers. Higher rates cool demand for new homes, which pressures DHI's sales and stock price in the near term.

    Rising mortgage rates directly reduce affordability and demand for DHI's homes, a key negative driver.

  • Forestar cash burn threatens land pipeline Forestar, which supplies lots to D.R. Horton, is burning cash and growing slowly. This could delay new communities and raise costs, hurting DHI's ability to build and sell homes compared to rivals.

    This is a new risk to DHI's supply chain that could limit future growth and margins.

  • Q3 profit falls and guidance cut D.R. Horton's third-quarter profit dropped to $904.9 million from $1.024 billion a year ago, with flat revenue. Management lowered full-year revenue and closings guidance, and the cancellation rate rose to 20%, signaling softer demand and margin pressure.

    This is the latest earnings report showing declining profitability and reduced outlook, a direct negative for the stock.

▼3▲1

Housing bill passed, but mortgage rates and weak Q3 profit pressure DHI

  • Housing supply bill becomes law Congress passed the 21st Century ROAD to Housing Act, which cuts red tape and limits large investors from buying existing homes. This should boost new home demand and lower costs for D.R. Horton over time, but the benefit will take years to show up.

    This is a major new regulation that directly benefits DHI's business by increasing demand for new homes and reducing construction friction.

  • Mortgage rates rise to 6.49% The 30-year fixed mortgage rate climbed to 6.49%, making monthly payments more expensive for buyers. Higher rates cool demand for new homes, which pressures DHI's sales and stock price in the near term.

    Rising mortgage rates directly reduce affordability and demand for DHI's homes, a key negative driver.

  • Forestar cash burn threatens land pipeline Forestar, which supplies lots to D.R. Horton, is burning cash and growing slowly. This could delay new communities and raise costs, hurting DHI's ability to build and sell homes compared to rivals.

    This is a new risk to DHI's supply chain that could limit future growth and margins.

  • Q3 profit falls and guidance cut D.R. Horton's third-quarter profit dropped to $904.9 million from $1.024 billion a year ago, with flat revenue. Management lowered full-year revenue and closings guidance, and the cancellation rate rose to 20%, signaling softer demand and margin pressure.

    This is the latest earnings report showing declining profitability and reduced outlook, a direct negative for the stock.

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