KB Home (NYSE:KBH) shares tumbled more than 8% intra-day today after the homebuilder reported weaker-than-expected first-quarter results and issued a downward revision to its full-year revenue forecast.
For the quarter, the company posted earnings per share of $1.49, falling short of analyst expectations of $1.59. Revenue came in at $1.39 billion, missing the $1.5 billion consensus and marking a 5% year-over-year decline.
Home deliveries dropped 9% to 2,770 units, though the average selling price increased 4% to $500,700, providing a modest cushion against volume declines.
KB Home attributed the underperformance to sluggish buyer behavior, as affordability pressures and macroeconomic uncertainty continue to weigh on consumer confidence.
The company also cut its full-year 2025 revenue outlook to between $6.60 billion and $7.00 billion, down from its prior forecast, citing weaker-than-expected order activity in Q1. It now projects a full-year average selling price of $480,000 to $495,000.