Slide 1: Investor Presentation Fourth Quarter 2025
Investor Presentation Fourth Quarter 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Items in this presentation, and statements by KB Home management in relation to this presentation or otherwise, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current
Slide 3: KB Home: At a Glance
KB Home: At a Glance 1957 BUILT ~700K HOMES SINCE OUR FOUNDING IN 1957 Leading brand awareness BTO DIFFERENTIATED BUILT TO ORDER ® MODEL Simple, affordable, personalized 49 9 ~72% 1Millennials TIME & 1 MOVE UP BUYERS ST st & Gen Z’s: 150 million people; markets states largest demographic opportunity
Slide 4: Long-Term Investment Thesis for KBH
Long-Term Investment Thesis for KBH A Brand that has Endured for Nearly 70 Years • One of the largest and most trusted homebuilders in the U.S. • Industry-leading brand awareness • Customer satisfaction: #1 ranking on TrustBuilder1; record 96% score on AvidCX®1 Differentiated Business Model: Built t
Slide 5: Built to Order Model Provides Competitive Advantages
Built to Order Model Provides Competitive Advantages Data-Driven Process Our standard floor plans and features are the result of local market Buyers Value Choice surveys of what buyers want in their homes. Affordable Personalization Drives High Monthly Absorption per Community Buyers Value Choice Bu
Slide 6: Built to Order Attracts Largest Demand Segments of Market
Built to Order Attracts Largest Demand Segments of Market A Leader in the 1st Time Buyer Segment While Drawing a Mix of Buyers to Our Communities Q4 2025 Buyer Profile BTO enhances (Based on Homes Delivered) value and affordability Position through choice of 17% our product lot, square footage, Inve
Slide 7: 100% Committed to Our Customers’ Satisfaction
100% Committed to Our Customers’ Satisfaction • KB Home’s unique Built to Order business model begins and ends with the needs of our homebuyers. • We survey homebuyers to find out their priorities and design our homes to meet those needs. Our buyers have choice in personalizing their home to suit th
Slide 8: Primed for Growth through Investments in Land Acquisition
Primed for Growth through Investments in Land Acquisition Land Portfolio Focused on Long-Term Economic & $7,000 Demographic Growth Markets $6,500 ($ in millions) $6,000 $5,500 $90 $142 $159 $5,000 $85 $139 $4,500 $4,000 $105 $5,453 $5,512 $120 $5,386 $3,500 $122 $5,049 $230 $149 $97 $4,664 $3,792 $3
Slide 9: Investing in Growth while Returning Capital to Shareholders
Investing in Growth while Returning Capital to Shareholders ($ in millions) Land Spend $2,844 $2,614 Generating Significant Cash from Homes Delivered $2,533 $2,403 $1,888 $1,801 $1,624 $1,695 $1,516 $3,207 $1,362 $2,947 $967 $2,884 $2,586 $2,496 $2,110 $2,029 $2,005 $1,982 $1,985 2015 2016 2017 2018
Slide 10: Creating Value for Shareholders
Creating Value for Shareholders Shares Repurchased Shares Outstanding Diluted Earnings Book Value (millions) (millions) Per Share Per Share 9,244 9,385 94,926 90,696 $9.09 $61.75 82,572 $8.45 $56.27 72,157 $7.03 $50.22 63,174 $6.01 $6.15 $43.59 4,669 4,927 4,725 $34.23 2021 2022 2023 2024 2025 2021
Slide 11: Balance Sheet Strength Fuels Industry-Leading Return of Capital
Balance Sheet Strength Fuels Industry-Leading Return of Capital Share Repurchases ($ in millions) $538 $411 $350 $188 $150 2021 2022 2023 2024 2025 4.7m shares 4.9m shares 9.2m shares 4.7m shares 9.4m shares repurchased repurchased repurchased repurchased repurchased 5% of outstanding 6% of outstand
Slide 12: Fourth Quarter 2025
Fourth Quarter 2025 12
Slide 13: Diversification of our Growth-Oriented Geographic Footprint
Diversification of our Growth-Oriented Geographic Footprint ($ in millions) West Coast Southwest Central Southeast CA WA ID NV AZ TX CO NC FL FY 2025 Homebuilding Revenues $2,332.5 $282.3 $76.9 $751.3 $494.2 $970.5 $206.3 $348.0 $749.9 38% 4% 1% 12% 8% 16% 3% 6% 12% FY 2020 Homebuilding Revenues $1,
Slide 14: Fourth Quarter 2025 Highlights
Fourth Quarter 2025 Highlights (all comparisons on a year-over-year basis) Q4 2025 Q4 2024 % Change • Revenues totaled $1.69 billion • Homebuilding operating income was $117.1 million Housing Revenues $1.68 billion $1.99 billion -16% – Homebuilding operating income margin was 6.9%, compared to 11.5%
Slide 15: Housing Revenues
Housing Revenues ($ in millions) $1,993 $1,758 $1,746 $1,702 $1,685 $1,660 $1,614 $1,574 $1,525 $1,458 $1,379 $1,387 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 15
Slide 16: Average Selling Price
Average Selling Price ($ in thousands) $501 $501 $495 $489 $487 $480 $480 $483 $481 $476 $466 $466 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 16
Slide 17: Homebuilding Operating Income Margin
Homebuilding Operating Income Margin* 11.7% 11.7% 11.5% 11.4% 10.9% 11.1% 10.9% 10.9% 9.3% 9.0% 8.8% 7.8%(1) '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 17 * Excluding inventory-related charges. See Appendix: Reconciliation of Non-GAAP Fi
Slide 18: Housing Gross Profit Margin – Reported
Housing Gross Profit Margin – Reported 21.5% 21.5% 21.1% 21.1% 21.5% 20.6% 20.7% 20.9% 20.2% 19.3% 18.2% 17.0% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 18
Slide 19: Housing Gross Profit Margin – As Adjusted
Housing Gross Profit Margin – As Adjusted* 21.8% 21.6% 21.4% 21.5% 21.2% 20.8% 20.9% 20.3% 20.7% 19.7% 18.9% 17.8% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 19 * Excluding inventory-related charges. See Appendix: Reconciliation of Non-G
Slide 20: SG&A Expense Ratio
SG&A Expense Ratio 10.8% 11.0% 10.7% 10.1% 10.1% 10.2% 10.0% 10.0%(1) 9.8% 9.9% 9.6% 9.4% '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 20 (1) Includes $16 million of accelerated equity-based compensation expense recognized under applicable
Slide 21: Net Orders per Community per Month
Net Orders per Community per Month 5.5 5.2 4.6 4.5 4.3 4.1 3.8 3.6 3.5 3.0 2.8 2.7 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 21
Slide 22: Average Community Count
Average Community Count 268 256 257 259 251 253 251 254 240 240 243 236 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 22
Slide 23: Net Order Value
Net Order Value ($ in millions) $2,032 $1,900 $1,582 $1,611 $1,512 $1,543 $1,346 $1,315 $1,317 $1,099 $1,002 $933 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 23
Slide 24: Backlog Value
Backlog Value ($ in millions) $3,457 $3,395 $3,315 $3,122 $2,919 $2,792 $2,668 $2,288 $2,243 $2,202 $1,989 $1,403 '23 '24 '25 '23 '24 '25 '23 '24 '25 '23 '24 '25 First Quarter Second Quarter Third Quarter Fourth Quarter 24
Slide 25: Healthy Capital Structure
Healthy Capital Structure Highlights Debt-to-Capital Ratio BB+ Credit Profile Optimal for our Business 35.8% • Provides reliable access to capital at low cost, with 33.4% 30.7% 30.3% investment grade-like covenants and significant flexibility 29.4% • Continue to target total debt-to-capital ratio in
Slide 26: The Sustainability Difference
The Sustainability Difference 26
Slide 27: Leadership in Sustainable Homebuilding
Leadership in Sustainable Homebuilding Received a record 30 ENERGY STAR® Market Leader Awards in 2024 200,000+ Total U.S. EPA ENERGY STAR Certified New Homes 25,000+ Cumulative Solar Homes 26,000+ Total U.S. EPA WaterSense & Water Smart Homes Approx. $1.3 Billion* Cumulative Utility Bill Savings Ene
Slide 28: Giving Back to Our Communities
Orlando, FL – Volunteers donated over 1,300 food items to Serenity Grace Los Angeles, CA – Volunteers organized food items at the Westside Food Bank Inland Empire, CA - Volunteers collected over 2,000 toys for Toys for Tots Giving Back to Our Communities Austin, TX – Volunteers wrapped and donated g
Slide 29: Strong Corporate Governance
Strong Corporate Governance Governance Practices: A Snapshot Independent • Nine of our ten directors are independent • Independent directors lead all Board committees Accountable • Directors are elected annually under a majority voting standard In 2025, our directors received an average of 97% sup
Slide 30: Summary
Summary 30
Slide 31: Long-Term Investment Thesis for KBH
Long-Term Investment Thesis for KBH A Brand that has Endured for Nearly 70 Years • One of the largest and most trusted homebuilders in the U.S. • Industry-leading brand awareness • Customer satisfaction: #1 ranking on TrustBuilder1; record 96% score on AvidCX1 Differentiated Business Model: Built to
Slide 32: KB Home is a Stronger, More Profitable Company Today
KB Home is a Stronger, More Profitable Company Today The growth in our scale and profitability, together with the health of our balance sheet, have transformed KB Home into a larger and stronger company. Housing Revenues ($ in billions) Housing Gross Margin(1) $6.90 21.4% 21.1% $6.37 $6.21 18.7% 19.
Slide 33: KB Home is a Stronger, More Profitable Company Today
KB Home is a Stronger, More Profitable Company Today Debt-to-Capital Ratio Capital Returned to Stockholders ($ in millions) 82.1% $607 60.5% $468 $422 42.3% 30.7% 30.3% $97 29.4% $12 $20 2012 2016 2019 2023 2024 2025 2012 2016 2019 2023 2024 2025 Return on Equity Book Value per Share 16.6% $61.75 15
Slide 34: Appendix
Appendix 34
Slide 35: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Housing Gross Profit Margin Housing Gross Profit Margin - As Reported 21.5% 21.1% 21.5% 20.7% 21.5% 21.1% 20.6% 20.9% 20.2% 19.3% 18.2% 17.0% Housing inventory-related charges 0.3 0.3 - 0.1 0.1 0.1 0.1 -
Slide 36: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Net Income and Adjusted Diluted Earnings Per Share Three Months Ended November 30, 2025 2024 Total pretax income $ 129,221 $ 247,705 Add: Inventory-related charges 13,700 912 Add: Accelerated equity-based compensation expense 16,035 — Add: Loss
Slide 37: Thank you for your interest in KB Home.
Thank you for your interest in KB Home. For further information, please contact us: Investor Relations (310) 231-4000 investorrelations@kbhome.com 37