Why KB Home Stock Jumped Today

KB Home stock surged 16.65% after the homebuilder announced its shift to a built-to-order operating model, which aims to reduce costs, improve margins, and enhance profitability. Despite Q2 results showing declines in deliveries (down 23%), revenue (down 27%), and net income, management projects full-year gross margins to improve to 16.1-16.5%, with sequentially higher volumes and margins expected in the final two quarters of fiscal 2026.