Revenue contracted to $1.11 billion, down from $1.53 billion, as the company delivered 23% fewer homes. With total deliveries dropping to 2,395 units and the average selling price sliding to $461,900, the builder is feeling the squeeze of a cooling demand environment. Net orders also saw a 4% decline, leaving the company’s backlog 5% thinner than it stood at the end of the previous quarter.

Chief Executive Officer Robert McGibney characterized the results as a product of disciplined management in a fluid environment, emphasizing the need to balance construction pace with pricing strategies. Meanwhile, the firm’s Built to Order model accounted for 73% of net orders, a pivot Executive Chairman Jeffrey Mezger argues will foster stability across shifting market cycles. Looking ahead, KB Home anticipates third-quarter revenues between $1.2 billion and $1.35 billion, while narrowing its full-year revenue guidance to a range of $4.9 billion to $5.3 billion.