KB Home reported its fiscal second-quarter 2025 earnings with revenues of $1.53 billion, down from $1.71 billion in the prior year, and an adjusted earnings per share (EPS) of $1.50, slightly above the consensus estimate of $1.47. The homebuilder delivered 3,120 homes during the quarter, an 11% decline year-over-year, while the average selling price increased modestly to $488,700. Homebuilding operating income fell to $131.5 million from $188.2 million. Net orders decreased 13% year-over-year to 3,460. Despite the revenue decline and lower deliveries, KB Home exceeded earnings guidance and repurchased $200 million of its shares at prices below book value. The company lowered its full-year 2025 housing revenue guidance to a range of $6.3 billion to $6.5 billion from the previous $6.6 billion to $7.0 billion. KB Home's COO highlighted concerns in the market about some homebuyers potentially overpaying for builder incentives, which could leave them with negative equity when reselling. The company noted only two minor price increases related to tariffs have been implemented to date. CEO comments acknowledged a softening in market conditions, which contributed to the revised outlook.