What the changes say
- KB Home highlights risks from cooling labor markets, rising resale and rental inventory, and federal government funding disruptions.
What changed since the prior 10-K
New
- New
improve or sustain demand relative to 2025 levels or our expectations for 2026 and beyond
Slower job and wage growth or rising unemployment in 2026 could diminish demand for our first-time and first move-up homes.
- New
prices or offer other concessions to generate net orders, potentially reducing our revenues and profit margins
Elevated mortgage interest rates, inflation, and low-rate lock-in by existing homeowners may continue to weigh on consumer budgets and confidence.
- New
likely to remain a factor in 2026
Historical third and fourth quarter seasonality in home deliveries and revenues may not repeat in 2026.
- New
cancellations, as well as impair our ability to realize the benefits of faster build times, as discussed below
Tariffs, duties, and sanctions on steel, aluminum, and lumber imports could constrain our supply chain and increase input costs.
- New
restrictions or other factors in certain served markets or communities
Land acquisition and home building require substantial cash, which we finance through cash flows and our Credit Facility and LOC Facility.
- New
safety priorities (e.g., earthquakes, wildfires, flooding, hurricanes or other natural disasters)
Shortages or poor performance of independent contractors who build our homes could cause production delays and warranty claims.
Dropped
- Dropped
our ability to sell homes at the same volume, prices and margins as in prior periods
- Dropped
among other things, birth rate changes, economic factors or U.S. immigration policies
Employment growth slowdown risks in 2025.
- Dropped
and sell homes on such land
- Dropped
region during the year and beyond
Birth rate changes and U.S. immigration policies affecting consumer confidence.
- Dropped
or recalls occur, our costs and supply chain disruptions, as described above, could increase further
Reworded
- 97% rewritten
particularly affected, impacting us more severely than homebuilders targeting a different buyer demographic
Added discussion on demographic trends, undersupply of homes, and potential impacts of birth rates, economic factors, or U.S. immigration policies on 2026 demand.
- 82% rewritten
demand or allow for higher selling prices for homes generally or for the homes we sell
Updated market conditions to note that resale property and rental unit supplies generally rose in served markets since mid-2024.
- 77% rewritten
Consumer Demand Risks. The following could negatively affect consumer demand for our products, thereby unfavorably
Added risks from sector-concentrated economic growth, high consumer debt, and potential impacts from the October and November 2025 federal government shutdown and January 2026 funding deadline.
- 59% rewritten
the same degree as in the past
Updated inflation and cost pressure timeframe references from 2025 to 2026.
- 47% rewritten
stimulate net orders, adversely affecting our revenues and margins
Removed specific details regarding mortgage financing obstacles and government-supported loan program dependencies.
Was: concessions like those described above to stimulate net orders, adversely affecting our revenues and margins
- 37% rewritten
favorable terms or at all
Removed specific maturity dates for the Term Loan and Credit Facility, retaining the June 15, 2027 maturity for the $300.0 million 6.875% senior notes.
- 36% rewritten
defect claims, and they or their insurers may not be able to cover the associated repair costs
Retained California direct contractor employment obligation liabilities language without substantive changes.
- 24% rewritten
(“6.875% Senior Notes due 2027”)
Retained decreased land inventory value impairment risks without substantive changes.
Was: senior notes due June 15, 2027 (“6.875% Senior Notes due 2027”)
All 16 risk factors
Headings as the filing states them, in filing order.
Other
- 01Consumer Demand Risks. The following could negatively affect consumer demand for our products, thereby unfavorably77% rewritten
- 02improve or sustain demand relative to 2025 levels or our expectations for 2026 and beyondNew
- 03particularly affected, impacting us more severely than homebuilders targeting a different buyer demographic97% rewritten
- 04prices or offer other concessions to generate net orders, potentially reducing our revenues and profit marginsNew
- 05stimulate net orders, adversely affecting our revenues and margins47% rewritten
- 06they may not be able to or decide not to pursue purchasing a home or may cancel a home sales contract with us
- 07demand or allow for higher selling prices for homes generally or for the homes we sell82% rewritten
- 08likely to remain a factor in 2026New
- 09the same degree as in the past59% rewritten
- 10cancellations, as well as impair our ability to realize the benefits of faster build times, as discussed belowNew
- 11restrictions or other factors in certain served markets or communitiesNew
- 12inventory assets, which we refer to as “project financing.” However, outside financing may be unavailable, costly and/
- 13favorable terms or at all37% rewritten
- 14(“6.875% Senior Notes due 2027”)24% rewritten
- 15safety priorities (e.g., earthquakes, wildfires, flooding, hurricanes or other natural disasters)New
- 16defect claims, and they or their insurers may not be able to cover the associated repair costs36% rewritten
Other KB Home 10-Ks
- FY2024 10-K risk factors15 risks
KB Home faces heavy exposure to consumer demand risks, mortgage availability, and supply chain cost inflation. First-time and move-up buyers are vulnerable to elevated interest rates, labor shortages, and land inventory valuation drops.
Filed Jan 24, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.