KB Home opened its newest built‑to‑order community, Nagel Crossing, in San Antonio, Texas, on April 2 2026. The gated development offers two‑story homes with up to four bedrooms and two‑and‑a‑half baths, priced from the high $200,000s, and includes a playground and proximity to local schools and parks. The builder highlighted its focus on personalized homebuilding, noting that each home is uniquely built for the buyer and that customers can customize floor plans, exterior styles and community layout through the KB Home Design Studio.
The opening of Nagel Crossing comes as KB Home reports a sharp decline in its Q1 2026 financial results. Total revenue fell 23% to $1.08 billion, and net income dropped to $33.4 million from $109.6 million in Q1 2025. Diluted earnings per share were $0.52, missing the consensus estimate of $0.55. The miss reflects a 15.3% gross profit margin, down from 20.2% in the prior year, driven by pricing pressure, higher relative land costs, and a less favorable regional mix.
Management explained that the company’s shift back to a built‑to‑order (BTO) model is a strategic response to these headwinds. CEO Robert McGibney said the firm’s reduced build times—now 108 days, a 22% year‑over‑year improvement—helped convert backlog to deliveries more quickly, but the broader market still faces affordability concerns, elevated mortgage rates, and geopolitical uncertainty that dampen demand. Executive Chairman Jeffrey Mezger noted that the conflict in the Middle East added another layer of uncertainty for consumers already navigating a challenging environment.
Despite the earnings miss, KB Home’s BTO strategy is expected to lift gross margins over time. The company aims for 70% BTO deliveries in the second half of 2026, a mix shift that historically yields higher margins than inventory sales. The Q1 results also signal that the company’s liquidity and land position remain solid, but the declining revenue and margin compression underscore the need for continued cost discipline and market‑responsive pricing.
The opening of Nagel Crossing therefore represents both a tangible expansion of KB Home’s footprint in the Sun Belt and a test of the company’s BTO model in a market that is still tightening. Investors and analysts will be watching how the new community performs against the backdrop of the company’s broader financial challenges and its efforts to regain profitability in a competitive housing environment.
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