KB Home Announces New $1 Billion Share Repurchase Authorization and Increase in Quarterly Dividend

Company Raises Quarterly Cash Dividend 25% to $.25 per Share

KB Home (NYSE: KBH) today announced that its Board of Directors authorized the repurchase of up to $1.00 billion of the Company’s outstanding common stock, replacing a prior authorization, which had $113.6 million remaining. The Company intends to continue its share repurchases in 2024 in a projected range of between $200 million and $400 million for the full year, including $50 million of share repurchases completed during the Company’s 2024 first quarter.

The Company’s Board also approved an increase in the quarterly cash dividend on the Company’s common stock to $.25 per share from $.20 per share. This 25% increase results in an annualized dividend of $1.00 per share, representing a yield of approximately 1.6%, based on the closing price of KB Home’s common stock on April 17, 2024. The yield is in-line with the Company’s long-standing target of about 1.5%. Together with the increase the Board authorized in July 2023, the Company has raised its quarterly dividend by 67% in the past nine months.

In addition, the Company’s Board of Directors declared a quarterly cash dividend, at the $.25 per share rate, which will be payable on ­May 23, 2024, to stockholders of record on May 9, 2024.

“With a strong balance sheet and confidence in our ability to generate a significant level of operating cash flow as we continue to evolve into a larger and more profitable company, we are committed to our balanced approach of investing in our growth while simultaneously returning a meaningful level of cash to stockholders,” said Jeffrey Mezger, Chairman and Chief Executive Officer. “Today’s actions by our Board of Directors underscore our commitment to long-term value creation.”

About KB Home

KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 47 markets, have built over 680,000 quality homes in our more than 65-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional homebuying experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership. For more information, visit kbhome.com.

Forward-Looking and Cautionary Statements

Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. If we update or revise any such statement(s), no assumption should be made that we will further update or revise that statement(s) or update or revise any other such statement(s). Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions, including the amount of our common stock we may repurchase under the new Board of Directors’ authorization, to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions; conditions in the capital, credit and financial markets; our ability to access external financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; changes in interest rates, including those set by the Federal Reserve, which the Federal Reserve has increased sharply over the past two years and may further increase to moderate inflation, and those available in the capital markets or from financial institutions and other lenders, and applicable to mortgage loans; our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit facility and our senior unsecured term loan; the ability or willingness of the applicable lenders and financial institutions, or any substitute or additional lenders and financial institutions, to meet their commitments or fund borrowings, extend credit or provide payment guarantees to or for us under our revolving credit facility or unsecured letter of credit facility; volatility in the market price of our common stock; weak or declining consumer confidence, either generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gaining share and scale in our served markets and in entering into new markets; our ability to generate orders and convert our backlog of orders to home deliveries, cash flow and revenues, particularly in key markets in California; our ability to successfully implement our business strategies and achieve any associated financial and operational targets and objectives, including those discussed in this release or in any of our other public filings, presentations or disclosures; and other events outside of our control. Additionally, specifically as to common stock repurchases, their pace, volume and timing is expected to be based on considerations of, among other things, our cash flow, liquidity outlook, land investment opportunities and needs, the market price of our shares, and the housing market and general economic environment. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.

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KB Home Announces New $1 Billion Share Repurchase Authorization and Increase in Quarterly Dividend