KB Home grants long-term incentive awards to executive officers

KB Home (NYSE:KBH), a homebuilder with a market capitalization of $4 billion and currently trading at $61.62, announced that its management development and compensation committee approved grants of performance-based restricted stock units (PSUs) to its named executive officers on Thursday. According to InvestingPro, the company’s management has been actively engaged in share buybacks, demonstrating alignment with shareholder interests. The awards were made under the Amended and Restated KB Home 2014 Equity Incentive Plan and the most recently filed form PSU award agreement, according to a statement based on a recent SEC filing.

The PSUs cover a three-year performance period starting December 1, 2025, and ending November 30, 2028. The number of shares ultimately awarded will depend on KB Home’s performance against three criteria: cumulative adjusted earnings per share (40% weighting), average adjusted return on invested capital (35%), and revenue growth relative to a peer group of high-production public homebuilders (25%).

Each executive may receive between 0% and 200% of their target award shares, depending on performance results. Recipients are also eligible for a cash payment equal to the ratio of shares issued to award shares, multiplied by credited dividend equivalents for each award share. For deeper insights into KB Home’s executive compensation and comprehensive financial analysis, access the detailed Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other US stocks. If performance for all three measures falls below set thresholds, no shares or cash will be awarded. Generally, recipients forfeit awards if their service terminates, with exceptions for death, disability, or meeting certain age and service requirements.

The following named executive officers received PSU awards:

• Jeffrey T. Mezger: 125,022 target shares
• Robert V. McGibney: 60,774 target shares
• Albert Z. Praw: 16,496 target shares
• Brian J. Woram: 16,496 target shares

The PSUs will vest based on performance over the specified period. This information is based on a press release statement included in KB Home’s filing with the Securities and Exchange Commission.

In other recent news, KB Home reported financial results for the third quarter of 2025, surpassing Wall Street expectations with an earnings per share of $1.61, exceeding the forecast of $1.50. The company’s revenue was $1.62 billion, slightly above the anticipated $1.59 billion. In addition to these earnings results, KB Home’s board of directors declared a quarterly cash dividend of $0.25 per share, payable on November 26, 2025, to stockholders of record as of November 13, 2025.

UBS has reiterated its Buy rating on KB Home, maintaining a price target of $83.00, citing the company’s stable performance despite market challenges. RBC Capital raised its price target for KB Home to $59.00 from $58.00, while maintaining a Sector Perform rating, and noted a 3% increase in its fiscal year 2026 earnings per share estimate. However, RBC Capital also lowered its projections for orders and homebuilding revenue. KB Home noted market stabilization in Florida and Texas, with Florida showing higher absorption rates and price increases in certain communities.

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