v3.26.1
Segment Information
 6 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate two principal businesses: homebuilding and financial services. An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.
Each of our homebuilding divisions has been identified as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments, based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. Through February 28, 2026, our chief executive officer and chief operating officer together served as our CODM for purposes of our reportable segment disclosures and regularly reviewed the operating results for the individual operating segments that comprise our reporting segments. Effective March 1, 2026, our chief executive officer transitioned to executive chairman of the board and our chief operating officer was promoted to chief executive officer. As a result, effective March 1, 2026, our CODM is our executive chairman of the board and our chief executive officer. This CODM transition did not affect the CODM’s approach to deciding how to allocate resources or to assessing performance with respect to our operating segments.
The CODM evaluates the performance of our homebuilding operating segments primarily based on their respective housing gross profit margin and pretax income (loss). These profitability measures are used by the CODM in making operating and capital resource allocation decisions at the segment level, including their review and approval of land acquisition and land sale transactions. The CODM also uses these measures in business planning and forecasting, and considers budget-to-actual variances for these measures when assessing segment performance. In addition, segment pretax income (loss) is used by the CODM in determining the compensation of certain employees.
As of May 31, 2026, our homebuilding reporting segments conducted ongoing operations in the following states:
West Coast:California, Idaho and Washington
Southwest:Arizona and Nevada
Central:Colorado and Texas
Southeast:Florida, Georgia and North Carolina
Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land.
We also have one financial services reporting segment. The CODM reviews pretax income for our financial services segment to assess performance and to inform decisions about the allocation of resources to the segment and as to financial services product offerings.
Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services.
We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”), a subsidiary of Guaranteed Rate, Inc. We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements and in Note 3 – Financial Services.
Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments.
Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods.
The following tables present certain statements of operations information relating to our homebuilding reporting segments (dollars in thousands):
Three Months Ended May 31, 2026
West CoastSouthwestCentralSoutheastCorporate and OtherTotal
Revenues:
Housing$510,638 $166,625 $205,829 $223,160 $— $1,106,252 
Land855 — — — — 855 
Total 511,493 166,625 205,829 223,160 — 1,107,107 
Construction and land costs:
Housing(435,060)(132,593)(173,259)(189,304)(1,834)(932,050)
Land(780)— — — — (780)
Inventory-related charges(4,335)(408)(367)(469)— (5,579)
Total (440,175)(133,001)(173,626)(189,773)(1,834)(938,409)
Gross profits:
Housing (a)71,243 33,624 32,203 33,387 (1,834)168,623 
Land75 — — — — 75 
Total71,318 33,624 32,203 33,387 (1,834)168,698 
Marketing expenses(16,968)(5,221)(8,850)(7,134)(889)(39,062)
Commission expenses(17,264)(5,607)(8,667)(8,623)— (40,161)
General and administrative expenses (b)(10,413)(4,403)(6,713)(5,761)(34,034)(61,324)
Operating income (loss)
26,673 18,393 7,973 11,869 (36,757)28,151 
Other (c)1,398 (128)— — 1,163 2,433 
Homebuilding pretax income (loss)
$28,071 $18,265 $7,973 $11,869 $(35,594)$30,584 
Housing gross profit margin as a percentage of housing revenues14.0 %20.2 %15.6 %15.0 %— %15.2 %
Three Months Ended May 31, 2025
West CoastSouthwestCentralSoutheastCorporate and OtherTotal
Revenues:
Housing$660,193 $314,102 $282,966 $267,455 $— $1,524,716 
Land— — — — — — 
Total 660,193 314,102 282,966 267,455 — 1,524,716 
Construction and land costs:
Housing(537,930)(235,585)(229,507)(219,335)(2,140)(1,224,497)
Land— — — — — — 
Inventory-related charges(1,194)(821)(1,814)(1,729)— (5,558)
Total (539,124)(236,406)(231,321)(221,064)(2,140)(1,230,055)
Gross profits:
Housing (a)121,069 77,696 51,645 46,391 (2,140)294,661 
Land— — — — — — 
Total121,069 77,696 51,645 46,391 (2,140)294,661 
Marketing expenses(15,317)(6,014)(10,111)(7,775)(3,385)(42,602)
Commission expenses(18,739)(9,977)(12,822)(10,976)— (52,514)
General and administrative expenses(11,419)(6,324)(8,033)(7,410)(34,896)(68,082)
Operating income (loss)
75,594 55,381 20,679 20,230 (40,421)131,463 
Other (c)1,160 (79)4 — 1,674 2,759 
Homebuilding pretax income (loss)
$76,754 $55,302 $20,683 $20,230 $(38,747)$134,222 
Housing gross profit margin as a percentage of housing revenues18.3 %24.7 %18.3 %17.3 %— %19.3 %
Six Months Ended May 31, 2026
West CoastSouthwestCentralSoutheastCorporate and OtherTotal
Revenues:
Housing$959,847 $346,857 $429,437 $441,585 $— $2,177,726 
Land855 — — 585 — 1,440 
Total960,702 346,857 429,437 442,170 — 2,179,166 
Construction and land costs:
Housing(818,747)(274,512)(363,064)(376,996)(4,089)(1,837,408)
Land(780)— — (516)— (1,296)
Inventory-related charges(4,980)(408)(1,016)(1,330)— (7,734)
Total(824,507)(274,920)(364,080)(378,842)(4,089)(1,846,438)
Gross profits:
Housing (a)136,120 71,937 65,357 63,259 (4,089)332,584 
Land75 — — 69 — 144 
Total136,195 71,937 65,357 63,328 (4,089)332,728 
Marketing expenses(32,503)(10,596)(17,517)(14,228)(2,933)(77,777)
Commission expenses(32,466)(11,535)(18,419)(17,321)— (79,741)
General and administrative expenses (b)(19,334)(8,806)(11,354)(11,073)(63,506)(114,073)
Operating income (loss)
51,892 41,000 18,067 20,706 (70,528)61,137 
Other (c)1,960 (165)1 (3)2,443 4,236 
Homebuilding pretax income (loss)
$53,852 $40,835 $18,068 $20,703 $(68,085)$65,373 
Housing gross profit margin as a percentage of housing revenues14.2 %20.7 %15.2 %14.3 %— %15.3 %
Six Months Ended May 31, 2025
West CoastSouthwestCentralSoutheastCorporate and OtherTotal
Revenues:
Housing$1,261,842 $626,981 $558,579 $464,355 $— $2,911,757 
Land— — — — — — 
Total1,261,842 626,981 558,579 464,355 — 2,911,757 
Construction and land costs:
Housing(1,028,452)(467,993)(449,085)(381,210)(3,716)(2,330,456)
Land— — — — — — 
Inventory-related charges(1,840)(1,131)(2,132)(1,910)— (7,013)
Total(1,030,292)(469,124)(451,217)(383,120)(3,716)(2,337,469)
Gross profits:
Housing (a)231,550 157,857 107,362 81,235 (3,716)574,288 
Land— — — — — — 
Total231,550 157,857 107,362 81,235 (3,716)574,288 
Marketing expenses(29,641)(11,776)(19,883)(14,398)(6,567)(82,265)
Commission expenses(35,623)(20,078)(24,869)(19,110)— (99,680)
General and administrative expenses(24,200)(11,847)(16,443)(14,420)(66,631)(133,541)
Operating income (loss)
142,086 114,156 46,167 33,307 (76,914)258,802 
Other (c)3,559 (62)9 (3)3,748 7,251 
Homebuilding pretax income (loss)
$145,645 $114,094 $46,176 $33,304 $(73,166)$266,053 
Housing gross profit margin as a percentage of housing revenues18.4 %25.2 %19.2 %17.5 %— %19.7 %
(a)    Housing gross profits are calculated by subtracting housing construction and land costs and inventory-related charges from housing revenues.
(b)    General and administrative expenses within Corporate and other for the three months and six months ended May 31, 2026 included $1.5 million of costs associated with the planned relocation of our corporate headquarters office, as discussed in Note 21 – Relocation of Corporate Headquarters.
(c)    Other is primarily comprised of interest income, interest expense and equity in income (loss) of unconsolidated joint ventures. The following table summarizes the equity in income (loss) of unconsolidated joint ventures by homebuilding reporting segment (in thousands):

 
Three Months Ended May 31,
Six Months Ended May 31,
 2026202520262025
Equity in income (loss) of unconsolidated joint ventures:
West Coast$1,397 $1,159 $1,959 $3,558 
Southwest(128)(79)(165)(62)
Central— — — — 
Southeast— — (3)(3)
Total$1,269 $1,080 $1,791 $3,493 
The following tables present certain balance sheet information relating to our homebuilding reporting segments (in thousands):
May 31,
2026		November 30,
2025
Inventories:
West Coast$3,066,783 $3,048,056 
Southwest1,094,519 969,260 
Central735,233 758,962 
Southeast836,022 894,524 
Total$5,732,557 $5,670,802 
May 31,
2026		November 30,
2025
Investments in unconsolidated joint ventures:
West Coast$74,090 $68,708 
Southwest2,112 1,180 
Central— — 
Southeast2,564 2,548 
Total$78,766 $72,436 
Assets:
West Coast$3,393,111 $3,300,212 
Southwest1,157,760 1,019,475 
Central891,961 910,307 
Southeast873,328 943,846 
Corporate and other401,970 446,603 
Total $6,718,130 $6,620,443