Homebuilding Industry Outlook

• • • kb Third Quarter 2022 Highlights HOME (all comparisons on a year-over-year basis) • Revenues increased 26% to $1.84 billion. Homebuilding operating income grew 91% to $325.1 million. - Homebuilding operating income margin increased 610 basis points to 17.7%. Excluding inventory-related charges homebuilding operating income margin was 18.1%, compared to 12.1%. Housing gross profit margin increased 520 basis points to 26.7%. Excluding inventory-related charges, housing gross profit margin improved to 27.0% from 22.0%. Selling, general and administrative expenses as a percentage of housing revenues improved 100 basis points to 8.9%. Net income of $255.3 million and diluted earnings per share of $2.86 increased 70% and 79%, respectively. Backlog value grew 9% to $5.26 billion. The number of homes in backlog increased slightly to 10,756 homes. Total liquidity was $928.8 million, which included $733.4 million of available capacity under the Company's unsecured revolving credit facility. ($ in millions except Average Selling Price) Q3 2022 Q3 2021 % Change Housing Revenues $1.84 billion $1.46 billion 26% Deliveries 3,615 3,425 6% Average Selling Price $508,700 $426,800 19% Net Orders 2,040 4,085 -50% Net Order Value $979.0 million $2.01 billion -51% Backlog Homes 10,756 10,694 1% • In the 2022 third quarter, the Company repurchased approximately 1.6 million shares of its outstanding common stock at a total cost of $50.0 million, bringing its total repurchases in 2022 to approximately 3.1 million shares at a total cost of $100.0 million. On August 25, 2022, the Company entered into a senior unsecured term loan of up to $310.0 million, which may be increased up to $400.0 million. Stockholders' equity increased 23% to $3.49 billion, and book value per share increased 26% to $40.79. Backlog Value $5.26 billion $4.84 billion 9% Ending Community Count 227 210 8% Average Community Count 221 205 8% Absorption (net orders per community, per month) 3.1 6.6 -53% 8 | © 2022 KB Home

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