Kaufman & Broad: Revenue Declines by 6% but Margin Improves, a Mixed Q1
In the first quarter of 2026, Kaufman & Broad saw a 1.9% increase in volume bookings, reversing the trend in a contracting new housing market by 22%. However, this relative resilience does not offset a 6.0% decrease in consolidated revenue and an 8.5% decline in value bookings, revealing a less favorable product mix despite improved operational profitability.
Market Dynamics and Company Performance
Facing a contraction of approximately 22% in the new housing market over the past quarter, Kaufman & Broad increased its volume of reservations by 1.9%, from 1,190 to 1,213 units. This relative progress positions the group amidst divergent dynamics: its value reservations (including VAT) declined by 8.5% to 230.7 million euros from 252.1 million euros in Q1 2025. However, the group's commercial offering increased by nearly 30% to 1,971 available units for sale, with a sell-through period of 4.9 months, compared to an estimated 21 months for the overall market. This acceleration in sales pace reveals better marketing capabilities, but also a shift in customer profile: the proportion of investors increased by 4 percentage points from one quarter to the next, while that of first-time buyers decreased by 3 points.
Financial Performance and Sectorial Analysis
Kaufman & Broad's consolidated revenue stood at 235.8 million euros in Q1 2026, down 6.0% from 250.1 million euros in Q1 2025. This contraction primarily stemmed from the housing sector, where revenue fell by 14.1% to 176.7 million euros (excluding VAT), accounting for 74.9% of the group's total. Conversely, the commercial sector advanced to 55.3 million euros from 40.3 million euros, driven by ongoing deliveries. On the profitability front, gross margin improved to 50.0 million euros, achieving a rate of 21.2%, compared to 19.7% in Q1 2025, while current operating income (EBIT) was recorded at 19.1 million euros, with a rate of 8.1% compared to 7.7%. The net income attributable to the group amounted to 11.8 million euros, slightly higher than the 11.6 million euros in Q1 2025.
Financial Structure and Outlook
Kaufman & Broad maintains a robust financial structure with a net cash position of 310.8 million euros as of February 28, 2026, slightly down from 319.1 million euros at the end of November 2025. The group notes that about 200 million euros of this amount are allocated for the completion of the Austerlitz project, scheduled for delivery in 2027. Additionally, there is an unused revolving credit facility (RCF) of 200 million euros, bringing the total financial capacity to 514 million euros. The housing order book (backlog) stands at 1,978.0 million euros (excluding VAT), slightly down from 1,983.4 million euros in Q1 2025, representing 28.2 months of activity compared to 26.0 months. The land portfolio increased by 4% to 32,421 lots, corresponding to nearly 6 years of commercial activity. The group has confirmed its guidance for fiscal year 2026: revenue comparable to 2025, an operating income rate close to 8%, and a net cash position remaining positive after the payment of the 2025 dividend of 2.20 euros per share, subject to approval at the general meeting on May 5. The group indicates that current geopolitical tensions have not had a direct impact on its activity to date.
