KB Home: Mixed — EPS $1.05, Revenue $1.3B
Earnings Report· 2026-09-22
KBH
Q3 · 2026After-MarketKB Home
@trystockwhiz
EARNING PER SHARE
Actual ($)
1.05
-34.80% YoY
Expected
0.9
Beat
+16.67%
REVENUE
Actual ($)
1.30B
-20.00% YoY
Expected
1.30B
Miss
-0.22%
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $1.30B | $1.62B | -20.0% |
| └─Homebuilding | $1.29B | $1.61B | -20.0% |
| └─Financial services | $4.75M | $6.01M | -21.0% |
| GAAP Basic EPS | $1.07 | $1.64 | -34.8% |
| GAAP Diluted EPS | $1.05 | $1.61 | -34.8% |
| Net Income | $65.28M | $109.83M | -40.6% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Deliveries | 3,000-3,500 homes | 10,500-11,000 homes |
| Housing revenues | $1.45B-$1.65B | $4.90B-$5.10B |
| Housing gross profit margin | 16.0%-16.6% | 16.0%-16.2% |
| Selling, general and administrative expenses | 10.3%-10.9% | 11.5%-11.7% |
| Ending community count | 270-275 | — |
Business Highlights
- ➤Achieved goal of returning to a predominantly Built to Order business.
- ➤BTO homes represented nearly three-quarters of third-quarter deliveries.
- ➤Opened significant numbers of new communities over the past year.
- ➤Average community count grew to 279 during the quarter.
- ➤Repurchased 0.9 million shares of common stock during the quarter.
- ➤Had $725.0 million remaining under the repurchase authorization.
- ➤Operates in 50 markets across the United States.
- ➤Delivered more ENERGY STAR® certified homes than any other builder.
Management Commentary
Jeffrey Mezger, Executive Chairman
“We are operating in a housing market that continues to be challenging, with conditions weakening since our June earnings report. Higher mortgage interest rates have further pressured affordability and, together with geopolitical uncertainty and broader economic headwinds, have caused many prospective buyers to be more cautious on purchasing a home. Against this backdrop, we produced third quarter financial results that reflected solid sequential improvement.”
Robert McGibney, President and Chief Executive Officer
“We also made significant progress and have now achieved our goal of returning to a predominantly Built to Order business, with BTO homes representing nearly three-quarters of our deliveries in the third quarter, which contributed to our sequentially higher housing gross profit margin. In addition, we generated year-over-year community count growth. This reflects a significant number of new community openings over the past year that will help support our sales efforts going forward, along with a continued focus on balancing price and pace for the best possible return.”
Jeffrey Mezger, Executive Chairman
“Looking ahead to the remainder of this fiscal year, we continue to expect our full-year deliveries, housing revenues and margins to be within the ranges we last provided. We remain committed to enhancing long-term shareholder value through both our performance and our balanced approach to capital allocation, with the financial capacity to continue investing in our future growth and rewarding shareholders through our ongoing repurchase program and long-standing quarterly dividend.”