KB Home (KBH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.297B, down 20% year over year; net income was $65.3M and diluted EPS was $1.05.

• Higher mortgage rates, affordability pressure and resale competition weighed on demand; net orders fell 12%, while backlog value rose 3%.

• Built to Order homes made up 74% of deliveries, supporting backlog growth and visibility into future deliveries.

Financial highlights

• Homes delivered fell 19% to 2,732; average selling price was $473,000, nearly flat year over year.

• Homebuilding operating income was $67.1M, with a 5.2% margin versus $131.2M and 8.1% a year earlier; adjusted margins were 5.4% and 8.8%.

• Housing gross margin was 16.5% (16.8% adjusted), compared with 18.2% (18.9% adjusted) a year earlier.

• SG&A was 11.3% of housing revenue, up from 10.0% year over year.

• Nine-month revenue was $3.487B; net income was $126.1M and diluted EPS was $2.00.

Outlook and guidance

• Q4 guidance: 3,000–3,500 deliveries, $1.45B–$1.65B housing revenue, 16.0%–16.6% housing gross margin and SG&A of 10.3%–10.9%.

• FY26 guidance: 10,500–11,000 deliveries, $4.90B–$5.10B housing revenue, 16.0%–16.2% housing gross margin and SG&A of 11.5%–11.7%.

• Q4 and FY26 effective tax rates are expected at ~26.0% and ~23.0%; Q4 share repurchases may reach $50.0M.

• Full-year margin outlook was modestly lowered and narrowed; the BTO delivery mix goal remains 60%–70%.