KB Home Reports Q3 Earnings with Declines Across Key Metrics
KB Home (NYSE: KBH) posted a decline in third-quarter performance across several key metrics. Housing revenues fell to $1.3 billion, down from $1.6 billion the previous year, while diluted earnings per share dropped to $1.05 compared to $1.61 last year. The company delivered 2,732 homes during the quarter—a 19% decrease—while average selling prices declined slightly to $473,000 from $475,700 in Q3 2025. The housing gross profit margin also fell to 16.5%, down from 18.2% a year ago due to pricing pressures and higher land costs. However, the adjusted margin improved slightly to 16.8%. KB Home repurchased $50 million worth of shares in Q3, reducing its diluted share count by nearly 9%. The company also increased investments in land acquisition and development by 40% year-over-year. Looking ahead, management expects housing revenue between $1.45 billion to $1.65 billion for the fourth quarter with a gross profit margin of 16.0%-16.6%. Full-year guidance was narrowed to $4.9 billion-$5.1 billion in total housing revenue.
