KB Home Reports Q3 Earnings Amid Housing Market Challenges
KB Home (NYSE: KBH) reported its fiscal third-quarter results for 2026, meeting or exceeding guidance despite a challenging housing market. The company generated $1.3 billion in housing revenue and net income of $65 million with diluted earnings per share at $1.05. However, year-over-year revenue fell by 20%, driven primarily by an 19% decline in home deliveries to 2,732 units. The company's built-to-order model helped improve sequential gross margins and reduce inventory risk, contributing to a rise in adjusted housing gross margin from 15.7% in Q2 to 16.8%. Despite this improvement, the company lowered its fourth-quarter outlook due to weaker Southern California sales, higher costs, and an unfavorable delivery mix. KB Home maintained its full-year home delivery guidance while continuing land investments and returning over $65 million to shareholders through buybacks and dividends. Executive Chairman Jeff Mezger cited a weakened market influenced by rising mortgage rates, inflation, geopolitical uncertainty, and increased resale-home competition.
Tickers: $KBH
Topics: buybacks dividends housing margin improvement revenue decline