KB Home (KBH) Q3 2026 Earnings Report
MX:KBH Q3 2026 EPS Results
- Actual EPS
- MXN 19.07
- Consensus EPS
- MXN 16.20
- Beat/Miss
- Beat by +MXN 2.87
- One Year Ago EPS
- MXN 29.24
MX:KBH Q3 2026 Revenue Results
- Actual Revenue
- MXN 23.56B
- Expected Revenue
- MXN 23.55B
- Beat/Miss
- Beat by +MXN 12.21M
- YoY Revenue Growth
- -19.96%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 09/22/2026
- Time
- After Close
- Conference Call
- Tuesday, September 22, 2026
MX:KBH Upcoming Earnings
KB Home's next earnings date is estimated for March 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:KBH Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call was cautiously balanced. KB Home highlighted strong execution of its Built to Order strategy, lower inventory risk, faster build times, solid buyer credit metrics, substantial backlog visibility, continued shareholder returns, and a healthy liquidity position. However, these strengths were offset by weaker housing demand, lower traffic and orders, year-over-year declines in revenue and earnings, increased resale competition, pricing pressure, higher costs, and reduced fourth-quarter ASP and gross margin expectations.
Company Guidance
For fiscal 2026, KB Home expects homes delivered of 10,500 to 11,000, housing revenues of $4.9 billion to $5.1 billion, housing gross profit of 16% to 16.2%, an SG&A ratio of 11.5% to 11.7%, and an effective tax rate of approximately 23%; for the fourth quarter, it expects homes delivered to range from 3,000 to 3,500, housing revenues to range from $1.45 billion to $1.65 billion, housing gross profit of 16% to 16.6%, an SG&A ratio of 10.3% to 10.9%, an effective tax rate of approximately 26%, and an average selling price of about $480,000, with ending community count between 270 and 275 communities, up to $50 million of repurchases planned, and a target of 90 days for BTO build times.
- Third-Quarter Results Met or Exceeded GuidanceThird-quarter total and housing revenues were $1.3 billion, net income was $65 million, and diluted earnings per share were $1.05. Results met or exceeded the company's guidance range across all metrics despite the difficult operating environment.
- Predominantly Built to Order Model ReestablishedBuilt to Order homes represented 74% of third-quarter deliveries, up from 60% in the second quarter and higher than expected. The mix contributed to sequential improvement in adjusted housing gross profit margin and produced the first year-over-year increase in backlog in four years.
- Lower Inventory Risk and Unsold InventoryTotal unsold inventory was 26% of production, down from 41% a year ago, while finished unsold homes were 9%, down from 16%. The company also had roughly 1,100 homes sold but not yet started.
- Faster Build TimesBuilt to Order homes averaged 99 days from start to completion in the third quarter, a slight sequential improvement and 23 days, or 19%, faster than a year ago. The company is working toward a 90-day target.
- Direct-Cost Reduction and Cost-Control ActionsDirect costs on homes started in the third quarter were lower both sequentially and year over year. The company cited supplier relationships, active rebidding of contracts, value engineering, and a simplified studio offering as factors that helped limit cost increases and improve efficiency.
- Strong Buyer Credit and Mortgage Capture MetricsKBHS Home Loans' capture rate increased to 85%, up slightly from the second quarter. Average cash down payment was 16%, or about $76,000; average customer household income was about $134,000; average FICO score was 742; and approximately 8% of third-quarter deliveries went to all-cash buyers.
- Full-Year Delivery and Revenue Outlook MaintainedThe company maintained full-year homes delivered guidance of 10,500 to 11,000 and expects full-year housing revenues of $4.9 billion to $5.1 billion. Full-year guidance for housing revenues and margins remains largely intact, although the gross margin range was slightly lowered.
- Fourth-Quarter Backlog VisibilityMore than 80% of fourth-quarter deliveries were already in backlog. Fourth-quarter delivery guidance is 3,000 to 3,500 homes, with housing revenues of $1.45 billion to $1.65 billion.
- Community Pipeline and Asset RotationThe company expects fourth-quarter ending community count of 270 to 275, roughly in line with the prior year. It expects to open approximately 115 new communities in fiscal 2026 and sell out a similar number, representing a solid rotation of assets.
- Las Vegas Community ExpansionMeriden in Henderson is open across all five product lines, with solid sales and first deliveries expected late in the fourth quarter. Sandstone in North Las Vegas is scheduled to open in the fourth quarter with four product lines, early demand is strong, and its interest list exceeds 300 potential buyers.
- Northern California Growth OpportunityNorthern California performed as expected, and its projected fourth-quarter average selling price increased modestly since June. The company expects additional Northern California communities to ramp over the next three quarters to a year, providing continued mix benefit as sales and deliveries increase.
- Large Lot Pipeline and Strategic PositioningThe company has more than 61,000 owned or controlled lots, described as a solid pipeline to support future growth targets. Management also cited its broad geographic footprint, balance sheet, and discipline in not chasing volume while market conditions remain challenging.
- Share Repurchases and Shareholder ReturnsKB Home repurchased approximately 890,000 shares, or roughly 1.5% of shares outstanding, at an average price below current book value per share. Including dividends, the company returned more than $65 million in capital during the quarter. Over five years, it has returned more than $2.1 billion through repurchases and dividends and reduced its share count by more than one-third. Book value per share exceeded $62, and up to $50 million of additional fourth-quarter repurchases are planned.
- Liquidity and Financial PositionThe company ended the quarter with $159 million of cash and total liquidity of $942 million, including $783 million available under its unsecured credit facility. Management characterized the financial position as healthy, supported by substantial liquidity and a well-laddered debt maturity profile.
- Long-Term Gross Margin Target RetainedManagement reaffirmed its 22% long-term gross margin target and said it has walked from many land deals because they no longer met the company's return requirements.
- Value Engineering and New-Community Demand GenerationThe company continues an ongoing value-engineering process focused on standardization, simplifying building designs, and improving studio efficiency to reduce costs without taking value away from customers. Its community-opening process can generate about two months of expected sales in the first week to 10 days after a grand opening.
MX:KBH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 24, 2027 | 2027 (Q1) | ―- | 9.44 | ― | ― |
| Sep 22, 2026 | 2026 (Q3) | 16.2019.07 | 29.24 | -34.78% (-10.17) | |
| Jun 23, 2026 | 2026 (Q2) | 8.217.81 | 27.24 | -71.33% (-19.43) | |
| Mar 24, 2026 | 2026 (Q1) | 10.019.44 | 27.06 | -65.10% (-17.62) | |
| Jan 14, 2026 | 2026 (Q4) | ―- | 45.77 | ― | |
| Dec 18, 2025 | 2025 (Q4) | 32.4428.15 | 45.77 | -38.49% (-17.62) | |
| Sep 24, 2025 | 2025 (Q3) | 27.2829.24 | 37.05 | -21.08% (-7.81) | |
| Jun 23, 2025 | 2025 (Q2) | 26.5727.24 | 39.05 | -30.23% (-11.81) | |
| Mar 24, 2025 | 2025 (Q1) | 28.5927.06 | 31.97 | -15.34% (-4.90) | |
| Jan 13, 2025 | 2024 (Q4) | 44.3045.77 | 33.6 | 36.22% (+12.17) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed