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Get filing alertsKB Home Q3 revenue falls 20% to $1.30B, EPS drops to $1.05 amid affordability pressure
Filed September 22, 2026 · Period ending September 22, 2026 · ~1 min read
Key Changes
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Total revenues fell 20% year-over-year to $1.30 billion, with homes delivered down 19% to 2,732, as higher mortgage rates and economic uncertainty pressured affordability.
Exhibit 99.1 view on EDGAR → -
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Diluted EPS declined to $1.05 from $1.61 a year earlier, driven by lower net income of $65.3 million versus $109.8 million.
Exhibit 99.1 view on EDGAR → -
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Housing gross profit margin contracted to 16.5% from 18.2%, reflecting pricing pressure, higher relative land costs, and reduced operating leverage.
Exhibit 99.1 view on EDGAR → -
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Q4 2026 guidance calls for 3,000 to 3,500 deliveries and housing revenues of $1.45 billion to $1.65 billion; full-year guidance is 10,500 to 11,000 deliveries and $4.90 billion to $5.10 billion in housing revenues.
Exhibit 99.1 view on EDGAR → -
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KB Home repurchased 0.9 million shares for $50.0 million in Q3, with $725.0 million remaining under its authorization as of August 31, 2026.
Exhibit 99.1 view on EDGAR →
Summary
KB Home reported a sharp decline in third-quarter results, with revenue down 20% to $1.30 billion and diluted EPS falling to $1.05 from $1.61 a year earlier. The company attributed the weakness to higher mortgage rates, geopolitical uncertainty, and broader economic headwinds that have made buyers more cautious and pressured affordability. Homes delivered dropped 19% to 2,732, and the housing gross profit margin narrowed to 16.5% from 18.2%, reflecting pricing pressure and higher relative land costs.
Despite the downturn, KB Home continued to return capital to shareholders, repurchasing $50 million of stock in the quarter and bringing nine-month repurchases to $175 million. Management provided fourth-quarter guidance of 3,000 to 3,500 deliveries and housing revenues of $1.45 billion to $1.65 billion, with full-year expectations of 10,500 to 11,000 deliveries and $4.90 billion to $5.10 billion in housing revenues. The guidance suggests the company expects conditions to remain challenging through the end of the fiscal year.
Section-by-Section Diff
Event · Exhibit 99.1
KB Home reports Q3 2026 revenue down 20% to $1.30B, EPS of $1.05, and repurchased $50M of stock.
Added in current filing · view on EDGAR →
The housing gross profit margin was 16.5%, compared to 18.2%.
Housing gross margin contracted to 16.5% from 18.2%, reflecting continued pricing pressure, higher relative land costs, and reduced operating leverage. Excluding inventory-related charges, adjusted margin was 16.8% versus 18.9%.
Added in current filing · view on EDGAR →
In the 2026 third quarter, the Company repurchased .9 million shares of its outstanding common stock at a cost of $50.0 million
KB Home repurchased 0.9 million shares for $50.0 million in Q3, bringing nine-month repurchases to 3.1 million shares at a total cost of $175.0 million. The company had $725.0 million remaining under its repurchase authorization as of August 31, 2026.
Added in current filing · view on EDGAR →
Deliveries in the range of 3,000 to 3,500 homes.
For Q4 2026, KB Home expects 3,000 to 3,500 deliveries, housing revenues of $1.45 billion to $1.65 billion, and housing gross margin of 16.0% to 16.6%. Full-year guidance calls for 10,500 to 11,000 deliveries and housing revenues of $4.90 billion to $5.10 billion.
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Figures/quotes linked to EDGAR · Narrative written by AI · Sep 23, 2026 · How we verify