KB Home (KBH) Fiscal Q3 2026 Earnings Call: BTO Mix Reaches 74%, Q4 Outlook Moderates
Source Tradingkey
Key Takeaways
- KB Home reported fiscal Q3 2026 housing revenue of $1.3 billion, down 20% year over year, as deliveries fell 19% to 2,732 homes.
- Net income declined to $65 million from $110 million, while diluted EPS fell to $1.05 from $1.61. A 9% reduction in diluted average shares partly reflected ongoing repurchases.
- Built-to-order homes reached 74% of deliveries, up from 60% in Q2. This helped adjusted housing gross margin improve sequentially to 16.8% from 15.7%, although it remained below 18.9% a year earlier.
- Management maintained its full-year delivery outlook of 10,500–11,000 homes and narrowed housing revenue guidance to $4.9–$5.1 billion. Full-year housing gross margin is now expected at 16.0%–16.2%, excluding inventory-related charges.
- The Q4 outlook moderated amid weaker demand, pricing pressure, higher costs and a smaller contribution from higher-margin Southern California communities. More than 80% of expected Q4 deliveries were already in backlog.
- KB Home invested nearly $725 million in land acquisition and development while returning more than $65 million through buybacks and dividends. It plans up to $50 million of additional repurchases in Q4.
Key Financial Data
| Metric | Fiscal Q3 2026 | Comparison / Commentary |
|---|---|---|
| Housing revenue | $1.3 billion | Down 20% year over year |
| Homes delivered | 2,732 | Down 19% year over year |
| Average selling price | $473,000 | Slightly below approximately $476,000 a year earlier |
| Backlog conversion | 60% | 71% a year earlier |
| Housing gross margin | 16.5% | 18.2% a year earlier |
| Adjusted housing gross margin | 16.8% | 18.9% a year earlier; up from 15.7% in Q2 |
| Homebuilding operating income | $67 million | $131 million a year earlier |
| Homebuilding operating margin | 5.2% | 8.1% a year earlier |
| SG&A ratio | 11.3% | 10.0% a year earlier |
| Net income | $65 million | $110 million a year earlier |
| Diluted EPS | $1.05 | $1.61 a year earlier |
| Cash | $159 million | Quarter-end |
| Total liquidity | $942 million | Included $783 million available under the unsecured credit facility |
| Debt-to-capital ratio | 35.7% | 33.2% a year earlier |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for cryptoThe US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollarSpot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000.
Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonightThe dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
