KB Home (NYSE: KBH) reported third-quarter fiscal 2026 results for the period ending August 31, achieving $1.3 billion in housing revenues, a net income of $65 million, and diluted earnings per share of $1.05. This marks a 20% decline in housing revenues year-over-year, primarily due to a 19% drop in home deliveries, totaling 2,732 homes. The company’s average selling price was approximately $473,000, slightly down from the prior year’s $476,000.
Despite a challenging housing environment, KB Home’s built-to-order model was instrumental, with built-to-order homes comprising 74% of deliveries, up from 60% in Q2. Housing gross profit margin stood at 16.5%, down from 18.2% year-over-year but an increase from 15.7% in the previous quarter. The company expects fourth-quarter deliveries between 3,000 to 3,500 homes and housing revenues of $1.45 billion to $1.65 billion, lowering the average selling price forecast to about $480,000 from approximately $500,000 due to decreased higher-priced home sales in Southern California.
KB Home invested nearly $725 million in land acquisition and development during the quarter and returned over $65 million to shareholders. Currently, the company has more than 61,000 lots and a cash position of $159 million, with total liquidity of $942 million. Its debt-to-capital ratio increased slightly to 35.7% from 33.2% a year prior, as they prepare for 270 to 275 communities by the end of fiscal 2026.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
