KB Home posted stronger-than-expected fiscal Q3 earnings and in-line revenue, sending its stock up 1.7% in Tuesday after-hours trading. The U.S. homebuilder reported GAAP EPS of $1.05, topping the average analyst estimate of $0.90 but down from $1.61 a year ago, on revenue of $1.30B for the quarter ended Aug. 31, 2026, which matched consensus and fell from $1.62B in Q3 2025. Housing revenue of $1.29B, matching the Visible Alpha estimate, shrank from $1.61B a year ago, while Q3 housing gross profit margin improved to 16.5% from 15.2% in Q2 as built-to-order homes reached almost three-quarters of deliveries, meeting the company's goal of becoming a predominantly built-to-order business. The company reaffirmed 2026 delivery guidance of 10.5K-11.0K homes and narrowed its 2026 housing revenue outlook to $4.90B-$5.10B from a prior $4.90B-$5.30B, and guided Q4 deliveries of 3.0K-3.5K and housing revenue of $1.45B-$1.65B. Net orders fell 12% year over year to 2,604 and missed the Visible Alpha estimate of 2,856, while the cancellation rate rose to 18% from 17% a year ago; Executive Chairman Jeffrey Mezger said the housing market continues to be challenging, with higher mortgage rates pressuring affordability.
KB HomeKB Home beat Q3 EPS consensus ($1.05 vs $0.90) and improved housing gross margin to 16.5% on built-to-order shift.
