KB Home Q3 Revenue Falls 20% to $1.30B, EPS $1.05; Backlog Rises for First Time in Four Years
KBH is trading near its 52-week low of $44.025 (13% above the low) on elevated volume (2.4× avg).
Summary
KB Home reported Q3 FY2026 revenue of $1.30B (down 20% YoY) and EPS of $1.05, with deliveries down 19%. Backlog rose for the first time in four years, and the company reaffirmed full-year guidance.
Key Events · Earnings and Guidance · KBH
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Q3 Revenue Down 20% to $1.30B
Total revenues fell 20% year-over-year to $1.30 billion, with home deliveries down 19% to 2,732 homes. Net income was $65.3 million, or $1.05 per diluted share, compared to $109.8 million, or $1.61 per share, a year earlier.
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Backlog Rises for First Time in Four Years
Ending backlog increased 2% to 4,398 homes with backlog value up 3% to $2.05 billion — the first year-over-year backlog increase in four years, despite net orders falling 12% to 2,604.
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Full-Year Guidance Reaffirmed
Management reiterated full-year 2026 guidance: deliveries of 10,500 to 11,000 homes, housing revenues of $4.90 billion to $5.10 billion, and housing gross margin of 16.0% to 16.2%. Q4 guidance calls for 3,000 to 3,500 deliveries.
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$50M Share Repurchase in Q3
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. $725.0 million remains under the current authorization.
Analysis · KBH · Real Estate & Construction
KB Home's third quarter reveals a housing market under real pressure, with revenues down 20% and home deliveries down 19% year-over-year. Gross margins are being squeezed by pricing pressure and higher land costs. Yet the quarter also contains a genuine positive: backlog grew for the first time in four years, up 2% to 4,398 homes, suggesting demand may be stabilizing even as affordability remains strained. Management reaffirmed full-year guidance ranges, signaling the weakness is already priced into expectations. The company also continued its buyback program, repurchasing $50M in the quarter, which supports EPS but reduces equity. For investors, the key question is whether the backlog inflection marks a bottom or just a temporary pause in a deteriorating cycle.
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At the time of this filing, KBH was trading at $49.85 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $3B. The 52-week trading range was $44.03 to $67.57. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.