KB Home Reports Q3 2026 Results: $1.30B Revenue, $1.05 EPS, and $50M Stock Buyback

KB Home (NYSE: KBH) reported its financial results for the three months and nine months ended August 31, 2026, in a press release dated September 22, 2026. The company reported total revenues of $1.30 billion for the third quarter of 2026, a decrease of 20% compared to the same period in the prior year. Diluted earnings per share (EPS) were $1.05 for the quarter, down from $1.61 in the prior year.

The company delivered 2,732 homes during the quarter, a decrease of 19% year-over-year. The average selling price for these homes was $473,000, slightly lower than the $475,700 reported in the prior year. Homebuilding operating income totaled $67.1 million, resulting in an operating margin of 5.2%, compared to 8.1% in the prior year. This decrease was attributed to a lower housing gross profit margin and a higher selling, general and administrative expense ratio.

For the nine months ended August 31, 2026, total revenues were $3.49 billion, down from $4.54 billion in the prior year. Net income for the nine-month period was $126.1 million, with diluted EPS of $2.00, compared to $327.3 million in income and $4.60 EPS in the prior year.

Despite the overall decline, KB Home reported that its ending backlog increased for the first time in four years. The number of homes in backlog rose 2% to 4,398, and the backlog value increased 3% to $2.05 billion. The company noted that its average community count grew 8% to 279 for the quarter, with an ending community count of 277.

In terms of capital allocation, KB Home repurchased 0.9 million shares of its common stock in the third quarter at a cost of $50.0 million. This brings total repurchases for the nine months to 3.1 million shares at a cost of $175.0 million. As of August 31, 2026, the company had $725.0 million remaining under its current common stock repurchase authorization.

KB Home provided guidance for the remainder of fiscal year 2026. For the fourth quarter, the company expects deliveries between 3,000 and 3,500 homes, and housing revenues between $1.45 billion and $1.65 billion. For the full year, the company forecasts deliveries of 10,500 to 11,000 homes and housing revenues of $4.90 billion to $5.10 billion.