KB Home (NYSE:KBH) Releases Earnings Results, Beats Estimates By $0.17 EPS

22 Sep 2026, 17:28 by Amy Steele · The Cerbat Gem

KB Home (NYSE:KBH – Get Free Report) released its quarterly earnings results on Tuesday. The construction company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.88 by $0.17, FiscalAI reports. The firm had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. KB Home had a net margin of 4.94% and a return on equity of 7.67%. The business’s revenue for the quarter was down 20.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.61 EPS.

Here are the key takeaways from KB Home’s conference call:

Housing conditions weakened as higher mortgage rates, persistent inflation, reduced consumer confidence, and increased resale inventory pressured traffic, orders, pricing, and affordability.
Third-quarter results met or exceeded guidance, with $1.3 billion in housing revenue, $1.05 diluted EPS, and a 16.8% adjusted housing gross margin, though revenue and EPS declined year over year.
KB Home’s built-to-order strategy reached 74% of deliveries, reducing inventory risk and helping margins improve sequentially; build times fell to 99 days and backlog grew year over year for the first time in four years.
The company moderated fourth-quarter expectations, projecting average selling price of about $480,000 and gross margin of 16.0%–16.6%, citing Southern California weakness, pricing pressure, higher fuel and other costs, and less favorable geographic mix.
Management maintained its full-year delivery and revenue outlook, cited more than 61,000 owned or controlled lots and substantial liquidity, and plans up to $50 million of additional share repurchases in the fourth quarter.

KB Home Stock Up 1.6%

Shares of NYSE KBH traded up $0.76 during trading on Tuesday, reaching $48.62. The company had a trading volume of 3,441,916 shares, compared to its average volume of 1,202,417. KB Home has a 12-month low of $44.03 and a 12-month high of $67.57. The business’s 50-day moving average is $54.32 and its 200 day moving average is $53.52. The stock has a market cap of $2.98 billion, a PE ratio of 16.94, a P/E/G ratio of 2.43 and a beta of 1.34.

KB Home Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, August 6th. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. KB Home’s payout ratio is presently 34.84%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on KBH shares. UBS Group raised their price target on KB Home from $63.00 to $66.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Citigroup reissued a “market outperform” rating on shares of KB Home in a report on Thursday, September 10th. Truist Financial dropped their target price on KB Home from $56.00 to $55.00 and set a “hold” rating for the company in a research report on Wednesday, September 16th. Barclays increased their target price on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Finally, Wells Fargo & Company lowered their price target on shares of KB Home from $52.00 to $50.00 and set an “underweight” rating for the company in a research note on Friday, September 11th. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $59.92.

View Our Latest Research Report on KB Home

KB Home News Roundup

Here are the key news stories impacting KB Home this week:

Positive Sentiment: KB Home reported diluted EPS of $1.05, exceeding the consensus estimate of $0.89. Revenue of approximately $1.30 billion was in line with expectations. KB Home Posts Q3 Double Beat Despite Weakening Housing Market
Positive Sentiment: Ending backlog increased 3% in value to $2.05 billion, providing some forward revenue visibility despite lower orders and deliveries. The company also repurchased $50 million of stock during the quarter. KB Home Reports 2026 Third Quarter Results
Neutral Sentiment: KB Home forecast fourth-quarter housing revenue of $1.45 billion to $1.65 billion, offering a potential seasonal improvement but leaving the outlook dependent on demand and mortgage conditions. KB Home Reports 2026 Third Quarter Results
Negative Sentiment: The underlying results were weaker year over year: revenue declined 20%, net income fell to $65.3 million from $109.8 million, deliveries dropped 19% to 2,732 homes, and net orders decreased 12% to 2,604. Housing gross margin also contracted to 16.5% from 18.2%. KB Home Q3 Revenue Falls 20 Percent
Negative Sentiment: Management reduced its full-year gross margin outlook to 16.0%-16.2%, from 16.1%-16.5%, signaling continued pricing pressure, incentives, and difficult housing conditions. KB Home Cuts Margin Outlook as Housing Conditions Worsen

Insider Buying and Selling

In related news, EVP Albert Z. Praw sold 22,015 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the transaction, the executive vice president owned 104,062 shares in the company, valued at $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Arthur Collins sold 4,000 shares of the business’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the sale, the director owned 9,157 shares of the company’s stock, valued at approximately $521,582.72. This represents a 30.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 4.69% of the company’s stock.

About KB Home

(Get Free Report)

KB Home (NYSE: KBH) is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.