KB HOME reported third-quarter results for the period ended May 31, 2026, with revenue of $1.112B and diluted EPS of $0.43, as net income declined to $27.3M versus the year‑ago quarter amid softer demand and fewer home deliveries.
Financial Highlights
- Revenue: $1.112B for the three months ended May 31, 2026, down from $1.530B in the year‑ago quarter ( (27%) ).
- Net income: $27.3M for the three months ended May 31, 2026, versus $107.9M in the year‑ago quarter ( (75%) ).
- Diluted EPS: $0.43 for the three months ended May 31, 2026, down from $1.50 in the year‑ago quarter ( (71%) ).
Business Highlights
- Revenue trends: Homebuilding revenues declined roughly 27% quarter over year, driven by 23% fewer homes delivered and modest average selling price declines, reflecting softer market demand.
- Channel & product mix: The company is shifting toward Built to Order sales, which were the predominant net orders in H1 2026 to improve margins and visibility.
- Operational capacity: Community count ended the quarter up 11% at 280 communities, with average communities up 9%, supporting future growth through land investments.
- Backlog & orders: Net orders were down 4% year over year while backlog homes fell only 5% year over year; backlog increased sequentially and is up 45% since November 2025, helped by the Built to Order mix.
- Operational improvements: Build times for Built to Order homes improved about 22–24% year over year, which is expected to support higher deliveries and improved housing gross margins in the second half of fiscal 2026.
Original SEC Filing:
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