KB Home Q3 revenue falls as higher mortgage rates impact housing market

KB Home

22/09/2026 21:22

Overview
U.S. homebuilder's Q3 revenue down 20% yr/yr
Adjusted EPS for Q3 fell to $1.05 from $1.61 yr/yr
Company repurchased $50 mln of common stock in Q3

Outlook
KB Home expects Q4 deliveries in the range of 3,000 to 3,500 homes
Company sees Q4 housing revenues between $1.45 bln and $1.65 bln
KB Home maintains full-year 2026 guidance for deliveries, revenues and margins within prior ranges

Result Drivers
WEAK HOUSING MARKET - Co said higher mortgage rates and economic uncertainty made buyers more cautious, pressuring affordability
BUILT TO ORDER SHIFT - Co said return to predominantly Built to Order business contributed to sequentially higher housing gross profit margin
COMMUNITY COUNT GROWTH - Co said year-over-year community count growth reflects new community openings supporting sales

Company press release: ID:nPn2HPCkga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.29 bln
$1.29 bln (11 Analysts)
Q3 EPS
 
$1.05
 
Q3 Net Income
 
$65.28 mln
 
Q3 Homebuilding Operating Income
 
$67.13 mln
 
Q3 Housing Adj. Gross Margin
 
16.80%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for KB Home is $56.33, about 17.7% above its September 21 closing price of $47.86
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Sept 21 - Mapping the Market: Bruised but not battered, S&P 500 has a chance to aim higher

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)