{"success":true,"data":{"pressRelease":{"id":"150210","rtpr_id":"nPn2HPCkga-20260922","ticker":"KBH","exchange":"NYSE","all_tickers":["KBH"],"title":"KB HOME REPORTS 2026 THIRD QUARTER RESULTS","author":"PR Newswire","published_at":"2026-09-22T20:10:00.116Z","article_body":"KB HOME REPORTS 2026 THIRD QUARTER RESULTS\nPR Newswire\n\nLOS ANGELES, Sept. 22, 2026\n\nRevenues of $1.30 Billion; Diluted Earnings Per Share of $1.05\nRepurchased $50.0 Million of Common Stock\n\nLOS ANGELES, Sept. 22, 2026 /PRNewswire/ -- KB Home (NYSE: KBH) today reported\nresults for its third quarter ended August 31, 2026.\n\n\"We are operating in a housing market that continues to be challenging, with\nconditions weakening since our June earnings report. Higher mortgage interest\nrates have further pressured affordability and, together with geopolitical\nuncertainty and broader economic headwinds, have caused many prospective\nbuyers to be more cautious on purchasing a home,\" said Jeffrey Mezger,\nExecutive Chairman. \"Against this backdrop, we produced third quarter\nfinancial results that reflected solid sequential improvement.\"\n\n\"We also made significant progress and have now achieved our goal of returning\nto a predominantly Built to Order business, with BTO homes representing nearly\nthree-quarters of our deliveries in the third quarter, which contributed to\nour sequentially higher housing gross profit margin,\" said Robert McGibney,\nPresident and Chief Executive Officer. \"In addition, we generated\nyear-over-year community count growth. This reflects a significant number of\nnew community openings over the past year that will help support our sales\nefforts going forward, along with a continued focus on balancing price and\npace for the best possible return.\"\n\n\"Looking ahead to the remainder of this fiscal year, we continue to expect our\nfull-year deliveries, housing revenues and margins to be within the ranges we\nlast provided. We remain committed to enhancing long-term shareholder value\nthrough both our performance and our balanced approach to capital allocation,\nwith the financial capacity to continue investing in our future growth and\nrewarding shareholders through our ongoing repurchase program and\nlong-standing quarterly dividend,\" concluded Mezger.\n\nThree Months Ended August 31, 2026 (comparisons on a year-over-year basis)\n\n * Revenues were down 20% to $1.30 billion.\n * Homes delivered decreased 19% to 2,732.\n * Average selling price was $473,000, compared to $475,700.\n * Homebuilding operating income was $67.1 million, compared to $131.2 million.\nThe homebuilding operating income margin was 5.2%, compared to 8.1%, due to a\nlower housing gross profit margin and a higher selling, general and\nadministrative expense ratio. Excluding inventory-related charges of $3.0\nmillion for the current quarter and $11.3 million for the year-earlier\nquarter, the homebuilding operating income margin was 5.4%, compared to 8.8%.\n* The housing gross profit margin was 16.5%, compared to 18.2%. Excluding the\nabove-mentioned inventory-related charges, the housing gross profit margin was\n16.8%, compared to 18.9%, primarily reflecting continued pricing pressure,\nhigher relative land costs and reduced operating leverage.\n * Selling, general and administrative expenses were 11.3% of housing revenues,\ncompared to 10.0%, mainly due to a decrease in operating leverage, partly\noffset by lower costs associated with certain performance-based employee\ncompensation plans and personnel reductions.\n * Financial services pretax income totaled $7.4 million, compared to $8.7\nmillion, primarily reflecting lower results from title and insurance\noperations.\n * Pretax income totaled $81.2 million, including a $3.5 million gain on the sale\nof an equity investment in a privately held technology company, compared to\n$143.2 million.\n * Net income was $65.3 million, compared to $109.8 million, with an effective\ntax rate of 19.6%, compared to 23.3%. The lower effective tax rate was mainly\ndue to the impact of excess tax benefits from stock-based compensation in the\ncurrent period. Diluted earnings per share was $1.05, compared to $1.61,\nreflecting current quarter net income, partly offset by the favorable impact\nof the Company's common stock repurchases.\nNine Months Ended August 31, 2026 (comparisons on a year-over-year basis)\n\n * Revenues totaled $3.49 billion, compared to $4.54 billion.\n * Homes delivered of 7,497 were down 19%.\n * Average selling price decreased 5% to $462,900.\n * Net income was $126.1 million, compared to $327.3 million.\n * Diluted earnings per share was $2.00, compared to $4.60.\nNet Orders and Backlog (comparisons on a year-over-year basis)\n\n * Net orders of 2,604 for the quarter decreased 12%. Ending backlog increased\nfor the first time in four years, with the number of homes in backlog up 2% to\n4,398 and backlog value up 3% to $2.05 billion.\n* Monthly net orders per community were 3.1, compared to 3.8.\n * The cancellation rate as a percentage of gross orders was 18%, compared to\n17%.\n * The average community count for the quarter grew 8% to 279, and the ending\ncommunity count was up 5% to 277.\nBalance Sheet as of August 31, 2026 (comparisons to November 30, 2025,\nexcept as noted)\n\n * The Company had total liquidity of $942.4 million, including $159.0 million of\ncash and cash equivalents and $783.4 million of available capacity under its\nunsecured revolving credit facility (\"Credit Facility\"), with $415.0 million\nof cash borrowings outstanding.\n * Inventories increased 5% to $5.98 billion.\n* Investments in land and land development for the quarter increased 40% to\n$722.3 million, compared to $514.1 million for the prior-year quarter. For the\nnine months ended August 31, 2026, total land-related investments decreased 8%\nto $1.79 billion, compared to $1.95 billion for the year-earlier period.\n * The Company's lots owned or under contract decreased 5% to 61,581, of which\napproximately 60% were owned and 40% were under contract.\n * Notes payable were $2.11 billion, compared to $1.69 billion, reflecting cash\nborrowings outstanding under the Credit Facility. The debt to capital ratio\nwas 35.7%, compared to 30.3%. As of August 31, 2025, the debt to capital ratio\nwas 33.2%.\n * Stockholders' equity totaled $3.80 billion, compared to $3.90 billion,\nprimarily reflecting common stock repurchases and cash dividends for the nine\nmonths ended August 31, 2026, partly offset by net income for the same\nperiod.\n* In the 2026 third quarter, the Company repurchased .9 million shares of its\noutstanding common stock at a cost of $50.0 million, bringing its total\nrepurchases for the nine months ended August 31, 2026 to 3.1 million shares at\na total cost of $175.0 million. As of August 31, 2026, the Company had $725.0\nmillion remaining under its current common stock repurchase authorization.\n * Based on the Company's approximately 60.8 million outstanding shares as of\nAugust 31, 2026, book value per share of $62.56 increased 4% year over year.\nGuidance\n\nThe Company is providing the following guidance for its 2026 fourth quarter\nand full year as to certain metrics:\n\n2026 Fourth Quarter —\n\n * Deliveries in the range of 3,000 to 3,500 homes.\n * Housing revenues in the range of $1.45 billion to $1.65 billion.\n * Housing gross profit margin in the range of 16.0% to 16.6%, assuming no\ninventory-related charges.\n * Selling, general and administrative expenses as a percentage of revenues in\nthe range of 10.3% to 10.9%.\n * Effective tax rate of approximately 26%.\n * Ending community count in the range of 270 to 275.\n2026 Full Year —\n\n * Deliveries in the range of 10,500 to 11,000 homes.\n * Housing revenues in the range of $4.90 billion to $5.10 billion.\n * Housing gross profit margin in the range of 16.0% to 16.2%, assuming no\ninventory-related charges.\n * Selling, general and administrative expenses as a percentage of revenues in\nthe range of 11.5% to 11.7%.\n * Effective tax rate of approximately 23%.\nConference Call\n\nThe conference call to discuss the Company's 2026 third quarter earnings will\nbe broadcast live TODAY at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To\nlisten, please go to the Investor Relations section of the Company's website\nat kbhome.com.\n\nAbout KB Home\n\nKB Home is one of the largest and most trusted homebuilders in the United\nStates. We operate in 50 markets, have built over 700,000 quality homes in our\nnearly 70-year history, and are honored to be one of the top customer-ranked\nnational homebuilders based on third-party buyer surveys. What sets KB Home\napart is building strong, personal relationships with every customer and\ncreating an exceptional homebuying experience that offers our homebuyers the\nability to personalize their home based on what they value at a price they can\nafford. As the industry leader in sustainability, KB Home has achieved one of\nthe highest residential energy-efficiency ratings and delivered more ENERGY\nSTAR(®) certified homes than any other builder, helping to lower the total\ncost of homeownership. For more information, visit kbhome.com.\n\nForward-Looking and Cautionary Statements\n\nCertain matters discussed in this press release, including any statements that\nare predictive in nature or concern future market and economic conditions,\nbusiness and prospects, our future financial and operational performance, or\nour future actions and their expected results are \"forward-looking statements\"\nwithin the meaning of the Private Securities Litigation Reform Act of 1995.\nForward-looking statements are based on current expectations and projections\nabout future events and are not guarantees of future performance. We do not\nhave a specific policy or intent of updating or revising forward-looking\nstatements. If we update or revise any such statement(s), no assumption should\nbe made that we will further update or revise that statement(s) or update or\nrevise any other such statement(s). In addition, such forward-looking\nstatements may be based in whole or in part on general observations or\nopinions of our management, limited or anecdotal evidence and/or business or\nindustry experience without in-depth or any particular empirical\ninvestigation, inquiry or analysis and are not intended, and do not express,\nfactual assertions about past events. Actual events and results may differ\nmaterially from those expressed or forecasted in forward-looking statements\ndue to a number of factors. The most important risk factors that could cause\nour actual performance and future events and actions to differ materially from\nsuch forward-looking statements include, but are not limited to the following:\ngeneral economic, employment and business conditions (including, without\nlimitation, consumer and producer price inflation; interest rates and terms\navailable from outside financing sources for our business and for consumer\nmortgage loans; and consumer confidence, either generally or specifically with\nrespect to purchasing homes); material and trade costs and availability;\ndisruptions in world and regional trade flows and supply chains due to the\nmilitary conflicts in the Middle East and in Ukraine and/or U.S. trade\npolicies, including the imposition of tariffs and duties on homebuilding\nmaterials and products, and related trade disputes with and retaliatory\nmeasures taken by other countries; population, household formations and\ndemographic trends; government actions, policies, programs and regulations,\nincluding tax-related, directed at or affecting, directly or indirectly, the\nhousing market, the homebuilding industry, or our business; our ability to\nsuccessfully implement our business strategies, achieve any associated\nfinancial and operational targets and objectives, and manage the related\nchallenges or risks, including those identified or discussed in this press\nrelease, during today's webcast conference call or in any of our other public\nfilings, presentations or disclosures; homebuyer interest in and ability to\nafford to purchase our homes (including their ability to obtain typical or\nlender-required insurance or other policies to cover hazards to their homes);\nour debt level, including our ratio of debt to capital, and our ability to\nadjust our debt level and maturity schedule; our compliance with the terms of\nour unsecured revolving credit facility and our senior unsecured term loan;\nthe execution of any securities repurchases pursuant to our board of\ndirectors' authorization; impairment, land option contract abandonment or\nother inventory-related charges, including any stemming from decreases in the\nvalue of our land assets; volatility in the market price of our common stock;\nthe costs we incur in connection with relocating our corporate headquarters\noffice from Los Angeles, California to Tempe, Arizona in 2027; the performance\nof mortgage lenders for our homebuyers; the performance of KBHS Home Loans,\nLLC (\"KBHS\"); information technology failures and data security breaches; and\nother events outside of our control. Please see our filings with the\nSecurities and Exchange Commission for a further discussion of these and other\nrisks and uncertainties applicable to our business, including in the \"Risk\nFactors\" and \"Management's Discussion and Analysis of Financial Condition and\nResults of Operations\" sections of our most recently filed periodic reports on\nForm 10-K and Form 10-Q.\n\n(Tables Follow)\n KB HOME\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(In Thousands, Except Per Share Amounts – Unaudited)\n\n                                               Three Months Ended August 31,                                               Nine Months Ended August 31,\n                                               2026                                       2025                             2026                                       2025\n Total revenues                                $       1,297,101                          $       1,620,474                $       3,486,547                          $       4,541,836\n Homebuilding:\n Revenues                                      $       1,292,350                          $       1,614,462                $       3,471,516                          $       4,526,219\n Costs and expenses                            (1,225,216)                                (1,483,299)                      (3,343,245)                                (4,136,254)\n Operating income                              67,134                                     131,163                          128,271                                    389,965\n Interest income and other                     4,518                                      1,870                            6,963                                      5,628\n Equity in income of unconsolidated joint      2,147                                      1,509                            3,938                                      5,002\n      ventures\n Homebuilding pretax income                    73,799                                     134,542                          139,172                                    400,595\n Financial services:\n Revenues                                      4,751                                      6,012                            15,031                                     15,617\n Expenses                                      (1,464)                                    (1,580)                          (4,507)                                    (4,689)\n Equity in income of unconsolidated joint      4,094                                      4,254                            9,057                                      13,445\n      venture\n Financial services pretax income              7,381                                      8,686                            19,581                                     24,373\n Total pretax income                           81,180                                     143,228                          158,753                                    424,968\n Income tax expense                            (15,900)                                   (33,400)                         (32,700)                                   (97,700)\n Net income                                    $            65,280                        $          109,828               $          126,053                         $          327,268\n Earnings per share:\n Basic                                         $                1.07                      $                1.64            $                2.03                      $                4.69\n Diluted                                       $                1.05                      $                1.61            $                2.00                      $                4.60\n Weighted average shares outstanding:\n Basic                                         60,833                                     66,368                           61,753                                     69,279\n Diluted                                       61,759                                     67,737                           62,732                                     70,643\n\n \n KB HOME\n\nCONSOLIDATED BALANCE SHEETS\n\n(In Thousands – Unaudited)\n\n                                                       August 31,                    November 30,\n                                                       2026                          2025\n Assets\n Homebuilding:\n Cash and cash equivalents                             $         159,018             $         228,614\n Receivables                                           397,791                       350,636\n Inventories                                           5,981,182                     5,670,802\n Investments in unconsolidated joint ventures          74,763                        72,436\n Property and equipment, net                           102,880                       101,457\n Deferred tax assets, net                              88,665                        88,665\n Other assets                                          106,431                       107,833\n                                                       6,910,730                     6,620,443\n Financial services                                    58,422                        59,809\n Total assets                                          $       6,969,152             $       6,680,252\n\n Liabilities and stockholders' equity\n Homebuilding:\n Accounts payable                                      $          319,520            $          351,261\n Accrued expenses and other liabilities                736,954                       731,946\n Notes payable                                         2,109,145                     1,692,977\n                                                       3,165,619                     2,776,184\n Financial services                                    2,024                         3,210\n Stockholders' equity                                  3,801,509                     3,900,858\n Total liabilities and stockholders' equity            $       6,969,152             $       6,680,252\n\n \n KB HOME\n\nSUPPLEMENTAL INFORMATION\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(In Thousands, Except Average Selling Price – Unaudited)\n\n                                                       Three Months Ended August 31,                                                        Nine Months Ended August 31,\n                                                       2026                                            2025                                 2026                                           2025\n Homebuilding revenues:\n Housing                                               $        1,292,350                              $       1,613,975                    $       3,470,076                              $       4,525,732\n Land                                                  —                                               487                                  1,440                                          487\n Total                                                 $        1,292,350                              $       1,614,462                    $       3,471,516                              $       4,526,219\n\n Homebuilding costs and expenses:\n Construction and land costs\n Housing                                               $        1,078,590                              $       1,320,611                    $       2,923,732                              $       3,658,080\n Land                                                  —                                               536                                  1,296                                          536\n Subtotal                                              1,078,590                                       1,321,147                            2,925,028                                      3,658,616\n Selling, general and administrative expenses          146,626                                         162,152                              418,217                                        477,638\n Total                                                 $        1,225,216                              $       1,483,299                    $       3,343,245                              $       4,136,254\n\n Interest expense:\n Interest incurred                                     $             31,520                            $            29,658                  $            88,629                            $            84,676\n Interest capitalized                                  (31,520)                                        (29,658)                             (88,629)                                       (84,676)\n Total                                                 $                    —                          $                   —                $                   —                          $                   —\n\n Other information:\n Amortization of previously capitalized interest       $             22,552                            $            27,026                  $            60,084                            $           75,755\n Depreciation and amortization                         11,646                                          10,308                               34,265                                         30,126\n\n Average selling price:\n West Coast                                            $           641,800                             $          684,000                   $          633,500                             $          690,800\n Southwest                                             441,500                                         492,700                              453,000                                        476,500\n Central                                               337,500                                         329,400                              337,800                                        347,000\n Southeast                                             374,100                                         380,200                              367,600                                        389,700\n Total                                                 $           473,000                             $          475,700                   $          462,900                             $          487,500\n\n \n KB HOME\n\nSUPPLEMENTAL INFORMATION\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(Dollars in Thousands – Unaudited)\n\n                          Three Months Ended August 31,                                                       Nine Months Ended August 31,\n                          2026                                           2025                                 2026                                       2025\n Homes delivered:\n West Coast               966                                            972                                  2,494                                      2,789\n Southwest                503                                            681                                  1,256                                      2,020\n Central                  609                                            943                                  1,880                                      2,505\n Southeast                654                                            797                                  1,867                                      1,969\n Total                    2,732                                          3,393                                7,497                                      9,283\n\n Net orders:\n West Coast               937                                            870                                  3,142                                      2,872\n Southwest                448                                            459                                  1,485                                      1,561\n Central                  587                                            795                                  2,050                                      2,545\n Southeast                632                                            826                                  2,090                                      2,204\n Total                    2,604                                          2,950                                8,767                                      9,182\n\n Net order value:\n West Coast               $             596,541                          $             550,753                $          2,025,545                       $          1,886,073\n Southwest                194,690                                        218,931                              644,590                                    757,074\n Central                  188,092                                        255,530                              691,528                                    823,869\n Southeast                227,901                                        289,393                              758,269                                    804,672\n Total                    $          1,207,224                           $          1,314,607                 $          4,119,932                       $          4,271,688\n\n                          August 31, 2026                                                                     August 31, 2025\n                          Homes                                          Value                                Homes                                      Value\n Backlog data:\n West Coast               1,589                                          $          1,019,253                 1,294                                      $             833,715\n Southwest                696                                            296,130                              675                                        326,959\n Central                  1,042                                          351,418                              1,173                                      390,780\n Southeast                1,071                                          386,407                              1,191                                      437,409\n Total                    4,398                                          $          2,053,208                 4,333                                      $          1,988,863\n\nKB HOME\nRECONCILIATION OF NON-GAAP FINANCIAL MEASURES\n(In Thousands, Except Percentages – Unaudited)\n\nCompany management's discussion of the results presented in this press release\nmay include information about the Company's adjusted housing gross profit\nmargin, which is not calculated in accordance with generally accepted\naccounting principles (\"GAAP\").  The Company believes this non-GAAP financial\nmeasure is relevant and useful to investors in understanding its operations,\nand may be helpful in comparing the Company with other companies in the\nhomebuilding industry to the extent they provide similar information.\nHowever, because it is not calculated in accordance with GAAP, this non-GAAP\nfinancial measure may not be completely comparable to other companies in the\nhomebuilding industry and, thus, should not be considered in isolation or as\nan alternative to operating performance and/or financial measures prescribed\nby GAAP.  Rather, this non-GAAP financial measure should be used to\nsupplement the most directly comparable GAAP financial measure in order to\nprovide a greater understanding of the factors and trends affecting the\nCompany's operations.\n\nAdjusted Housing Gross Profit Margin\n\nThe following table reconciles the Company's housing gross profit margin\ncalculated in accordance with GAAP to the non-GAAP financial measure of the\nCompany's adjusted housing gross profit margin:\n                                              Three Months Ended August 31,                             Nine Months Ended August 31,\n                                              2026                              2025                    2026                              2025\n Housing revenues                             $     1,292,350                   $     1,613,975         $     3,470,076                   $     4,525,732\n Housing construction and land costs          (1,078,590)                       (1,320,611)             (2,923,732)                       (3,658,080)\n Housing gross profits                        213,760                           293,364                 546,344                           867,652\n Add: Inventory-related charges (a)           2,986                             11,338                  10,720                            18,351\n Adjusted housing gross profits               $        216,746                  $        304,702        $        557,064                  $        886,003\n Housing gross profit margin                  16.5 %                            18.2 %                  15.7 %                            19.2 %\n Adjusted housing gross profit margin         16.8 %                            18.9 %                  16.1 %                            19.6 %\n\n (a)  Represents inventory impairment and land option contract abandonment charges\n      associated with housing operations.\n\nAdjusted housing gross profit margin is a non-GAAP financial measure, which\nthe Company calculates by dividing housing revenues less housing construction\nand land costs excluding housing inventory impairment and land option contract\nabandonment charges (as applicable) recorded during a given period, by housing\nrevenues.  The most directly comparable GAAP financial measure is housing\ngross profit margin.  The Company believes adjusted housing gross profit\nmargin is a relevant and useful financial measure to investors in evaluating\nthe Company's performance as it measures the gross profits the Company\ngenerated specifically on the homes delivered during a given period.  This\nnon-GAAP financial measure isolates the impact that housing inventory\nimpairment and land option contract abandonment charges have on housing gross\nprofit margins, and allows investors to make comparisons with the Company's\ncompetitors that adjust housing gross profit margins in a similar manner.\nThe Company also believes investors will find adjusted housing gross profit\nmargin relevant and useful because it represents a profitability measure that\nmay be compared to a prior period without regard to variability of housing\ninventory impairment and land option contract abandonment charges.  This\nfinancial measure assists management in making strategic decisions regarding\ncommunity location and product mix, product pricing and construction pace.\n\nFor Further Information:\nJill Peters, Investor Relations Contact\n(310) 893-7456 or jpeters@kbhome.com (mailto:jpeters@kbhome.com)\nCara Kane, Media Contact\n(321) 299-6844 or ckane@kbhome.com (mailto:ckane@kbhome.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/kb-home-reports-2026-third-quarter-results-302885291.html\n(https://www.prnewswire.com/news-releases/kb-home-reports-2026-third-quarter-results-302885291.html)\n\nSOURCE KB Home\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1777757/KB-Home-Logo.jpg?id=OA2961541\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn2HPCkga-20260922","title":"KB HOME REPORTS 2026 THIRD QUARTER RESULTS","author":"PR Newswire","ticker":"KBH","created":"2026-09-22T20:10:00.116Z","tickers":["KBH"],"exchange":"NYSE","article_body":"KB HOME REPORTS 2026 THIRD QUARTER RESULTS\nPR Newswire\n\nLOS ANGELES, Sept. 22, 2026\n\nRevenues of $1.30 Billion; Diluted Earnings Per Share of $1.05\nRepurchased $50.0 Million of Common Stock\n\nLOS ANGELES, Sept. 22, 2026 /PRNewswire/ -- KB Home (NYSE: KBH) today reported\nresults for its third quarter ended August 31, 2026.\n\n\"We are operating in a housing market that continues to be challenging, with\nconditions weakening since our June earnings report. Higher mortgage interest\nrates have further pressured affordability and, together with geopolitical\nuncertainty and broader economic headwinds, have caused many prospective\nbuyers to be more cautious on purchasing a home,\" said Jeffrey Mezger,\nExecutive Chairman. \"Against this backdrop, we produced third quarter\nfinancial results that reflected solid sequential improvement.\"\n\n\"We also made significant progress and have now achieved our goal of returning\nto a predominantly Built to Order business, with BTO homes representing nearly\nthree-quarters of our deliveries in the third quarter, which contributed to\nour sequentially higher housing gross profit margin,\" said Robert McGibney,\nPresident and Chief Executive Officer. \"In addition, we generated\nyear-over-year community count growth. This reflects a significant number of\nnew community openings over the past year that will help support our sales\nefforts going forward, along with a continued focus on balancing price and\npace for the best possible return.\"\n\n\"Looking ahead to the remainder of this fiscal year, we continue to expect our\nfull-year deliveries, housing revenues and margins to be within the ranges we\nlast provided. We remain committed to enhancing long-term shareholder value\nthrough both our performance and our balanced approach to capital allocation,\nwith the financial capacity to continue investing in our future growth and\nrewarding shareholders through our ongoing repurchase program and\nlong-standing quarterly dividend,\" concluded Mezger.\n\nThree Months Ended August 31, 2026 (comparisons on a year-over-year basis)\n\n * Revenues were down 20% to $1.30 billion.\n * Homes delivered decreased 19% to 2,732.\n * Average selling price was $473,000, compared to $475,700.\n * Homebuilding operating income was $67.1 million, compared to $131.2 million.\nThe homebuilding operating income margin was 5.2%, compared to 8.1%, due to a\nlower housing gross profit margin and a higher selling, general and\nadministrative expense ratio. Excluding inventory-related charges of $3.0\nmillion for the current quarter and $11.3 million for the year-earlier\nquarter, the homebuilding operating income margin was 5.4%, compared to 8.8%.\n* The housing gross profit margin was 16.5%, compared to 18.2%. Excluding the\nabove-mentioned inventory-related charges, the housing gross profit margin was\n16.8%, compared to 18.9%, primarily reflecting continued pricing pressure,\nhigher relative land costs and reduced operating leverage.\n * Selling, general and administrative expenses were 11.3% of housing revenues,\ncompared to 10.0%, mainly due to a decrease in operating leverage, partly\noffset by lower costs associated with certain performance-based employee\ncompensation plans and personnel reductions.\n * Financial services pretax income totaled $7.4 million, compared to $8.7\nmillion, primarily reflecting lower results from title and insurance\noperations.\n * Pretax income totaled $81.2 million, including a $3.5 million gain on the sale\nof an equity investment in a privately held technology company, compared to\n$143.2 million.\n * Net income was $65.3 million, compared to $109.8 million, with an effective\ntax rate of 19.6%, compared to 23.3%. The lower effective tax rate was mainly\ndue to the impact of excess tax benefits from stock-based compensation in the\ncurrent period. Diluted earnings per share was $1.05, compared to $1.61,\nreflecting current quarter net income, partly offset by the favorable impact\nof the Company's common stock repurchases.\nNine Months Ended August 31, 2026 (comparisons on a year-over-year basis)\n\n * Revenues totaled $3.49 billion, compared to $4.54 billion.\n * Homes delivered of 7,497 were down 19%.\n * Average selling price decreased 5% to $462,900.\n * Net income was $126.1 million, compared to $327.3 million.\n * Diluted earnings per share was $2.00, compared to $4.60.\nNet Orders and Backlog (comparisons on a year-over-year basis)\n\n * Net orders of 2,604 for the quarter decreased 12%. Ending backlog increased\nfor the first time in four years, with the number of homes in backlog up 2% to\n4,398 and backlog value up 3% to $2.05 billion.\n* Monthly net orders per community were 3.1, compared to 3.8.\n * The cancellation rate as a percentage of gross orders was 18%, compared to\n17%.\n * The average community count for the quarter grew 8% to 279, and the ending\ncommunity count was up 5% to 277.\nBalance Sheet as of August 31, 2026 (comparisons to November 30, 2025,\nexcept as noted)\n\n * The Company had total liquidity of $942.4 million, including $159.0 million of\ncash and cash equivalents and $783.4 million of available capacity under its\nunsecured revolving credit facility (\"Credit Facility\"), with $415.0 million\nof cash borrowings outstanding.\n * Inventories increased 5% to $5.98 billion.\n* Investments in land and land development for the quarter increased 40% to\n$722.3 million, compared to $514.1 million for the prior-year quarter. For the\nnine months ended August 31, 2026, total land-related investments decreased 8%\nto $1.79 billion, compared to $1.95 billion for the year-earlier period.\n * The Company's lots owned or under contract decreased 5% to 61,581, of which\napproximately 60% were owned and 40% were under contract.\n * Notes payable were $2.11 billion, compared to $1.69 billion, reflecting cash\nborrowings outstanding under the Credit Facility. The debt to capital ratio\nwas 35.7%, compared to 30.3%. As of August 31, 2025, the debt to capital ratio\nwas 33.2%.\n * Stockholders' equity totaled $3.80 billion, compared to $3.90 billion,\nprimarily reflecting common stock repurchases and cash dividends for the nine\nmonths ended August 31, 2026, partly offset by net income for the same\nperiod.\n* In the 2026 third quarter, the Company repurchased .9 million shares of its\noutstanding common stock at a cost of $50.0 million, bringing its total\nrepurchases for the nine months ended August 31, 2026 to 3.1 million shares at\na total cost of $175.0 million. As of August 31, 2026, the Company had $725.0\nmillion remaining under its current common stock repurchase authorization.\n * Based on the Company's approximately 60.8 million outstanding shares as of\nAugust 31, 2026, book value per share of $62.56 increased 4% year over year.\nGuidance\n\nThe Company is providing the following guidance for its 2026 fourth quarter\nand full year as to certain metrics:\n\n2026 Fourth Quarter —\n\n * Deliveries in the range of 3,000 to 3,500 homes.\n * Housing revenues in the range of $1.45 billion to $1.65 billion.\n * Housing gross profit margin in the range of 16.0% to 16.6%, assuming no\ninventory-related charges.\n * Selling, general and administrative expenses as a percentage of revenues in\nthe range of 10.3% to 10.9%.\n * Effective tax rate of approximately 26%.\n * Ending community count in the range of 270 to 275.\n2026 Full Year —\n\n * Deliveries in the range of 10,500 to 11,000 homes.\n * Housing revenues in the range of $4.90 billion to $5.10 billion.\n * Housing gross profit margin in the range of 16.0% to 16.2%, assuming no\ninventory-related charges.\n * Selling, general and administrative expenses as a percentage of revenues in\nthe range of 11.5% to 11.7%.\n * Effective tax rate of approximately 23%.\nConference Call\n\nThe conference call to discuss the Company's 2026 third quarter earnings will\nbe broadcast live TODAY at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To\nlisten, please go to the Investor Relations section of the Company's website\nat kbhome.com.\n\nAbout KB Home\n\nKB Home is one of the largest and most trusted homebuilders in the United\nStates. We operate in 50 markets, have built over 700,000 quality homes in our\nnearly 70-year history, and are honored to be one of the top customer-ranked\nnational homebuilders based on third-party buyer surveys. What sets KB Home\napart is building strong, personal relationships with every customer and\ncreating an exceptional homebuying experience that offers our homebuyers the\nability to personalize their home based on what they value at a price they can\nafford. As the industry leader in sustainability, KB Home has achieved one of\nthe highest residential energy-efficiency ratings and delivered more ENERGY\nSTAR(®) certified homes than any other builder, helping to lower the total\ncost of homeownership. For more information, visit kbhome.com.\n\nForward-Looking and Cautionary Statements\n\nCertain matters discussed in this press release, including any statements that\nare predictive in nature or concern future market and economic conditions,\nbusiness and prospects, our future financial and operational performance, or\nour future actions and their expected results are \"forward-looking statements\"\nwithin the meaning of the Private Securities Litigation Reform Act of 1995.\nForward-looking statements are based on current expectations and projections\nabout future events and are not guarantees of future performance. We do not\nhave a specific policy or intent of updating or revising forward-looking\nstatements. If we update or revise any such statement(s), no assumption should\nbe made that we will further update or revise that statement(s) or update or\nrevise any other such statement(s). In addition, such forward-looking\nstatements may be based in whole or in part on general observations or\nopinions of our management, limited or anecdotal evidence and/or business or\nindustry experience without in-depth or any particular empirical\ninvestigation, inquiry or analysis and are not intended, and do not express,\nfactual assertions about past events. Actual events and results may differ\nmaterially from those expressed or forecasted in forward-looking statements\ndue to a number of factors. The most important risk factors that could cause\nour actual performance and future events and actions to differ materially from\nsuch forward-looking statements include, but are not limited to the following:\ngeneral economic, employment and business conditions (including, without\nlimitation, consumer and producer price inflation; interest rates and terms\navailable from outside financing sources for our business and for consumer\nmortgage loans; and consumer confidence, either generally or specifically with\nrespect to purchasing homes); material and trade costs and availability;\ndisruptions in world and regional trade flows and supply chains due to the\nmilitary conflicts in the Middle East and in Ukraine and/or U.S. trade\npolicies, including the imposition of tariffs and duties on homebuilding\nmaterials and products, and related trade disputes with and retaliatory\nmeasures taken by other countries; population, household formations and\ndemographic trends; government actions, policies, programs and regulations,\nincluding tax-related, directed at or affecting, directly or indirectly, the\nhousing market, the homebuilding industry, or our business; our ability to\nsuccessfully implement our business strategies, achieve any associated\nfinancial and operational targets and objectives, and manage the related\nchallenges or risks, including those identified or discussed in this press\nrelease, during today's webcast conference call or in any of our other public\nfilings, presentations or disclosures; homebuyer interest in and ability to\nafford to purchase our homes (including their ability to obtain typical or\nlender-required insurance or other policies to cover hazards to their homes);\nour debt level, including our ratio of debt to capital, and our ability to\nadjust our debt level and maturity schedule; our compliance with the terms of\nour unsecured revolving credit facility and our senior unsecured term loan;\nthe execution of any securities repurchases pursuant to our board of\ndirectors' authorization; impairment, land option contract abandonment or\nother inventory-related charges, including any stemming from decreases in the\nvalue of our land assets; volatility in the market price of our common stock;\nthe costs we incur in connection with relocating our corporate headquarters\noffice from Los Angeles, California to Tempe, Arizona in 2027; the performance\nof mortgage lenders for our homebuyers; the performance of KBHS Home Loans,\nLLC (\"KBHS\"); information technology failures and data security breaches; and\nother events outside of our control. Please see our filings with the\nSecurities and Exchange Commission for a further discussion of these and other\nrisks and uncertainties applicable to our business, including in the \"Risk\nFactors\" and \"Management's Discussion and Analysis of Financial Condition and\nResults of Operations\" sections of our most recently filed periodic reports on\nForm 10-K and Form 10-Q.\n\n(Tables Follow)\n KB HOME\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(In Thousands, Except Per Share Amounts – Unaudited)\n\n                                               Three Months Ended August 31,                                               Nine Months Ended August 31,\n                                               2026                                       2025                             2026                                       2025\n Total revenues                                $       1,297,101                          $       1,620,474                $       3,486,547                          $       4,541,836\n Homebuilding:\n Revenues                                      $       1,292,350                          $       1,614,462                $       3,471,516                          $       4,526,219\n Costs and expenses                            (1,225,216)                                (1,483,299)                      (3,343,245)                                (4,136,254)\n Operating income                              67,134                                     131,163                          128,271                                    389,965\n Interest income and other                     4,518                                      1,870                            6,963                                      5,628\n Equity in income of unconsolidated joint      2,147                                      1,509                            3,938                                      5,002\n      ventures\n Homebuilding pretax income                    73,799                                     134,542                          139,172                                    400,595\n Financial services:\n Revenues                                      4,751                                      6,012                            15,031                                     15,617\n Expenses                                      (1,464)                                    (1,580)                          (4,507)                                    (4,689)\n Equity in income of unconsolidated joint      4,094                                      4,254                            9,057                                      13,445\n      venture\n Financial services pretax income              7,381                                      8,686                            19,581                                     24,373\n Total pretax income                           81,180                                     143,228                          158,753                                    424,968\n Income tax expense                            (15,900)                                   (33,400)                         (32,700)                                   (97,700)\n Net income                                    $            65,280                        $          109,828               $          126,053                         $          327,268\n Earnings per share:\n Basic                                         $                1.07                      $                1.64            $                2.03                      $                4.69\n Diluted                                       $                1.05                      $                1.61            $                2.00                      $                4.60\n Weighted average shares outstanding:\n Basic                                         60,833                                     66,368                           61,753                                     69,279\n Diluted                                       61,759                                     67,737                           62,732                                     70,643\n\n \n KB HOME\n\nCONSOLIDATED BALANCE SHEETS\n\n(In Thousands – Unaudited)\n\n                                                       August 31,                    November 30,\n                                                       2026                          2025\n Assets\n Homebuilding:\n Cash and cash equivalents                             $         159,018             $         228,614\n Receivables                                           397,791                       350,636\n Inventories                                           5,981,182                     5,670,802\n Investments in unconsolidated joint ventures          74,763                        72,436\n Property and equipment, net                           102,880                       101,457\n Deferred tax assets, net                              88,665                        88,665\n Other assets                                          106,431                       107,833\n                                                       6,910,730                     6,620,443\n Financial services                                    58,422                        59,809\n Total assets                                          $       6,969,152             $       6,680,252\n\n Liabilities and stockholders' equity\n Homebuilding:\n Accounts payable                                      $          319,520            $          351,261\n Accrued expenses and other liabilities                736,954                       731,946\n Notes payable                                         2,109,145                     1,692,977\n                                                       3,165,619                     2,776,184\n Financial services                                    2,024                         3,210\n Stockholders' equity                                  3,801,509                     3,900,858\n Total liabilities and stockholders' equity            $       6,969,152             $       6,680,252\n\n \n KB HOME\n\nSUPPLEMENTAL INFORMATION\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(In Thousands, Except Average Selling Price – Unaudited)\n\n                                                       Three Months Ended August 31,                                                        Nine Months Ended August 31,\n                                                       2026                                            2025                                 2026                                           2025\n Homebuilding revenues:\n Housing                                               $        1,292,350                              $       1,613,975                    $       3,470,076                              $       4,525,732\n Land                                                  —                                               487                                  1,440                                          487\n Total                                                 $        1,292,350                              $       1,614,462                    $       3,471,516                              $       4,526,219\n\n Homebuilding costs and expenses:\n Construction and land costs\n Housing                                               $        1,078,590                              $       1,320,611                    $       2,923,732                              $       3,658,080\n Land                                                  —                                               536                                  1,296                                          536\n Subtotal                                              1,078,590                                       1,321,147                            2,925,028                                      3,658,616\n Selling, general and administrative expenses          146,626                                         162,152                              418,217                                        477,638\n Total                                                 $        1,225,216                              $       1,483,299                    $       3,343,245                              $       4,136,254\n\n Interest expense:\n Interest incurred                                     $             31,520                            $            29,658                  $            88,629                            $            84,676\n Interest capitalized                                  (31,520)                                        (29,658)                             (88,629)                                       (84,676)\n Total                                                 $                    —                          $                   —                $                   —                          $                   —\n\n Other information:\n Amortization of previously capitalized interest       $             22,552                            $            27,026                  $            60,084                            $           75,755\n Depreciation and amortization                         11,646                                          10,308                               34,265                                         30,126\n\n Average selling price:\n West Coast                                            $           641,800                             $          684,000                   $          633,500                             $          690,800\n Southwest                                             441,500                                         492,700                              453,000                                        476,500\n Central                                               337,500                                         329,400                              337,800                                        347,000\n Southeast                                             374,100                                         380,200                              367,600                                        389,700\n Total                                                 $           473,000                             $          475,700                   $          462,900                             $          487,500\n\n \n KB HOME\n\nSUPPLEMENTAL INFORMATION\n\nFor the Three Months and Nine Months Ended August 31, 2026 and 2025\n\n(Dollars in Thousands – Unaudited)\n\n                          Three Months Ended August 31,                                                       Nine Months Ended August 31,\n                          2026                                           2025                                 2026                                       2025\n Homes delivered:\n West Coast               966                                            972                                  2,494                                      2,789\n Southwest                503                                            681                                  1,256                                      2,020\n Central                  609                                            943                                  1,880                                      2,505\n Southeast                654                                            797                                  1,867                                      1,969\n Total                    2,732                                          3,393                                7,497                                      9,283\n\n Net orders:\n West Coast               937                                            870                                  3,142                                      2,872\n Southwest                448                                            459                                  1,485                                      1,561\n Central                  587                                            795                                  2,050                                      2,545\n Southeast                632                                            826                                  2,090                                      2,204\n Total                    2,604                                          2,950                                8,767                                      9,182\n\n Net order value:\n West Coast               $             596,541                          $             550,753                $          2,025,545                       $          1,886,073\n Southwest                194,690                                        218,931                              644,590                                    757,074\n Central                  188,092                                        255,530                              691,528                                    823,869\n Southeast                227,901                                        289,393                              758,269                                    804,672\n Total                    $          1,207,224                           $          1,314,607                 $          4,119,932                       $          4,271,688\n\n                          August 31, 2026                                                                     August 31, 2025\n                          Homes                                          Value                                Homes                                      Value\n Backlog data:\n West Coast               1,589                                          $          1,019,253                 1,294                                      $             833,715\n Southwest                696                                            296,130                              675                                        326,959\n Central                  1,042                                          351,418                              1,173                                      390,780\n Southeast                1,071                                          386,407                              1,191                                      437,409\n Total                    4,398                                          $          2,053,208                 4,333                                      $          1,988,863\n\nKB HOME\nRECONCILIATION OF NON-GAAP FINANCIAL MEASURES\n(In Thousands, Except Percentages – Unaudited)\n\nCompany management's discussion of the results presented in this press release\nmay include information about the Company's adjusted housing gross profit\nmargin, which is not calculated in accordance with generally accepted\naccounting principles (\"GAAP\").  The Company believes this non-GAAP financial\nmeasure is relevant and useful to investors in understanding its operations,\nand may be helpful in comparing the Company with other companies in the\nhomebuilding industry to the extent they provide similar information.\nHowever, because it is not calculated in accordance with GAAP, this non-GAAP\nfinancial measure may not be completely comparable to other companies in the\nhomebuilding industry and, thus, should not be considered in isolation or as\nan alternative to operating performance and/or financial measures prescribed\nby GAAP.  Rather, this non-GAAP financial measure should be used to\nsupplement the most directly comparable GAAP financial measure in order to\nprovide a greater understanding of the factors and trends affecting the\nCompany's operations.\n\nAdjusted Housing Gross Profit Margin\n\nThe following table reconciles the Company's housing gross profit margin\ncalculated in accordance with GAAP to the non-GAAP financial measure of the\nCompany's adjusted housing gross profit margin:\n                                              Three Months Ended August 31,                             Nine Months Ended August 31,\n                                              2026                              2025                    2026                              2025\n Housing revenues                             $     1,292,350                   $     1,613,975         $     3,470,076                   $     4,525,732\n Housing construction and land costs          (1,078,590)                       (1,320,611)             (2,923,732)                       (3,658,080)\n Housing gross profits                        213,760                           293,364                 546,344                           867,652\n Add: Inventory-related charges (a)           2,986                             11,338                  10,720                            18,351\n Adjusted housing gross profits               $        216,746                  $        304,702        $        557,064                  $        886,003\n Housing gross profit margin                  16.5 %                            18.2 %                  15.7 %                            19.2 %\n Adjusted housing gross profit margin         16.8 %                            18.9 %                  16.1 %                            19.6 %\n\n (a)  Represents inventory impairment and land option contract abandonment charges\n      associated with housing operations.\n\nAdjusted housing gross profit margin is a non-GAAP financial measure, which\nthe Company calculates by dividing housing revenues less housing construction\nand land costs excluding housing inventory impairment and land option contract\nabandonment charges (as applicable) recorded during a given period, by housing\nrevenues.  The most directly comparable GAAP financial measure is housing\ngross profit margin.  The Company believes adjusted housing gross profit\nmargin is a relevant and useful financial measure to investors in evaluating\nthe Company's performance as it measures the gross profits the Company\ngenerated specifically on the homes delivered during a given period.  This\nnon-GAAP financial measure isolates the impact that housing inventory\nimpairment and land option contract abandonment charges have on housing gross\nprofit margins, and allows investors to make comparisons with the Company's\ncompetitors that adjust housing gross profit margins in a similar manner.\nThe Company also believes investors will find adjusted housing gross profit\nmargin relevant and useful because it represents a profitability measure that\nmay be compared to a prior period without regard to variability of housing\ninventory impairment and land option contract abandonment charges.  This\nfinancial measure assists management in making strategic decisions regarding\ncommunity location and product mix, product pricing and construction pace.\n\nFor Further Information:\nJill Peters, Investor Relations Contact\n(310) 893-7456 or jpeters@kbhome.com (mailto:jpeters@kbhome.com)\nCara Kane, Media Contact\n(321) 299-6844 or ckane@kbhome.com (mailto:ckane@kbhome.com)\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/kb-home-reports-2026-third-quarter-results-302885291.html\n(https://www.prnewswire.com/news-releases/kb-home-reports-2026-third-quarter-results-302885291.html)\n\nSOURCE KB Home\n\n\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS1777757/KB-Home-Logo.jpg?id=OA2961541\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-09-22T20:10:00.159656208Z","server_sent_at_ms":1790107800159},"received_at":"2026-09-22T20:10:00.405Z","source_url":"https://www.prnewswire.com/news-releases/kb-home-reports-2026-third-quarter-results-302885291.html"},"analysis":{"id":"139015","press_release_id":"150210","analysis_json":{"industry":{"label":"Household Durables","sector":"Consumer Discretionary"},"redFlags":["housing market conditions weakening since June report per management","housing gross profit margin compressed to 16.5% from 18.2% YoY","inventory impairment and land option abandonment charges recorded in the quarter","debt to capital ratio rose to 35.7% from 30.3%","SG&A ratio deteriorated on reduced operating leverage"],"eventType":"earnings","narrative":"KB Home reported Q3 2026 revenues of $1.30 billion, down 20% year-over-year, with diluted EPS of $1.05 versus $1.61 a year ago.\n\nExecutive Chairman Jeffrey Mezger said housing market conditions have weakened since the June report, with higher mortgage rates pressuring affordability and causing buyers to be more cautious.\n\nNet orders fell 12% to 2,604, but ending backlog grew for the first time in four years, up 2% in homes and 3% in value to $2.05 billion.\n\nThe company maintained its full-year guidance ranges, repurchased $50 million of stock in the quarter, and holds $725 million remaining under its buyback authorization.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"KBH's 20% revenue decline and management's 'conditions weakening' language is a fresh negative read on housing demand, partially offset by the first backlog growth in four years."},"keyFigures":{"eps":1.05,"revenue":1297101000,"guidance":"Q4 deliveries 3,000-3,500 homes; housing revenues $1.45B-$1.65B; housing gross margin 16.0%-16.6%; FY26 housing revenues $4.90B-$5.10B; FY housing gross margin 16.0%-16.2%","customDimensions":{"buyback_q3":"$50.0 million","net_income":65280000,"net_orders":2604,"backlog_homes":4398,"backlog_value":2053208000,"debt_to_capital":"35.7%","homes_delivered":2732,"total_liquidity":942400000,"cancellation_rate":"18%","buyback_nine_month":"$175.0 million","book_value_per_share":62.56,"housing_gross_margin":"16.5%","average_selling_price":473000,"net_income_yoy_change":"down from $109.8 million","homebuilding_operating_income":67100000,"homebuilding_operating_margin":"5.2%","housing_gross_margin_adjusted":"16.8%","remaining_buyback_authorization":725000000}},"quotedText":"We are operating in a housing market that continues to be challenging, with conditions weakening since our June earnings report.","namedEntities":{"people":[{"name":"Jeffrey Mezger","role":"Executive Chairman"},{"name":"Robert McGibney","role":"President and Chief Executive Officer"},{"name":"Jill Peters","role":"Investor Relations Contact"},{"name":"Cara Kane","role":"Media Contact"}],"products":["Built to Order homes","ENERGY STAR certified homes"],"companies":[{"name":"KB Home","ticker":"KBH","relationship":"filer"},{"name":"KBHS Home Loans, LLC","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$1.30 billion","context":"Q3 revenues (down 20% YoY)"},{"amount":"$50.0 million","context":"Q3 common stock repurchases"},{"amount":"$175.0 million","context":"nine-month stock repurchases"},{"amount":"$725.0 million","context":"remaining repurchase authorization"},{"amount":"$942.4 million","context":"total liquidity"},{"amount":"$2.05 billion","context":"backlog value"},{"amount":"$1.45 billion to $1.65 billion","context":"Q4 housing revenue guidance"},{"amount":"$4.90 billion to $5.10 billion","context":"full-year housing revenue guidance"},{"amount":"$5.98 billion","context":"inventories"},{"amount":"$2.11 billion","context":"notes payable"}]},"materialImpact":{"score":4,"reasoning":"Revenue fell 20% YoY to $1.30B with diluted EPS down to $1.05 from $1.61, and management explicitly noted housing market conditions weakening since the June report. However, full-year guidance ranges were maintained and backlog grew for the first time in four years."},"tickerRelevance":{"others":[],"primary":"KBH"},"globalImportance":45,"audienceRelevance":60,"eventTypeSecondary":["buyback","guidance_update"],"importanceComponents":{"tickerTier":"large-cap homebuilder, S&P 500 constituent","eventGravity":"earnings with 20% revenue decline but in-line guidance","sectorWeight":"housing is high-salience macro proxy","retailFavoriteBoost":"moderate homebuilder retail interest"}},"event_type":"earnings","event_type_secondary":["buyback","guidance_update"],"sentiment":"bearish","material_impact_score":4,"narrative":"KB Home reported Q3 2026 revenues of $1.30 billion, down 20% year-over-year, with diluted EPS of $1.05 versus $1.61 a year ago.\n\nExecutive Chairman Jeffrey Mezger said housing market conditions have weakened since the June report, with higher mortgage rates pressuring affordability and causing buyers to be more cautious.\n\nNet orders fell 12% to 2,604, but ending backlog grew for the first time in four years, up 2% in homes and 3% in value to $2.05 billion.\n\nThe company maintained its full-year guidance ranges, repurchased $50 million of stock in the quarter, and holds $725 million remaining under its buyback authorization.","key_figures":{"eps":1.05,"revenue":1297101000,"guidance":"Q4 deliveries 3,000-3,500 homes; housing revenues $1.45B-$1.65B; housing gross margin 16.0%-16.6%; FY26 housing revenues $4.90B-$5.10B; FY housing gross margin 16.0%-16.2%","customDimensions":{"buyback_q3":"$50.0 million","net_income":65280000,"net_orders":2604,"backlog_homes":4398,"backlog_value":2053208000,"debt_to_capital":"35.7%","homes_delivered":2732,"total_liquidity":942400000,"cancellation_rate":"18%","buyback_nine_month":"$175.0 million","book_value_per_share":62.56,"housing_gross_margin":"16.5%","average_selling_price":473000,"net_income_yoy_change":"down from $109.8 million","homebuilding_operating_income":67100000,"homebuilding_operating_margin":"5.2%","housing_gross_margin_adjusted":"16.8%","remaining_buyback_authorization":725000000}},"named_entities":{"people":[{"name":"Jeffrey Mezger","role":"Executive Chairman"},{"name":"Robert McGibney","role":"President and Chief Executive Officer"},{"name":"Jill Peters","role":"Investor Relations Contact"},{"name":"Cara Kane","role":"Media Contact"}],"products":["Built to Order homes","ENERGY STAR certified homes"],"companies":[{"name":"KB Home","ticker":"KBH","relationship":"filer"},{"name":"KBHS Home Loans, LLC","relationship":"subsidiary"}],"dollarAmounts":[{"amount":"$1.30 billion","context":"Q3 revenues (down 20% YoY)"},{"amount":"$50.0 million","context":"Q3 common stock repurchases"},{"amount":"$175.0 million","context":"nine-month stock repurchases"},{"amount":"$725.0 million","context":"remaining repurchase authorization"},{"amount":"$942.4 million","context":"total liquidity"},{"amount":"$2.05 billion","context":"backlog value"},{"amount":"$1.45 billion to $1.65 billion","context":"Q4 housing revenue guidance"},{"amount":"$4.90 billion to $5.10 billion","context":"full-year housing revenue guidance"},{"amount":"$5.98 billion","context":"inventories"},{"amount":"$2.11 billion","context":"notes payable"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-22T20:10:09.161Z","global_importance":45,"audience_relevance":60,"importance_components":{"tickerTier":"large-cap homebuilder, S&P 500 constituent","eventGravity":"earnings with 20% revenue decline but in-line guidance","sectorWeight":"housing is high-salience macro proxy","retailFavoriteBoost":"moderate homebuilder retail interest"}},"durationMs":8739,"modelName":"glm-5.3-flashx"}}