WS News
23 Sep 2026, 05:36
KB Home Stock Falls 1.3% After Hours as Q3 Revenue and Profit Decline
KB Home shares fell 1.3% in after-hours trading after the homebuilder reported weaker year-over-year third-quarter results amid continued pressure from high mortgage rates and softer housing demand.
Revenue fell 20% to $1.30 billion, while deliveries declined 19% to 2,732 homes. Net income dropped to $65.3 million from $109.8 million, and diluted EPS fell to $1.05 from $1.61. Homebuilding operating margin narrowed to 5.2% from 8.1%, while housing gross margin declined to 16.5% from 18.2%.
Demand indicators were also softer. Net orders fell 12% to 2,604, monthly orders per community declined to 3.1 from 3.8, and the cancellation rate edged up to 18%. Management cited higher mortgage rates, affordability pressure, geopolitical uncertainty and broader economic headwinds as factors making buyers more cautious.
There were some positives. Backlog increased for the first time in four years, with units up 2% and backlog value up 3% to $2.05 billion. Community count also grew, and KB Home maintained its full-year guidance for 10,500–11,000 deliveries and $4.90 billion–$5.10 billion in housing revenue.
The modest after-hours decline suggests investors focused more on the sharp year-over-year deterioration in revenue, earnings and margins than on the maintained outlook and improving backlog.
KB Home shares fell 1.3% in after-hours trading after the homebuilder reported weaker year-over-year third-quarter results amid continued pressure from high mortgage rates and softer housing demand.
Revenue fell 20% to $1.30 billion, while deliveries declined 19% to 2,732 homes. Net income dropped to $65.3 million from $109.8 million, and diluted EPS fell to $1.05 from $1.61. Homebuilding operating margin narrowed to 5.2% from 8.1%, while housing gross margin declined to 16.5% from 18.2%.
Demand indicators were also softer. Net orders fell 12% to 2,604, monthly orders per community declined to 3.1 from 3.8, and the cancellation rate edged up to 18%. Management cited higher mortgage rates, affordability pressure, geopolitical uncertainty and broader economic headwinds as factors making buyers more cautious.
There were some positives. Backlog increased for the first time in four years, with units up 2% and backlog value up 3% to $2.05 billion. Community count also grew, and KB Home maintained its full-year guidance for 10,500–11,000 deliveries and $4.90 billion–$5.10 billion in housing revenue.
The modest after-hours decline suggests investors focused more on the sharp year-over-year deterioration in revenue, earnings and margins than on the maintained outlook and improving backlog.
