Companies /Consumer Cyclical

KB Home

NYSE: KBH Residential Construction
$53.30
▼ $1.56 (−2.84%) today
Markets closed · 10:37pm ET

Q1 2026 Earnings

Reported Mar 24, 2026, 4:16pm ET · SEC source
$0.52
Miss −4.50%
EPS · est. $0.54
$1.1B
Miss −1.56%
Revenue · est. $1.1B
−2.6%
Trailing market
KBH vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+3%+6%+9%Mar 24Mar 25report 4:16pm ETearnings+0.4%+5.6%
0+3%+6%+9%Mar 24Mar 25earnings+0.4%+5.6%
KBH +5.6%S&P 500 +0.4%
0+3%+6%+9%Mar 24Mar 25report 4:16pm ETearnings+0.5%+5.6%
0+3%+6%+9%Mar 24Mar 25earnings+0.5%+5.6%
KBH +5.6%NASDAQ +0.5%
−3%0+3%+6%Mar 23Apr 1report 4:16pm ETearnings−0.3%+1.0%
−3%0+3%+6%Mar 23Apr 1earnings−0.3%+1.0%
KBH +1.0%S&P 500 −0.3%
−4%0+4%Mar 23Apr 1report 4:16pm ETearnings−0.7%+1.0%
−4%0+4%Mar 23Apr 1earnings−0.7%+1.0%
KBH +1.0%NASDAQ −0.7%
−1.55%
Day of report
−0.40%
Next session
−1.73%
One week
+6.33%
30 days

S&P 500 over the same 30 days: +8.88%.

Did KBH Beat Earnings? Q1 2026 Results

KB Home delivered a disappointing fiscal first quarter of 2026, missing on both top and bottom lines as a sharp contraction in margins and falling deliveries weighed heavily on results. The homebuilder posted diluted EPS of $0.52, falling 4.50% short of the $0.54 consensus estimate, while revenue of $1.08 billion trailed expectations by 1.56% and declined 22.6% year over year, with homes delivered dropping 14% to 2,370 units at an average selling price of $452,100. The most material drag was a severe compression in housing gross profit margin, which collapsed to 15.3% from 20.2% a year earlier, reflecting price reductions, higher relative land costs, and reduced operating leverage. Not all signals were negative, as net orders grew 3% to 2,846 homes and the cancellation rate improved to 12% from 16%, offering some evidence of stabilizing demand. For <a href="https://247wallst.com/investing/2026/03/11/kb-home-vs-nvr-which-homebuilder-stock-is-the-better-buy-right-now/">those weighing homebuilder options</a>, KB Home guided full-year revenues of $4.80 billion to $5.50 billion, with management projecting a stronger second half as favorable regional mix and higher delivery volumes restore operating leverage.

Key Takeaways
  • Year-over-year net order growth of 3% to 2,846 homes driven by 7% increase in average community count to 274
  • Average selling price declined to $452,100 from $500,700 due to price reductions and geographic/product mix
  • Housing gross profit margin compressed to 15.3% from 20.2% due to price reductions, higher relative land costs, and reduced operating leverage
  • SG&A ratio increased to 12.2% from 11.0% due to decreased operating leverage, partially offset by $8.0 million of insurance recoveries
  • Cancellation rate improved to 12% from 16%
  • Effective tax rate declined to 17.1% from 21.4% due to higher relative impact of excess tax benefits from stock-based compensation

“Our teams continued to execute well, particularly in the critical areas of new community openings and build times. We expect to reach our peak community count for the year within the second quarter at the height of the Spring selling season, which enhances our ability to drive net orders.”

KB Home CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, KB Home expects deliveries of 2,250 to 2,450 homes, housing revenues of $1.05 billion to $1.15 billion, housing gross profit margin of 15.0% to 15.6% (assuming no inventory-related charges), SG&A as a percentage of revenues of 12.4% to 13.0%, an effective tax rate of approximately 19%, ending community count of 265 to 275, and common stock repurchases of $50.0 million to $100.0 million. For full-year 2026, the company expects deliveries of 10,000 to 11,500 homes, housing revenues of $4.80 billion to $5.50 billion, and an effective tax rate of 23% to 25%. Management expects stronger financial results in the second half of fiscal 2026 driven by favorable regional mix and operating leverage from higher delivery volumes.

KBH YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$400.0M$800.0M$1.2B$1.4B$1.1BRevenue$284.4M$164.0MGross Profit$130.5M$33.0MOperating Income$109.6M$33.4MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

KBH Revenue by Segment

Homebuilding$1.1B+78.1%
Financial Services$5.0M+4.6%

Figures from SEC filings and company reports. Not investment advice.