KB Home (KBH) Earnings
KB Home is expected to report next earnings on June 23, 2026 (in NaN days), with a consensus EPS estimate of $0.44. KBH has beaten EPS estimates in 9 of its last 12 reported quarters (average surprise +1.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 24, 2026 | $0.52 | $0.52 | +0.0% | $1.1B | -1.4% |
| Sep 24, 2025 | $1.50 | $1.61 | +7.3% | $1.6B | +1.8% |
| Jun 23, 2025 | $1.45 | $1.50 | +3.4% | $1.5B | +1.6% |
| Mar 24, 2025 | $1.57 | $1.49 | -5.1% | $1.4B | -7.2% |
| Sep 24, 2024 | $2.06 | $2.04 | -1.0% | $1.8B | +1.3% |
| Jun 18, 2024 | $1.80 | $2.15 | +19.4% | $1.7B | +3.4% |
| Mar 20, 2024 | $1.57 | $1.76 | +12.1% | $1.5B | +0.5% |
| Sep 20, 2023 | $1.43 | $1.80 | +25.9% | $1.6B | -1.8% |
| Jun 21, 2023 | $1.33 | $1.94 | +45.9% | $1.8B | +24.2% |
| Mar 22, 2023 | $1.15 | $1.45 | +26.1% | $1.4B | +5.8% |
| Sep 21, 2022 | $2.67 | $2.89 | +8.2% | $1.8B | -1.7% |
| Jun 22, 2022 | $2.03 | $2.32 | +14.3% | $1.7B | +4.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · March 24, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Operational divisions executed well, achieving the highest community count in many years and year-over-year growth in net orders. Returned to a mix predominantly of built-to-order sales, expecting 70% built-to-order deliveries in the second half of the year. First quarter net orders grew 3% year over year but were below the level needed to hold prior full-year delivery guidance. Built-to-order sales占比逐步提升, exited February at 68% and early March above 70%. Had 276 active communities, up 8% year over year, with 37 grand openings in the first quarter and projected 30 to 35 more in the second quarter. Built-to-order homes from sale to delivery time shortened to 108 days in the first quarter from 120 days in the fourth quarter of fiscal 2025. Invested $560 million in land acquisition and development in the first quarter, owning or controlling over 63,000 lots.
Guidance
Second quarter 2026 expected housing revenues between $1.05 and $1.15 billion with deliveries between 2,250 and 2,450 homes, housing gross profit margin expected between 15 and 15.6%. Full year 2026 expected housing revenues between $4.8 and $5.5 billion with deliveries between 10,000 and 11,500. Plan to repurchase between $50 million and $100 million of common stock in the second quarter. Expect margins to improve in the second half of 2026 due to higher BTO deliveries, regional mix shift, and operating leverage.
Segment performance
In the first quarter, KB Home generated total revenues of about $1.1 billion, with housing revenues of $1.07 billion, a 23% year-over-year decrease. It delivered 2,370 homes. Built-to-order sales represented 44% of net orders in October, grew each month through the first quarter, exited February at 68%, and in early March was above 70%. Built-to-order homes typically generate 300 to 500 basis points of incremental gross margins compared to inventory homes.
Risks & headwinds
Market faces challenges like tepid consumer confidence, elevated mortgage interest rates, and affordability pressures. Conflict in the Middle East adds uncertainty. Material costs, particularly for lumber, face pressure. Land market has challenges with gap between bid and ask prices.
Analyst Q&A
Q: Based on the numbers around inventory homes, what changes around production and starts when mixing the business back to build to order?
A: When looking at built-to-order business, it's part of DNA. Benefits include predictability with sold-not-started backlog, enabling even flow production, benefiting fixed costs and trade partners. Also, margin difference between built-to-order and inventory is significant, and customers can personalize homes.
Q: Just on the guide, was Q1 order number the entire driver of the guidance change?
A: It's the combo of orders being below internal expectations and recent market shifts like the Middle East conflict starting at the end of February affecting recent weeks' sales.
Q: On gross margin, what's driving the outlook from 2Q to 3Q?
A: Sequentially relatively flat gross profit with expected delivery cost reductions, seasonal unit uplift, and shift to higher margin Northern California communities.
Q: On backlog turnover ratio, any guidance?
A: Think 60 to 70% is a good target.
Q: On pricing, what's seen in communities?
A: Community by community, about 70% of communities had no change or small price increases, 30% had price decreases.
Q: On risk of higher rates with backlog, how is it thought about?
A: Limited exposure with short build times, willing to help buyers with rate issues if needed.
Q: On SG&A, comfort with business running and benefit flow?
A: Adjustments made to new revenue reality, benefit from structural changes if volumes improve.
Q: On land market, any adjustment?
A: Still searching for right deals, land market sticky with price, renegotiating terms with landowners.
Q: On BTO vs inventory dynamic, margin delta?
A: Margin difference of 300 to 500 basis points has stayed consistent.
Q: On regional markets, notable pockets?
A: Relative strength on West Coast including most of California, Seattle, Boise, Las Vegas; Texas competitive; Florida mixed.
Q: On Q2 start pace vs sales pace?
A: Expect to generate more BTO sales and have starts from sold-not-started backlog, exited February at 68% BTO, early March above 70%.