KBH earnings analysis
What we found in KBH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
KB Home reported a disappointing Q2 2026 with revenues of $1.11 billion, exceeding expectations but with diluted EPS at $0.43, which was short of the $0.45 forecast. The company faced notable declines in homebuilding revenues, driven by reduced deliveries and lower average selling prices, amidst a challenging housing market characterized by high mortgage rates and inflationary pressures, leading to a cautious buyer sentiment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surpass Estimates
- Total revenue of $1.11 billion outperformed estimates of $1.09 billion, showing a slight positive surprise.
- Sharp EPS Decline
- Diluted EPS of $0.43 fell short of the expected $0.45, representing a 71% decline year-over-year.
- Net Income Down 75%
- Net income decreased to $27.3 million from $107.9 million in the prior year, a 75% drop.
- Operational Challenges
- Homebuilding revenues fell 27% year-over-year due to a 23% decrease in homes delivered.
- Community Count Growth
- KB Home's community count increased by 11% year-over-year to 280 communities.
- Liquidity Remains Strong
- Total liquidity at $1.12 billion as of May 31, 2026, including cash of $199.8 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Revenue Decline
- Homebuilding revenues decreased by 27% year-over-year, reflecting ongoing market challenges.
- High Cancellation Rates
- Cancellation rates remained at 12%, indicating potential future revenue volatility amid buyer sentiment issues.
- Increased Debt Leverage
- Debt to capital ratio increased to 34.1%, up from 30.3% as borrowing reached $275 million under the Credit Facility.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.43
- Gross margin
- 15.2%
- Operating margin
- 2.5%
- Segment
- Homebuilding
- Segment
- Financial Services
What they said about what is next.
Guidance for Q3 2026 includes housing revenues expected to be between $1.20 billion to $1.35 billion, with deliveries projected at 2,600 to 2,800 homes.
The filing reads worse than the one before it.
What came before.
- 10-Q · April 9, 2026
- KB Home reported a weaker Q1 (period ended Feb 28, 2026): total revenue declined to $1,077,011,000 and diluted EPS fell to $0.52. Homebuilding gross margins and operating income compressed materially year-over-year,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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