KBH KB Home (KBH) Q3 FY26 earnings call
KB Home navigated a challenging housing market in Q3 FY26, demonstrating the resilience of its built-to-order model which now comprises nearly three-quarters of deliveries. While financial results met or exceeded guidance, the company moderated its Q4 outlook for ASP and gross margin due to persistent market pressures and regional mix shifts. Management remains focused on disciplined capital allocation and leveraging its strong balance sheet and land pipeline for future growth.
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KBH operating KPIs by quarter
| KPI | May 2026 Q2 FY26 | This call Aug 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|
| Sold homes not yet started | 1,500+We currently have over 1,500 sold homes that have not yet started construction.Source: earnings call transcript | ~1,100We also have roughly 1,100 homes sold but not yet started.Source: earnings call transcript | — |
| Build time Built-to-order homes | 100 daysOur teams continue to get better and better in efficiently constructing our homes and further reduced our build times in the second quarter by 8 days sequentially to 100 days from home start to completion on BTO homes.Source: earnings call transcript | 99 daysOur BTO homes averaged 99 days from start to completion in the third quarter, a slight improvement sequentially and 23 days or 19% faster than a year ago.Source: earnings call transcript | -1% |
| Average buyer FICO score KBHS Home Loans | 741On average, the household income of customers who use KBHS was about $136,000, and they had a FICO score of 741.Source: earnings call transcript | 742On average, KBHS customers had household income of about $134,000 and a FICO score of 742.Source: earnings call transcript | +0.1% |
| Lots owned or controlled | 59K+We have a favorable lot position owning or controlling over 59,000 lots at the end of our second quarter, 38% of which were controlled and with only one community with approximately 100 lots that was land banked.Source: earnings call transcript | 61K+We have the business model, a favorable lot position of over 61,000 owned or controlled lots, providing a solid pipeline to support future growth targets.Source: earnings call transcript | — |
| Homes delivered | 2,395The 2,395 homes we delivered in the quarter represented a backlog conversion rate of 66% compared to 70% a year ago.Source: earnings call transcript | 2,732We delivered 2,732 homes during the quarter, representing a backlog conversion rate of 60% compared to 71% a year ago.Source: earnings call transcript | +14.1% |
| Backlog conversion rate | 66%The 2,395 homes we delivered in the quarter represented a backlog conversion rate of 66% compared to 70% a year ago.Source: earnings call transcript | 60%We delivered 2,732 homes during the quarter, representing a backlog conversion rate of 60% compared to 71% a year ago.Source: earnings call transcript | -6 pt |
| Average selling price of homes delivered | $461.9KOur overall average selling price of homes delivered for the quarter was $461,900, up 2% sequentially due to product and geographic mix.Source: earnings call transcript | $473KFor the third quarter, the overall average selling price of homes delivered was $473,000 compared to approximately $476,000 for the prior quarter and modestly higher than the second quarter.Source: earnings call transcript | +2.4% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.