KB Home reported fiscal third-quarter revenue of $1.297 billion and earnings of $1.05 per share, exceeding analyst estimates of $1.294 billion and 89 cents, respectively. Housing gross margin expanded to 16.5%, helped by increased deliveries through the company’s built-to-order model, in which roughly three-quarters of homes delivered during the quarter were started after securing buyer contracts. Shares initially rose after the results but later traded about 2% lower in extended trading as investors focused on the outlook. KB Home forecast fourth-quarter housing gross margin of 16% to 16.6%, below the 17.2% analyst consensus, and reduced its full-year margin outlook to 16% to 16.2% from 16.1% to 16.5%. Housing revenue fell 20% year over year to $1.29 billion, deliveries declined 19% to 2,732 homes and net orders dropped 12% to 2,604. Backlog value nevertheless rose 3% to $2.05 billion, its first annual increase in four years. Management cited weaker Southern California sales, elevated mortgage costs, inflation, fuel and tariff expenses, and broader affordability pressures. The company expects fourth-quarter housing revenue of $1.45 billion to $1.65 billion and full-year 2026 housing revenue of $4.90 billion to $5.10 billion.