What to expect when KB Home (KBH) reports its Q3 2025 earnings results

Shares of KB Home (NYSE: KBH) stayed red on Tuesday. The stock has gained 28% over the past three months. The homebuilder is scheduled to report its earnings results for the third quarter of 2025 on Wednesday, September 24, after market close. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $1.59 billion for KB Home in the third quarter of 2025, which points to a decline of 9% from the same period a year ago. In the second quarter of 2025, revenues decreased 10% year-over-year to $1.53 billion.

Earnings

The consensus estimate for earnings per share in Q3 2025 is $1.51, which implies a decline of nearly 26% from the prior-year quarter. In Q2 2025, EPS fell 30% YoY to $1.50.

Points to note

KB Home’s performance in Q2 was impacted by challenging market conditions. Consumers were reluctant to buy homes and affordability was hindered by high mortgage rates and macroeconomic uncertainties. These headwinds are not likely to go away soon and they may have affected Q3 results.

In Q2, homes delivered decreased 11% while net orders were down 13%. Average selling price was up slightly at approx. $489,000. Adjusted gross margin dropped 150 basis points to 19.7%, due to price reductions and other concessions.

For the third quarter, KBH has guided for housing revenues of $1.5-1.7 billion. Average selling price is expected to range between $470,000-480,000. Adjusted gross margin is expected to be 18.1-18.7%, which is lower than last year, as the company anticipates pricing pressure to persist.

KB Home is expected to benefit from its built-to-order model, which gives customers the flexibility to personalize their homes to fit their budget. This model gives the company a competitive advantage as well. The homebuilder anticipates that growth in the built-to-order mix will help drive higher gross margins over time.