KB HOME $KBH Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $1.3B; -20% YoY 🔹 EPS: $1.05 (Est. $0.88) 🟢; -35% YoY 🔹 Housing Gross Profit Margin: 16.5%; -170 bps YoY 🔹 Homes Delivered: 2,732; -19% YoY Affirms FY26 Guide: 🔹 Deliveries: 10,500-11,000 homes 🔹 Housing Revenues: $4.90B-$5.10B 🔹 Housing Gross Profit Margin: 16.0%-16.2% 🔹 SG&A as % of Revenues: 11.5% to 11.7% 🔹 Effective Tax Rate: ~23% Q4 Guide: 🔹 Deliveries: 3,000-3,500 homes 🔹 Housing Revenues: $1.45B-$1.65B 🔹 Housing Gross Profit Margin: 16.0%-16.6% 🔹 SG&A as % of Revenues: 10.3% to 10.9% 🔹 Effective Tax Rate: ~26% 🔹 Ending Community Count: 270-275 Segment Net Revenue: 🔹 Homebuilding: $1.3B 🔹 Financial Services: $4.8M Other Q3 Metrics: 🔹 Adjusted Housing Gross Profit Margin: 16.8%; -210 bps YoY 🔹 Homebuilding Operating Income Margin: 5.2%; -290 bps YoY 🔹 Net Orders: 2,604; -12% YoY 🔹 Backlog Value: $2.1B; +3% YoY Key Updates: 🔸 Housing gross profit margin guidance for Q4 and the full year assumes no inventory-related charges Comments: 🔸 “conditions weakening since our June earnings report. Higher mortgage interest rates have further pressured affordability” 🔸 “we continue to expect our full-year deliveries, housing revenues and margins to be within the ranges we last provided.”