Reported results
- Revenues were $1.30 billion, down 20% year-over-year
- Diluted earnings per share (GAAP) was $1.05, compared to $1.61 in the prior year
- Homebuilding operating income was $67.1 million with an operating income margin of 5.2% (GAAP), compared to $131.2 million and 8.1% in the prior year
- Housing gross profit margin was 16.5% (GAAP), compared to 18.2% in the prior year; adjusted housing gross profit margin (non-GAAP) was 16.8%, compared to 18.9%
- Homes delivered decreased 19% to 2,732; average selling price was $473,000 compared to $475,700
- Net income was $65.3 million with an effective tax rate of 19.6%, compared to $109.8 million and 23.3%
Guidance
- 2026 fourth quarter deliveries in the range of 3,000 to 3,500 homes
- 2026 fourth quarter housing revenues in the range of $1.45 billion to $1.65 billion
- 2026 fourth quarter housing gross profit margin (non-GAAP, assuming no inventory-related charges) in the range of 16.0% to 16.6%
- 2026 fourth quarter selling, general and administrative expenses as a percentage of revenues in the range of 10.3% to 10.9%
- 2026 fourth quarter effective tax rate of approximately 26%
- 2026 fourth quarter ending community count in the range of 270 to 275
- 2026 full year deliveries in the range of 10,500 to 11,000 homes
- 2026 full year housing revenues in the range of $4.90 billion to $5.10 billion
- 2026 full year housing gross profit margin (non-GAAP, assuming no inventory-related charges) in the range of 16.0% to 16.2%
- 2026 full year selling, general and administrative expenses as a percentage of revenues in the range of 11.5% to 11.7%
- 2026 full year effective tax rate of approximately 23%
Notes
The release presents adjusted housing gross profit margin (non-GAAP) alongside GAAP housing gross profit margin. Inventory-related charges of $3.0 million for Q3 2026 and $11.3 million for Q3 2025 are excluded from adjusted measures. Nine-month results also reported: revenues of $3.49 billion (down from $4.54 billion), net income of $126.1 million (down from $327.3 million), and diluted EPS of $2.00 (down from $4.60). The company repurchased $50.0 million of common stock in Q3 2026 and has $725.0 million remaining under its repurchase authorization. Ending backlog increased for the first time in four years to 4,398 homes with a value of $2.05 billion.
Price and volatility reaction
The stock moved -3.0% on the print. No front-expiry chain was on file, so there is no straddle expected move.
| Measure | Value | Basis |
|---|---|---|
| Close before release | 48.59 | 2026-09-22 |
| Close after release | 47.15 | 2026-09-23 |
| Realised move | -3.0% | close to close |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-22 (8-K, Item 2.02). Read the original filing on sec.gov.