Hovnanian Enterprises Reports Fiscal 2026 First Quarter Results

Rhea-AI Summary

Hovnanian Enterprises (NYSE: HOV) reported fiscal Q1 ended Jan 31, 2026 results. Total revenues were $632.0M; net income was $20.9M or $2.62 diluted per share. Adjusted EBITDA was $63.1M. Homebuilding gross margin (after charges) fell to 10.1%. Total liquidity was $471.4M, well above the stated target range. Domestic consolidated communities rose to 131, and backlog dollars decreased about 16% year-over-year. Company provided Q2 guidance for revenue, adjusted margin, adjusted income before taxes, and adjusted EBITDA.

Positive

• Total liquidity of $471.4M, exceeding target range
• Consolidated domestic community count increased 4.8% to 131
• Land and land development spending down 27% YoY to $180.7M
• Adjusted EBITDA delivered at $63.1M, above guidance high end

Negative

• Homebuilding gross margin (after charges) fell by 510 bps to 10.1%
• Net income declined ~26% YoY to $20.9M
• Adjusted EBITDA declined ~12.5% YoY to $63.1M
• Dollar value of domestic backlog decreased ~16% YoY

Key Figures

Q1 2026 revenue: $632.0 million Q1 2026 net income: $20.9 million Diluted EPS: $2.62 per share +5 more

8 metrics

Q1 2026 revenue $632.0 million Three months ended January 31, 2026; above guidance midpoint, below $673.6M prior year

Q1 2026 net income $20.9 million Three months ended January 31, 2026 vs $28.2M prior year

Diluted EPS $2.62 per share Q1 2026 diluted EPS vs $3.58 in prior-year quarter

Total liquidity $471.4 million As of January 31, 2026; target liquidity range $170M–$245M

Adjusted EBITDA $63.1 million Q1 2026; above high end of guidance, vs $72.1M prior year

Homebuilding gross margin 13.4% Q1 2026 before interest and land charges; within guidance, vs 18.3% prior year

Domestic backlog (incl. JVs) $1.02 billion Backlog as of January 31, 2026; down from $1.23B prior year

Consolidated communities 131 communities Consolidated domestic communities as of January 31, 2026; up from 125

Market Reality Check

Price: $122.89 Vol: Volume 128,485 is 1.25x t...

normal vol

$122.89 Last Close

Volume Volume 128,485 is 1.25x the 20-day average of 102,438, indicating elevated trading interest ahead of results. normal

Technical Shares at 122.89 are trading above the 200-day MA of 119.72, but sit 24.17% below the 52-week high and 51.44% above the 52-week low.

Peers on Argus

HOV fell 1.0% pre-news while peers were mixed: BZH +0.34%, LEGH +1.78%, LGIH -1....

HOV fell 1.0% pre-news while peers were mixed: BZH +0.34%, LEGH +1.78%, LGIH -1.85%, DFH -3.81%, UHG -0.86%. The reaction appears more company-specific than a broad homebuilder move.

Historical Context

5 past events · Latest: Feb 11 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Earnings call notice	Neutral	-1.6%	Scheduled Q1 FY2026 release and webcast announcement.
Feb 03	International expansion	Positive	+4.2%	MoU to develop KAEC tourism and lifestyle residential projects.
Dec 04	Q4 & FY2025 earnings	Negative	-22.5%	Mixed results with Q4 loss, FY profit and large debt refinancing.
Nov 20	Earnings call notice	Neutral	-1.9%	Announcement of FY2025 results release and conference call.
Sep 11	Debt offering	Negative	-2.5%	Pricing of <b>$900M</b> in new senior notes for refinancing.

Pattern Detected

Recent material news (earnings, financing, expansion) has generally seen share price declines, even when results or strategic steps are mixed or constructive.

Recent Company History

Over the last six months, Hovnanian has reported several notable events. On Dec 4, 2025, Q4 and FY2025 results showed $817.9M Q4 revenue, FY revenue of $2.98B, and a small Q4 net loss but FY net income of $63.9M, alongside a major $900M refinancing and liquidity of $404.1M. That release coincided with a -22.51% move. A $900M senior notes offering on Sep 11, 2025 also saw shares lower. By contrast, the Saudi KAEC MoU on Feb 3, 2026 drew a +4.15% reaction. Today’s Q1 report fits into this mix of strategic balance-sheet actions and selective international growth, now framed by meeting or exceeding Q1 guidance despite YoY margin and earnings pressure.

Market Pulse Summary

This announcement details Hovnanian’s Q1 2026 performance, highlighting total revenue of $632.0M, ne...

Analysis

This announcement details Hovnanian’s Q1 2026 performance, highlighting total revenue of $632.0M, net income of $20.9M (or $2.62 per diluted share), and adjusted EBITDA of $63.1M, which exceeded the high end of guidance. At the same time, margins and earnings declined year over year and domestic backlog dollars fell to $1.02B. Investors may watch contract trends in early 2026, the company’s sizable liquidity of $471.4M, and execution against Q2 guidance for revenues and margins.

Key Terms

EBITDA, Adjusted EBITDA, non-GAAP financial measures, homebuilding gross margin, +3 more

7 terms

EBITDA financial

"EBITDA was $60.7 million for the first quarter of fiscal 2026..."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

Adjusted EBITDA financial

"Adjusted EBITDA was $63.1 million for the quarter ended January 31, 2026..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measures financial

"NON-GAAP FINANCIAL MEASURES: Consolidated earnings before interest expense..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

homebuilding gross margin financial

"Homebuilding gross margin percentage, after cost of sales interest expense..."

Homebuilding gross margin is the percentage of sales a builder keeps after covering the direct costs to build houses—materials, labor and subcontractors—but before paying for overhead like marketing, administration or interest. Think of it as the profit made on each house before the company’s other bills; higher margins mean the builder is more efficient or has stronger pricing power, which helps investors judge profitability and resilience to rising costs.

Adjusted EBIT financial

"The ratio of Adjusted EBITDA to interest incurred and EBIT before inventory impairments..."

Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.

Adjusted EBIT ROI financial

"The ratio of Adjusted EBIT return on adjusted investment (“Adjusted EBIT ROI”)..."

Adjusted EBIT ROI measures how effectively a company turns its core operating profit — earnings before interest and taxes (EBIT) after removing one-off or unusual items — into returns relative to the money invested in the business (for example, assets or capital employed). Investors use it like a fuel-efficiency gauge: a higher number means the company generates more sustainable profit from each dollar of investment, helping compare operating performance across companies and time while reducing distortion from one-time events.

revolving credit facility financial

"Total liquidity is comprised of... and $125.0 million available under a senior secured revolving credit facility..."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. Not financial advice.

Met or Exceeded All Guidance Metrics Provided
5% Year-Over-Year Increase in Domestic Consolidated Communities
$471 Million of Total Liquidity
Domestic Contracts, Including Unconsolidated Joint Ventures, Increased 11% Year-Over-Year for January and 13% for February to Date over the Same Period Last Year

MATAWAN, N.J., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal first quarter ended January 31, 2026.

RESULTS FOR THE THREE-MONTHS ENDED JANUARY 31, 2026:

• Total revenues were $632.0 million in the first quarter of fiscal 2026, which was above the midpoint of the guidance range we provided, compared with $673.6 million in the same quarter of the prior year.
  
• Domestic unconsolidated joint ventures sale of homes revenues for the first quarter of fiscal 2026 was $72.4 million (118 homes) compared with $131.8 million (197 homes) for the three months ended January 31, 2025.
  
• Homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 10.1% for the three months ended January 31, 2026, compared with 15.2% during the first quarter a year ago.
  
• Homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 13.4% during the fiscal 2026 first quarter, which was within the guidance range we provided, compared with 18.3% in last year’s first quarter.
  
• Total SG&A was $84.0 million, or 13.3% of total revenues, in the first quarter of fiscal 2026 compared with $86.9 million, or 12.9% of total revenues, in the first quarter of fiscal 2025.
  
• Total interest expense was $28.7 million, or 4.5% of total revenues, for the first quarter of fiscal 2026, compared with $28.9 million, or 4.3% of total revenues, for the first quarter of fiscal 2025.
  
• Income before income taxes for the first quarter of fiscal 2026 was $28.7 million compared with $39.9 million in the first quarter of the prior fiscal year.
  
• Income before income taxes, excluding land-related charges, was $31.1 million in the first quarter of fiscal 2026, which was above the high end of the guidance range we provided, compared with income before these items of $40.9 million in the first quarter of fiscal 2025.
  
• Net income was $20.9 million, or $2.62 per diluted common share, for the three months ended January 31, 2026, compared with net income of $28.2 million, or $3.58 per diluted common share, in the same period of the previous fiscal year.
  
• EBITDA was $60.7 million for the first quarter of fiscal 2026 compared with $71.0 million for the first quarter of the prior year.
  
• Adjusted EBITDA was $63.1 million for the quarter ended January 31, 2026, which was above the high end of the guidance range we provided, compared with $72.1 million in the first quarter of the prior fiscal year.
  
• Consolidated domestic contracts (1) in the first quarter of fiscal 2026 increased 3.1% to 1,242 homes ($664.8 million) compared with 1,205 homes ($643.3 million) in the same quarter last year. Domestic contracts, including domestic unconsolidated joint ventures, for the three months ended January 31, 2026, decreased 2.5% to 1,365 homes ($747.0 million) compared with 1,400 homes ($770.8 million) in the first quarter of fiscal 2025.
  
• Consolidated domestic contracts, including unconsolidated joint ventures, for January 2026 increased 11.3% to 560 homes compared with 503 homes in January 2025. Consolidated domestic contracts, including unconsolidated joint ventures, month to date through February 23, 2026, increased 13.1% to 457 homes compared with 404 homes month to date through February 23, 2025.
  
• As of January 31, 2026, the number of consolidated domestic communities increased by 4.8% to 131, compared with 125 communities as of January 31, 2025. Including domestic unconsolidated joint ventures, domestic community count grew by 2.0% to 151 as of January 31, 2026, up from 148 as of January 31, 2025.
  
• Consolidated domestic contracts per community declined slightly year-over-year to 9.5 in the first quarter of fiscal 2026, compared to 9.6 in the same quarter of fiscal 2025. When including domestic unconsolidated joint ventures, domestic contracts per community decreased to 9.0 for the three months ended January 31, 2026, compared with 9.5 in the prior year period.
  
• The dollar value of consolidated domestic contract backlog, as of January 31, 2026, decreased 16.0% to $782.7 million compared with $931.9 million as of January 31, 2025. The dollar value of domestic contract backlog, including domestic unconsolidated joint ventures, as of January 31, 2026, decreased 16.7% to $1.02 billion compared with $1.23 billion as of January 31, 2025. The year-over-year decrease in domestic backlog dollars is partly due to increased sales of quick move in homes (QMIs), which are typically in backlog for a very short period of time.
  
• The gross domestic contract cancellation rate for consolidated contracts was 14% for the quarter ended January 31, 2026, compared with 16% in the fiscal 2025 first quarter. The gross domestic contract cancellation rate for contracts, including domestic unconsolidated joint ventures, was 14% for the first quarter of fiscal 2026 compared with 16% in the first quarter of the prior year.
  
• For the trailing twelve-month period our net income return on inventory was 3.4% and our adjusted earnings before interest and income taxes return on investment (Adjusted EBIT ROI) was 17.2%. For the most recently reported trailing twelve-month periods, we believe we had the second highest Adjusted EBIT ROI compared to nine of our publicly traded midsized homebuilder peers.
  
• On January 1, 2026, we acquired a controlling interest in a previously unconsolidated joint venture in the Kingdom of Saudi Arabia (KSA). Beginning in the first quarter of fiscal 2026, the results from KSA are included in our consolidated results.
  

⁽¹⁾When we refer to “domestic” deliveries, contracts, communities or backlog, we are excluding results from our multi-community KSA operations.

LIQUIDITY AND INVENTORY AS OF JANUARY 31, 2026:

• During the first quarter of fiscal 2026, land and land development spending was $180.7 million compared with $247.6 million in the same quarter one year ago.
  
• Total liquidity as of January 31, 2026, was $471.4 million, which was significantly above our target liquidity range of $170 million to $245 million.
  
• In the first quarter of fiscal 2026, approximately 2,100 lots were put under option or acquired in 25 domestic consolidated communities.
  
• As of January 31, 2026, our total domestic controlled consolidated lots were 35,560 compared with 43,254 lots at the end of the previous fiscal year’s first quarter. Continuing our land-light strategic focus, 86% of our lots were optioned at the end of the first quarter of fiscal 2026. Based on trailing twelve-month deliveries, the current position equaled 6.7 years’ supply.
  
• Total domestic QMIs as of January 31, 2026, were 742, a decline of 36.2%, compared with 1,163 as of January 31, 2025, illustrating our efforts to match our starts with our sales pace. This equates to 5.7 QMIs per community as of January 31, 2026. Total domestic finished QMIs as of January 31, 2026, were 248, a decline of 22.3% compared with 319 as of January 31, 2025 and a decline of 28.7% compared with 348 finished QMIs as of October 31, 2025.
  
  

FINANCIAL GUIDANCE⁽²⁾:

The Company is providing guidance for total revenues, adjusted homebuilding gross margin, adjusted income before income taxes and adjusted EBITDA for the second quarter of fiscal 2026. Financial guidance below assumes no adverse changes in current market conditions, including deterioration in our supply chain or material increases in mortgage rates, inflation or cancellation rates, and excludes further impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $112.65 on January 31, 2026.

For the second quarter of fiscal 2026, total revenues are expected to be between $625 million and $725 million, adjusted homebuilding gross margin is expected to be between 13.0% and 14.0%, adjusted income before income taxes is expected to be between breakeven and $10 million and adjusted EBITDA is expected to be between $30 million and $40 million.

⁽²⁾The Company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. These items include, but are not limited to, land-related charges, inventory impairments and land option write-offs and loss (gain) on extinguishment of debt, net. These items are uncertain, depend on various factors and could have a material impact on GAAP reported results.

COMMENTS FROM MANAGEMENT:
“Even with a challenging sales environment this quarter, related to cautious homebuyers and ongoing global uncertainties, I am satisfied to report that our team successfully met or exceeded all aspects of our guidance,” said Ara K. Hovnanian, Chairman of the Board and Chief Executive Officer. “Our strong operating model and disciplined approach allowed us to stay focused on sales pace and adapt quickly to changing conditions. Our operating model has helped us stay among the top two for Adjusted EBIT ROI when compared to nine other publicly traded midsized homebuilders. Achieving our guidance in this environment highlights the dedication and resilience of our associates.”

Mr. Hovnanian added, “Although we are not satisfied with our projected profits for the second quarter, we anticipate our adjusted income before income taxes to increase in the second half of fiscal 2026, weighted towards the fourth quarter, compared to the first half of the year. Over the past six fiscal years, our profits have typically improved in the second half. We’re optimistic because we’ve seen better contract activity in January and February, and we anticipate delivering more homes from newer, higher-margin communities in the latter part of the year, including a higher percentage of higher margined to-be-built homes.”

“Looking ahead, the long-term outlook for the homebuilding industry remains compelling, supported by a structurally undersupplied market and strong demographic trends. We are disciplined in our approach to pricing, product positioning, and capital allocation, which helps us remain competitive throughout different market cycles. While near-term volatility may persist in the current uncertain housing market, our focus remains on delivering superior returns for our shareholders over the long term. We are confident that our strategy and operational excellence will enable us to capitalize on opportunities as the housing market evolves,” concluded Mr. Hovnanian.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2026 first quarter results conference call at 11:30 a.m. E.T. on Wednesday, February 25, 2026. The webcast can be accessed live through the “Investor Relations” section of Hovnanian Enterprises’ website at http://www.khov.com. For those who are not available to listen to the live webcast, an archive of the broadcast will be available under the “Past Events” section of the Investor Relations page on the Hovnanian website at http://www.khov.com. The archive will be available for 12 months.

ABOUT HOVNANIAN ENTERPRISES, INC.:

Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Matawan, New Jersey and, through its subsidiaries, is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company’s homes are marketed and sold under the trade name K. Hovnanian^® Homes. Additionally, the Company’s subsidiaries, as developers of K. Hovnanian’s^® Four Seasons communities, make the Company one of the nation’s largest builders of active lifestyle communities.

Additional information on Hovnanian Enterprises, Inc. can be accessed through the “Investor Relations” section of the Hovnanian Enterprises’ website at http://www.khov.com. To be added to Hovnanian's investor e-mail list, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

NON-GAAP FINANCIAL MEASURES:

Consolidated earnings before interest expense and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairments and land option write-offs(“Adjusted EBITDA”), the ratio of Adjusted EBITDA to interest incurred and EBIT before inventory impairments and land option write-offs (“Adjusted EBIT”) are not U.S. generally accepted accounting principles (“GAAP”) financial measures. The most directly comparable GAAP financial measure is net income (loss). The reconciliation for historical periods of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA to net income (loss) are presented in tables attached to this earnings release.

Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. The reconciliation for historical periods of homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, to homebuilding gross margin and homebuilding gross margin percentage, respectively, is presented in a table attached to this earnings release.

Adjusted income before income taxes, which is defined as income (loss) before income taxes excluding land-related charges is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income (loss) before income taxes. The reconciliation for historical periods of adjusted income before income taxes to income (loss) before income taxes is presented in a table attached to this earnings release.

Adjusted investment, which is defined as total inventories excluding liabilities from inventory not owned, net of debt issuance costs and interest capitalized and including investments in and advances to unconsolidated joint ventures (“Adjusted Investment”), is a non-GAAP financial measure. The most directly comparable GAAP financial measure is total inventories. The reconciliation for historical periods of Adjusted Investment to total inventories is presented in a table attached to this earnings release.

The ratio of Adjusted EBIT return on adjusted investment (“Adjusted EBIT ROI”), which is the ratio of Adjusted EBIT for the trailing twelve-months, to the average Adjusted Investment for the prior five fiscal quarters, is a non-GAAP financial measure. The most directly comparable GAAP financial measure is the ratio of net income return to total inventories. The presentation of the ratios of Adjusted EBIT ROI and net income return on inventory are presented in a table attached to this earnings release.

Total liquidity is comprised of $339.9 million of cash and cash equivalents, $6.5 million of restricted cash required to collateralize letters of credit and $125.0 million available under a senior secured revolving credit facility as of January 31, 2026.

FORWARD-LOOKING STATEMENTS

All statements in this press release that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements include but are not limited to statements related to the Company’s goals and expectations with respect to its financial results for future financial periods and statements regarding demand for homes, mortgage rates, inflation, supply chain issues, customer incentives and underlying factors. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of a significant homebuilding downturn; (2) shortages in, and price fluctuations of, raw materials and labor, including due to geopolitical events, changes in trade policies, including the imposition of tariffs and duties on homebuilding materials and products and related trade disputes with and retaliatory measures taken by other countries and changes in immigration laws or the enforcement thereof and trends in labor migration; (3) fluctuations in interest rates and the availability of mortgage financing, including as a result of instability in the banking sector; (4) increases in inflation; (5) adverse weather and other environmental conditions and natural or man-made disasters; (6) the seasonality of the Company’s business; (7) the availability and cost of suitable land and improved lots and sufficient liquidity to invest in such land and lots; (8) reliance on, and the performance of, subcontractors; (9) regional and local economic factors, including dependency on certain sectors of the economy, and employment levels affecting home prices and sales activity in the markets where the Company builds homes; (10) increases in cancellations of agreements of sale; (11) changes in tax laws affecting the after-tax costs of owning a home; (12) legal claims brought against us and not resolved in our favor, such as product liability litigation, warranty claims and claims made by mortgage investors; (13) levels of competition; (14) utility shortages and outages or rate fluctuations; (15) information technology failures and data security breaches; (16) negative publicity; (17) global economic and political instability (18) high leverage and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (19) availability and terms of financing to the Company; (20) the Company’s sources of liquidity; (21) changes in credit ratings; (22) government regulation, including regulations concerning the development of land, the home building, sales and customer financing processes, tax laws and environmental, health and safety matters; (23) potential liability as a result of the past or present use of hazardous materials; (24) operations through unconsolidated joint ventures with third parties; (25) significant influence of the Company’s controlling stockholders; (26) availability of net operating loss carryforwards; (27) loss of key management personnel or failure to attract qualified personnel; and (28) certain risks, uncertainties and other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods during fiscal 2026 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

Hovnanian Enterprises, Inc.
January 31, 2026
Statements of consolidated operations
(In thousands, except per share data)
					Three Months Ended
					January 31,
					2026				2025
					(Unaudited)
Total revenues					$	631,952			$	673,623
Costs and expenses (1)						606,690				642,965
Income from unconsolidated joint ventures						3,440				9,205
Income before income taxes						28,702				39,863
Income tax provision						7,843				11,672
Net income						20,859				28,191
Less: preferred stock dividends						2,669				2,669
Net income available to common stockholders					$	18,190			$	25,522
Per share data:
Basic:
	Net income per common share				$	2.80			$	3.88
	Weighted average number of common shares outstanding					6,490				6,517
Assuming dilution:
	Net income per common share				$	2.62			$	3.58
	Weighted average number of common shares outstanding					6,950				7,071
(1) Includes inventory impairments and land option write-offs.
Hovnanian Enterprises, Inc.
January 31, 2026
Reconciliation of income before income taxes excluding land-related charges to income before income taxes
(In thousands)
					Three Months Ended
					January 31,
					2026				2025
					(Unaudited)
Income before income taxes					$	28,702			$	39,863
Inventory impairments and land option write-offs						2,359				1,040
Income before income taxes excluding land-related charges (1)					$	31,061			$	40,903
(1) Income before income taxes excluding land-related charges is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.

Hovnanian Enterprises, Inc.
January 31, 2026
Gross margin
(In thousands)
					Homebuilding Gross Margin
					Three Months Ended
					January 31,
					2026				2025
					(Unaudited)
Sale of homes					$	575,759			$	646,914
Cost of sales, excluding interest expense and land charges (1)						498,413				528,745
Homebuilding gross margin, before cost of sales interest expense and land charges (2)						77,346				118,169
Cost of sales interest expense, excluding land sales interest expense						16,567				18,738
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)						60,779				99,431
Land charges						2,359				1,040
Homebuilding gross margin					$	58,420			$	98,391
Homebuilding gross margin percentage						10.1%				15.2%
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2)						13.4%				18.3%
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2)						10.6%				15.4%
					Land Sales Gross Margin
					Three Months Ended
					January 31,
					2026				2025
					(Unaudited)
Land and lot sales					$	34,712			$	6,826
Cost of sales, excluding interest						11,218				4,545
Land and lot sales gross margin, excluding interest						23,494				2,281
Land and lot sales interest expense						24				618
Land and lot sales gross margin, including interest					$	23,470			$	1,663
(1) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairment loss and land option write-offs in the Condensed Consolidated Statements of Operations.
(2) Homebuilding gross margin, before cost of sales interest expense and land charges, and homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively.

Hovnanian Enterprises, Inc.
January 31, 2026
Reconciliation of adjusted EBITDA to net income
(In thousands)
		Three Months Ended
		January 31,
		2026				2025
		(Unaudited)
Net income		$	20,859			$	28,191
Income tax provision			7,843				11,672
Interest expense			28,749				28,873
EBIT (1)			57,451				68,736
Depreciation and amortization			3,271				2,298
EBITDA (2)			60,722				71,034
Inventory impairments and land option write-offs			2,359				1,040
Adjusted EBITDA (3)		$	63,081			$	72,074
Interest incurred		$	29,567			$	29,855
Adjusted EBITDA to interest incurred			2.18				2.41
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBIT represents earnings before interest expense and income taxes.
(2) EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization.
(3) Adjusted EBITDA is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization and inventory impairments and land option write-offs.
Hovnanian Enterprises, Inc.
January 31, 2026
Interest incurred, expensed and capitalized
(In thousands)
		Three Months Ended
		January 31,
		2026				2025
		(Unaudited)
Interest capitalized at beginning of period		$	43,263			$	57,671
Plus: interest incurred			29,567				29,855
Less: interest expensed			(28,749	)			(28,873	)
Less: interest contributed to unconsolidated joint ventures (1)			(1,109	)			(5,769	)
Plus: interest acquired from unconsolidated joint ventures (2)			425				-
Interest capitalized at end of period (3)		$	43,397			$	52,884
(1) Represents capitalized interest which was included as part of the assets contributed to joint ventures the company entered into during the three months ended January 31, 2026 and 2025, respectively. There was no impact to the Condensed Consolidated Statement of Operations as a result of these transactions. (2) Represents capitalized interest which was included as part of the assets acquired from a joint venture closed out during the three months ended January 31, 2026. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
(3) Capitalized interest amounts are shown gross before allocating any portion of impairments to capitalized interest.

Hovnanian Enterprises, Inc.
January 31, 2026
Reconciliation of Adjusted EBIT Return on Adjusted Investment
(in thousands)																					TTM
					For the quarter ended																ended
						4/30/2025				7/31/2025				10/31/2025				1/31/2026			1/31/2026
Net income (loss)					$	19,726			$	16,615			$	(667	)		$	20,859			$	56,533
	As of																				Five Quarter
		1/31/2025				4/30/2025				7/31/2025				10/31/2025				1/31/2026			Average
Total inventories	$	1,666,490			$	1,743,965			$	1,692,932			$	1,637,470			$	1,647,970			$	1,677,765
Return on Inventory																						3.4%
																					TTM
					For the quarter ended																ended
						4/30/2025				7/31/2025				10/31/2025				1/31/2026			1/31/2026
Net income (loss)					$	19,726			$	16,615			$	(667	)		$	20,859			$	56,533
Income tax provision (benefit)						6,804				7,187				(3,441	)			7,843				18,393
Interest expense						29,083				34,017				34,443				28,749				126,292
EBIT (1)						55,613				57,819				30,335				57,451				201,218
Inventory impairments and land option write-offs						3,056				16,045				19,430				2,359				40,890
(Gain) loss on extinguishment of debt, net						(399	)			-				33,512				-				33,113
Adjusted EBIT (2)					$	58,270			$	73,864			$	83,277			$	59,810			$	275,221
	As of
		1/31/2025				4/30/2025				7/31/2025				10/31/2025				1/31/2026
Total inventories	$	1,666,490			$	1,743,965			$	1,692,932			$	1,637,470			$	1,647,970
Less Liabilities from inventory not owned, net of debt issuance costs		(156,274	)			(173,098	)			(236,644	)			(244,723	)			(235,945	)
Less Interest capitalized at end of period		(52,884	)			(53,633	)			(48,139	)			(43,263	)			(43,397	)
Plus Investments in and advances to unconsolidated joint ventures		172,679				183,461				218,356				163,469				146,631
Plus Goodwill		-				-				-				-				31,705				Five Quarter Average
Adjusted Investment (3)	$	1,630,011			$	1,700,695			$	1,626,505			$	1,512,953			$	1,546,964			$	1,603,426
Adjusted EBIT Return on Adjusted Investment (4)																						17.2%
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). EBIT represents earnings before interest expense and income taxes.
(2) Adjusted EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income (loss). Adjusted EBIT represents earnings before interest expense, income taxes, inventory impairments and land option write-offs.
(3) Adjusted Investment is a non-GAAP financial measure. The most directly comparable GAAP financial measure is total inventories. Adjusted Investment represents total inventories excluding liabilities from inventory not owned, net of debt issuance costs and interest capitalized and including investments in and advances to unconsolidated joint ventures.
(4) The ratio of Adjusted EBIT Return on Adjusted Investment is a non-GAAP financial measure. The most directly comparable GAAP financial measure is the ratio of net income (loss) to total inventories.

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)
		January 31,				October 31,
		2026				2025
		(Unaudited)				(1)
ASSETS
Homebuilding:
Cash and cash equivalents		$	339,910			$	272,772
Restricted cash and cash equivalents			9,661				12,608
Inventories:
Sold and unsold homes and lots under development			1,154,723				1,132,798
Land and land options held for future development or sale			169,029				171,793
Consolidated inventory not owned			324,218				332,879
Total inventories			1,647,970				1,637,470
Investments in and advances to unconsolidated joint ventures			146,631				163,469
Receivables, deposits and notes, net			40,192				26,454
Property and equipment, net			56,611				50,539
Goodwill			31,705				-
Prepaid expenses and other assets			115,256				89,773
Total homebuilding			2,387,936				2,253,085
Financial services			123,957				151,211
Deferred tax assets, net			222,783				229,617
Total assets		$	2,734,676			$	2,633,913
LIABILITIES AND EQUITY
Homebuilding:
Nonrecourse mortgages secured by inventory, net of debt issuance costs		$	28,548			$	29,494
Accounts payable and other liabilities			420,443				438,698
Customers’ deposits			176,847				46,376
Liabilities from inventory not owned, net of debt issuance costs			235,945				244,723
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)			901,307				900,718
Accrued interest			30,116				11,874
Total homebuilding			1,793,206				1,671,883
Financial services			102,627				130,873
Income taxes payable			1,209				222
Total liabilities			1,897,042				1,802,978
Equity:
Preferred stock, $0.01 par value - authorized 100,000 shares; issued and outstanding 5,600 shares with a liquidation preference of $140,000 at January 31, 2026 and October 31, 2025			135,299				135,299
Common stock, Class A, $0.01 par value - authorized 16,000,000 shares; issued 6,586,810 shares at January 31, 2026 and 6,503,722 shares at October 31, 2025			66				65
Common stock, Class B, $0.01 par value (convertible to Class A at time of sale) - authorized 2,400,000 shares; issued 812,387 shares at January 31, 2026 and 812,410 shares at October 31, 2025			8				8
Paid in capital - common stock			753,004				757,391
Retained earnings			145,516				127,326
Treasury stock - at cost – 1,433,485 shares of Class A common stock at January 31, 2026 and 1,348,087 shares at October 31, 2025; 27,669 shares of Class B common stock at January 31, 2026 and October 31, 2025			(198,154	)			(189,154	)
Total Hovnanian Enterprises, Inc. stockholders’ equity			835,739				830,935
Noncontrolling interest			1,895				-
Total equity			837,634				830,935
Total liabilities and equity		$	2,734,676			$	2,633,913

(1)   Derived from the audited balance sheet as of October 31, 2025

HOVNANIAN ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
		Three Months Ended January 31,
		2026				2025
Revenues:
Homebuilding:
Sale of homes		$	575,759			$	646,914
Land sales and other revenues			37,185				9,767
Total homebuilding			612,944				656,681
Financial services			19,008				16,942
Total revenues			631,952				673,623
Expenses:
Homebuilding:
Cost of sales, excluding interest			509,631				533,290
Cost of sales interest			16,591				19,356
Inventory impairments and land option write-offs			2,359				1,040
Total cost of sales			528,581				553,686
Selling, general and administrative			50,281				54,253
Total homebuilding expenses			578,862				607,939
Financial services			13,235				13,437
Corporate general and administrative			33,718				32,692
Other interest			12,158				9,517
Other (income) expense, net (1)			(31,283	)			(20,620	)
Total expenses			606,690				642,965
Income from unconsolidated joint ventures			3,440				9,205
Income before income taxes			28,702				39,863
State and federal income tax provision:
State			1,205				2,049
Federal			6,638				9,623
Total income taxes			7,843				11,672
Net income			20,859				28,191
Less: preferred stock dividends			2,669				2,669
Net income available to common stockholders		$	18,190			$	25,522
Per share data:
Basic:
Net income per common share		$	2.80			$	3.88
Weighted-average number of common shares outstanding			6,490				6,517
Assuming dilution:
Net income per common share		$	2.62			$	3.58
Weighted-average number of common shares outstanding			6,950				7,071

(1) Includes $26.8 million gain on consolidation of joint ventures for the three months ended January 31, 2026, and $22.7 million gain on contribution of assets to a joint venture for the three months ended January 31, 2025.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
		Contracts (1)						Deliveries						Contract
		Three Months Ended						Three Months Ended						Backlog
		January 31,						January 31,						January 31,
		2026		2025		% Change		2026		2025		% Change		2026		2025		% Change
Northeast (3) (4)
(DE, MD, NJ, OH, PA, VA, WV)	Home		412		440	(6.4)%			417		445	(6.3)%			622		777	(19.9)%
	Dollars	$	226,460	$	251,636	(10.0)%		$	239,802	$	281,648	(14.9)%		$	368,397	$	501,469	(26.5)%
	Avg. Price	$	549,660	$	571,900	(3.9)%		$	575,065	$	632,917	(9.1)%		$	592,278	$	645,391	(8.2)%
Southeast (4)
(FL, GA, SC)	Home		182		136	33.8%			158		124	27.4%			195		251	(22.3)%
	Dollars	$	91,340	$	76,099	20.0%		$	74,231	$	51,437	44.3%		$	111,874	$	146,636	(23.7)%
	Avg. Price	$	501,868	$	559,551	(10.3)%		$	469,816	$	414,815	13.3%		$	573,713	$	584,207	(1.8)%
West (2) (3)
(AZ, CA, TX)	Home		648		629	3.0%			524		685	(23.5)%			518		570	(9.1)%
	Dollars	$	347,035	$	315,532	10.0%		$	261,726	$	313,829	(16.6)%		$	302,384	$	283,816	6.5%
	Avg. Price	$	535,548	$	501,641	6.8%		$	499,477	$	458,145	9.0%		$	583,753	$	497,923	17.2%
Domestic Subtotal
	Home		1,242		1,205	3.1%			1,099		1,254	(12.4)%			1,335		1,598	(16.5)%
	Dollars	$	664,835	$	643,267	3.4%		$	575,759	$	646,914	(11.0)%		$	782,655	$	931,921	(16.0)%
	Avg. Price	$	535,294	$	533,832	0.3%		$	523,894	$	515,880	1.6%		$	586,258	$	583,180	0.5%
Kingdom of Saudi Arabia (KSA) (5)
	Home		0		0	0.0%			0		0	0.0%			746		0	0.0%
	Dollars	$	0	$	0	0.0%		$	0	$	0	0.0%		$	181,467	$	0	0.0%
	Avg. Price	$	0	$	0	0.0%		$	0	$	0	0.0%		$	243,253	$	0	0.0%
Consolidated Total
	Home		1,242		1,205	3.1%			1,099		1,254	(12.4)%			2,081		1,598	30.2%
	Dollars	$	664,835	$	643,267	3.4%		$	575,759	$	646,914	(11.0)%		$	964,122	$	931,921	3.5%
	Avg. Price	$	535,294	$	533,832	0.3%		$	523,894	$	515,880	1.6%		$	463,297	$	583,180	(20.6)%
Unconsolidated Joint Ventures
(excluding KSA JV)	Home		123		195	(36.9)%			118		197	(40.1)%			330		403	(18.1)%
(2) (3) (4) (6)	Dollars	$	82,146	$	127,485	(35.6)%		$	72,391	$	131,776	(45.1)%		$	239,358	$	294,875	(18.8)%
	Avg. Price	$	667,854	$	653,769	2.2%		$	613,483	$	668,914	(8.3)%		$	725,327	$	731,700	(0.9)%
Grand Total	Home		1,365		1,400	(2.5)%			1,217		1,451	(16.1)%			2,411		2,001	20.5%
	Dollars	$	746,981	$	770,752	(3.1)%		$	648,150	$	778,690	(16.8)%		$	1,203,480	$	1,226,796	(1.9)%
	Avg. Price	$	547,239	$	550,537	(0.6)%		$	532,580	$	536,657	(0.8)%		$	499,162	$	613,091	(18.6)%
KSA JV Only
	Home		23		198	(88.4)%			0		0	0.0%			0		474	(100.0)%
	Dollars	$	5,690	$	50,272	(88.7)%		$	0	$	0	0.0%		$	0	$	114,632	(100.0)%
	Avg. Price	$	247,391	$	253,899	(2.6)%		$	0	$	0	0.0%		$	0	$	241,840	(100.0)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Includes 8 homes and $5.0 million of contract backlog related to the assets and liabilities in the West segment that were contributed to a joint venture the company entered into during the three months ended January 31, 2025. (3) Includes 67 homes and $53.3 million and 3 homes and $1.3 million of contract backlog related to the assets and liabilities in the Northeast and West segments, respectively, that were acquired from a joint venture the company closed out during the three months ended January 31, 2026. (4) Includes 71 homes and $54.7 million and 13 homes and $10.6 million of contract backlog related to the assets and liabilities in the Northeast and Southeast segments, respectively, that were contributed to a joint venture the company entered into during the three months ended January 31, 2026. (5) Includes 746 homes and $181.5 million of contract backlog related to the assets and liabilities acquired from the unconsolidated KSA JV, which the company consolidated during the three months ended January 31, 2026. (6) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
		Contracts (1)						Deliveries						Contract
		Three Months Ended						Three Months Ended						Backlog
		January 31,						January 31,						January 31,
		2026		2025		% Change		2026		2025		% Change		2026		2025		% Change
Northeast (3) (4)
(Unconsolidated Joint Ventures)	Home		72		117	(38.5)%			71		109	(34.9)%			232		282	(17.7)%
(Excluding KSA JV)	Dollars	$	49,644	$	78,729	(36.9)%		$	43,812	$	80,890	(45.8)%		$	170,438	$	210,209	(18.9)%
(DE, MD, NJ, OH, PA, VA, WV)	Avg. Price	$	689,500	$	672,897	2.5%		$	617,070	$	742,110	(16.8)%		$	734,647	$	745,422	(1.4)%
Southeast (4)
(Unconsolidated Joint Ventures)	Home		33		67	(50.7)%			28		79	(64.6)%			83		106	(21.7)%
(FL, GA, SC)	Dollars	$	23,425	$	42,990	(45.5)%		$	17,931	$	46,848	(61.7)%		$	61,368	$	76,634	(19.9)%
	Avg. Price	$	709,848	$	641,642	10.6%		$	640,393	$	593,013	8.0%		$	739,373	$	722,962	2.3%
West (2) (3)
(Unconsolidated Joint Ventures)	Home		18		11	63.6%			19		9	111.1%			15		15	0.0%
(AZ, CA, TX)	Dollars	$	9,077	$	5,766	57.4%		$	10,648	$	4,038	163.7%		$	7,552	$	8,032	(6.0)%
	Avg. Price	$	504,278	$	524,182	(3.8)%		$	560,421	$	448,667	24.9%		$	503,467	$	535,467	(6.0)%
Unconsolidated Joint Ventures
(Excluding KSA JV)	Home		123		195	(36.9)%			118		197	(40.1)%			330		403	(18.1)%
(2) (3) (4) (5)	Dollars	$	82,146	$	127,485	(35.6)%		$	72,391	$	131,776	(45.1)%		$	239,358	$	294,875	(18.8)%
	Avg. Price	$	667,854	$	653,769	2.2%		$	613,483	$	668,914	(8.3)%		$	725,327	$	731,700	(0.9)%
KSA JV Only
	Home		23		198	(88.4)%			0		0	0.0%			0		474	(100.0)%
	Dollars	$	5,690	$	50,272	(88.7)%		$	0	$	0	0.0%		$	0	$	114,632	(100.0)%
	Avg. Price	$	247,391	$	253,899	(2.6)%		$	0	$	0	0.0%		$	0	$	241,840	(100.0)%
DELIVERIES INCLUDE EXTRAS
Notes:
(1) Contracts are defined as new contracts signed during the period for the purchase of homes, less cancellations of prior contracts.
(2) Includes 8 homes and $5.0 million of contract backlog related to the assets and liabilities in the West segment that were contributed to a joint venture the company entered into during the three months ended January 31, 2025. (3) Includes 67 homes and $53.3 million and 3 homes and $1.3 million of contract backlog related to the assets and liabilities in the Northeast and West segments, respectively, that were acquired from a joint venture the company closed out during the three months ended January 31, 2026. (4) Includes 71 homes and $54.7 million and 13 homes and $10.6 million of contract backlog related to the assets and liabilities in the Northeast and Southeast segments, respectively, that were contributed to a joint venture the company entered into during the three months ended January 31, 2026. (5) Represents home deliveries, home revenues and average prices for our unconsolidated homebuilding joint ventures for the period. We provide this data as a supplement to our consolidated results as an indicator of the volume managed in our unconsolidated homebuilding joint ventures. Our proportionate share of the income or loss of unconsolidated homebuilding and land development joint ventures is reflected as a separate line item in our consolidated financial statements under “Income from unconsolidated joint ventures”.

Contact:	Brad G. O’Connor	Jeffrey T. O’Keefe
	Chief Financial Officer	Vice President, Investor Relations
	732-747-7800	732-747-7800

FAQ

What were HOV fiscal Q1 2026 revenues and net income for the quarter ended January 31, 2026?

HOV reported $632.0 million in total revenues and $20.9 million net income for Q1 2026. According to the company, diluted earnings per share were $2.62 for the three months ended January 31, 2026.

How strong was HOV's liquidity as of January 31, 2026 and how does it compare to targets?

HOV had $471.4 million of total liquidity as of January 31, 2026. According to the company, that amount is significantly above its target liquidity range of $170M–$245M.

What guidance did HOV give for fiscal Q2 2026 adjusted EBITDA and revenue ranges?

HOV expects Q2 2026 adjusted EBITDA between $30M and $40M and total revenues between $625M and $725M. According to the company, guidance assumes no material adverse market changes.

How did HOV's homebuilding gross margin change year-over-year in Q1 2026?

Homebuilding gross margin after charges fell to 10.1% in Q1 2026 from 15.2% a year earlier. According to the company, margin pressures reflect higher costs and mix changes versus the prior year.

What happened to HOV's domestic backlog and contract activity in early 2026?

Dollar value of domestic backlog decreased about 16% year-over-year as of January 31, 2026. According to the company, January and February contract activity improved versus prior year on a homes basis.

Did HOV change its inventory or land strategy in Q1 2026?

Yes — HOV continued a land-light approach: controlled consolidated lots fell and 86% of lots were optioned, with land spend down to $180.7M in Q1 2026. According to the company, this aligns lots with sales pace.