Hovnanian Enterprises Reports Fiscal 2026 Second Quarter Results

Rhea-AI Summary

Hovnanian (NYSE:HOV) reported fiscal Q2 2026 revenue of $667.6 million, slightly below prior year, and a net loss of $0.6 million, or $0.46 per diluted share. Homebuilding gross margin before interest and land charges was 14.3%, above guidance and up sequentially, though below last year.

Adjusted EBITDA was $41.1 million, exceeding guidance, while total liquidity reached $442 million, well above the $170–$245 million target range. Total domestic contracts, including joint ventures, rose 2.3% to 1,667 homes, but backlog dollars declined about 5% year over year.

AI-generated analysis. Not financial advice.

Positive

• Adjusted EBITDA $41.1 million in Q2 2026, above guidance range
• Total liquidity $442 million, well above $170–$245 million target range
• Total domestic contracts including JVs up 2.3% to 1,667 homes, $938.2 million
• Homebuilding gross margin before interest and land charges 14.3%, above guidance high and improved sequentially
• Repurchased 90,507 shares in Q2 2026 for $9.5 million at $104.60 average price
• Total domestic QMIs down 31.9% and finished QMIs down 54.9% year over year

Negative

• Q2 2026 revenue $667.6 million, down from $686.5 million year over year
• Q2 2026 net loss $0.6 million versus $19.7 million net income a year earlier
• Homebuilding gross margin after interest and land charges down to 10.2% from 13.8%
• Q2 2026 EBITDA $32.3 million versus $58.6 million in prior-year quarter
• Domestic contract backlog including JVs down 4.5% to $1.23 billion year over year
• Domestic controlled consolidated lots down to 33,632 from 42,440 year over year

Key Figures

Q2 2026 revenue: $667.6M First-half 2026 revenue: $1.30B Homebuilding gross margin (GAAP): 10.2% +5 more

8 metrics

Q2 2026 revenue $667.6M Three months ended April 30, 2026 vs $686.5M prior-year quarter

First-half 2026 revenue $1.30B Six months ended April 30, 2026 vs $1.36B first half 2025

Homebuilding gross margin (GAAP) 10.2% Q2 2026 after interest and land charges vs 13.8% prior year

Homebuilding gross margin (non-GAAP) 14.3% Q2 2026 before interest and land charges, above high end of guidance

Net result Q2 2026 ($0.6M), -$0.46 EPS Net loss vs prior-year net income $19.7M, $2.43 EPS

Total liquidity $442.0M As of April 30, 2026 vs $170–$245M target range

Adjusted EBITDA Q2 2026 $41.1M Quarter ended April 30, 2026, above company guidance range

Share repurchases 90,507 shares for $9.5M Q2 2026, average price $104.60, 1.8% of Class A as of Jan 31, 2026

Market Reality Check

Price: $98.01 Vol: Volume 180,000 is 1.6x th...

high vol

$98.01 Last Close

Volume Volume 180,000 is 1.6x the 20-day average of 112,614, indicating elevated interest into the print. high

Technical Shares at $98.01 trade below the 200-day MA $120.98, about 39.52% under the 52-week high and 14.38% above the 52-week low.

Peers on Argus

HOV gained 4.14% with strong volume while key homebuilding peers also advanced: ...

HOV gained 4.14% with strong volume while key homebuilding peers also advanced: LGIH +8.16%, DFH +7.32%, UHG +4.27%, BZH +3.42%, LEGH +2.66%, pointing to a sector-wide bid rather than an isolated move.

Historical Context

5 past events · Latest: May 07 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 07	Earnings call notice	Neutral	-1.1%	Scheduled Q2 FY26 release and webcast details for May 21, 2026.
Apr 08	JV expansion	Positive	+6.3%	Closed $200M GTIS homebuilding JV, expanding a $1.5B portfolio.
Feb 25	Conference appearance	Neutral	+0.2%	Announced presentation at J.P. Morgan Global Leveraged Finance Conference.
Feb 25	Q1 2026 earnings	Positive	+2.6%	Reported Q1 FY26 revenue, profits, strong liquidity and Q2 guidance.
Feb 11	Earnings call notice	Neutral	-1.6%	Set date and webcast details for Q1 FY26 earnings release.

Pattern Detected

Recent fundamental updates and JV news have generally seen aligned, often positive, price responses.

Recent Company History

Over the past six months, Hovnanian has mixed conference and results-related news. Q1 FY26 results on Feb 25 showed solid profitability and high liquidity, and the stock rose 2.6%. A large GTIS joint venture on Apr 8 triggered a stronger 6.33% gain, highlighting market receptivity to growth partnerships. Routine earnings-call announcements in February and May had small, mixed reactions. Against this backdrop, the Q2 FY26 release continues a theme of solid liquidity, active land strategy, and guidance-focused communication.

Market Pulse Summary

This announcement details a mixed but controlled quarter: revenues and GAAP gross margins declined y...

Analysis

This announcement details a mixed but controlled quarter: revenues and GAAP gross margins declined year-over-year, yet non-GAAP gross margin and adjusted EBITDA exceeded guidance, and liquidity reached $442M, well above the stated target range. The company continued a land‑light strategy, reduced quick move‑in inventory, and returned capital via $9.5M of buybacks. Investors may focus on contract growth, backlog levels, and delivery margins versus the Q3 guidance ranges to gauge execution in a choppy housing market.

Key Terms

ebitda, adjusted ebitda, non-gaap, senior secured revolving credit facility

4 terms

ebitda financial

"EBITDA was $32.3 million for the second 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 $41.1 million for the quarter ended April 30, 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

"Homebuilding gross margin percentage, before cost of sales interest expense and land charges, are non-GAAP financial measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

senior secured revolving credit facility financial

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

A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.

AI-generated analysis. Not financial advice.

Met or Exceeded Guidance on Nearly All Metrics Provided
Gross Margins Improved Sequentially Following First Quarter Trough
2% Year-Over-Year Increase in Total Domestic Contracts
$442 Million of Total Liquidity Well in Excess of Our Target Range

MATAWAN, N.J., May 21, 2026 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, reported results for its fiscal second quarter and six months ended April 30, 2026.

The Company is saddened by the passing of Edward A. Kangas, whose leadership and dedication to Hovnanian spanned many years. As our longest-serving independent director, Chair of the Audit Committee, and Lead Independent Director, Ed provided valued judgment, integrity, and steady guidance to our Board and management team. Beyond his many professional contributions, he was also a trusted friend who will be deeply missed by all who knew him. The Board of Directors and everyone at the Company extend their heartfelt condolences to his family.

RESULTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED APRIL 30, 2026:

• Total revenues were $667.6 million in the second quarter of fiscal 2026, which was within the guidance range we provided, compared with $686.5 million in the same quarter of the prior year. For the six months ended April 30, 2026, total revenues were $1.30 billion compared with $1.36 billion in the first half of fiscal 2025.
  
• Domestic unconsolidated joint ventures sale of homes revenues for the second quarter of fiscal 2026 was $125.9 million (181 homes) compared with $144.5 million (207 homes) for the three months ended April 30, 2025. For the first half of fiscal 2026, domestic unconsolidated joint ventures sale of homes revenues was $198.3 million (299 homes) compared with $276.3 million (404 homes) in the six months ended April 30, 2025.
  
• Homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 10.2% for the three months ended April 30, 2026, compared with 13.8% during the second quarter a year ago. In the first six months of fiscal 2026, homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 10.2% compared with 14.5% in the same period of the prior fiscal year.
  
• Homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 14.3% during the fiscal 2026 second quarter, which was above the high end of the guidance range we provided, compared with 17.3% in last year’s second quarter. Gross margins on both a GAAP and non-GAAP basis improved sequentially in the second quarter as margins rebounded from the first-quarter trough. For the six months ended April 30, 2026, homebuilding gross margin percentage, before cost of sales interest expense and land charges, was 13.9% compared with 17.8% in the first six months of the previous fiscal year.
  
• Total SG&A was $84.0 million, or 12.6% of total revenues, in the second quarter of fiscal 2026, which was at the better end of the guidance range we provided, compared with $80.6 million, or 11.7% of total revenues, in the second quarter of fiscal 2025. Total SG&A was $168.0 million, or 12.9% of total revenues, in the first six months of fiscal 2026 compared with $167.5 million, or 12.3% of total revenues, in the first half of the previous fiscal year.
  
• Total interest expense was $28.5 million, or 4.3% of total revenues, for the second quarter of fiscal 2026, compared with $29.1 million, or 4.2% of total revenues, for the second quarter of fiscal 2025. For the six months ended April 30, 2026, total interest expense as a percent of total revenues was 4.4% compared with 4.3% in the first half of the previous fiscal year.
  
• Income before income taxes for the second quarter of fiscal 2026 was $0.3 million compared with $26.5 million in the second quarter of the prior fiscal year. For the first half of fiscal 2026, income before income taxes was $29.0 million compared with $66.4 million during the first six months of the prior fiscal year.
  
• Income before income taxes, excluding land-related charges, was $9.1 million in the second quarter of fiscal 2026, which was near the high end of the guidance range we provided, compared with income before these items of $29.2 million in the second quarter of fiscal 2025. For the six months ended April 30, 2026, income before income taxes excluding land-related charges and gain on extinguishment of debt, net was $40.2 million compared with income before these items of $70.1 million in the same period of fiscal 2025.
  
• Net loss was $0.6 million, or $0.46 per diluted common share, for the three months ended April 30, 2026, compared with net income of $19.7 million, or $2.43 per diluted common share, in the same period of the previous fiscal year. For the first six months of fiscal 2026, net income was $20.3 million, or $2.20 per diluted common share, compared with net income of $47.9 million, or $6.02 per diluted common share, during the first half of fiscal 2025.
  
• EBITDA was $32.3 million for the second quarter of fiscal 2026 compared with $58.6 million for the second quarter of the prior year. For the first half of fiscal 2026, EBITDA was $93.1 million compared with $129.7 million in the same period of the prior year.
  
• Adjusted EBITDA was $41.1 million for the quarter ended April 30, 2026, which was above the guidance range we provided, compared with $61.3 million in the second quarter of the prior fiscal year. For the first half of fiscal 2026, adjusted EBITDA was $104.2 million compared with $133.4 million in the same period of the prior year.
  
• Consolidated domestic contracts⁽¹⁾ in the second quarter of fiscal 2026 increased 1.0% to 1,412 homes ($759.9 million) compared with 1,398 homes ($706.6 million) in the same quarter last year. Domestic contracts, including domestic unconsolidated joint ventures, for the three months ended April 30, 2026, increased 2.3% to 1,667 homes ($938.2 million) compared with 1,629 homes ($856.1 million) in the second quarter of fiscal 2025.
  
• As of April 30, 2026, the number of consolidated domestic communities was 125, unchanged from April 30, 2025. Including domestic unconsolidated joint ventures, domestic community count was also unchanged year over year at 148 as of April 30, 2026.
  
• Consolidated domestic contracts per community increased 0.9% year-over-year to 11.3 in the second quarter of fiscal 2026, compared to 11.2 in the same quarter of fiscal 2025. When including domestic unconsolidated joint ventures, domestic contracts per community increased 2.7% to 11.3 for the three months ended April 30, 2026, compared with 11.0 in the prior-year period.
  
• The dollar value of consolidated domestic contract backlog, as of April 30, 2026, decreased 5.0% to $938.4 million compared with $988.2 million as of April 30, 2025. The dollar value of domestic contract backlog, including domestic unconsolidated joint ventures, as of April 30, 2026, decreased 4.5% to $1.23 billion compared with $1.29 billion as of April 30, 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 17% for the quarter ended April 30, 2026, compared with 15% in the fiscal 2025 second quarter. The gross domestic contract cancellation rate for contracts, including domestic unconsolidated joint ventures, was 15% for the second quarter of fiscal 2026 compared with 14% in the second quarter of the prior year.
  
• For the trailing twelve-month period our net income return on inventory was 2.1% and our adjusted earnings before interest and income taxes return on investment (Adjusted EBIT ROI) was 15.9%. For the most recently reported trailing twelve-month periods, we believe we had the highest Adjusted EBIT ROI compared to nine of our publicly traded midsized homebuilder peers.
  

⁽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 APRIL 30, 2026:

• During the second quarter of fiscal 2026, domestic land and land development spending was $232.3 million compared with $219.8 million in the same quarter one year ago. For the first half of fiscal 2026, domestic land and land development spending was $413.0 million compared with $467.4 million in the same period one year ago. We are gaining momentum in new land opportunities that meet our financial thresholds in this difficult environment.
  
• Total liquidity as of April 30, 2026, was $442.0 million, which was significantly above our target liquidity range of $170 million to $245 million.
  
• During the second quarter of fiscal 2026, we repurchased 90,507 shares of common stock, or 1.8% of Class A common stock as of January 31, 2026, for $9.5 million or an average price of $104.60 per share.
  
• In the second quarter of fiscal 2026, approximately 1,400 lots were put under option or acquired in 25 domestic consolidated communities.
  
• As of April 30, 2026, our total domestic controlled consolidated lots were 33,632 compared with 42,440 lots at the end of the previous fiscal year’s second quarter. Continuing our land-light strategic focus, 86% of our lots were optioned at the end of the second quarter of fiscal 2026. Based on trailing twelve-month deliveries, the current position equaled 6.5 years’ supply.
  
• Total domestic QMIs as of April 30, 2026, were 731, a decline of 31.9% compared with 1,073 as of April 30, 2025, illustrating our efforts to match our starts with our sales pace. This equates to 5.8 QMIs per community as of April 30, 2026. Total domestic finished QMIs as of April 30, 2026, were 137, a decline of 54.9% compared with 304 as of April 30, 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 third 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 $112.44 on April 30, 2026.

For the third quarter of fiscal 2026, total revenues are expected to be between $650 million and $750 million, adjusted homebuilding gross margin is expected to be between 14.0% and 15.0%, 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:

“Despite a choppy month-to-month sales environment during the quarter, we delivered results that were above or within our guidance ranges for total revenues, gross margin, SG&A ratio, adjusted EBITDA and adjusted income before income taxes,” said Ara K. Hovnanian, Chairman of the Board and Chief Executive Officer. “Overall, our performance reflects the resilience of our operating model and our team’s ability to execute in an unsettled market. Furthermore, our gross margins improved sequentially in the second quarter, marking early progress toward normalization after bottoming in the first quarter.”

Mr. Hovnanian continued, “We began our second quarter with encouraging sales momentum, but escalating geopolitical tensions, particularly the war in Iran, reignited inflation concerns and caused many homebuyers to hesitate. While demand remained uneven, we stayed focused on managing pace, pricing, and costs. Our priority continues to be the prudent deployment of capital – deliberately maintaining ample liquidity, working through older, lower-margin lots, selectively investing in new land opportunities that underwrite in today’s environment, and opportunistically returning capital to shareholders through share repurchases.”

“In today’s environment, it’s difficult to provide meaningful visibility beyond the next quarter. However, if current housing conditions continue, we expect a significant step-up in our fourth quarter performance, particularly in volume and gross margins, driven by deliveries from newer communities. While week-to-week demand can be volatile, we are encouraged by current trends and believe the Company is well positioned to close out the year with strong momentum,” Mr. Hovnanian concluded.

WEBCAST INFORMATION:

Hovnanian Enterprises will webcast its fiscal 2026 second quarter results conference call at 11:00 a.m. E.T. on Thursday, May 21, 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 and gain on extinguishment of debt, net (“Adjusted EBITDA”), the ratio of Adjusted EBITDA to interest incurred and EBIT before inventory impairments and land option write-offs and gain on extinguishment of debt, net (“Adjusted EBIT”) are not U.S. generally accepted accounting principles (“GAAP”) financial measures. The most directly comparable GAAP financial measure is net (loss) income. The reconciliation for historical periods of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA to net (loss) income 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 before income taxes excluding land-related charges and gain on extinguishment of debt, net is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes. The reconciliation for historical periods of adjusted income before income taxes to income 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 (loss) return to total inventories. The presentation of the ratios of Adjusted EBIT ROI and net income (loss) return on inventory are presented in a table attached to this earnings release.

Total liquidity is comprised of $310.9 million of cash and cash equivalents, $6.1 million of restricted cash required to collateralize letters of credit and $125.0 million available under a senior secured revolving credit facility as of April 30, 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.
April 30, 2026
Statements of consolidated operations
(In thousands, except per share data)
				Three Months Ended								Six Months Ended
				April 30,								April 30,
				2026				2025				2026				2025
				(Unaudited)								(Unaudited)
Total revenues				$	667,645			$	686,471			$	1,299,597			$	1,360,094
Costs and expenses (1)					666,200				669,383				1,272,890				1,312,348
Gain on extinguishment of debt, net					-				399				-				399
(Loss) income from unconsolidated joint ventures					(1,106	)			9,043				2,334				18,248
Income before income taxes					339				26,530				29,041				66,393
Provision for income taxes					934				6,804				8,777				18,476
Net (loss) income					(595	)			19,726				20,264				47,917
Less: (loss) income attributable to noncontrolling interest					(311	)			-				(311	)			-
Net (loss) income attributable to Hovnanian Enterprises, Inc.					(284	)			19,726				20,575				47,917
Less: preferred stock dividends					2,669				2,669				5,338				5,338
Net (loss) income available to common stockholders				$	(2,953	)		$	17,057			$	15,237			$	42,579
Per share data:
Basic:
	Net (loss) income per common share			$	(0.46	)		$	2.64			$	2.36			$	6.53
	Weighted average number of common shares outstanding				6,416				6,411				6,453				6,464
Assuming dilution:
	Net (loss) income per common share			$	(0.46	)		$	2.43			$	2.20			$	6.02
	Weighted average number of common shares outstanding				6,416				6,951				6,909				7,011
(1) Includes inventory impairments and land option write-offs.
Hovnanian Enterprises, Inc.
April 30, 2026
Reconciliation of income before income taxes excluding land-related charges and gain on extinguishment of debt, net to income before income taxes
(In thousands)
				Three Months Ended								Six Months Ended
				April 30,								April 30,
				2026				2025				2026				2025
				(Unaudited)								(Unaudited)
Income before income taxes				$	339			$	26,530			$	29,041			$	66,393
Inventory impairments and land option write-offs					8,750				3,056				11,109				4,096
Gain on extinguishment of debt, net					-				(399	)			-				(399	)
Income before income taxes excluding land-related charges and gain on extinguishment of debt, net (1)				$	9,089			$	29,187			$	40,150			$	70,090
(1) Income before income taxes excluding land-related charges and gain on extinguishment of debt, net is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income before income taxes.

Hovnanian Enterprises, Inc.
April 30, 2026
Gross margin
(In thousands)
				Homebuilding Gross Margin										Homebuilding Gross Margin
				Three Months Ended										Six Months Ended
				April 30,										April 30,
				2026						2025				2026						2025
				(Unaudited)										(Unaudited)
Sale of homes				$		604,188				$	650,314			$	1,179,947					$		1,297,228
Cost of sales, excluding interest expense and land charges (1)						517,665					537,600				1,016,078							1,066,345
Homebuilding gross margin, before cost of sales interest expense and land charges (2)						86,523					112,714				163,869							230,883
Cost of sales interest expense, excluding land sales interest expense						15,872					19,938				32,439							38,676
Homebuilding gross margin, after cost of sales interest expense, before land charges (2)						70,651					92,776				131,430							192,207
Land charges						8,750					3,056				11,109							4,096
Homebuilding gross margin				$		61,901				$	89,720			$	120,321					$		188,111
Homebuilding gross margin percentage						10.2%					13.8%				10.2%							14.5%
Homebuilding gross margin percentage, before cost of sales interest expense and land charges (2)						14.3%					17.3%				13.9%							17.8%
Homebuilding gross margin percentage, after cost of sales interest expense, before land charges (2)							11.7%				14.3%				11.1%							14.8%
				Land Sales Gross Margin										Land Sales Gross Margin
				Three Months Ended										Six Months Ended
				April 30,										April 30,
				2026						2025				2026						2025
				(Unaudited)										(Unaudited)
Land and lot sales				$		33,502				$	12,604			$	68,214					$		19,430
Cost of sales, excluding interest						13,396					5,689				24,614							10,234
Land and lot sales gross margin, excluding interest						20,106					6,915				43,600							9,196
Land and lot sales interest expense						94					-				118							618
Land and lot sales gross margin, including interest				$		20,012				$	6,915			$	43,482					$		8,578
(1) Does not include cost associated with walking away from land options or inventory impairment losses which are recorded as Inventory impairments 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.
April 30, 2026
Reconciliation of adjusted EBITDA to net (loss) income
(In thousands)
	Three Months Ended								Six Months Ended
	April 30,								April 30,
	2026				2025				2026				2025
	(Unaudited)								(Unaudited)
Net (loss) income	$	(595	)		$	19,726			$	20,264			$	47,917
Provision for income taxes		934				6,804				8,777				18,476
Interest expense		28,456				29,083				57,205				57,956
EBIT (1)		28,795				55,613				86,246				124,349
Depreciation and amortization		3,542				3,023				6,813				5,321
EBITDA (2)		32,337				58,636				93,059				129,670
Inventory impairments and land option write-offs		8,750				3,056				11,109				4,096
Gain on extinguishment of debt, net		-				(399	)			-				(399	)
Adjusted EBITDA (3)	$	41,087			$	61,293			$	104,168			$	133,367
Interest incurred	$	31,795			$	29,832			$	61,362			$	59,687
Adjusted EBITDA to interest incurred		1.29				2.05				1.70				2.23
(1) EBIT is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net (loss) 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 (loss) 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 (loss) income. Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, amortization, inventory impairments and land option write-offs and gain on extinguishment of debt, net.
Hovnanian Enterprises, Inc.
April 30, 2026
Interest incurred, expensed and capitalized
(In thousands)
	Three Months Ended								Six Months Ended
	April 30,								April 30,
	2026				2025				2026				2025
	(Unaudited)								(Unaudited)
Interest capitalized at beginning of period	$	43,397			$	52,884			$	43,263			$	57,671
Plus: interest incurred		31,795				29,832				61,362				59,687
Less: interest expensed		(28,456	)			(29,083	)			(57,205	)			(57,956	)
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)	$	46,736			$	53,633			$	46,736			$	53,633
(1) Represents capitalized interest which was included as part of the assets contributed to joint ventures the company entered into during the six months ended April 30, 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 six months ended April 30, 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.
April 30, 2026
Reconciliation of Adjusted EBIT Return on Adjusted Investment
(in thousands)																						TTM
					For the quarter ended																	ended
						7/31/2025				10/31/2025				1/31/2026				4/30/2026				4/30/2026
Net income (loss)						$	16,615			$	(667	)		$	20,859			$	(595	)		$	36,212
		As of																				Five Quarter
		4/30/2025				7/31/2025				10/31/2025				1/31/2026				4/30/2026				Average
Total inventories		$	1,743,965			$	1,692,932			$	1,637,470			$	1,647,970			$	1,723,587			$	1,689,185
Return on Inventory																							2.1%
																						TTM
					For the quarter ended																	ended
						7/31/2025				10/31/2025				1/31/2026				4/30/2026				4/30/2026
Net income (loss)						$	16,615			$	(667	)		$	20,859			$	(595	)		$	36,212
Provision for income taxes							7,187				(3,441	)			7,843				934				12,523
Interest expense							34,017				34,443				28,749				28,456				125,665
EBIT (1)							57,819				30,335				57,451				28,795				174,400
Inventory impairments and land option write-offs							16,045				19,430				2,359				8,750				46,584
Loss on extinguishment of debt, net							-				33,512				-				-				33,512
Adjusted EBIT (2)						$	73,864			$	83,277			$	59,810			$	37,545			$	254,496
	As of
		4/30/2025				7/31/2025				10/31/2025				1/31/2026				4/30/2026
Total inventories		$	1,743,965			$	1,692,932			$	1,637,470			$	1,647,970			$	1,723,587
Less Liabilities from inventory not owned, net of debt issuance costs			(173,098	)			(236,644	)			(244,723	)			(235,945	)			(253,441	)
Less Interest capitalized at end of period			(53,633	)			(48,139	)			(43,263	)			(43,397	)			(46,736	)
Plus Investments in and advances to unconsolidated joint ventures			183,461				218,356				163,469				146,631				148,480			Five Quarter
Plus Goodwill			-				-				-				31,705				31,705			Average
Adjusted Investment (3)		$	1,700,695			$	1,626,505			$	1,512,953			$	1,546,964			$	1,603,595			$	1,598,142
Adjusted EBIT Return on Adjusted Investment (4)																							15.9%
(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 and loss on extinguishment of debt, net.
(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)
	April 30, 2026			October 31, 2025
	(Unaudited)			(1)
ASSETS
Homebuilding:
Cash and cash equivalents	$	310,925		$	272,772
Restricted cash and cash equivalents		9,935			12,608
Inventories:
Sold and unsold homes and lots under development		1,196,930			1,132,798
Land and land options held for future development or sale		157,536			171,793
Consolidated inventory not owned		369,121			332,879
Total inventories		1,723,587			1,637,470
Investments in and advances to unconsolidated joint ventures		148,480			163,469
Receivables, deposits and notes, net		47,368			26,454
Property and equipment, net		56,011			50,539
Goodwill		31,705			-
Deferred tax assets, net		222,166			229,617
Prepaid expenses and other assets		120,161			89,773
Total homebuilding		2,670,338			2,482,702
Financial services		158,486			151,211
Total assets	$	2,828,824		$	2,633,913
LIABILITIES AND EQUITY
Homebuilding:
Nonrecourse mortgages secured by inventory, net of debt issuance costs	$	32,704		$	29,494
Accounts payable and other liabilities		457,147			438,920
Customers’ deposits		206,142			46,376
Liabilities from inventory not owned, net of debt issuance costs		253,441			244,723
Senior notes and credit facilities (net of discounts, premiums and debt issuance costs)		901,899			900,718
Accrued interest		12,875			11,874
Total homebuilding		1,864,208			1,672,105
Financial services		137,023			130,873
Total liabilities		2,001,231			1,802,978
Equity:
Hovnanian Enterprises Inc. stockholders’ 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 April 30, 2026 and October 31, 2025		135,299			135,299
Common stock, Class A, $0.01 par value - authorized 16,000,000 shares; issued 6,590,318 shares at April 30, 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 812,677 shares at April 30, 2026 and 812,410 shares at October 31, 2025		8			8
Paid in capital - common stock		754,652			757,391
Retained Earnings		142,563			127,326
Treasury stock - at cost – 1,523,992 shares of Class A common stock at April 30, 2026 and 1,348,087 shares at October 31, 2025; 27,669 shares of Class B common stock at April 30, 2026 and October 31, 2025		(207,699)			(189,154)
Total Hovnanian Enterprises Inc. stockholders’ equity		824,889			830,935
Noncontrolling interest		2,704			-
Total equity		827,593			830,935
Total liabilities and equity	$	2,828,824		$	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 April 30,						Six Months Ended April 30,
	2026			2025			2026			2025
Revenues:
Homebuilding:
Sale of homes	$	604,188		$	650,314		$	1,179,947		$	1,297,228
Land sales and other revenues		40,059			14,839			77,244			24,606
Total homebuilding		644,247			665,153			1,257,191			1,321,834
Financial services		23,398			21,318			42,406			38,260
Total revenues		667,645			686,471			1,299,597			1,360,094
Expenses:
Homebuilding:
Cost of sales, excluding interest		531,061			543,289			1,040,692			1,076,579
Cost of sales interest		15,966			19,938			32,557			39,294
Inventory impairments and land option write-offs		8,750			3,056			11,109			4,096
Total cost of sales		555,777			566,283			1,084,358			1,119,969
Selling, general and administrative		56,998			51,064			107,279			105,317
Total homebuilding expenses		612,775			617,347			1,191,637			1,225,286
Financial services		13,361			12,891			26,596			26,328
Corporate general and administrative		26,999			29,500			60,717			62,192
Other interest		12,490			9,145			24,648			18,662
Other expense (income), net (1)		575			500			(30,708)			(20,120)
Total expenses		666,200			669,383			1,272,890			1,312,348
Gain on extinguishment of debt, net		-			399			-			399
(Loss) income from unconsolidated joint ventures		(1,106)			9,043			2,334			18,248
Income before income taxes		339			26,530			29,041			66,393
Provision for income taxes		934			6,804			8,777			18,476
Net (loss) income		(595)			19,726			20,264			47,917
Less: net (loss) income attributable to noncontrolling interest		(311)			-			(311)			-
Net (loss) income attributable to Hovnanian Enterprises, Inc.		(284)			19,726			20,575			47,917
Less: preferred stock dividends		2,669			2,669			5,338			5,338
Net (loss) income available to common stockholders	$	(2,953)		$	17,057		$	15,237		$	42,579
Per share data:
Basic:
Net (loss) income per common share	$	(0.46)		$	2.64		$	2,36		$	6.53
Weighted-average number of common shares outstanding		6,416			6,411			6,453			6,464
Assuming dilution:
Net (loss) income per common share	$	(0.46)		$	2.43		$	2.20		$	6.02
Weighted-average number of common shares outstanding		6,416			6,951			6,909			7,011
(1) Includes $26.8 million gain on consolidation of joint ventures for the six months ended April 30, 2026, and $22.7 million gain on contribution of assets to a joint venture for the six months ended April 30, 2025, respectively.

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
		April 30,								April 30,								April 30,
		2026			2025			% Change		2026			2025			% Change		2026			2025			% Change
Northeast
(DE, MD, NJ, OH, PA, VA, WV)	Home		539			497		8.5	%		386			450		(14.2	)%		775			824		(5.9	)%
	Dollars	$	299,449		$	261,796		14.4	%	$	216,714		$	256,415		(15.5	)%	$	451,132		$	506,850		(11.0	)%
	Avg. Price	$	555,564		$	526,753		5.5	%	$	561,435		$	569,811		(1.5	)%	$	582,106		$	615,109		(5.4	)%
Southeast
(FL, GA, SC)	Home		166			168		(1.2	)%		149			153		(2.6	)%		212			266		(20.3	)%
	Dollars	$	81,333		$	83,871		(3.0	)%	$	73,193		$	74,603		(1.9	)%	$	120,014		$	155,904		(23.0	)%
	Avg. Price	$	489,958		$	499,232		(1.9	)%	$	491,228		$	487,601		0.7	%	$	566,104		$	586,105		(3.4	)%
West
(AZ, CA, TX)	Home		707			733		(3.5	)%		599			682		(12.2	)%		626			621		0.8	%
	Dollars	$	379,146		$	360,952		5.0	%	$	314,281		$	319,296		(1.6	)%	$	367,249		$	325,472		12.8	%
	Avg. Price	$	536,274		$	492,431		8.9	%	$	524,676		$	468,176		12.1	%	$	586,660		$	524,110		11.9	%
Domestic Subtotal
	Home		1,412			1,398		1.0	%		1,134			1,285		(11.8	)%		1,613			1,711		(5.7	)%
	Dollars	$	759,928		$	706,619		7.5	%	$	604,188		$	650,314		(7.1	)%	$	938,395		$	988,226		(5.0	)%
	Avg. Price	$	538,193		$	505,450		6.5	%	$	532,794		$	506,081		5.3	%	$	581,770		$	577,572		0.7	%
HOV Global (2)
(Kingdom of Saudi Arabia)	Home		19			0		0.0	%		0			0		0.0	%		765			0		0.0	%
	Dollars	$	4,497		$	0		0.0	%	$	0		$	0		0.0	%	$	185,964		$	0		0.0	%
	Avg. Price	$	236,684		$	0		0.0	%	$	0		$	0		0.0	%	$	243,090		$	0		0.0	%
Consolidated Total
	Home		1,431			1,398		2.4	%		1,134			1,285		(11.8	)%		2,378			1,711		39.0	%
	Dollars	$	764,425		$	706,619		8.2	%	$	604,188		$	650,314		(7.1	)%	$	1,124,359		$	988,226		13.8	%
	Avg. Price	$	534,189		$	505,450		5.7	%	$	532,794		$	506,081		5.3	%	$	472,817		$	577,572		(18.1	)%
Unconsolidated Joint Ventures (2) (3)
(excluding KSA JV)	Home		255			231		10.4	%		181			207		(12.6	)%		404			427		(5.4	)%
	Dollars	$	178,319		$	149,477		19.3	%	$	125,914		$	144,495		(12.9	)%	$	291,763		$	299,857		(2.7	)%
	Avg. Price	$	699,290		$	647,087		8.1	%	$	695,657		$	698,043		(0.3	)%	$	722,186		$	702,241		2.8	%
Grand Total
	Home		1,686			1,629		3.5	%		1,315			1,492		(11.9	)%		2,782			2,138		30.1	%
	Dollars	$	942,744		$	856,096		10.1	%	$	730,102		$	794,809		(8.1	)%	$	1,416,122		$	1,288,083		9.9	%
	Avg. Price	$	559,160		$	525,535		6.4	%	$	555,211		$	532,714		4.2	%	$	509,030		$	602,471		(15.5	)%
KSA JV Only
	Home		0			95		(100.0	)%		0			0		0.0	%		0			569		(100.0	)%
	Dollars	$	0		$	24,660		(100.0	)%	$	0		$	0		0.0	%	$	0		$	139,292		(100.0	)%
	Avg. Price	$	0		$	259,579		(100.0	)%	$	0		$	0		0.0	%	$	0		$	244,801		(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) In the first quarter of fiscal 2026, we acquired a controlling financial interest in a previously unconsolidated joint venture in the Kingdom of Saudi Arabia ("KSA"). (3) 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 “(Loss) income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA EXCLUDES UNCONSOLIDATED JOINT VENTURES)
		Contracts (1)								Deliveries								Contract
		Six Months Ended								Six Months Ending								Backlog
		April 30,								April 30,								April 30,
		2026			2025			% Change		2026			2025			% Change		2026			2025			% Change
Northeast (2) (3)
(DE, MD, NJ, OH, PA, VA, WV)	Home		951			937		1.5	%		803			895		(10.3	)%		775			824		(5.9	)%
	Dollars	$	525,909		$	513,432		2.4	%	$	456,516		$	538,063		(15.2	)%	$	451,132		$	506,850		(11.0	)%
	Avg. Price	$	553,006		$	547,953		0.9	%	$	568,513		$	601,188		(5.4	)%	$	582,106		$	615,109		(5.4	)%
Southeast (3)
(FL, GA, SC)	Home		348			304		14.5	%		307			277		10.8	%		212			266		(20.3	)%
	Dollars	$	172,673		$	159,970		7.9	%	$	147,424		$	126,040		17.0	%	$	120,014		$	155,904		(23.0	)%
	Avg. Price	$	496,187		$	526,217		(5.7	)%	$	480,208		$	455,018		5.5	%	$	566,104		$	586,105		(3.4	)%
West (2) (4)
(AZ, CA, TX)	Home		1,355			1,362		(0.5	)%		1,123			1,367		(17.8	)%		626			621		0.8	%
	Dollars	$	726,181		$	676,484		7.3	%	$	576,007		$	633,125		(9.0	)%	$	367,249		$	325,472		12.8	%
	Avg. Price	$	535,927		$	496,684		7.9	%	$	512,918		$	463,149		10.7	%	$	586,660		$	524,110		11.9	%
Domestic Subtotal
	Home		2,654			2,603		2.0	%		2,233			2,539		(12.1	)%		1,613			1,711		(5.7	)%
	Dollars	$	1,424,763		$	1,349,886		5.5	%	$	1,179,947		$	1,297,228		(9.0	)%	$	938,395		$	988,226		(5.0	)%
	Avg. Price	$	536,836		$	518,589		3.5	%	$	528,413		$	510,921		3.4	%	$	581,770		$	577,572		0.7	%
HOV Global (5)
(Kingdom of Saudi Arabia)	Home		19			0		0.0	%		0			0		0.0	%		765			0		0.0	%
	Dollars	$	4,497		$	0		0.0	%	$	0		$	0		0.0	%	$	185,964		$	0		0.0	%
	Avg. Price	$	236,684		$	0		0.0	%	$	0		$	0		0.0	%	$	243,090		$	0		0.0	%
Consolidated Total
	Home		2,673			2,603		2.7	%		2,233			2,539		(12.1	)%		2,378			1,711		39.0	%
	Dollars	$	1,429,260		$	1,349,886		5.9	%	$	1,179,947		$	1,297,228		(9.0	)%	$	1,124,359		$	988,226		13.8	%
	Avg. Price	$	534,703		$	518,589		3.1	%	$	528,413		$	510,921		3.4	%	$	472,817		$	577,572		(18.1	)%
Unconsolidated Joint Ventures
(excluding KSA JV)	Home		378			426		(11.3	)%		299			404		(26.0	)%		404			427		(5.4	)%
(2) (3) (4) (6)	Dollars	$	260,465		$	276,962		(6.0	)%	$	198,305		$	276,271		(28.2	)%	$	291,763		$	299,857		(2.7	)%
	Avg. Price	$	689,061		$	650,146		6.0	%	$	663,227		$	683,839		(3.0	)%	$	722,186		$	702,241		2.8	%
Grand Total
	Home		3,051			3,029		0.7	%		2,532			2,943		(14.0	)%		2,782			2,138		30.1	%
	Dollars	$	1,689,725		$	1,626,848		3.9	%	$	1,378,252		$	1,573,499		(12.4	)%	$	1,416,122		$	1,288,083		9.9	%
	Avg. Price	$	553,827		$	537,091		3.1	%	$	544,333		$	534,658		1.8	%	$	509,030		$	602,471		(15.5	)%
KSA JV Only
	Home		23			293		(92.2	)%		0			0		0.0	%		0			569		(100.0	)%
	Dollars	$	5,690		$	74,932		(92.4	)%	$	0		$	0		0.0	%	$	0		$	139,292		(100.0	)%
	Avg. Price	$	247,391		$	255,741		(3.3	)%	$	0		$	0		0.0	%	$	0		$	244,801		(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 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. (3) Includes 71 homes and $54.7 million and 49 homes and $32.9 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. (4) 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. (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 “(Loss) 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
		April 30,								April 30,								April 30,
		2026			2025			% Change		2026			2025			% Change		2026			2025			% Change
Northeast
(Unconsolidated Joint Ventures)	Home		125			138		(9.4	)%		112			117		(4.3	)%		245			303		(19.1	)%
(Excluding KSA JV)	Dollars	$	93,997		$	86,848		8.2	%	$	79,193		$	89,824		(11.8	)%	$	185,242		$	207,233		(10.6	)%
(DE, MD, NJ, OH, PA, VA, WV)	Avg. Price	$	751,976		$	629,333		19.5	%	$	707,080		$	767,726		(7.9	)%	$	756,090		$	683,937		10.5	%
Southeast
(Unconsolidated Joint Ventures)	Home		74			69		7.2	%		37			74		(50.0	)%		120			101		18.8	%
(FL, GA, SC)	Dollars	$	46,009		$	49,410		(6.9	)%	$	30,047		$	46,138		(34.9	)%	$	77,330		$	79,906		(3.2	)%
	Avg. Price	$	621,743		$	716,087		(13.2	)%	$	812,081		$	623,486		30.2	%	$	644,417		$	791,149		(18.5	)%
West
(Unconsolidated Joint Ventures)	Home		56			24		133.3	%		32			16		100.0	%		39			23		69.6	%
(AZ, CA, TX)	Dollars	$	38,313		$	13,219		189.8	%	$	16,674		$	8,533		95.4	%	$	29,191		$	12,718		129.5	%
	Avg. Price	$	684,161		$	550,792		24.2	%	$	521,063		$	533,313		(2.3	)%	$	748,487		$	552,957		35.4	%
Unconsolidated Joint Ventures (2) (3)
(Excluding KSA JV)	Home		255			231		10.4	%		181			207		(12.6	)%		404			427		(5.4	)%
	Dollars	$	178,319		$	149,477		19.3	%	$	125,914		$	144,495		(12.9	)%	$	291,763		$	299,857		(2.7	)%
	Avg. Price	$	699,290		$	647,087		8.1	%	$	695,657		$	698,043		(0.3	)%	$	722,186		$	702,241		2.8	%
KSA JV Only
	Home		0			95		(100.0	)%		0			0		0.0	%		0			569		(100.0	)%
	Dollars	$	0		$	24,660		(100.0	)%	$	0		$	0		0.0	%	$	0		$	139,292		(100.0	)%
	Avg. Price	$	0		$	259,579		(100.0	)%	$	0		$	0		0.0	%	$	0		$	244,801		(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) In the first quarter of fiscal 2026, we acquired a controlling financial interest in a previously unconsolidated joint venture in the Kingdom of Saudi Arabia ("KSA"). (3) 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 “(Loss) income from unconsolidated joint ventures”.

HOVNANIAN ENTERPRISES, INC.
(DOLLARS IN THOUSANDS EXCEPT AVG. PRICE)
(SEGMENT DATA UNCONSOLIDATED JOINT VENTURES ONLY)
		Contracts (1)								Deliveries								Contract
		Six Months Ended								Six Months Ended								Backlog
		April 30,								April 30,								April 30,
		2026			2025			% Change		2026			2025			% Change		2026			2025			% Change
Northeast (2) (3)
(Unconsolidated Joint Ventures)	Home		197			255		(22.7	)%		183			226		(19.0	)%		245			303		(19.1	)%
(Excluding KSA JV)	Dollars	$	143,641		$	165,577		(13.2	)%	$	123,005		$	170,714		(27.9	)%	$	185,242		$	207,233		(10.6	)%
(DE, MD, NJ, OH, PA, VA, WV)	Avg. Price	$	729,142		$	649,322		12.3	%	$	672,158		$	755,372		(11.0	)%	$	756,090		$	683,937		10.5	%
Southeast (3)
(Unconsolidated Joint Ventures)	Home		107			136		(21.3	)%		65			153		(57.5	)%		120			101		18.8	%
(FL, GA, SC)	Dollars	$	69,434		$	92,400		(24.9	)%	$	47,978		$	92,986		(48.4	)%	$	77,330		$	79,906		(3.2	)%
	Avg. Price	$	648,916		$	679,412		(4.5	)%	$	738,123		$	607,752		21.5	%	$	644,417		$	791,149		(18.5	)%
West (2) (4)
(Unconsolidated Joint Ventures)	Home		74			35		111.4	%		51			25		104.0	%		39			23		69.6	%
(AZ, CA, TX)	Dollars	$	47,390		$	18,985		149.6	%	$	27,322		$	12,571		117.3	%	$	29,191		$	12,718		129.5	%
	Avg. Price	$	640,405		$	542,429		18.1	%	$	535,725		$	502,840		6.5	%	$	748,487		$	552,957		35.4	%
Unconsolidated Joint Ventures
(Excluding KSA JV)	Home		378			426		(11.3	)%		299			404		(26.0	)%		404			427		(5.4	)%
(2)(3) (4) (5)	Dollars	$	260,465		$	276,962		(6.0	)%	$	198,305		$	276,271		(28.2	)%	$	291,763		$	299,857		(2.7	)%
	Avg. Price	$	689,061		$	650,146		6.0	%	$	663,227		$	683,839		(3.0	)%	$	722,186		$	702,241		2.8	%
KSA JV Only
	Home		23			293		(92.2	)%		0			0		0.0	%		0			569		(100.0	)%
	Dollars	$	5,690		$	74,932		(92.4	)%	$	0		$	0		0.0	%	$	0		$	139,292		(100.0	)%
	Avg. Price	$	247,391		$	255,741		(3.3	)%	$	0		$	0		0.0	%	$	0		$	244,801		(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 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. (3) Includes 71 homes and $54.7 million and 49 homes and $32.9 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. (4) 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. (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 “(Loss) income from unconsolidated joint ventures”.

FAQ

How did Hovnanian (NYSE:HOV) perform in fiscal Q2 2026?

Hovnanian posted Q2 2026 revenue of $667.6 million and a net loss of $0.6 million. According to Hovnanian, adjusted EBITDA was $41.1 million, while income before income taxes was $0.3 million, both lower than the prior-year quarter but with margins improving sequentially.

What guidance did Hovnanian (HOV) provide for fiscal Q3 2026?

For Q3 2026, Hovnanian expects revenue between $650 million and $750 million. According to Hovnanian, adjusted homebuilding gross margin is projected at 14.0%–15.0%, adjusted income before income taxes between breakeven and $10 million, and adjusted EBITDA between $30 million and $40 million.

How did Hovnanian’s (HOV) gross margins change in Q2 2026?

Homebuilding gross margin before interest and land charges was 14.3% in Q2 2026. According to Hovnanian, this exceeded the high end of guidance and improved sequentially, though it declined from 17.3% in the prior-year quarter, reflecting ongoing normalization from a first-quarter trough.

What were Hovnanian’s liquidity and share repurchases in Q2 2026?

Total liquidity reached $442 million as of April 30, 2026, significantly above the $170–$245 million target range. According to Hovnanian, the company also repurchased 90,507 shares of common stock for $9.5 million, at an average price of $104.60 during the quarter.

How did Hovnanian’s (HOV) contracts and backlog trend in Q2 2026?

Total domestic contracts including joint ventures increased 2.3% to 1,667 homes and $938.2 million. According to Hovnanian, domestic contract backlog including joint ventures declined 4.5% to $1.23 billion, partly reflecting higher sales of quick move-in homes with shorter backlog duration.

What happened to Hovnanian’s QMI inventory in fiscal Q2 2026?

Total domestic quick move-in homes fell to 731 units, down 31.9% year over year. According to Hovnanian, finished QMIs declined to 137, a 54.9% drop, illustrating efforts to better align housing starts with sales pace and reduce speculative inventory levels.

How did Hovnanian’s (HOV) profitability compare year over year in early fiscal 2026?

For the first six months of fiscal 2026, net income was $20.3 million, versus $47.9 million a year earlier. According to Hovnanian, income before income taxes fell to $29.0 million, and adjusted EBITDA declined to $104.2 million from $133.4 million in the prior-year period.