Hovnanian (HOV) Q1 2026 results show margin pressure but strong liquidity

Rhea-AI Filing Summary

Hovnanian Enterprises reported softer year-over-year results but met or exceeded all guidance metrics for its fiscal first quarter ended January 31, 2026. Total revenues were $631.9 million versus $673.6 million a year ago, while homebuilding gross margin fell to 10.1% from 15.2%.

Net income was $20.9 million, or $2.62 per diluted share, compared with $28.2 million, or $3.58 per diluted share, in the prior-year quarter. Adjusted EBITDA was $63.1 million, above the high end of guidance but below $72.1 million last year.

Consolidated domestic contracts rose 3.1% to 1,242 homes, though total contracts including unconsolidated joint ventures declined 2.5%. Contract backlog dollars, including joint ventures, decreased about 16% to $1.02 billion, while total liquidity was strong at $471.4 million, well above the company’s $170–$245 million target range.

For the second quarter of fiscal 2026, the company expects revenues between $625 million and $725 million, adjusted homebuilding gross margin of 13.0%–14.0%, adjusted income before income taxes between breakeven and $10 million, and adjusted EBITDA of $30 million–$40 million.

Insights

Equity analyst – homebuilders

Q1 profit and margins declined year over year, but guidance was achieved and liquidity remains strong.

Hovnanian’s Q1 revenue slipped to $631.9M from $673.6M, and GAAP homebuilding gross margin compressed from 15.2% to 10.1%, reflecting a tougher pricing and cost backdrop. Net income fell to $20.9M, and adjusted EBITDA declined to $63.1M, though it exceeded the high end of management’s guidance.

Orders showed mixed trends: consolidated domestic contracts grew 3.1% in units, but when including unconsolidated joint ventures, contracts and backlog dollars both declined about mid-teens percentages versus a year ago. Management noted increased sales of quick move-in homes as one factor behind the lower backlog dollars.

Balance sheet flexibility is a relative strength, with total liquidity at $471.4M, far above the $170M–$245M target range. For Q2 FY26, the company guides to revenue of $625M–$725M, modest adjusted pre-tax income of up to $10M, and adjusted EBITDA of $30M–$40M. Management commentary points to expectations for stronger adjusted pre-tax earnings in the second half of fiscal 2026, especially in the fourth quarter, supported by higher-margin newer communities and improved contract activity in January and February.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 25, 2026

HOVNANIAN ENTERPRISES, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation) 1-8551 (Commission File Number) 22-1851059 (IRS Employer Identification No.)

90 Matawan Road, Fifth Floor

Matawan, New Jersey 07747

(Address of Principal Executive Offices) (Zip Code)

(732) 747-7800

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since
Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock $0.01 par value per share	HOV	New York Stock Exchange
Preferred Stock Purchase Rights (1)	N/A	New York Stock Exchange
Depositary Shares each representing 1/1,000th of a share of 7.625% Series A Preferred Stock	HOVNP	The Nasdaq Stock Market LLC

(1) Each share of Class A Common Stock includes an associated Preferred Stock Purchase Right. Each Preferred Stock Purchase Right initially represents the right, if such Preferred Stock Purchase Right becomes exercisable, to purchase from the Company one ten-thousandth of a share of its Series B Junior Preferred Stock for each share of Common Stock. The Preferred Stock Purchase Rights currently cannot trade separately from the underlying Common Stock.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 25, 2026, Hovnanian Enterprises, Inc. (the “Company”) issued a press release announcing its preliminary financial results for the fiscal first quarter ended January 31, 2026. A copy of the press release is attached as Exhibit 99.1.

The information in this Current Report on Form 8-K and the Exhibit attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

The attached earnings press release contains information about the following non-GAAP financial measures (collectively, the “Non-GAAP 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”), which are non-GAAP financial measures. The most directly comparable GAAP financial measure for EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA is net income (loss). Management believes EBIT, Adjusted EBITDA and EBITDA to be relevant and useful information as EBIT, Adjusted EBITDA and EBITDA are standard measures commonly reported and widely used by analysts, investors and others to measure and benchmark the Company’s financial performance without the effects of various items the Company does not believe are characteristic of its ongoing operating performance. EBIT, Adjusted EBITDA and EBITDA do not take into account substantial costs of doing business, such as income taxes and interest expense.
• 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, which are non-GAAP financial measures. The most directly comparable GAAP financial measures are homebuilding gross margin and homebuilding gross margin percentage, respectively. Management believes homebuilding gross margin, before cost of sales interest expense and land charges, enables investors to better understand the Company’s operating performance. This measure is also useful internally, helping management to evaluate the Company’s operating results on a consolidated basis and relative to other companies in the Company’s industry. In particular, the magnitude and volatility of land charges for the Company, and for other homebuilders, have been significant and, as such, have made financial analysis of the Company’s industry more difficult. Homebuilding metrics excluding land charges, as well as interest amortized to cost of sales, and other similar presentations prepared by analysts and other companies are frequently used to assist investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies’ respective levels of impairments and levels of debt.
• Adjusted income before income taxes, which is defined as income (loss) before income taxes excluding land-related charges, which is a non-GAAP financial measure. The most directly comparable GAAP financial measure is income (loss) before income taxes. Management believes adjusted income before taxes to be relevant and useful information because it provides a better metric of the Company’s operating performance.
• 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”), which is a non-GAAP financial measure. The most directly comparable GAAP financial measure is total inventories. Management believes Adjusted Investment to be relevant and useful information because it more accurately reflects inventory owned (whether directly or through joint ventures) by the Company and excludes inventory that is off-balance sheet in nature, such as inventory subject to land banking transactions.
• The ratio of Adjusted EBIT return on 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 and is a non-GAAP financial measure. The most directly comparable GAAP financial measure is the ratio of net income (loss) to total inventory. Management believes Adjusted EBIT ROI to be relevant and useful information because it is a measure of operational performance irrespective of the capital structure of the Company and as calculated, is reflective of the longer-term period required to build and sell homes in the homebuilding industry.

Reconciliations for historical periods of the Non-GAAP Measures are contained in the earnings press release. The Non-GAAP Measures should be considered in addition to, but not as a substitute for, their respective most directly comparable financial measures (on a historical period, trailing twelve-month period or five-quarter average basis, as applicable) prepared in accordance with accounting principles generally accepted in the United States that are presented on the financial statements included in the Company’s reports filed with the Securities and Exchange Commission. Additionally, the Company’s calculations of the Non-GAAP Measures may be different than the respective calculations used by other companies, and, therefore, comparability may be affected.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 99.1	Earnings Press Release - Fiscal First Quarter Ended January 31, 2026.
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HOVNANIAN ENTERPRISES, INC.
	(Registrant)
	By:	/s/ Brad G. O’Connor
		Name: Brad G. O’Connor
		Title: Chief Financial Officer

Date: February 25, 2026

Exhibit 99.1

HOVNANIAN ENTERPRISES, INC. News Release

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

HOVNANIAN ENTERPRISES REPORTS FISCAL 2026 FIRST QUARTER RESULTS

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, NJ, February 25, 2026 – 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.

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• 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.

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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.”

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“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.

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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.

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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.

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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.

7

  

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.

8

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.

9

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.

10

  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

11

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.

12

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”.

13

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”.

14

FAQ

How did Hovnanian Enterprises (HOV) perform in fiscal Q1 2026?

Hovnanian generated $631.9 million in total revenues in fiscal Q1 2026, down from $673.6 million a year earlier. Net income was $20.9 million, or $2.62 per diluted share, compared with $28.2 million, or $3.58 per diluted share, in the prior-year quarter.

What were Hovnanian Enterprises’ margins and EBITDA in Q1 2026?

Homebuilding gross margin was 10.1% in Q1 2026, down from 15.2% a year earlier, while homebuilding gross margin before interest and land charges was 13.4%. EBITDA was $60.7 million and adjusted EBITDA was $63.1 million, versus $71.0 million and $72.1 million, respectively, in the prior-year period.

How did Hovnanian Enterprises’ orders and backlog change year over year?

Consolidated domestic contracts increased 3.1% to 1,242 homes, but total contracts including unconsolidated joint ventures declined 2.5% year over year. The dollar value of domestic contract backlog including joint ventures fell 16.7% to $1.02 billion, partly reflecting higher sales of quick move-in homes with shorter backlog duration.

What is Hovnanian Enterprises’ liquidity position as of January 31, 2026?

Total liquidity was $471.4 million as of January 31, 2026, significantly above the company’s stated target range of $170 million to $245 million. This consisted of $339.9 million of cash and cash equivalents, $6.5 million of restricted cash, and $125.0 million available under a senior secured revolving credit facility.

What guidance did Hovnanian Enterprises provide for Q2 fiscal 2026?

For Q2 fiscal 2026, Hovnanian expects total revenues between $625 million and $725 million, adjusted homebuilding gross margin between 13.0% and 14.0%, adjusted income before income taxes between breakeven and $10 million, and adjusted EBITDA between $30 million and $40 million, assuming stable market conditions.

How is Hovnanian Enterprises’ return on investment trending?

For the trailing twelve months ended January 31, 2026, net income return on inventory was 3.4%, while adjusted EBIT return on adjusted investment was 17.2%. Management states it believes this Adjusted EBIT ROI ranks second among nine publicly traded midsized homebuilder peers over the most recently reported trailing twelve-month periods.

What strategic or operational changes did Hovnanian make in Q1 2026?

On January 1, 2026, Hovnanian acquired a controlling interest in a previously unconsolidated joint venture in the Kingdom of Saudi Arabia, bringing those results into consolidated reporting. The company also continued its land-light strategy, with 86% of domestic lots optioned and approximately 2,100 lots put under option or acquired in Q1.

Filing Exhibits & Attachments

6 documents

Press Releases

• EX-991 EXHIBIT 99.1 1.0 MB

Other Documents

• EX-101 DEFINITION 19.4 KB
• EX-101 PRESENTATION 18.9 KB
• EX-101 CALCULATION 984 B
• EX-101 LABEL 24.6 KB
• EX-101 SCHEMA 4.4 KB