Hovnanian Enterprises, Inc. Earnings Recaps
Q1 2026
Feb 25, 2026
Hovnanian Enterprises reported first-quarter revenues of $632 million, meeting guidance expectations despite challenges in the housing market. Adjusted EBITDA and pretax income significantly exceeded forecasts, driven by strategic management of incentives.
Key takeaways
- Total revenues decreased by 6% year-over-year, primarily due to a 12% reduction in home deliveries.
- Adjusted gross margin was 13.4%, marginally below expectations, influenced by increased sales incentives costing 12.6% of average sales prices.
- Adjusted EBITDA reached $63 million, surpassing guidance, while adjusted pretax income hit $31 million, also exceeding forecasts.
- SG&A expenses decreased in absolute terms but rose as a percentage of revenue due to lower sales, reflecting ongoing investments in technology and processes.
- The company successfully maintained a steady sales pace, with only a minor decrease in contract signings amidst a challenging market environment.
Q4 2025
Dec 4, 2025
Hovnanian Enterprises reported Q4 fiscal 2025 revenues of $818 million, exceeding guidance despite a challenging housing market, primarily driven by increased incentives to maintain sales pace.
Key takeaways
- Revenues declined 17% year-over-year, influenced by a 13% drop in deliveries and absence of a significant prior land sale.
- Adjusted gross margin of 16.3% reflects higher incentives, particularly mortgage rate buy downs, accounting for 12.2% of average sales price.
- Income from unconsolidated joint ventures reached $13 million, slightly above expectations, supporting overall profitability.
- Sales contracts fell 8% year-over-year, indicating difficult comparisons with the previous year's strong performance amid economic uncertainties.