Group 1 - Hovnanian Enterprises, Inc. will host a fireside chat at J.P. Morgan's 2026 Global Leveraged Finance Conference on March 2, 2026, at 11:00 am ET [1] - The presentation will be available via live webcast on Hovnanian's Investor Relations website, with an archive accessible later for those unable to attend live [2] - Hovnanian Enterprises, Inc. is one of the largest homebuilders in the U.S., operating in multiple states and marketing homes under the K. Hovnanian Homes brand [3] Group 2 - The company was founded in 1959 and is headquartered in Matawan, New Jersey, with significant operations across various states including Arizona, California, and Texas [3] - Hovnanian is also a major builder of active lifestyle communities through its subsidiaries [3] - Additional investor information can be found on the company's website, and interested parties can join the investor email list [4]

Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a decrease of 6% year-over-year, primarily due to a 12% reduction in home deliveries [6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecast [6][7] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][19] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly, with January showing a 40% year-over-year increase, indicating improved buyer engagement [11] - Contracts in February 2026 were up 13% compared to the prior year, suggesting a positive trend in sales activity [12] Company Strategy and Development Direction - The company is focused on maintaining a steady sales pace and efficiently turning over existing inventory while preparing for new land opportunities that promise improved margins [10][20] - The strategy includes prioritizing the acquisition of land for move-up homes in prime locations and expanding active adult communities, moving away from lower-margin developments [20][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market but expressed confidence in meeting homebuyer demand and improving profitability in the latter half of 2026 [36][39] - The company expects adjusted pre-tax income to improve in the second half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] Other Important Information - The company ended the quarter with $471 million in liquidity, which is above target, and has significantly reduced net debt while increasing equity [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while built-to-order sales have increased, reflecting market demand rather than a strategic shift [44]

Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a 6% decrease compared to the previous year, primarily due to a 12% reduction in home deliveries [5][6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecasted ranges [6][7] - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] Business Line Data and Key Metrics Changes - The company delivered 12% fewer homes year-over-year, impacting total revenues, but a land sale helped offset some of the decline [6][7] - Incentives accounted for 12.6% of the average sales price, with a significant increase in mortgage rate buydowns contributing to affordability challenges [8][15] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][17] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly in five of the six months shown, with January showing a 40% increase year-over-year [11] - Contracts in February 2026 were up 13% compared to the prior year, indicating a positive trend in buyer engagement [12] - The company experienced fluctuations in contracts over the past 12 months, with January showing an 11% year-over-year gain [11][12] Company Strategy and Development Direction - The company is focused on efficiently turning over existing inventory and advancing sales of Quick Move-in homes while preparing for new land opportunities that promise improved margins [10][20] - A shift in land acquisition strategy is underway, moving away from lower-margin entry-level homes to more move-up homes in prime locations and active adult communities [20][27] - The company aims to maintain a disciplined approach to land management, walking away from less attractive opportunities and focusing on higher-margin developments [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market, including affordability pressures and economic uncertainties, but expressed confidence in meeting homebuyer demand [36][39] - The expectation for adjusted pre-tax income is to improve in the latter half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] - The company remains committed to sustainable growth and value for shareholders, with a focus on inventory efficiency and land-light operations [39][40] Other Important Information - The company ended the quarter with $471 million in liquidity, above target, and has seen a significant reduction in net debt [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] - The company is only providing financial guidance for the next quarter due to current market volatility and challenges in predicting margins [31] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while demand for built-to-order homes has been increasing, which is beneficial due to higher profit margins [44]

Financial Data and Key Metrics Changes - Total revenues for Q1 2026 reached $632 million, a 6% decrease compared to the previous year, primarily due to a 12% reduction in home deliveries [8][10] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA for the quarter was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecast [6][10] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][22][23] - The company delivered 12% fewer homes year-over-year, impacting overall revenues, but a land sale helped offset some of the decline [8][10] - Incentives accounted for 12.6% of the average sales price, with a significant increase in mortgage rate buydowns contributing to affordability challenges [9][15] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly in 5 of the 6 months leading up to January 2026, with January showing a 40% increase compared to the same month last year [12] - Contracts per community held steady at about 9.5 for the past 3 years, with February 2026 contracts on track to be higher than the same month last year [13][14] - The company experienced fluctuations in contracts over the past 12 months, with January showing an 11% year-over-year gain [12] Company Strategy and Development Direction - The company is focused on efficiently turning over existing inventory and advancing sales of Quick Move-in homes while preparing for new land opportunities that promise improved margins [11][21] - A shift in land acquisition strategy is noted, moving away from lower-margin entry-level homes to more move-up homes in prime locations and active adult communities [21][29] - The company aims to maintain a disciplined approach to land management, walking away from less attractive opportunities and focusing on higher-margin developments [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market, including affordability pressures and economic uncertainties, but expressed confidence in meeting homebuyer demand [38][41] - The expectation for adjusted pre-tax income is to improve in the latter half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [40][42] - The company remains committed to sustainable growth and value for shareholders, with a focus on inventory efficiency and land-light operations [42][43] Other Important Information - The company ended Q1 2026 with $471 million in liquidity, above target, despite significant spending on land and stock repurchases [29][30] - The net debt-to-capital ratio improved to 41.4%, a significant reduction from previous years, indicating stronger financial health [32] - The company expects to provide financial guidance for the next quarter only, reflecting the current market volatility [33] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [45][46] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - Quick Move-in sales dropped from 79% to 71%, not due to a strategic shift but rather market demand, with built-to-order homes showing higher profit margins [48][49]

Review of Financial Results First Quarter Fiscal 2026 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 exp ...

Financial Performance - Total revenues for the first quarter of fiscal 2026 were $632.0 million, down from $673.6 million in the same quarter last year[3]. - Net income for the first quarter was $20.9 million, or $2.62 per diluted share, compared to $28.2 million, or $3.58 per diluted share, in the prior year[3]. - Total revenues for the three months ended January 31, 2026, were $631.952 million, a decrease of 6.2% from $673.623 million in the same period of 2025[23]. - Net income available to common stockholders for the three months ended January 31, 2026, was $18.190 million, down 28.8% from $25.522 million in the prior year[23]. - Adjusted EBITDA for the first quarter was $63.1 million, exceeding the high end of the guidance range provided[3]. - Adjusted EBITDA for the three months ended January 31, 2026, was $63.081 million, a decrease of 12.4% from $72.074 million in the prior year[27]. - The company incurred interest expense of $28.749 million for the three months ended January 31, 2026, compared to $28.873 million in the same period of 2025[30]. - Income before income taxes excluding land-related charges for the three months ended January 31, 2026, was $31.061 million, down from $40.903 million in the prior year[24]. Homebuilding Operations - Domestic consolidated contracts increased by 3.1% to 1,242 homes, valued at $664.8 million, compared to 1,205 homes valued at $643.3 million in the prior year[4]. - Homebuilding gross margin percentage was 10.1% for the first quarter of fiscal 2026, down from 15.2% in the same quarter last year[3]. - Home deliveries decreased by 12.4% to 1,099 homes in the three months ended January 31, 2026, compared to 1,254 homes in the same period of 2025[40]. - Contracts signed during the three months ended January 31, 2026, totaled 1,365 homes, a decrease of 2.5% from 1,400 homes in the same period of 2025[40]. - The backlog of homes as of January 31, 2026, was valued at $964.122 million, an increase of 3.5% from $931.921 million in the prior year[40]. - The dollar value of consolidated domestic contract backlog decreased by 16.0% to $782.7 million compared to $931.9 million a year ago[4]. - The gross domestic contract cancellation rate for consolidated contracts improved to 14% from 16% in the prior year[4]. Liquidity and Assets - Total liquidity as of January 31, 2026, was $471.4 million, significantly above the target range of $170 million to $245 million[10]. - Total assets reached $2,734,676,000 as of January 31, 2026, up from $2,633,913,000 as of October 31, 2025[37]. - Total inventories as of January 31, 2026, amounted to $1,647,970,000, showing a slight increase from $1,637,470,000 as of October 31, 2025[37]. - Cash and cash equivalents increased to $339,910,000 as of January 31, 2026, compared to $272,772,000 as of October 31, 2025[37]. - Total liabilities decreased slightly to $1,897,042,000 as of January 31, 2026, from $1,802,978,000 as of October 31, 2025[37]. - The company’s retained earnings increased to $145,516,000 as of January 31, 2026, from $127,326,000 as of October 31, 2025[37]. - The total stockholders' equity for Hovnanian Enterprises, Inc. was $835,739,000 as of January 31, 2026, compared to $830,935,000 as of October 31, 2025[37]. Segment Performance - In the Northeast segment, home contracts decreased by 38.5% to 72 homes, while deliveries fell by 34.9% to 71 homes, with a backlog of 232 homes valued at $170.4 million, down 17.7%[46]. - The Southeast segment saw a 50.7% drop in home contracts to 33 homes and a 64.6% decline in deliveries to 28 homes, with a backlog of 83 homes valued at $61.4 million, down 21.7%[46]. - In the West segment, home contracts increased by 63.6% to 18 homes, and deliveries surged by 111.1% to 19 homes, with a backlog of 15 homes valued at $7.6 million, down 6.0%[46]. - Overall, unconsolidated joint ventures reported a 36.9% decrease in home contracts to 123 homes and a 40.1% decline in deliveries to 118 homes, with a backlog of 330 homes valued at $239.4 million, down 18.1%[46]. - The KSA joint venture experienced an 88.4% drop in home contracts to 23 homes and an 88.7% decline in revenue to $5.7 million, with no backlog reported[46]. Cost and Expenses - The cost of sales for homebuilding, excluding interest, was $509.631 million for the three months ended January 31, 2026, down from $533.290 million in the same period of 2025[39]. - Selling, general and administrative expenses decreased to $50.281 million in the three months ended January 31, 2026, from $54.253 million in the prior year[39]. - The company reported a homebuilding gross margin of $58.420 million for the three months ended January 31, 2026, down from $98.391 million in the same period of 2025[25]. - Land and lot sales gross margin for the three months ended January 31, 2026, was $23.470 million, significantly up from $1.663 million in the prior year[25]. - The company’s interest incurred to adjusted EBITDA ratio for the three months ended January 31, 2026, was 2.18, compared to 2.41 in the same period of 2025[27].

Core Insights - Hovnanian Enterprises, Inc. reported a 5% year-over-year increase in domestic consolidated communities and met or exceeded all guidance metrics for the fiscal first quarter ended January 31, 2026 [1][9] Financial Performance - Total revenues for the first quarter of fiscal 2026 were $632.0 million, down from $673.6 million in the same quarter of the previous year [2] - Homebuilding gross margin percentage after cost of sales interest expense and land charges was 10.1%, compared to 15.2% in the first quarter of the prior year [2] - Net income was $20.9 million, or $2.62 per diluted common share, compared to $28.2 million, or $3.58 per diluted common share, in the same period last year [2] - Adjusted EBITDA for the quarter was $63.1 million, exceeding the high end of the guidance range, compared to $72.1 million in the first quarter of the prior fiscal year [2][10] Sales and Contracts - Consolidated domestic contracts increased 3.1% to 1,242 homes valued at $664.8 million compared to 1,205 homes valued at $643.3 million in the same quarter last year [2] - The gross domestic contract cancellation rate for consolidated contracts was 14%, down from 16% in the fiscal 2025 first quarter [3] Liquidity and Inventory - Total liquidity as of January 31, 2026, was $471.4 million, significantly above the target liquidity range of $170 million to $245 million [10][20] - Total domestic controlled consolidated lots were 35,560, down from 43,254 lots at the end of the previous fiscal year's first quarter [10] Guidance and Outlook - For the second quarter of fiscal 2026, total revenues are expected to be between $625 million and $725 million, with adjusted homebuilding gross margin anticipated between 13.0% and 14.0% [7] - The company anticipates an increase in adjusted income before income taxes in the second half of fiscal 2026, supported by better contract activity observed in January and February [11]

Core Insights - Hovnanian Enterprises (HOV) operates in the residential homebuilding sector across 13 states in the US, divided into regions such as Northeast America, Southeast America, and Western America [1] Group 1 - The company has faced challenges in its business operations, indicating that recent performance has not been fruitful [1]

MATAWAN, N.J., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE: HOV), a leading national homebuilder, will release financial results for the first quarter ended January 31, 2026, the morning of Wednesday, February 25, 2026. The Company will webcast its first quarter earnings conference call at 11:30 a.m. (ET) on Wednesday, February 25, 2026. The conference call and accompanying slide presentation will be webcast live through the “Investor Relations” section of Hovnanian Enterprises’ webs ...

RIYADH, Saudi Arabia, Feb. 03, 2026 (GLOBE NEWSWIRE) -- K. Hovnanian M.E. Investments, LLC (KHME), a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV) and the majority shareholder of Al Tahaluf Real Estate Company, CJSC, has signed a Memorandum of Understanding (MoU) with the Tourism Development Fund (TDF) and Emaar, The Economic City (EEC) to enable high-quality tourism investment and lifestyle-focused residential opportunities in King Abdullah Economic City (KAEC). The parties signed the agreement dur ...