Hovnanian Enterprises Inc
NYSE:HOV
Hovnanian Enterprises Inc
Hovnanian Enterprises, Inc. is a homebuilding company, which engages in the design, construction, and marketing of single-family attached town homes and condominiums, urban infill, and planned residential developments. The company is headquartered in Matawan, New Jersey and currently employs 1,784 full-time employees. Its segment includes Homebuilding and Financial services. The Homebuilding segment consists of six segments: Northeast: New Jersey and Pennsylvania; Mid-Atlantic: Delaware, Maryland, Virginia, Washington D.C. and West Virginia; Midwest: Illinois and Ohio; Southeast: Florida, Georgia and South Carolina; Southwest: Arizona and Texas; and West: California. The operation of Homebuilding segments include the sale and construction of single-family attached and detached homes, attached town homes and condominiums, urban infill and active lifestyle homes in planned residential developments. The company also includes sales of land. The Financial services segment provides mortgage banking and title services to the homebuilding operations customers. Its residential development activities include site planning and engineering, obtaining environmental and other regulatory approvals.
Hovnanian Enterprises, Inc. is a homebuilding company, which engages in the design, construction, and marketing of single-family attached town homes and condominiums, urban infill, and planned residential developments. The company is headquartered in Matawan, New Jersey and currently employs 1,784 full-time employees. Its segment includes Homebuilding and Financial services. The Homebuilding segment consists of six segments: Northeast: New Jersey and Pennsylvania; Mid-Atlantic: Delaware, Maryland, Virginia, Washington D.C. and West Virginia; Midwest: Illinois and Ohio; Southeast: Florida, Georgia and South Carolina; Southwest: Arizona and Texas; and West: California. The operation of Homebuilding segments include the sale and construction of single-family attached and detached homes, attached town homes and condominiums, urban infill and active lifestyle homes in planned residential developments. The company also includes sales of land. The Financial services segment provides mortgage banking and title services to the homebuilding operations customers. Its residential development activities include site planning and engineering, obtaining environmental and other regulatory approvals.
Revenue: First quarter revenue reached $632 million, near the high end of guidance but down 6% year-over-year due to fewer home deliveries.
Margins: Adjusted gross margin was 13.4%, within guidance but down year-over-year because of higher incentives, especially mortgage rate buydowns.
Profitability: Adjusted EBITDA of $63 million and adjusted pretax income of $31 million both significantly exceeded guidance, though profit declined 24% year-over-year.
Demand & Incentives: Incentives were required to maintain sales pace, with incentives at 12.6% of average sales price, up 290 bps YoY, but increases are starting to level off.
Sales Pace: Contracts per community remained steady, and buyer traffic rose, with January contracts up 11% YoY and February up 13% month-to-date.
Inventory: Quick move-in home (QMI) inventory declined for a fourth straight quarter, and the backlog conversion ratio reached 88%, a record high.
Guidance: Q2 revenue guidance is $625–725 million, with gross margin expected to improve in the second half of 2026 as higher-margin communities come online.
