Hovnanian Q1 revenue declines; forecasts Q2 revenue $625 mln-$725 mln

Reuters02-25
Hovnanian Q1 revenue declines; forecasts <a href="https://laohu8.com/S/QTWO">Q2</a> revenue $625 mln-$725 mln

Overview

  • Homebuilder's fiscal Q1 revenue declined yr/yr

  • Net income for fiscal Q1 fell yr/yr

  • Company acquired controlling interest in Saudi Arabia joint venture

Outlook

  • Company expects Q2 fiscal 2026 revenue between $625 mln and $725 mln

  • Hovnanian anticipates adjusted EBITDA of $30 mln to $40 mln in Q2 fiscal 2026

  • Company forecasts adjusted homebuilding gross margin of 13.0% to 14.0% for Q2 fiscal 2026

Result Drivers

  • DOMESTIC CONTRACT GROWTH - Domestic contracts, including joint ventures, increased 11% in January and 13% in February year-over-year

  • COMMUNITY EXPANSION - Number of consolidated domestic communities increased by 4.8% year-over-year

  • GROSS MARGIN DECLINE - Homebuilding gross margin percentage decreased due to higher costs

Company press release: ID:nGNX6bW0RS

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

$631.95 mln

Q1 EPS

$2.62

Q1 Net Income

$20.86 mln

Q1 EBITDA

$60.70 mln

Q1 Pretax Profit

$28.70 mln

Analyst Coverage

  • Wall Street's median 12-month price target for Hovnanian Enterprises Inc is $120.00, about 2.4% below its February 24 closing price of $122.89

  • The stock recently traded at 165 times the next 12-month earnings vs. a P/E of 707 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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