Hovnanian Enterprises reported Q1 FY2026 results, with total revenues of USD 632.0 million (-6.2% YoY) and net income of USD 20.9 million (-26% YoY), or USD 2.62 per diluted share. Income before income taxes was USD 28.7 million (-28% YoY), while EBITDA was USD 60.7 million (-14.5% YoY) and adjusted EBITDA was USD 63.1 million (-12.5% YoY). Homebuilding gross margin was 10.1% (down from 15.2% a year earlier), and homebuilding gross margin before cost of sales interest expense and land charges was 13.4% (down from 18.3%). Total SG&A was USD 84.0 million (13.3% of total revenues), and total liquidity was USD 471.4 million as of Jan. 31, 2026. In operating metrics, consolidated domestic contracts increased 3.1% YoY to 1,242 homes (USD 664.8 million), while domestic contracts including unconsolidated joint ventures decreased 2.5% to 1,365 homes (USD 747.0 million). Consolidated domestic communities rose 4.8% YoY to 131. Domestic backlog (dollar value) decreased 16.0% YoY to USD 782.7 million (USD 1.02 billion including unconsolidated joint ventures, -16.7%), which the company said was partly due to increased sales of quick move-in homes that remain in backlog for a short period. The gross domestic contract cancellation rate was 14% (down from 16% a year earlier). Management also cited improved contract activity, with consolidated domestic contracts including unconsolidated joint ventures up 11.3% YoY in January 2026 and up 13.1% YoY month-to-date through Feb. 23, 2026. For corporate updates, Hovnanian said it acquired a controlling interest on Jan. 1, 2026 in a previously unconsolidated joint venture in the Kingdom of Saudi Arabia, with KSA results included in consolidated results beginning in Q1 FY2026. Looking ahead, the company guided for Q2 FY2026 total revenues of USD 625 million to USD 725 million, adjusted homebuilding gross margin of 13.0% to 14.0%, adjusted income before income taxes of breakeven to USD 10 million, and adjusted EBITDA of USD 30 million to USD 40 million.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Hovnanian Enterprises Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: 202602250915PRIMZONEFULLFEED9661082) on February 25, 2026, and is solely responsible for the information contained therein.
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