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

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