Q2 earnings highlight sharp swing back to profit

Howard Hughes Holdings (HHH) just reported second quarter 2026 results that marked a clear swing back to profit, with higher reported revenue and positive earnings replacing last year’s loss.

For the quarter ended June 30, 2026, the company reported sales of US$222.43 million compared with US$111.09 million a year earlier. Reported revenue was US$1,122.33 million versus US$260.88 million for the same quarter last year.

Net income for the quarter came in at US$158.37 million, compared with a net loss of US$12.14 million a year ago. Basic and diluted earnings per share from continuing operations were both US$2.68, compared with a basic and diluted loss per share of US$0.22 in the prior year period.

Looking at the first half of 2026, Howard Hughes Holdings reported sales of US$335.98 million, up from US$219.51 million a year earlier. Revenue for the six month period was US$1,358.24 million, compared with US$460.21 million in the prior year.

Six month net income was US$166.59 million, compared with a net loss of US$1.61 million a year ago. Basic and diluted earnings per share from continuing operations were US$2.82, versus a basic and diluted loss per share of US$0.03 in the same period last year.

Howard Hughes Holdings’ latest results land against a share price that has fallen 16.83% year to date and is down 9.02% over 30 days, while the 1 year total shareholder return is down 6.73%. This suggests recent momentum has been weak despite a modest 1.98% 90 day share price gain.

If this earnings swing has you rethinking where growth or income could come from next, it may be worth scanning other real asset focused companies through the 19 top founder-led companies

Howard Hughes Holdings has swung back to profit while the share price is still down this year. Is most of the recovery already reflected in the US$65.55 stock price, or does the valuation still point to upside potential?

Most Popular Narrative: 27.4% Undervalued

Howard Hughes Holdings last closed at $65.55, while the most followed narrative pegs fair value closer to $90.33. That gap rests heavily on how recurring income and efficiency play out from here.

Increasing proportion of recurring net operating income from stabilized office, retail, and multifamily properties, demonstrated by record NOI growth and high occupancy rates, will provide more predictable earnings streams, support higher net margins, and reduce financial volatility over the medium and long term.

Want to see what is driving that higher fair value for Howard Hughes Holdings? The narrative focuses on steady revenue gains, rising margins, and a valuation multiple that assumes meaningful compounding over several years.

Result: Fair Value of $90.33 (UNDERVALUED)

However, Howard Hughes Holdings still faces meaningful risks if the Vantage insurance acquisition underperforms or if concentration in a few master planned communities pressures future cash flows.

Next Steps

This mix of renewed profits and earlier share price weakness around Howard Hughes Holdings may feel conflicting, so it makes sense to check the numbers yourself and move quickly while sentiment is still forming. To see how current concerns and potential upsides stack up side by side, review the 5 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Howard Hughes Holdings?

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• Target potential mispricings by scanning 51 high quality undervalued stocks that combine quality fundamentals with what may be appealing entry points.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.