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What is Hovnanian Enterprises's gross profit margin?

What is the revenue and EPS growth rate for Hovnanian Enterprises year over year?

What were the key takeaways from Hovnanian Enterprises's earnings call?

What factors drove the changes in Hovnanian Enterprises's revenue and profit?

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Did Hovnanian Enterprises beat or miss consensus estimates last quarter?

- **Revenue Resilience**: $632M Q1 revenue near high end of guidance, driven by 13.4% adjusted gross margin despite 12.6% incentives. 
- **Inventory Efficiency**: QMI homes down 30% YoY to 742, with 71% of sales QMIs vs. 79% prior. 41% of homes delivered sold and closed in same quarter. 
- **Margin Improvement Path**: To-be-built homes now 29% of sales (vs. 21%), yielding 780bps higher margins. H2 2026 gross margins expected to improve with new communities. 
- **Financial Strength**: $471M liquidity, net debt-to-capital 41.4%, all debt unsecured post-refinancing. 
- **Strategic Shifts**: Moving away from entry-level periphery to move-up/A/B locations and active adult communities. 86% of lots via options, highest in industry.

**【CEO Summary Section】**
- **Revenue and Profit Performance**: Q1 2026 revenue reached $632 million, near the high end of guidance. Adjusted EBITDA was $63 million, exceeding expectations, while adjusted pretax income was $31 million, 24% lower year-over-year due to higher incentives (12.6% of sales price). 
- **Incentives Strategy**: Mortgage buydowns and other incentives increased 40 basis points Q/Q to 12.6%, up 290 basis points YoY. Base construction costs decreased 2% YoY, and cycle times improved 17 days to 133 days. 
- **Sales and Inventory Management**: 
  - Contracts per community held steady at 9.5, with January 2026 contracts up 13% YoY. 
  - Quick move-in (QMI) homes decreased 30% YoY to 742, with QMI sales at 71% of total (down from 79% prior quarters). 
  - To-be-built homes now account for 29% of sales (vs. 21% prior), yielding 780 basis points higher margins. 
  - 41% of homes delivered were sold and closed in the same quarter, vs. historical 56% average. 
- **Future Outlook**: Expect gross margins to improve in H2 2026 as newer, higher-margin communities come online. Focus on move-up homes in A/B locations and active adult communities, reducing exposure to entry-level periphery markets.

**【CFO Financial Commentary】**
- **Liquidity and Debt**: Ended Q1 with $471M liquidity (second-highest on record) and net debt-to-capital ratio of 41.4% (vs. 146.2% in 2020). Completed debt refinancing, making all debt unsecured for the first time since 2008. 
- **Land Position**: 35,560 domestic lots (6.7-year supply), down 18% YoY. 86% of lots controlled via options, highest in industry. Inventory turnover rate ranks 2nd among peers. 
- **Q2 2026 Guidance**: 
  - Revenue: $625M-$725M 
  - Adjusted gross margin: 13%-14% 
  - SG&A: 12.5%-13.5% of revenue 
  - Adjusted EBITDA: $30M-$40M 
  - Pretax income: breakeven-$10M 
- **Long-Term Vision**: Target 30% net debt-to-capital ratio. 223M deferred tax assets provide federal tax shield on $700M of future pretax income.

**【Q&A Highlights】**
- **Incentives Tradeoff**: CEO Ara Hovnanian emphasized prioritizing sales pace over price, using incentives to clear older lower-margin inventory. 71% of sales still QMIs, but to-be-built homes now 29% of sales. 
- **Spec vs. Custom Balance**: Shift to to-be-built homes (780bps higher margins) was organic, not strategic. Will continue balancing based on market demand. 
- **Land Strategy**: 86% of lots via options, allowing flexibility. Focused on move-up and active adult communities with better margins. Land-light strategy enables nimble capital allocation.

Hovnanian Enterprises, Inc. (HOV) Q1 2026 Earnings Call Transcript

- **Revenue Resilience**: Q4 revenue of $818M beat guidance despite 17% YoY decline, supported by 73% QMI sales and 102% backlog conversion ratio.
- **Margin Pressure**: Gross margin of 16.3% reflected 12.2% incentives (up 920 bps vs. FY22), but 36% of communities saw price increases in strong markets.
- **Financial Strength**: $404M liquidity, net debt-to-capital of 44.2%, and first unsecured debt since 2008 highlight balance sheet improvement.
- **Future Growth**: Q1 FY26 gross margin expected to bottom at 13-14%, with improvement driven by newer land (87% of Q4 deliveries from pre-2023 vintages).

**【CEO Summary Section】**
- **Revenue Performance**: Q4 revenue of $818 million exceeded guidance midpoint, with a 17% year-over-year decline driven by lower deliveries and absence of a large land sale. Adjusted gross margin was 16.3%, near the high end of guidance, but down year-over-year due to higher incentives (12.2% of ASP, up 920 bps vs. FY22). 
- **Sales Strategy**: Focused on 'pace over price' with 73% of sales via Quick Move-In (QMI) homes, enabling 36% of deliveries to be both contracted and closed in the same quarter (backlog conversion ratio of 102%).
- **Market Trends**: Traffic per community increased in 3 of 4 months vs. Q4 FY24, but contracts per community remained 16% below 'normal' levels. 36% of communities saw net price increases, concentrated in Northeast and Mid-Atlantic markets.
- **Inventory Management**: QMI count per community decreased to 6.5 (from 7.9 in Q3), reflecting better alignment of starts with sales pace.

**【CFO Financial Commentary】**
- **Balance Sheet Strength**: Ended Q4 with $404 million in liquidity (vs. targeted range) and net debt-to-capital of 44.2% (down from 146.2% in FY20). Successful refinancing reduced debt to unsecured status for the first time since 2008.
- **Land Position**: 35,883 controlled lots (6.5-year supply), with 87% of Q4 deliveries from pre-2023 vintages. Acquired 3,100 lots in Q4 meeting 20%+ IRR hurdle rates, even with 600 bps higher incentives vs. FY22.
- **Cost Control**: Land and development spend decreased 25% YoY, with flat direct costs per sq ft despite tariffs. 
- **Q1 FY26 Guidance**: Revenue $550-650M, gross margin 13-14% (bottoming in Q1), EBITDA $35-45M. Expect margin improvement in subsequent quarters as newer land (underwritten with 600+ bps incentives) begins delivering.

**【Q&A Highlights】**
- **Cost Management**: Achieved 200+ bps cost savings vs. 2 years ago, offsetting input cost increases. 
- **New Mortgage Program**: Launching 7-year ARM buydowns to qualify buyers at lower rates while improving margins. 
- **Margin Outlook**: Bottoming in Q1 FY26, with improvement driven by mix shift to newer land (87% of Q4 deliveries from pre-2023 vintages vs. 13% from 2024+).

Hovnanian Enterprises, Inc. (HOV) Q4 2025 Earnings Call Transcript

- **Revenue Performance**: Q3 revenue of $801M met guidance, with 11% YoY growth driven by deliveries. Gross margin of 17.3% reflected 11.6% incentives (up 390bps YoY).
- **QMI Dominance**: 79% of sales were QMIs, enabling 84% backlog conversion but challenging forward visibility.
- **Land Strategy**: Added 3,500 high-margin lots while walking away from 6,500 low-margin parcels. 86% of 43,343 controlled lots are under option.
- **Balance Sheet Health**: Reduced debt by $769M since FY20, with net debt to cap ratio at 47.9%. Q4 pretax guidance of $45-55M includes $30M+ JV gain.
- **Market Resilience**: 21% of communities saw price increases, concentrated in Northeast/Mid-Atlantic, despite 75% buyer reliance on mortgage buydowns.

**【CEO Summary Section】**
- **Revenue and Guidance**: Q3 revenue of $801 million met the midpoint of guidance. Adjusted gross margin was 17.3%, slightly below midpoint, due to 11.6% incentives (up 390bps YoY). SG&A ratio improved to 11.3%.
- **Sales Performance**: Contracts increased 1% YoY, with July seeing a 7% MoM rise. Contracts per community (9.8) were above the 2008-2025 average of 9.1 but below pre-2008 levels.
- **Quick Move-In (QMI) Strategy**: 79% of sales were QMIs, with 323 finished units. 34% of homes delivered were contracted in the same quarter, driving an 84% backlog conversion rate (vs. 55% historical average).
- **Market Dynamics**: 21% of communities saw price increases, concentrated in Northeast/Mid-Atlantic. Mortgage buydowns remain critical for affordability, with 75% of buyers utilizing them.

**【CFO Financial Commentary】**
- **Land Position**: Controlled 43,343 lots (7-year supply), with 86% under option. Added 3,500 lots in Q3, while walking away from 6,500 low-margin lots in the last two quarters.
- **Liquidity and Debt**: Ended Q3 with $278 million liquidity. Reduced debt by $769 million since FY20, with net debt to cap ratio at 47.9% (vs. 146.2% in FY20).
- **Guidance for Q4**: Revenue $750-850M, adjusted gross margin 15-16.5%, pretax income $45-55M (includes $30M+ JV consolidation gain). SG&A expected to remain elevated due to community growth hiring.
- **Balance Sheet Strength**: $221M deferred tax assets provide tax-free earnings on $700M of future pretax income.

**【Q&A Key Highlights】**
- **July Sales Improvement**: Driven by macro factors (tariff noise subsiding) rather than company-specific actions. August activity remained choppy.
- **Gross Margin Outlook**: Headwinds from older, lower-margin lots expected to persist, but new land acquisitions (1,000 homes in Q3) have strong margins despite incentives.
- **Debt Restructuring**: Exploring secured-to-unsecured debt conversions amid improving high-yield market conditions.
- **Market Resilience**: Northeast/Mid-Atlantic markets outperformed, with price increases in 71% of communities in these regions.

Hovnanian Enterprises, Inc. (HOV) Q3 2025 Earnings Call Transcript

- **Revenue resilience**: $686M Q2 revenue vs. 7% YoY contract decline, supported by 11.2 contracts per community.
- **Gross margin pressure**: 17.3% margin with 10.5% incentives, but 2023+ land underwritten at 8% incentives.
- **QMI dominance**: 79% of sales from quick move-in homes, enabling 90-day delivery buydowns.
- **Land strategy success**: 85% lots under option, 20% IRR hurdle met on new acquisitions.
- **Balance sheet strength**: Net debt to cap 51.4%, $202M liquidity, $700M tax shield benefit.


**【CEO Opening Remarks】**
- Q2 revenue of $686 million, near the low end of guidance, due to delayed high-price home deliveries.
- Adjusted gross margin of 17.3%, below guidance midpoint, driven by 10.5% incentives (up 80bps sequentially).
- Contracts down 7% YoY, but 11.2 contracts per community, above pre-COVID levels.
- 75% of buyers used mortgage buydowns, with 79% of sales from quick move-in homes.
- Price increases in 31% of communities, mainly in mid-Atlantic and Southeast markets.

**【CFO Financial Details】**
- 148 open communities (12% YoY growth), 125 wholly owned, 23 joint ventures.
- 42,440 controlled lots (7.7-year supply), +15% YoY, with 85% under option.
- Land spend $220M, debt reduced by $27M, liquidity $202M (within target range).
- Net debt to cap ratio 51.4%, down from 146.2% in 2020; aiming for 30%.
- Q3 guidance: revenue $750-850M, gross margin 17-18%, pretax income $30-40M.

**【Q&A Key Takeaways】**
- Land prices remain sticky, but able to find deals meeting 20% IRR hurdle in mid-Atlantic/Southeast.
- 79% QMI sales driven by 90-day delivery window for affordable buydowns.
- Gross margin near bottom due to 10.5% incentives, but 2023+ vintages underwritten at 8% incentives.
- Construction costs stable (7% reduction since 2023), lumber price risk remains.
- 2022 vintage land underperformance expected to clear within 2-3 years.
- Saudi Arabia joint venture expansion announced for young middle-class housing.


Hovnanian Enterprises, Inc. (HOV) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: $674M (+13% YoY) despite 50 fewer deliveries, driven by 'pace over price' strategy. 
- **Margin Trend**: 18.3% gross margin (down 160bps YoY) due to 9.7% incentives, but 25% EBIT ROI scenario shows long-term potential. 
- **Land Strategy**: 84% lots via options, land spend up 7% YoY, targeting 10%+ delivery growth. 
- **Debt Improvement**: Net debt to cap at 52.2% (vs 146% in 2020), liquidity within target range. 
- **Valuation Disconnect**: 3.75x P/E (55% below peers) despite 33% ROE and 29.8% EBIT ROI. 


**【CEO Summary Section】**
- Q1 2025 revenue reached $674 million, up 13% YoY, near the low end of guidance due to 50 fewer deliveries than expected. 
- Adjusted gross margin was 18.3%, near the high end of guidance, but down 160bps YoY due to 9.7% incentives (vs 6.7% last year). 
- Emphasized 'pace over price' strategy: 40% of communities saw price increases, but 74% of deliveries used mortgage buy-downs. 
- Backlog conversion hit 76%, highest in 27 years, with 34% of homes sold and delivered in same quarter. 
- Hypothetical 18.5% gross margin scenario shows 25% EBIT ROI vs 23% historical, driven by 14% revenue growth and 7% SG&A increase. 

**【CFO Financial Commentary】**
- Opened 15 new wholly-owned communities, ending with 125 wholly-owned and 23 joint venture communities. 
- Land control rose 29% YoY to 43,254 lots (7.8-year supply), with 84% controlled via options (highest ever). 
- Land spend increased 7% YoY to $248M, highest Q1 since 2010. 
- Liquidity at $222M, within target range, after paying down $27M of high-cost debt. 
- Net debt to cap ratio improved to 52.2% (vs 146.2% in 2020), but still aims for 30%. 
- Q2 2025 guidance: $675-775M revenue (midpoint +8% QoQ), 17.5-18.5% gross margin, $20-30M pre-tax income. 

**【Q&A Highlights】**
- **Demand Volatility**: Sales fluctuated 55% (Nov) to -10% (Jan) YoY, driven by monthly news (tariffs, rates, geopolitical). 
- **DC Market**: Delaware and Virginia strong; Maryland cautious due to gov layoffs. Resale inventory up but still below historical norms. 
- **Incentives**: 9.7% of ASP in Q1, up 670bps vs 2022. Buy-downs at 4.9-5.75% rates, may adjust based on rate trends. 
- **QMI Management**: 319 finished QMIs (2.6 per community), targeting slower starts in over-supplied markets. 
- **West Impact**: Fires drew labor away from construction, but effects are temporary. 
- **Valuation**: Trading at 3.75x P/E (55% below industry avg), despite 33% ROE and 29.8% EBIT ROI. 


Actual									-1.49	0.63	2.27	5.54	2.75	69.65														12.79	3.58	2.43	1.99	-0.51	2.62
Forecast									-2.1	-1.32	-0.16	7.36																	2.71	2.45	3.51	0.63	-0.98
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+29.05%	+147.73%	+1518.75%	-24.73%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+32.10%	-0.82%	-43.30%	-180.95%	+367.35%

Actual	--	--	--	--	--	--	--	--	494.06M	538.35M	628.14M	683.36M	574.66M	703.16M	--	--	--	--	--	--	--	--	--	--	--	--	--	977.21M	673.62M	686.47M	800.58M	817.90M	631.95M
Forecast	--	--	--	--	--	--	--	--	446.40M	504.80M	530.20M	785.10M	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	705.80M	733.20M	801.20M	814.50M	628.50M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+10.68%	+6.65%	+18.47%	-12.96%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-4.56%	-6.37%	-0.08%	+0.42%	+0.55%

HOV

HOV fundamentals

HOV Q1 2026 Earnings

Earnings Call

You can ask Aime

HOV

HOV fundamentals

HOV Q1 2026 Earnings

Earnings Call

HOV Earnings Call Summary for Q1/202611:30 AM on Feb 25, 2026

HOV Earnings Call Summary for Q4/202511:00 AM on Dec 4, 2025

HOV Earnings Call Summary for Q3/202511:00 AM on Aug 21, 2025

HOV Earnings Call Summary for Q2/202511:00 AM on May 20, 2025

HOV Earnings Call Summary for Q1/202511:00 AM on Feb 24, 2025

You can ask Aime