Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Q3 2025 Earnings Presentation
54 slides from Hovnanian Enterprises's earnings presentation, Aug 21, 2025
Slide 1: Review of Financial Result Third Quarter Fiscal 2025
Review of Financial Result Third Quarter Fiscal 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements in this presentation that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risk
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES: Consolidated earnings before interest expense and income taxes (“EBIT”) and before depreciation and amortization (“EBITDA”) and before inventory impairments and land option write-offs and loss (gain) on extinguishment of debt, net (“Adjusted EBITDA”), the ratio of Adjust
Slide 4: Recent company performance
Recent company performance
Slide 5: Third Quarter Results Compared to Guidance
Third Quarter Results Compared to Guidance goats ($ in millions) Guidance Actuals Q3 2025) Q3 2025 Total Revenues $750 - $850 $801 Adjusted Homebuilding Gross Margin™ 17.0% - 18.0% 17.3% Total SG&A as Percentage of Total Revenues) 11.0% - 12.0% 11.3% Income from Unconsolidated Joint Ventures $15 - $
Slide 6: Third Quarter Results Compared to Last Year
Third Quarter Results Compared to Last Year ai ($ in millions) Total Revenues Adjusted Gross Margin) ico ez 7 22.1% $723 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Total SG&A as a Percentage of Total Revenues) Adjusted Income Before Income Taxes) 12.4% $100 $40 Q3 2024 Q3 2025 Q3 2024 Q3 2025 (1) Adjusted home
Slide 7: Contracts, including domestic unconsolidated joint ventures
Contracts, including domestic unconsolidated Hoynanian joint ventures —_— 1,396 Q3 2024 Q3 2025
Slide 8: Monthly contracts
Monthly contracts Emer + 1% lo May May Jun June Jul Jul 2024 2025 2024 2025 2024 2025 Note: Includes domestic unconsolidated joint venture contracts.
Slide 9: Monthly contracts
ovnanian Enterprises: Inc. Hoy: Monthly contracts “Jul 2024 2 — Jun 2025 “e | Jun 2024 Fy EN May 2025 —— May 2024 / Apr 2025 590 Apr 2024 | & | Feb 2025 Feb 2024 Jan 2025 Jan 2024 Dec 2024 Dec 2023 Nov 2024 Nov 2023 Oct 2024 Oct 2023 Sep 2024 Sep 2023 2 556 Aug 2024 oN 393 Aug 2023
Slide 10: Quarterly Contracts Per Community
F Jos manian Enterprises: Inc. Quarterly Contracts Per Community oe _. 7 Third pe Quarter Average 00:
Slide 11: Contracts Per Community
He ovnanian Enterprises: Inc. Contracts Per Community % Excluding Build Build for Rent for Rent m Including Sg og cee tua i a: LL:
Slide 12: Contracts Per Community — Most Recent Quarter
ovnanian — Most Recent Quarter // Enterprises: Inc. Contracts Per Communi For the quarter ended June 30, 2025 12.6 8.9 Tp) 7.8 75 75 72 Teak Ep (ZO unr) YAN (ZO uns) adequay (pua “ayb suns $1 se) ue |UBUACH (ZO unf) sewoH |/W (ZO un) uoswu0oyy sojAe (ZO uns) sanjunuiwo Aunqua (ZO Unf) saWOH 197 (ZO
Slide 13: Contracts Per Community — Year-Over-Year Change
an Ii Contracts Per Community — Most Recent Quarter 2122" Year-Over-Year Change For the quarter ended June 30, 2025, compared with the quarter ended June 30, 2024 13% -12% + -10% ae ” -17% ang) 2a) | -44% Contracty per community up 3% for the July quarter 8 3 8 8 8 8 § § z 8 6g c = = i c © £ 4 ie c
Slide 14: Percentage of Our Homebuyers That Used Buydowns
Percentage of Our Homebuyers That Used Buydowns //0)222/2” 79% 74% 75% 75% 73% 71% 72% Qi 2024 «= Q2. 2024S «3. 2024-S 4 2024-=Ss QQ. 2025 Q2 2025 Q3 2025 Note: Represents the percentage of K. Hovnanian American Mortgage customers that used a buydown. 14
Slide 15: Quick Move In Homes (QMIs) Per Community
ises’ Inc ovnanian Enterpr Hf 4,7 average QMIs per community since 1997 o 1,016 QMIs at 07/31/25, excluding models o 323 finished QMIs at 07/31/25 Quick Move In Homes (QMIs) Per Communi 98 6 6L 08 ol €9 el Z9 sy 99 9g ce 07~ gL SL Gb vb 07% x4 EKA Lv 8S vs eg vv vv oF Sv cv 6e Ayunuiwos / sowopy # g
Slide 16: Quick Move In Homes (QMIs)
Quick Move In Homes (QMIs) Hoynanian 13% 1,163 1,073 1,016 01/31/25 04/30/25 07/31/25 Note: Excluding unconsolidated joint ventures and models. 16
Slide 17: Percentage of communities where we raised net prices
Percentage of communities where we raised net /1)2" prices 69% 71% 54% 59% 37% 40% 30% i 33% 34% 31% 21% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Qi 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 17
Slide 18: Community Count
Community Count Heynanian 146 146 Q3 2024 Q3 2025 = Wholly Owned Unconsolidated Joint Ventures Note: Excludes our multi-community unconsolidated joint venture in the Kingdom of Saudi Arabia. 18
Slide 19: Lots Controlled
Lots Controlled Heynanian of July 31, 2025 0516 40,246 29,487 7,889 7,180 a Q3 2023 Q3 2024 Q3 2025 Owned = Optioned Note: Excludes unconsolidated joint ventures. 19
Slide 20: Lots Controlled
Lots Controlled Hoynanian 9 C 2 5. — 7 41,891 43,254 42,440 _— — 39,516 36,841 33,576 31,726 36,510 32,336, 35.259 35,990 29,584 24,389 fm 297867 20,7891 20,402 21,598 fm 27" 8,334 8,255 7,889 7,337 7,709 7,257 7,180 6,632 6,744 6,450 5,445 40,246 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Qi 2024 Q2 2024 Q3 2
Slide 21: Quarterly Land and Land Development Spend
Quarterly Land and Land Development Spend Hoynanian Enterprises: Inc. a ra] ad i) a 8 hs w le +s wn ix & N oN ee z S we ON zg — a N Be o ies wo = a a 2 * Sew oie 2 S 6 Ee Lees & ee = i en a a 6 7 # # =o & Ss ml ie CD & a me tH aA N 3 a 3 # OD ms e# oF a No = : ane im i a ane st ~ = mu bp + es oO in
Slide 22: Percentage of Optioned Lots
Percentage of Optioned Lots Heynanian 82% 86% 66% 68% 73% 59% 60% 61% 46% 48% 52% Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025
Slide 23: Percentage of Optioned Lots
ovnanian Enterprises: Inc. He 98% 99% 100% 92% 86% Y 76% 60% 60% 51% 51% 58% 58% 46% 47% 34% 17% % of Lots Optioned (ZO unf) ssapul4 weaig (ZO unr) YAN (ZO Ae) zeus) (€D jnf) uerweuAoH (€D unr) UoyOH YG (ZO unr) uosIuoy) JojAe, (ZO uns) ayjnd (ZO 4dy) [10.1 (€O unf) sazeag (ZO uns) aqulod |YL (ZO un
Slide 24: Inventory Turns (COGS), Last Twelve Months
ovnanian Enterprises: Inc. Hi Inventory Turns (COGS), Last Twelve Months 2.8x 1.7x 19x 1.6x Osx 09K 0.9K 09x 09x 10x 10x 1x 1x 0.8x 0.4x (ZO unr) YAN (ZO Ae) seuua7 (€D |Nf) UeIUeUAOH (7 uns) ssapul4 weaig (€D unr) UoOH YG (ZO unr) sawoH 1/1, (7D unr) aynd (7D unr) saqiunuwo5 Asnquaz (ZO uns) ayulod
Slide 25: Liquidity Position and Target
Liquidity Position and Target Heynanian Enterprises’ Inc. ($ in millions) target [ |) liquidity range $170 ~~~ eee eee eee ee ee ee ee ee oe ee nee ++ PP PP oo PM SP SP oh PO FS PF 8 es SF FF FF FF S PP Pr \ “4 CLL LE ELLE EE k EFC LSS FF & Homebuilding Cash ® Revolver Availability & Note: Liquidity
Slide 26: Debt Maturity Profile
Debt Maturity Profile Hoynanian July 31, 2025 (3 in millions) Total Debt Outstanding $855 $430 Annual Interest Incurred $87 11.75% Iw Q2 2025 redeemed $27M of 13.5% senior notey due February of 2026. $225 8.00% $175 10.00% $125 vs coe ' ! i) i ' ' $25 : \ 5.00% 3 4 Qt Q2 8 4 Ql Q2 Q3 Qi Q2 O38 QF Ql
Slide 27: Balance Sheet Metrics
Balance Sheet Metrics Hoynanian ($ in millions) Equity value (book) Total debt $(490) $(437) FYE FYE FYE. FYE. FYE_ FYE tex) FYE FYE FYE. FYE. FYE FYE Q3 2019 2020 2021 2022 2023 2024 «2025 2019 2020 2021 2022 2023 2024 ~ 2025 Net debt to net capitalization Goal: 30% 146,29 150.4% 89% 49.3% 47.9% FY
Slide 28: Fourth Quarter Guidance vs. Third Quarter Actuals
ovnaman Fourth Quarter Guidance vs. Third Quarter Actuals Bact ($ in millions) Total Revenues $850 $801 Q3 2025 Q4 2025 Guidance Total SG&A as Percentage of Total Revenues®) 12.0% 11.3% Q3 2025 Q4 2025 Guidance Adjusted Gross Margin®) 16.5% 17.3% Q3 2025 Q4 2025 Guidance Adjusted Income Before Incom
Slide 29: Guidance for Fiscal 2025 Fourth Quarter
Guidance for Fiscal 2025 Fourth Quarter Hoyzanian ($ in millions) Guidance Q4 2025) Total Revenues $750 - $850 Adjusted Homebuilding Gross Margin” 15.0% - 16.5% Total SG&A as Percentage of Total Revenues) 11.0% - 12.0% Income from Unconsolidated Joint Ventures $8 - $12 Adjusted EBITDA” $77 - $87 Adj
Slide 30: ROE, Last Twelve Months
laman I He; ROE, Last Twelve Months 37.2% 25.8% 22.9% WA 617.9% A bee 16.1% E “a | 2/0 2 7.8% (ZO unt) YAN (ZO uns) ssapury weaig (ZO un) aNd (€D |Nf) UeJUeEUAOH (20 4dy) [01 (ZO Unf) sawoH 1/1 (€d unr) YoYOH YG (ZO uns) Uosi0W sojAe (ZO Aew) awoH gy (ZO Aew) szeuuay (ZO un) adequay (ZO uns) aUWIOg
Slide 31: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months Heynanian 69.0% 29.1% . 21.6% Wane ed 18.0% BEBE BERS BERS S og fe 15.0% fi 15.3% ad EES ial E p> g ys 8 ag s s fs a =z = = = = o 8 3 (of o fof o o 8 Ss g q 9 g g 5 E = 5 = 2 5 5 5 E 5 = E. = S E E = a = = bf 2 = ss —s = 2 = = cH a 3 ¥ ie = Sc w fn ra P= = = r =
Slide 32: Price to Book Value
Vnanian En He Price to Book Value (ZO unt) YAN 5.93 (ed uns) UoYOH ya 2.08 2.05 (ZO uns) ayn (ZO uns) saapuly weaig fa) an «i (70 4dy) [10.1 1.63 (ZO Aew;) szeuua7 FY) corn eewerron | 8 | (ZO uns) SaWOH |/W T53 (ZO unr) uosoyy sojAey (ZO Aew) @woH gy nN = _ co So Ell zs Ey (ZO unf) adequay ei [A A]
Slide 33: Price to Earnings Ratio
laman 44 (ed unr) YAN He a7, 1351 11.12 11.74 Note: Hovnanian price to earings ratio calculated using last twelve months EPS as of 07/31/2025 and stock price of $148.95 as of 08/20/2025. (ed unr) woYOH YG (€O uns) 4azeag (ZO Aew) szeuuay (ZO un) seWOH 157 (ZO ady) |}01 (ZO uns) ayng Large Peers (ZO
Slide 34: ROE Price to Book
ROE Price to Book F 6.50 NVR WA 37.2%, 5.93 3.00 © — DR Horton S 3 Pulte > bad ° H 2.00 Taylor , Morrison 2 Lennar . d Toll Dream gy 1.50 Finders 1 a KB Home e *~Hovnanian . 1.00 LGI Homes .% Meriage M/I Homes Beazer ‘ * p 0.50 TRI Pointe Century Communities 0.00 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30
Slide 35: Price to Earnings Ratio
Price to Earnings Ratio 20.00 WA NVR 69.0%, 17.44 14.00 DR Horton . 12.00 Beazer — i ° TRI Pointe Finders » LGI Homes Toll 10.00 7 Taylor ¥ Lennar Pulte * Morrison ~~, .” ° 8.00 Century . : ’ Communities ° Hovnanian 6.00 i M/I Homes Meritage KB Home 4.00 2.00 0.00 A 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Slide 36: Appendix
Appendix
Slide 37: Lot Vintage
Lot Vintage Fiegacin = April 30,2025 mJuly 31, 2025 19% 18% 2021 2022 2023 2024 2025 % of a, 3.4% 3.0% 7.9% 8.1% 10.7% = of incentives” is percentage of incentives to total revenue before incentives. Percentage for 2025 is for the first nine months of the fiscal year. The other percentages are for f
Slide 38: Base Construction Costs Per Square Foot
Base Construction Costs Per Square Foot Heynanian 96.21 $ 79% $94.93 91.83 $ $91.74 $91.39 $90.27 $89.78 $89.51 $89.69 $89.19 $88.82 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1I'25 Q2'25 Q3'25
Slide 39: Third Quarter Results Compared to Guidance
Third Quarter Results Compared to Guidance ater ($ in millions) Actuals Guidance Actuals Q3 2025 cluding Incremental 3.2025 3 2025 Excluding I tal Phantom Benefit Total Revenues $750- $850 $801 $801 Adjusted Homebuilding Gross Margin® 17.0% - 18.0% 17.3% 17.3% Le SceAS Percentage of Total 11.0% - 12
Slide 40: Annual Contracts Per Community
Hes manian Enterprises: Inc. Annual Contracts Per Community ing Build for Rent % Excluding Build for Rent mInclud s val in N 3% a & Ue 2014 «2015 2016 2017 2018 2019 2020 2021 2002 Average Note: Annual Contracts per Community calculated based on a five-quarter average of communities, excluding uncon
Slide 41: EBIT ROI to Price to Book Value
EBIT ROI to Price to Book Value 6.50 3.00 2.50 DR Horton y 4 Dream $s Finders = 2.00 ° E Toll Lennar ° Taylor ~ g 1.50 Morrison ° = KB Home = - 1.00 M/I Homes LGI Homes Meritage i e ° » 0.50 Beazer TRI Pointe Century Communities 0.00 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Consolidated EBIT ROI Source: Ya
Slide 42: ROE to PE
ROE to PE Hepes Price to Earnings Ratio 20.00 DR Horton NVR 37.2%, 17.44 14.00 e Beazer Lennar aie i Taylor . a . 4 LI Hold Pointe Morrison Pulte 10.00 = Toll « . » » Dream . 8.00 Century _ , aml = Finders Communities i ¢— Hovnanian 6.00 M/I Homes Meritage ~ KB Home 4.00 2.00 0.00 0.0% 5.0% 10.0% 15
Slide 43: Profitable financial services business
Profitable financial services business Hoynanian Financial services overview = Complements HOV’s homebuilding operations * Allows ability for interest rate buy- down programs for homebuilder customers = Provides mortgage originations in every state in which Hovnanian operates and title services in m
Slide 44: Credit Quality of Homebuyers
Credit Quality of Homebuyers Heynanian Fiscal Year 2024 Third Quarter 2025 ©» Average LTV: 83% > Average LTV: 84% © Average CLTV: 83% © Average CLTV: 84% » ARMs: 0.0% > ARMs: 0.5% o FICO Score: 745 © FICO Score: 744 ©» Capture Rate: 79% © Capture Rate: 81% Note: Loans originated by our wholly-owned
Slide 45: Number of Monthly Contracts Per Community
Vvnanian Enterprises: Inc He Number of Monthly Contracts Per Community, Excludes Unconsolidated Joint Ventures 2 Solo being + eee ce re Lz: Z-INE see te EDN SZ-UNE «see ex a OMEN €2-UNC + ceux co Wz Z2-UNE | geen ne a MSS Z-ACW seen cc RENO EZ-ACW + cesen one ee Z7-ARW ss eeten ee ON SZidy a bZ-Ky L
Slide 46: Land Positions by Geographic Segment
Land Positions by Geographic Segment Hoynanian July 31, 2025 Owned Excluding - Segment Mothballed Lots Mothballed Lots Optioned Lots Total Lots Northeast 1,927 6 18,065 19,998 Southeast 941 2 6,137 7,078 West 2,181 390 10,599 13,170 Consolidated Total 5,049 396 34,801 40,246 Unconsolidated Joint Ven
Slide 47: Phantom Stock Impact
Phantom Stock Impact Hoynanian ($ in millions, except stock prices) . Incremental Phantom Total SG&A Total SG&A Ratio icone aarti ex Beet peels Stock Benefit Adjusted for Adjusted for Phantom q (Expense) Phantom Stock Stock Qi 2021 $51.16 - - - - - Q2 2021 $132.59 $82.6 11.7% $(17.5) $65.1 9.3% Q3 2
Slide 48: Reconciliation of income before income taxes
Reconciliation of income before income taxes excluding land- —/ Joynanian related charges and gain on extinguishment of debt, net to income before income taxes Hovnanian Enterprises, Inc. July 31, 2025 Reconciliation of income before income taxes excluding land-related charges and gain on extinguish
Slide 49: Reconciliation of Gross Margin
Reconciliation of Gross Margin Hovnanian Enterprises, Inc. July 31, 2025 Gross margin (In thousands) Hi ovnanian Enterprises’ Inc Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Nine Months Ended July 31, July 31, 2025 2024 2025 2024 (Unaudited) (Unaudited) Sale of homes $ 769
Slide 50: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income // Hovnanian Enterprises, Inc. July 31, 2025 Reconciliation of adjusted EBITDA to net income (In thousands) Ente Vnanian erprises' In Three Months Ended Nine Months Ended July 31, July 31, 2025 2024 2025 2024 (Unaudited) (Unaudited) Net income $ 16,615
Slide 51: Reconciliation of Inventory Turnover
Reconciliation of Inventory Turnover Hovnanian Enterprises, Inc. Hes manian Enterprises: Inc July 31, 2025 Calculation of Inventory Turnover) T™ For the quarter ended ended (Dollars in thousands) 10/31/2024 1/31/2025 4/30/2025 7/31/2025 _7/31/2025 Cost of sales, excluding interest $735,337 $533,290
Slide 52: Reconciliation of Adjusted EBIT Return on Adjusted Investment
Reconciliation of Adjusted EBIT Return on Adjusted Investment Hovnanian Enterprises, Inc. July 31, 2025 Reconciliation of Adjusted EBIT Return on Adjusted Investment Vnanian Enterprises: Inc He {in thousands) T™ ended 10/31/2024 1/31/2025 4/30/2025 7/31/2025 _ 7/31/2025 Net income $94,349 $28,191 $1
Slide 53: Key credit and balance sheet metrics reconciliations
Key credit and balance sheet metrics He reconciliations Nonrecourse mortgages secured by inventory, net of debt issuance costs Senior notes and credit facilities (net of discounts, premiums and debt issuance costs) Total debt Cash and cash equivalents Net Debt Adjusted EBITDA Total debt to adjusted
Slide 54: Hovnanian Enterprises, Inc.
ovnanian Enterprises: Inc.
Hovnanian Enterprises — Q3 2025 Earnings Presentation on 6ix