Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Q4 2025 Earnings Presentation
46 slides from Hovnanian Enterprises's earnings presentation, Dec 4, 2025
Slide 1: Review of Financial Results Fourth Quarter Fiscal 2025
Review of Financial Results Fourth 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: Fourth Quarter Results Compared to Guidance
Fourth Quarter Results Compared to Guidance ($ in millions) Guidance Actuals Q4 2025(1) Q4 2025 Total Revenues $750 - $850 $818 Adjusted Homebuilding Gross Margin(2) 15.0% - 16.5% 16.3% Total SG&A as Percentage of Total Revenues(3) 11.0% - 12.0% 11.2% Income from Unconsolidated Joint Ventures $8 - $
Slide 6: Fourth Quarter Results Compared to Last Year
Fourth Quarter Results Compared to Last Year ($ in millions) Total Revenues Adjusted Gross Margin(1) $980 21.7% 16.3% $818 Q4 2024 Q4 2025 Q4 2024 Q4 2025 Total Interest Expense as a Percentage Adjusted Income Before Income Taxes(2) of Total Revenues $126 4.2% 3.2% $49 Q4 2024 Q4 2025 Q4 2024 Q4 202
Slide 7: Contracts, including domestic unconsolidated joint ventures
Contracts, including domestic unconsolidated joint ventures 1,571 1,450 Q4 2024 Q4 2025 Note: Includes domestic unconsolidated joint venture contracts. 7
Slide 8: Traffic per Community
8 29.7 Nov 2025 25.8 Nov 2024 29.7 Oct 2025 26.5 Oct 2024 29.2 Sep 2025 Traffic per Community Note: Includes domestic unconsolidated joint venture communities. 34.2 Sep 2024 37.4 Aug 2025 30.1 Aug 2024
Slide 9: Monthly contracts
9 425 Nov 2025 467 Nov 2024 497 Oct 2025 543 Oct 2024 462 Sep 2025 472 Sep 2024 491 Aug 2025 556 Aug 2024 500 Jul 2025 466 Jul 2024 463 Jun 2025 459 Jun 2024 453 May 2025 471 May 2024 539 Apr 2025 590 Apr 2024 609 Mar 2025 594 Mar 2024 Note: Includes domestic unconsolidated joint venture contracts.
Slide 10: Quarterly Contracts Per Community
Quarterly Contracts Per Community Excluding Build for Rent Including Build for Rent 10.4 8.3 16.5 10.2 10.2 5.0 10.1 9.5 8.6 8.2 8.1 8.6 4.5 1997 - Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 2002 Fourth Quarter Average Note: Excludes unconsolidated joint ventures. 10
Slide 11: Contracts Per Community
Contracts Per Community Excluding Build for Rent Including Build for Rent 4.0 3.6 3.2 3.0 3.8 3.3 3.5 3.1 2.9 3.0 August August September September October October 2024 2025 2024 2025 2024 2025 Number Of 4 5 5 4 4 4 Sundays Note: Excludes unconsolidated joint ventures. 11
Slide 12: Contracts Per Community – Most Recent Quarter
Contracts Per Community – Most Recent Quarter For the quarter ended September 30, 2025 10.5 10.9 11.1 9.6 8.2 7.1 7.1 7.4 6.4 6.6 5.9 Meritage (Sep Q3) Pulte (Sep Q3) Communities (Sep Q3) Beazer (Sep Q4) Finders (Sep Q3) LGI Homes (Sep Q3) Morrison (Sep Q3) M/I Homes (Sep Q3) NVR (Sep Q3) TRI Pointe
Slide 13: Contracts Per Community – Year-Over-Year Change
Contracts Per Community – Most Recent Quarter Year-Over-Year Change For the quarter ended September 30, 2025, compared with the quarter ended September 30, 2024 6% 0% -8% -7% -12% -12% -10% -14% -13% -22% -25% Communities (Sep Q3) Beazer (Sep Q4) M/I Homes (Sep Q3) LGI Homes (Sep Q3) NVR (Sep Q3) Mo
Slide 14: Percentage of Incentives for Deliveries
Percentage of Incentives for Deliveries 12.2% 11.6% 10.5% 9.7% 9.3% 8.5% 8.1% 8.1% 7.5% 7.3% 7.7% 7.4% 3.9% 2.5% 2.7% 2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 Note: “% of incentives for deliveries” is percent
Slide 15: Quick Move In Homes (QMIs) Per Community
# Homes / Community Jan-18 3.9 Apr-18 4.2 Jul-18 4.5 Oct-18 4.6 Jan-19 4.4 Apr-19 4.4 Jul-19 5.3 Oct-19 5.4 Jan-20 5.8 Note: Excluding unconsolidated joint ventures and models. Apr-20 4.7 Jul-20 2.5 Oct-20 2.3 Jan-21 2.0 Apr-21 1.4 Jul-21 1.5 Oct-21 1.5 Jan-22 1.6 Apr-22 2.0 Jul-22 3.2 o 348 finishe
Slide 16: Quick Move In Homes (QMIs)
Quick Move In Homes (QMIs) 1,163 1,073 1,016 907 01/31/25 04/30/25 07/31/25 10/31/25 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 prices 69% 71% 59% 54% 37% 40% 33% 34% 36% 30% 31% 21% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 17
Slide 18: Community Count
Community Count Community count expected to grow further in fiscal 2026. 156 147 16 129 17 16 140 130 113 Q4 2023 Q4 2024 Q4 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 Including domestic unconsolidated joint ventures, our total lots controlled were 43,254 42,440 38,742 as of October 31, 2025. 41,891 40,246 39,516 36,841 35,883 33,576 31,726 29,123 28,657 29,487 35,259 36,510 35,990 32,336 34,801 29,584 25,867 30,387 20,789 20,402 21,598 24,389 8,33
Slide 20: Lot Vintage
Lot Vintage 35% 35% April 30, 2025 July 31, 2025 October 31, 2025 35% 27% 23% 20% 19% 14,902 18% 13,987 12,609 16% 10% 9,515 9,334 8,382 8% 8% 9% 7,872 8% 7,189 7% 7% 8% 5,776 7% 4,364 3,678 3,627 3,293 3,248 2,810 2,803 2,726 2,454 pre 21 2021 2022 2023 2024 2025 % of Incentives - 3.4% 3.0% 7.9% 8.
Slide 21: Quarterly Land and Land Development Spend
Quarterly Land and Land Development Spend ($ in millions) $249 $248 $220 $193 $199 2024 Quarterly Q1 25 Q2 25 Q3 25 Q4 25 Average 21
Slide 22: Liquidity Position and Target
Liquidity Position and Target ($ in millions) $564 $125 $457 $464 $456 $399 $404 $381 $125 $366 $125 $125 $353 $357 $125 $338 $125 $125 $313 $311 $125 $306 $308 $125 $282 $125 $278 $271 $125 $125 $439 $125 $251 $222 $245 Target $125 $125 $125 $202 $125 liquidity $339 $125 $331 $125 range $332 $170 $
Slide 23: Debt Maturity Profile
Debt Maturity Profile As of July 31, 2025 ($ in millions) $430 Total Debt Outstanding $855 11.750% Annual Interest Incurred $87 $225 8.000% $175 10.000% $125 (1) $25 5.000% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 '25 '25 '26 '26 '26 '26 '27 '27 '2
Slide 24: Balance Sheet Metrics
Balance Sheet Metrics ($ in millions) Equity value (book) Total debt $800 $831 $582 $1,684 $1,566 $383 $1,373 $1,291 $175 $1,143 $987 $930 $(437) $(490) FYE FYE FYE FYE FYE FYE Q4 FYE FYE FYE FYE FYE FYE Q4 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 Net debt to net capital
Slide 25: Guidance for Fiscal 2026 First Quarter
Guidance for Fiscal 2026 First Quarter ($ in millions) Guidance Q1 2026(1) Total Revenues $550 - $650 Adjusted Homebuilding Gross Margin(2) 13.0% - 14.0% Total SG&A as Percentage of Total Revenues(3) 13.5% - 14.5% Income from Unconsolidated Joint Ventures $0- $10 Adjusted EBITDA(4) $35 - $45 Adjuste
Slide 26: Percentage of Optioned Lots
Percentage of Optioned Lots 84% 85% 77% 71% 63% 66% 58% 61% 55% 46% 49% Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 Note: Excludes unconsolidated joint ventures. 26
Slide 27: Percentage of Lots Optioned vs Peers
LGI Homes (Sep Q3) 15% Meritage (Sep Q3) 31% Century 41% Communities (Sep Q3) Note: Excludes unconsolidated joint ventures. KB Home (Aug Q3) 42% TRI Pointe (Sep Q3) 51% Source: Peer SEC filings and press releases as of 12/04/2025. % of Lots Optioned Note: Hovnanian 90% excludes QMIs and backlog from
Slide 28: Inventory Turns (COGS), Last Twelve Months
Inventory Turns (COGS), Last Twelve Months 2.7x 1.5x 1.5x 1.7x 0.9x 0.9x 0.9x 1.0x 1.0x 1.0x 1.1x 0.8x 0.8x 0.9x 0.4x KB Home (Aug Q3) Communities (Sep Q3) Beazer (Sep Q4) Meritage (Sep Q3) TRI Pointe (Sep Q3) Morrison (Sep Q3) NVR (Sep Q3) Pulte (Sep Q3) Lennar (Aug Q3) DR Horton (Sep Q4) Hovnanian
Slide 29: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 19.7% 17.2% 17.7% 17.7% 16.4% 14.0% 12.6% 10.7% 6.5% 5.1% Beazer (Sep Q4) KB Home (Aug Q3) Meritage (Sep Q3) Hovnanian (Oct Q4) Communities (Sep Q3) LGI Homes (Sep Q3) Finders (Sep Q3) Morrison (Sep Q3) M/I Homes (Sep Q3) TRI Pointe (Sep Q3) Dream Taylor Century
Slide 30: Adjusted EBIT ROI, Last Twelve Months (Midsized and Large Peers)
Adjusted EBIT ROI, Last Twelve Months 65.8% 27.7% 19.7% 22.2% 16.4% 16.7% 17.2% 17.7% 17.7% 17.7% 12.6% 14.0% 10.7% 5.1% 6.5% Lennar (Aug Q3) DR Horton (Sep Q4) Beazer (Sep Q4) Morrison (Sep Q3) KB Home (Aug Q3) Meritage (Sep Q3) Communities (Sep Q3) Hovnanian (Oct Q4) Pulte (Sep Q3) Finders (Sep Q3
Slide 31: Price to Book Value
Price to Book Value 5.18 1.67 1.90 1.93 1.30 1.41 0.88 0.97 0.99 1.06 1.10 1.13 0.54 0.58 0.74 Lennar (Aug Q3) DR Horton (Sep Q4) Beazer (Sep Q4) Morrison (Sep Q3) KB Home (Aug Q3) Meritage (Sep Q3) Communities (Sep Q3) Hovnanian (Oct Q4) Pulte (Sep Q3) Finders (Sep Q3) LGI Homes (Sep Q3) Toll (Jul
Slide 32: Land Positions by Geographic Segment
Land Positions by Geographic Segment October 31, 2025 Owned Excluding Segment Mothballed Lots Optioned Lots Total Lots Mothballed Lots Northeast 2,172 6 16,802 18,980 Southeast 1,110 - 4,971 6,081 West 1,818 390 8,614 10,822 Consolidated Total 5,100 396 30,387 35,883 Unconsolidated Joint Ventures 2,
Slide 33: Appendix
ia! s a o 2. 2 4
Slide 34: Base Construction Costs Per Square Foot
Base Construction Costs Per Square Foot $96.21 $94.93 $91.83 $91.74 $91.39 $90.96 $90.27 $89.78 $89.51 $89.69 $89.19 $88.82 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 34
Slide 35: Annual Contracts Per Community
Annual Contracts Per Community Excluding Build for Rent Including Build for Rent 39.5 43.5 39.0 40.7 54.2 55.2 44.0 38.9 38.9 41.2 38.7 35.1 36.0 36.9 30.0 31.4 28.4 avg. 1997- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TTM ended 10/31/2025 2002 Average Note: Annual Contracts per Communi
Slide 36: Profitable financial services business
Profitable financial services business Financial services overview Origination portfolio for the year ended October 31, 2025 Complements HOV’s homebuilding operations 1.0% Prime Allows ability for interest rate buy- VHA / FHA down programs for homebuilder customers Nonconforming 40.3% Provides
Slide 37: Credit Quality of Homebuyers
Credit Quality of Homebuyers Fiscal Year 2025 Fourth Quarter 2025 o Average LTV: 84% o Average LTV: 84% o Average CLTV: 84% o Average CLTV: 84% o ARMs: 0.3% o ARMs: 0.1% o FICO Score: 745 o FICO Score: 745 o Capture Rate: 80% o Capture Rate: 80% Note: Loans originated by our wholly-owned mortgage ba
Slide 38: Monthly
Monthly Number of contracts Sundays 467 Nov-21 4 Nov-21 4.1 182 Nov-22 4 Nov-22 1.5 Nov-23 2.3 260 Nov-23 4 Nov-24 3.1 400 Nov-24 4 Dec-21 4.5 486 Dec-21 4 Dec-22 2.0 238 Dec-22 4 Dec-23 3.5 374 Dec-23 5 Dec-24 2.9 372 Dec-24 5 Jan-22 5.4 598 Jan-22 5 Note: Excludes unconsolidated joint ventures. Ja
Slide 39: Phantom Stock Impact
Phantom Stock Impact ($ in millions, except stock prices) Incremental Phantom Total SG&A Total SG&A Ratio Stock Price at end Reported Reported Total Stock Benefit Adjusted for Adjusted for Phantom of quarter Total SG&A SG&A Ratio (Expense) Phantom Stock Stock Q1 2021 $51.16 - - - - - Q2 2021 $132.59
Slide 40: Reconciliation of income before income taxes excluding land-related charges
Reconciliation of income before income taxes excluding land- related charges and loss (gain) on extinguishment of debt, net to (loss) income before income taxes Hovnanian Enterprises, Inc. October 31, 2025 Reconciliation of income before income taxes excluding land-related charges and loss (gain) on
Slide 41: Reconciliation of Gross Margin
Reconciliation of Gross Margin Hovnanian Enterprises, Inc. October 31, 2025 Gross margin (In thousands) Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Year Ended October 31, October 31, 2025 2024 2025 2024 (Unaudited) (Unaudited) Sale of homes $ 786,630 $ 927,499 $ 2,852,908
Slide 42: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income Hovnanian Enterprises, Inc. October 31, 2025 Reconciliation of adjusted EBITDA to net income (In thousands) Three Months Ended Year Ended October 31, October 31, 2025 2024 2025 2024 (Unaudited) (Unaudited) Net (loss) income $ (667) $ 94,349 $ 63,865 $
Slide 43: Reconciliation of Inventory Turnover
Reconciliation of Inventory Turnover Hovnanian Enterprises, Inc. October 31, 2025 Calculation of Inventory Turnover(1) TTM For the quarter ended ended (Dollars in thousands) 1/31/2025 4/30/2025 7/31/2025 10/31/2025 10/31/2025 Cost of sales, excluding interest $533,290 $543,289 $636,256 $658,528 $2,3
Slide 44: Reconciliation of Adjusted EBIT Return on Adjusted Investment
Reconciliation of Adjusted EBIT Return on Adjusted Investment Hovnanian Enterprises, Inc. October 31, 2025 Reconciliation of Adjusted EBIT Return on Adjusted Investment (in thousands) TTM For the quarter ended ended 1/31/2025 4/30/2025 7/31/2025 10/31/2025 10/31/2025 Net income (loss) $28,191 $19,72
Slide 45: Key credit and balance sheet metrics reconciliations
Key credit and balance sheet metrics reconciliations October 31, 2019 2020 2021 2022 2023 2024 2025 Nonrecourse mortgages secured by inventory, net of debt issuance costs $203,585 $135,122 $125,089 $144,805 $91,539 $90,675 $29,494 Senior notes and credit facilities (net of discounts, premiums and de
Slide 46: Hovnanian Enterprises, Inc.
ovnanian Enterprises; Inc.
Hovnanian Enterprises — Q4 2025 Earnings Presentation on 6ix