Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Q2 2026 Earnings Presentation
46 slides from Hovnanian Enterprises's earnings presentation, May 21, 2026
Slide 1: Review of Financial Results Second Quarter Fiscal 2026
Review of Financial Results Second Quarter Fiscal 2026
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 gain on extinguishment of debt, net (“Adjusted EBITDA”), the ratio of Adjusted EBIT
Slide 4: Recent company performance
Recent company performance
Slide 5: Second Quarter Results Compared to Guidance
Second Quarter Results Compared to Guidance ($ in millions) Guidance Actuals Q2 2026(1) Q2 2026 Total Revenues $625 - $725 $668 Adjusted Homebuilding Gross Margin(2) 13.0% - 14.0% 14.3% Total SG&A as Percentage of Total Revenues(3) 12.5% - 13.5% 12.6% Income (Loss) from Unconsolidated Joint Ventures
Slide 6: Second Quarter Results Compared to Last Year
Second Quarter Results Compared to Last Year ($ in millions) Total Revenues Adjusted Gross Margin(1) $686 17.3% $668 14.3% Q2 2025 Q2 2026 Q2 2025 Q2 2026 Total SG&A Expense as a Percentage Adjusted Income Before Income Taxes(3) of Total Revenues(2) 12.6% $29 11.7% $9 Q2 2025 Q2 2026 SG&A Q2 2025 Q2
Slide 7: Contracts, including domestic unconsolidated joint ventures
Contracts, including domestic unconsolidated joint ventures 1,629 1,667 Q2 2025 Q2 2026 Note: Includes domestic unconsolidated joint venture contracts. 7
Slide 8: Monthly Traffic per Community
8 28.2 Apr 2026 28.9 Apr 2025 32.6 Mar 2026 37.8 Mar 2025 33.2 Feb 2026 28.4 Feb 2025 Monthly Traffic per Community 37.0 Jan 2026 26.5 Jan 2025 Note: Includes domestic unconsolidated joint venture communities. 25.9 Dec 2025 21.3 Dec 2024 29.7 Nov 2025 25.8 Nov 2024
Slide 9: Contracts month to date
May 2026 9 Contracts month to date May 2025 556 Apr 2026 539 Apr 2025 561 Mar 2026 609 Mar 2025 550 Feb 2026 481 Feb 2025 560 Jan 2026 503 Jan 2025 380 Dec 2025 430 Dec 2024 425 Nov 2025 467 Nov 2024 497 Oct 2025 543 Oct 2024 Note: May contracts months to date through May 20th for both 2025 and 2026
Slide 10: Quarterly Contracts Per Community
Quarterly Contracts Per Community Excluding Build for Rent Including Build for Rent 13.0 13.9 11.2 11.3 18.3 15.0 11.4 11.3 12.0 12.6 10.9 10.6 10.5 11.1 11.0 Second Q2 2017 Q2 2018 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2 2026 Quarter Average since 1997 Note: Excludes unconsolidat
Slide 11: Contracts Per Community
Contracts Per Community Excluding Build for Rent Including Build for Rent 3.7 3.7 3.7 4.2 3.8 3.6 3.6 3.6 3.2 February February March March April April 2025 2026 2025 2026 2025 2026 Number Of 4 4 5 5 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 March 31, 2026 13.3 10.6 11.2 10.2 8.2 8.6 7.3 7.5 7.7 7.7 6.2 Pulte (Mar Q1) Finders (Mar Q1) Beazer (Mar Q2) LGI Homes (Mar Q1) Morrison (Mar Q1) M/I Homes (Mar Q1) NVR (Mar Q1) Communities (Mar TRI Pointe (Mar Q1) (as if Mar. qtr
Slide 13: Contracts Per Community – Most Recent Quarter, Year-Over-Year Change
Contracts Per Community – Most Recent Quarter Year-Over-Year Change For the quarter ended March 31, 2026, compared with the quarter ended March 31, 2025 4% 0% 1% -5% -9% -8% -8% -12% -12% -16% -21% Communities (Mar Q1) Finders (Mar Q1) Beazer (Mar Q2) Morrison (Mar Q1) NVR (Mar Q1) M/I Homes (Mar Q1
Slide 14: Percentage of Incentives for Deliveries
Percentage of Incentives for Deliveries 12.6% 12.2% 11.9% 11.6% 10.5% 9.7% 9.3% 8.5% 8.1% 8.1% 7.7% 7.5% 7.4% 7.3% 3.9% 2.7% 2.5% 2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 Note: “% of incentive
Slide 15: Homes / Community: Quick Move In Homes 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 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 Note: Excluding unconsolidated joint ventures and models. Excludes Kingdom of Saud
Slide 16: Quick Move In Homes (QMIs)
Quick Move In Homes (QMIs) 1,163 1,073 1,016 907 742 731 01/31/25 04/30/25 07/31/25 10/31/25 01/31/26 04/30/26 Note: Excluding unconsolidated joint ventures and models. Excludes Kingdom of Saudi Arabia operations. 16
Slide 17: Percentage of communities where we raised net prices
Percentage of communities where we raised net prices 69% 71% 59% 54% 44% 37% 40% 33% 34% 36% 30% 31% 32% 21% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 Note: Excludes Kingdom of Saudi Arabia operations. 17
Slide 18: Liquidity Position and Target
Liquidity Position and Target ($ in millions) $564 $125 $464 $456 $471 $457 $442 $125 $404 $381 $125 $125 $366 $125 $353 $357 $125 $338 $313 $311 $125 $308 $306 $125 $125 $282 $125 $125 $278 $271 $125 $125 $439 $251 $245 Target $125 $222 $125 $125 $202 $125 liquidity $125 $125 $339 $331 $125 range $
Slide 19: Debt Maturity Profile
Debt Maturity Profile As of April 30, 2026 ($ in millions) Total Debt Outstanding $925 Annual Interest Incurred $75 $450 $450 8.000% 8.375% $125 (1) $25 5.000% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 '26 '26 '26 '26 '27 '27 '27 '27 '28 '28 '28 '28 '29 '
Slide 20: Balance Sheet Metrics
Balance Sheet Metrics ($ in millions) Equity value (book) Total debt $800 $831 $825 $582 $1,684 $1,566 $383 $1,373 $1,291 $175 $1,143 $987 $930 $935 $(437) $(490) FYE FYE FYE FYE FYE FYE FYE Q2 FYE FYE FYE FYE FYE FYE FYE Q2 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 2025
Slide 21: Community Count
Community Count Community count expected to grow further in fiscal 2026. 148 148 132 23 23 23 125 125 109 Q2 2024 Q2 2025 Q2 2026 Wholly Owned Unconsolidated Joint Ventures Note: Excludes our three consolidated communities in the Kingdom of Saudi Arabia as of 2026 and four unconsolidated joint ventu
Slide 22: Lots Controlled
Lots Controlled Including domestic unconsolidated joint ventures, our total lots controlled were 36,621 as of April 30, 2026. 43,254 42,440 41,891 39,516 40,246 36,841 35,883 35,560 33,576 33,632 31,726 29,123 28,657 29,487 35,259 36,510 35,990 32,336 34,801 29,584 25,867 30,387 30,502 20,789 20,402
Slide 23: Lot Vintage
Lot Vintage As of April 30, 2025 July 31, 2025 October 31, 2025 January 31, 2026 April 30, 2026 14,902 13,987 12,609 11,934 10,473 9,515 9,334 8,922 8,653 8,382 7,872 7,189 5,776 5,299 4,841 4,364 3,678 3,627 3,293 3,248 2,958 2,810 2,803 2,726 2,649 2,556 2,521 2,454 2,156 1,857 2,294 2,079 pre 21
Slide 24: Quarterly Land and Land Development Spend
Quarterly Land and Land Development Spend ($ in millions) $249 $248 $232 $220 $193 $199 $181 2024 Quarterly Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Average Note: Excludes Kingdom of Saudi Arabia operations. 24
Slide 25: Guidance for Fiscal 2026 Third Quarter
Guidance for Fiscal 2026 Third Quarter ($ in millions) Guidance Q3 2026(1) Total Revenues $650 - $750 Adjusted Homebuilding Gross Margin(2) 14.0% - 15.0% Total SG&A as Percentage of Total Revenues(3) 12.5% - 13.5% Income from Unconsolidated Joint Ventures $0- $10 Adjusted EBITDA(4) $30 - $40 Adjuste
Slide 26: Percentage of Optioned Lots
Percentage of Optioned Lots 85% 86% 80% 69% 71% 60% 60% 63% 49% 51% 53% 45% Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Note: Excludes unconsolidated joint ventures. Excludes Kingdom of Saudi Arabia operations. 26
Slide 27: Percent of Lots Optioned vs. Peers
LGI Homes (Mar Q1) 13% Meritage (Mar Q1) 30% KB Home (Feb Q1) 41% Century Note: Excludes unconsolidated joint ventures. 41% Communities (Mar Q1) Taylor 51% Source: Peer SEC filings and press releases as of 05/21/2026. Morrison (Mar Q1) % of Lots Optioned Note: Hovnanian 93% excludes QMIs and backlog
Slide 28: Inventory Turns, Last Twelve Months
Inventory Turns (COGS), Last Twelve Months 2.6x 1.5x 1.7x 1.3x 0.9x 0.9x 1.0x 1.1x 0.7x 0.8x 0.8x 0.8x 0.9x 0.9x 0.4x M/I Homes (Mar Q1) LGI Homes (Mar Q1) Beazer (Mar Q2) Morrison (Mar Q1) Meritage (Mar Q1) Toll (Jan Q1) KB Home (Feb Q1) Communities (Mar Q1) NVR (Mar Q1) DR Horton (Mar Q2) Hovnania
Slide 29: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 15.7% 15.9% 13.6% 11.3% 11.8% 9.9% 10.3% 7.8% 4.3% 3.1% Finders (Mar Q1) Beazer (Mar Q2) Meritage (Mar Q1) Communities (Mar Q1) LGI Homes (Mar Q1) Morrison (Mar Q1) M/I Homes (Mar Q1) KB Home (Feb Q1) TRI Pointe (Mar Q1) Hovnanian (Apr Q2) Dream Taylor Century S
Slide 30: Price to Book Value
Price to Book Value 4.46 1.62 1.63 1.21 1.40 0.80 0.80 0.81 0.83 0.93 0.98 0.51 0.54 0.73 0.45 Toll (Jan Q1) Lennar (Feb Q1) Finders (Mar Q1) DR Horton (Mar Q2) Beazer (Mar Q2) Morrison (Mar Q1) KB Home (Feb Q1) Hovnanian (Apr Q2) Meritage (Mar Q1) Pulte (Mar Q1) Communities (Mar Q1) LGI Homes (Mar
Slide 31: Appendix
Appendix
Slide 32: Land Positions by Geographic Segment
Land Positions by Geographic Segment April 30, 2026 Owned Excluding Segment Mothballed Lots Optioned Lots Total Lots Mothballed Lots Northeast 1,577 - 17,253 18,830 Southeast 981 - 4,571 5,552 West 1,701 390 7,159 9,250 Consolidated Total 4,259 390 28,983 33,632 Unconsolidated Joint Ventures 2,727 -
Slide 33: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 59.0% 19.9% 22.1% 15.7% 15.9% 17.8% 10.3% 11.3% 11.8% 12.7% 13.6% 7.8% 9.9% 3.1% 4.3% Toll (Jan Q1) Lennar (Feb Q1) Finders (Mar Q1) DR Horton (Mar Q2) Beazer (Mar Q2) Morrison (Mar Q1) KB Home (Feb Q1) Hovnanian (Apr Q2) Meritage (Mar Q1) Pulte (Mar Q1) Communi
Slide 34: Base Construction & Option Costs Per Square Foot
Base Construction & Option Costs Per Square Foot $98.39 $97.42 $97.16 $96.71 $95.94 $95.61 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 34
Slide 35: Annual Contracts Per Community
Annual Contracts Per Community Excluding Build for Rent Including Build for Rent 39.5 43.5 39.0 39.3 40.7 54.2 55.2 44.0 38.9 38.9 41.2 38.7 38.8 35.1 36.0 36.9 30.0 31.4 28.4 1997- avg. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM ended 2002 04/30/2026 Average Note: Annual Contra
Slide 36: Profitable financial services business
Profitable financial services business Financial services overview Origination portfolio for the six months ended April 30, 2026 Complements HOV’s homebuilding operations 1.6% Prime Allows ability for interest rate buy- VHA / FHA down programs for homebuilder customers 35.5% Nonconforming Prov
Slide 37: Credit Quality of Homebuyers
Credit Quality of Homebuyers Fiscal Year 2025 Second Quarter 2026 o Average LTV: 84% o Average LTV: 84% o Average CLTV: 84% o Average CLTV: 84% o ARMs: 0.3% o ARMs: 11.0% o FICO Score: 745 o FICO Score: 746 o Capture Rate: 80% o Capture Rate: 84% Note: Loans originated by our wholly-owned mortgage b
Slide 38: Monthly Number of contracts
Monthly Number of contracts Sundays 336 May-22 5 May-22 3.3 456 May-23 4 May-23 4.3 397 May-24 4 May-24 3.5 386 May-25 4 May-25 3.0 232 Jun-22 4 Jun-22 2.1 603 Jun-23 4 Jun-23 6.0 393 Jun-24 5 Jun-24 3.4 399 Jun-25 5 Jun-25 3.1 231 Jul-22 5 Jul-22 2.1 385 Jul-23 5 Jul-23 3.8 402 Jul-24 4 Jul-24 3.2
Slide 39: Phantom Stock Impact
Phantom Stock Impact ($ 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 gain on extinguishment of debt, net to income before income taxes Hovnanian Enterprises, Inc. April 30, 2026 Reconciliation of income before income taxes excluding land-related charges and gain on extinguishment of debt
Slide 41: Reconciliation of Gross Margin
Reconciliation of Gross Margin Hovnanian Enterprises, Inc. April 30, 2026 Gross margin (In thousands) Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Six Months Ended April 30, April 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) Sale of homes $ 604,188 $ 650,314 $ 1,179,947
Slide 42: Reconciliation of Adjusted EBITDA to Net (Loss) Income
Reconciliation of Adjusted EBITDA to Net (Loss) Income Hovnanian Enterprises, Inc. April 30, 2026 Reconciliation of adjusted EBITDA to net (loss) income (In thousands) Three Months Ended Six Months Ended April 30, April 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) Net (loss) income $ (595) $ 19,7
Slide 43: Reconciliation of Inventory Turnover
Reconciliation of Inventory Turnover Hovnanian Enterprises, Inc. April 30, 2026 Calculation of Inventory Turnover(1) TTM For the quarter ended ended (Dollars in thousands) 7/31/2025 10/31/2025 1/31/2026 4/30/2026 4/30/2026 Cost of sales, excluding interest $636,256 $658,528 $509,631 $531,061 $2,335,
Slide 44: Reconciliation of Adjusted EBIT Return on Adjusted Investment
Reconciliation of Adjusted EBIT Return on Adjusted Investment Hovnanian Enterprises, Inc. April 30, 2026 Reconciliation of Adjusted EBIT Return on Adjusted Investment (in thousands) TTM For the quarter ended ended 7/31/2025 10/31/2025 1/31/2026 4/30/2026 4/30/2026 Net income (loss) $16,615 $ (667) $
Slide 45: Key credit and balance sheet metrics reconciliations
Key credit and balance sheet metrics reconciliations October 31, LTM April 30, 2019 2020 2021 2022 2023 2024 2025 2026 Nonrecourse mortgages secured by inventory, net of debt issuance costs $203,585 $135,122 $125,089 $144,805 $91,539 $90,675 $29,494 $32,704 Senior notes and credit facilities (net of
Slide 46: Hovnanian Enterprises, Inc.
ovnanian Enterprises; Inc.
Hovnanian Enterprises — Q2 2026 Earnings Presentation on 6ix