Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Q1 2026 Earnings Presentation
46 slides from Hovnanian Enterprises's earnings presentation, Feb 25, 2026
Slide 1: Review of Financial Results First Quarter Fiscal 2026
Review of Financial Results First 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 loss (gain) on extinguishment of debt, net (“Adjusted EBITDA”), the ratio of Adjust
Slide 4: Recent company performance
Recent company performance
Slide 5: First Quarter Results Compared to Guidance
First Quarter Results Compared to Guidance ($ in millions) Guidance Actuals Q1 2026(1) Q1 2026 Total Revenues $550 - $650 $632 Adjusted Homebuilding Gross Margin(2) 13.0% - 14.0% 13.4% Total SG&A as Percentage of Total Revenues(3) 13.5% - 14.5% 13.3% Income from Unconsolidated Joint Ventures $0 - $1
Slide 6: First Quarter Results Compared to Last Year
First Quarter Results Compared to Last Year ($ in millions) Total Revenues Adjusted Gross Margin(1) $674 18.3% $632 13.4% Q1 2025 Q1 2026 Q1 2025 Q1 2026 Total SG&A Expense as a Percentage Adjusted Income Before Income Taxes(3) of Total Revenues(2) $41 12.9% 13.3% $31 Q1 2025 Q1 2026 Q1 2025 Q1 2026
Slide 7: Contracts, including domestic unconsolidated joint ventures
Contracts, including domestic unconsolidated joint ventures 1,400 1,365 Q1 2025 Q1 2026 Note: Includes domestic unconsolidated joint venture contracts. 7
Slide 8: Monthly Traffic per Community
8 37.0 Jan 2026 26.5 Jan 2025 25.9 Dec 2025 21.3 Dec 2024 29.7 Nov 2025 25.8 Nov 2024 Monthly Traffic per Community 29.7 Oct 2025 26.5 Oct 2024 Note: Includes domestic unconsolidated joint venture communities. 29.2 Sep 2025 34.2 Sep 2024 37.4 Aug 2025 30.1 Aug 2024
Slide 9: Contracts month to date
Feb 2026 9 Contracts month to date 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 462 Sep 2025 472 Sep 2024 491 Aug 2025 556 Aug 2024 Note: February contracts months to date through February 23rd for both 2025 and 2026. 500 Jul 2025 4
Slide 10: Quarterly Contracts Per Community
Quarterly Contracts Per Community Excluding Build for Rent Including Build for Rent 9.6 9.5 16.9 6.5 14.0 8.6 9.7 9.2 9.6 9.4 7.5 7.3 6.8 6.1 1997 - Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025 Q1 2026 2002 First Quarter Average Note: Excludes unconsolidated joint ventures
Slide 11: Contracts Per Community
Contracts Per Community Excluding Build for Rent Including Build for Rent 3.8 3.5 3.1 2.9 2.8 2.5 November November December December January January 2024 2025 2024 2025 2025 2026 Number Of 4 5 5 4 4 4 Sundays Note: Excludes unconsolidated joint ventures. 11
Slide 12: Percentage of Incentives for Deliveries
Percentage of Incentives for Deliveries 12.6% 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 Q1 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 Note: “% of incentives for deliveri
Slide 13: 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 14: Quick Move In Homes (QMIs)
Quick Move In Homes (QMIs) 1,163 1,073 1,016 907 742 01/31/25 04/30/25 07/31/25 10/31/25 01/31/26 Note: Excluding unconsolidated joint ventures and models. Excludes Kingdom of Saudi Arabia operations. 14
Slide 15: 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% 32% 21% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 Note: Excludes Kingdom of Saudi Arabia operations. 15
Slide 16: Community Count
Community Count Community count expected to grow further in fiscal 2026. 151 148 135 20 23 17 131 125 118 Q1 2024 Q1 2025 Q1 2026 Wholly Owned Unconsolidated Joint Ventures Note: Excludes our four consolidated communities in the Kingdom of Saudi Arabia as of 2026 and four unconsolidated joint ventur
Slide 17: Lots Controlled
Lots Controlled Including domestic unconsolidated joint ventures, our total lots controlled were 38,764 as of January 31, 2026. 43,254 42,440 41,891 39,516 40,246 36,841 35,883 35,560 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 30,502 20,789 21,598 24,3
Slide 18: Lot Vintage
Lot Vintage As of April 30, 2025 July 31, 2025 October 31, 2025 January 31, 2026 14,902 13,987 12,609 11,934 9,515 9,334 8,922 8,382 7,872 7,189 5,776 5,299 4,364 3,678 3,627 3,293 3,248 2,810 2,803 2,726 2,649 2,521 2,454 2,156 2,079 pre 21 2021 2022 2023 2024 2025 2026 % of Incentives - 3.4% 3.0%
Slide 19: Quarterly Land and Land Development Spend
Quarterly Land and Land Development Spend ($ in millions) $249 $248 $220 $193 $199 $181 2024 Quarterly Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Average Note: Excludes Kingdom of Saudi Arabia operations. 19
Slide 20: Liquidity Position and Target
Liquidity Position and Target ($ in millions) $564 $125 $464 $456 $471 $457 $125 $404 $381 $125 $125 $366 $125 $353 $357 $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 $125 $170 $
Slide 21: Debt Maturity Profile
Debt Maturity Profile As of January 31, 2026 ($ in millions) Total Debt Outstanding $925 Annual Interest Incurred $75 $450 $450 8.000% 8.375% $125 (1) $25 5.000% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 '26 '26 '26 '26 '27 '27 '27 '27 '28 '28 '28 '28 '29
Slide 22: Balance Sheet Metrics
Balance Sheet Metrics ($ in millions) Equity value (book) Total debt $800 $831 $836 $582 $1,684 $1,566 $383 $1,373 $1,291 $175 $1,143 $987 $930 930 $(437) $(490) FYE FYE FYE FYE FYE FYE FYE Q1 FYE FYE FYE FYE FYE FYE FYE Q1 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 2025 2
Slide 23: Guidance for Fiscal 2026 Second Quarter
Guidance for Fiscal 2026 Second Quarter ($ in millions) Guidance Q2 2026(1) Total Revenues $625 - $725 Adjusted Homebuilding Gross Margin(2) 13.0% - 14.0% 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 Adjust
Slide 24: Percentage of Optioned Lots
Percentage of Optioned Lots 84% 86% 77% 71% 61% 61% 64% 58% 53% 52% 48% 44% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Note: Excludes unconsolidated joint ventures. Excludes Kingdom of Saudi Arabia operations. 24
Slide 25: Percentage of Lots Optioned vs Peers
LGI Homes (Dec Q4) 15% Meritage (Dec Q4) 28% KB Home (Nov Q4) 43% Century Note: Excludes unconsolidated joint ventures. 43% Communities (Dec Q4) M/I Homes (Dec Q4) 49% Source: Peer SEC filings and press releases as of 02/25/2026. % of Lots Optioned Note: Hovnanian 91% excludes QMIs and backlog from
Slide 26: Inventory Turns, Last Twelve Months
Inventory Turns (COGS), Last Twelve Months 2.8x 1.5x 1.7x 1.4x 0.9x 0.9x 0.9x 1.0x 1.0x 1.1x 0.8x 0.8x 0.9x 0.9x 0.4x Meritage (Dec Q4) Beazer (Dec Q1) KB Home (Nov Q4) Pulte (Dec Q4) TRI Pointe (Sep Q3) Communities (Dec Q4) Finders (Dec Q4) Toll (Jan Q1) Hovnanian (Jan Q1) LGI Homes (Dec Q4) NVR (D
Slide 27: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 17.2% 17.6% 15.8% 16.4% 14.0% 12.2% 11.3% 8.4% 4.2% 4.8% KB Home (Nov Q4) Meritage (Dec Q4) Morrison (Dec Q4) LGI Homes (Dec Q4) Finders (Dec Q4) Hovnanian (Jan Q1) Beazer (Dec Q1) Communities (Dec Q4) M/I Homes (Dec Q4) TRI Pointe (Sep Q3) Dream Taylor Century
Slide 28: Price to Book Value
Price to Book Value 5.77 2.05 2.13 1.51 1.60 1.70 1.01 1.06 1.07 1.08 1.23 0.61 0.73 0.91 0.58 Morrison (Dec Q4) LGI Homes (Dec Q4) KB Home (Nov Q4) Hovnanian (Jan Q1) Meritage (Dec Q4) Pulte (Dec Q4) M/I Homes (Dec Q4) Lennar (Nov Q4) DR Horton (Dec Q1) Beazer (Dec Q1) Toll (Jan Q1) Finders (Dec Q4
Slide 29: Appendix
Appendix
Slide 30: Land Positions by Geographic Segment
Land Positions by Geographic Segment January 31, 2026 Owned Excluding Segment Mothballed Lots Optioned Lots Total Lots Mothballed Lots Northeast 2,066 6 17,646 19,718 Southeast 798 - 5,029 5,827 West 1,798 390 7,827 10,015 Consolidated Total 4,662 396 30,502 35,560 Unconsolidated Joint Ventures 2,80
Slide 31: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 64.6% 24.2% 17.6% 17.8% 20.8% 14.1% 15.8% 16.4% 17.2% 11.3% 12.2% 14.0% 8.4% 4.2% 4.8% Morrison (Dec Q4) LGI Homes (Dec Q4) KB Home (Nov Q4) Hovnanian (Jan Q1) Meritage (Dec Q4) Pulte (Dec Q4) Lennar (Nov Q4) M/I Homes (Dec Q4) DR Horton (Dec Q1) Beazer (Dec Q1)
Slide 32: Contracts Per Community – Most Recent Quarter
Contracts Per Community – Most Recent Quarter For the quarter ended December 31, 2025 11.0 9.6 10.1 8.3 8.6 8.9 7.3 6.3 5.6 4.5 Morrison (Dec Q4) Pulte (Dec Q4) Meritage (Dec Q4) Beazer (Dec Q1) M/I Homes (Dec Q4) Finders (Dec Q4) LGI Homes (Dec Q4) (as if Dec. qtr. end) Communities (Dec Q4) NVR (De
Slide 33: Contracts Per Community Year-Over-Year Change
Contracts Per Community – Most Recent Quarter Year-Over-Year Change For the quarter ended December 31, 2025, compared with the quarter ended December 31, 2024 46% 16% 4% -5% -3% -2% -15% -10% -21% -16% Meritage (Dec Q4) Pulte (Dec Q4) Morrison (Dec Q4) Beazer (Dec Q1) Finders (Dec Q4) LGI Homes (Dec
Slide 34: Base Construction & Option Costs Per Square Foot
Base Construction & Option Costs Per Square Foot $98.39 $97.42 $97.16 $96.71 $95.94 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 34
Slide 35: Annual Contracts Per Community
Annual Contracts Per Community Excluding Build for Rent Including Build for Rent 39.5 43.5 39.0 39.2 40.7 54.2 55.2 44.0 38.9 38.9 41.2 38.7 38.8 35.1 36.0 36.9 30.0 31.4 28.4 avg. 1997- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM ended 01/31/2026 2002 Average Note: Annual Contra
Slide 36: Profitable financial services business
Profitable financial services business Financial services overview Origination portfolio for the three months ended January 31, 2026 Complements HOV’s homebuilding operations 1.4% Prime Allows ability for interest rate buy- VHA / FHA down programs for homebuilder customers Nonconforming 39.5%
Slide 37: Credit Quality of Homebuyers
Credit Quality of Homebuyers Fiscal Year 2025 First Quarter 2026 o Average LTV: 84% o Average LTV: 84% o Average CLTV: 84% o Average CLTV: 84% o ARMs: 0.3% o ARMs: 2.3% o FICO Score: 745 o FICO Score: 743 o Capture Rate: 80% o Capture Rate: 80% Note: Loans originated by our wholly-owned mortgage ban
Slide 38: Monthly contracts
contracts Monthly Sundays Number of 548 Feb-22 4 Feb-22 5.0 504 Feb-23 4 Feb-23 4.1 504 Feb-24 4 Feb-24 4.4 415 Feb-25 4 Feb-25 3.2 519 Mar-22 4 Mar-22 4.9 442 Mar-23 4 Mar-23 3.7 513 Mar-24 5 Mar-24 4.7 523 Mar-25 5 Mar-25 4.2 458 Apr-22 4 Apr-22 4.5 531 Apr-23 5 Apr-23 4.7 495 Apr-24 4 Apr-24 4.5
Slide 39: Phantom Stock Impact
Phantom Stock Impact ($ 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 to income before income taxes Hovnanian Enterprises, Inc. January 31, 2026 Reconciliation of income before income taxes excluding land-related charges to income before income taxes (In thousands) Three Months Ended January
Slide 41: Reconciliation of Gross Margin
Reconciliation of Gross Margin Hovnanian Enterprises, Inc. January 31, 2026 Gross margin (In thousands) Homebuilding Gross Margin Three Months Ended January 31, 2026 2025 (Unaudited) Sale of homes $ 575,759 $ 646,914 Cost of sales, excluding interest expense and land charges (1) 498,413 528,745 Home
Slide 42: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income Hovnanian Enterprises, Inc. January 31, 2026 Reconciliation of adjusted EBITDA to net income (In thousands) Three Months Ended January 31, 2026 2025 (Unaudited) Net income $ 20,859 $ 28,191 Income tax provision 7,843 11,672 Interest expense 28,749 28,8
Slide 43: Reconciliation of Inventory Turnover
Reconciliation of Inventory Turnover Hovnanian Enterprises, Inc. January 31, 2026 Calculation of Inventory Turnover(1) TTM For the quarter ended ended (Dollars in thousands) 4/30/2025 7/31/2025 10/31/2025 1/31/2026 1/31/2026 Cost of sales, excluding interest $543,289 $636,256 $658,528 $509,631 $2,34
Slide 44: Reconciliation of Adjusted EBIT Return on Adjusted Investment
Reconciliation of Adjusted EBIT Return on Adjusted Investment Hovnanian Enterprises, Inc. January 31, 2026 Reconciliation of Adjusted EBIT Return on Adjusted Investment (in thousands) TTM For the quarter ended ended 4/30/2025 7/31/2025 10/31/2025 1/31/2026 1/31/2026 Net income (loss) $ 19,726 $ 16,6
Slide 45: Key credit and balance sheet metrics reconciliations
Key credit and balance sheet metrics reconciliations October 31, LTM January 31, 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 $28,548 Senior notes and credit facilities (net
Slide 46: Hovnanian Enterprises, Inc.
ovnanian Enterprises: Inc.
Hovnanian Enterprises — Q1 2026 Earnings Presentation on 6ix