Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Q3 2026 Earnings Presentation
50 slides from Hovnanian Enterprises's earnings presentation, Aug 20, 2026
Slide 1: Review of Financial Results Third Quarter Fiscal 2026
Review of Financial Results Third 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 EBI
Slide 4: Recent company performance
Recent company performance
Slide 5: Third Quarter Results Compared to Guidance
Third Quarter Results Compared to Guidance ($ in millions) Guidance Actuals Q3 2026(1) Q3 2026 Total Revenues $650 - $750 $706 Adjusted Homebuilding Gross Margin(2) 14.0% - 15.0% 14.6% Total SG&A as Percentage of Total Revenues(3) 12.5% - 13.5% 12.3% Income (Loss) from Unconsolidated Joint Ventures
Slide 6: Third Quarter Results Compared to Last Year
Third Quarter Results Compared to Last Year ($ in millions) Total Revenues Adjusted Gross Margin(1) $801 $706 17.3% 14.6% Q3 2025 Q3 2026 Q3 2025 Q3 2026 Total SG&A Expense as a Percentage of Total Revenues(2) Adjusted (Loss) Income Before Income Taxes(3) $40 11.3% 12.3% $(2) Q3 2025 Q3 2026 SG&A $9
Slide 7: Contracts, including domestic unconsolidated joint ventures
Contracts, including domestic unconsolidated joint ventures 1,416 1,359 Q3 2025 Q3 2026 Note: Excludes contracts from HOV Global (Kingdom of Saudi Arabia) operations. 7
Slide 8: Contracts month to date
8 Aug 2026 Contracts month to date Aug 2025 419 Jul 2026 500 Jul 2025 444 Jun 2026 463 Jun 2025 496 May 2026 453 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 Note: August contracts months to date through Au
Slide 9: Quarterly Contracts Per Community
Quarterly Contracts Per Community Including Build for Rent Excluding Build for Rent 14.2 9.5 9.8 9.4 19.0 7.4 11.0 11.6 11.6 9.1 9.4 10.0 9.1 9.6 9.0 7.4 8.4 7.3 Third Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Quarter 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Average Since 2008 Note: Exc
Slide 10: Contracts Per Community
Contracts Per Community Including Build for Rent Excluding Build for Rent 3.5 3.0 2.8 3.3 3.4 3.0 3.1 2.9 2.6 May May June June July July 2025 2026 2025 2026 2025 2026 Number Of 4 5 5 4 4 4 Sundays Note: Excludes contracts from HOV Global (Kingdom of Saudi Arabia) operations. Note: Excludes unconsol
Slide 11: Percentage of Incentives for Deliveries
Percentage of Incentives for Deliveries 12.6% 12.2% 11.9% 11.6% 10.8% 10.5% 9.7% 9.3% 8.5% 8.1% 8.1% 7.7% 7.5% 7.4% 7.3% 3.9% 2.5% 2.5% 2.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 Note: “
Slide 12: Sequential Improvements in Adjusted Gross Margin
Sequential Improvements in Adjusted Gross Margin(1) in FY 2026 15.8% 14.3% 14.6% 13.4% Q1 Q2 Q3 Midpoint of Q4 guidance (1) Adjusted homebuilding gross margin percentage is before cost of sales interest expense and land charges and is a non-GAAP financial measure. See appendix for a reconciliation o
Slide 13: Percentage of communities where we raised net prices
Percentage of communities where we raised net prices 69% 71% 59% 54% 40% 44% 37% 33% 34% 36% 30% 31% 32% 31% 21% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 Note: Excludes contracts from HOV Global (Kingdom of Saudi Arabia)
Slide 14: Homes / 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 Note: Excluding unconsolidated joint ventures and models. Oct-19 5.4 Note: Excludes HOV Global (Kingdom of Saudi Arabia) operations. 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-
Slide 15: Quick Move In Homes (QMIs)
Quick Move In Homes (QMIs) 1,163 1,073 1,016 907 820 742 731 01/31/25 04/30/25 07/31/25 10/31/25 01/31/26 04/30/26 07/31/26 Note: Excludes HOV Global (Kingdom of Saudi Arabia) operations. Note: Excluding unconsolidated joint ventures and models. 15
Slide 16: Liquidity Position and Target
Liquidity Position and Target ($ in millions) $564 $457 $464 $456 $125 $471 $442 $404 $381 $125 $125 $125 $380 $353 $357 $125 $366 $125 $338 $313 $311 $125 $306 $125 $308 $125 $125 $271 $282 $125 $125 $125 $278 $245 $125 $439 $251 Target $125 $222 $202 $125 $125 $125 $125 liquidity $125 $339 $331 $1
Slide 17: Debt Maturity Profile
Debt Maturity Profile As of July 31, 2026 ($ in millions) Total Debt Outstanding $925 $450 $450 Annual Interest Incurred $75 8.000% 8.375% $125 (1) $25 5.000% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 '26 '26 '27 '27 '27 '27 '28 '28 '28 '28 '29 '29 '29 '29 '30
Slide 18: Balance Sheet Metrics
Balance Sheet Metrics ($ in millions) Equity value (book) Total debt $800 $831 $819 $1,684 $582 $1,566 $1,373 $1,291 $383 $1,143 $175 $987 $930 $935 $(437) $(490) FYE FYE FYE FYE FYE FYE FYE Q3 FYE FYE FYE FYE FYE FYE FYE Q3 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 2025
Slide 19: Community Count
Community Count Community count expected to grow further in fiscal 2026. 146 146 147 20 22 24 126 124 123 Q3 2024 Q3 2025 Q3 2026 Wholly Owned Unconsolidated Joint Ventures Note: Excludes our three consolidated communities in HOV Global (Kingdom of Saudi Arabia) as of 2026 and four unconsolidated jo
Slide 20: Lots Controlled
Lots Controlled Including domestic unconsolidated joint ventures, our total lots controlled were 37,137 as of July 31, 2026. 43,254 42,440 41,891 39,516 40,246 36,841 35,883 35,560 33,576 33,632 34,373 31,726 29,123 28,657 29,487 35,259 36,510 35,990 32,336 34,801 29,584 25,867 30,387 30,502 20,789
Slide 21: Percentage of Optioned Lots
Percentage of Optioned Lots 82% 86% 87% 68% 73% 61% 66% 59% 60% 48% 52% 46% Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Note: Excludes HOV Global (Kingdom of Saudi Arabia) operations. Note: Excludes unconsolidated joint ventures. 21
Slide 22: Lot Vintage
Lot Vintage As of April 30, 2025 July 31, 2025 October 31, 2025 January 31, 2026 April 30, 2026 July 31, 2026 14,902 13,987 12,609 11,934 10,473 9,796 9,515 9,334 8,922 8,653 8,382 7,872 7,189 7,188 6,841 1,857 5,776 5,299 4,841 4,387 4,364 3,678 3,627 3,293 3,248 2,958 2,810 2,803 2,726 2,649 2,454
Slide 23: Guidance for Fiscal 2026 Fourth Quarter
Guidance for Fiscal 2026 Fourth Quarter ($ in millions) Guidance Q4 2026(1) Total Revenues $800 - $900 Adjusted Homebuilding Gross Margin(2) 15.0% - 16.5% Total SG&A as Percentage of Total Revenues(3) 10.5% - 11.5% Income from Unconsolidated Joint Ventures $10- $20 Adjusted EBITDA(4) $50 - $65 Adjus
Slide 24: HOV Strategic Framework
Sales Pace Leadership Share Gain HOV Strategic Land-Light Model Capital Efficiency Return on Framework Fast Inventory Turns Execution Advantage Investment Land-Light Focus Model Return on Investment Focus Value Creation Move Up/Away Portfolio Shift from Entry Level Fast Inventory Turns 24
Slide 25: Sales Pace Leadership - Contracts Per Community
Contracts Per Community – S a l e s Pa c e L e a d e r s h i p for quarter ended June 30, 2026 13.3 10.2 10.2 10.5 6.8 6.9 7.0 7.9 5.3 6.3 Beazer (Jun Q3) Pulte (Jun Q2) Finders (Jun Q2) M/I Homes (Jun Q2) (as if Jun. qtr. end) NVR (Jun Q2) LGI Homes (Jun Q2) Meritage (Jun Q2) TRI Pointe (Jun Q2) Co
Slide 26: Contracts Per Community - Year-Over-Year Change
Contracts Per Community – Most Recent Quarter Year-Over-Year Change For the quarter ended June 30, 2026, compared with the quarter ended June 30, 2025 15% 4% 6% -1% 1% 2% -9% -8% -16% -13% Pulte (Jun Q2) Meritage (Jun Q2) NVR (Jun Q2) M/I Homes (Jun Q2) LGI Homes (Jun Q2) TRI Pointe (Jun Q2) (as if
Slide 27: Land-Light Model
Leader in pivoting towards “asset-lite” Land-Light Model 93% 98% 99% 100% 87% 78% 52% 55% 57% 58% 51% 38% 44% 31% 12% Beazer (Jun Q3) DR Horton (Jun Q3) Finders (Jun Q2) NVR (Jun Q2) KB Home (May Q2) LGI Homes (Jun Q2) Pulte (Jun Q2) Meritage (Jun Q2) Lennar (May Q2) Communities (Jun Q2) Toll (Apr Q
Slide 28: Fast Inventory Turns
Second highest inventory turn rate of E xe c u t i o n S t ra t e g y public builders, last twelve months 2.5x 1.5x 1.6x 1.1x 1.2x 0.8x 0.8x 0.9x 0.9x 1.0x 0.7x 0.7x 0.8x 0.4x Beazer (Jun Q3) DR Horton (Jun Q3) Finders (Jun Q2) NVR (Jun Q2) KB Home (May Q2) LGI Homes (Jun Q2) Pulte (Jun Q2) Meritage
Slide 29: Return on Investment Focus
Highest adjusted EBIT ROI compared to Va l u e C r e a t i o n midsized peers, last twelve months 13.1% 14.0% 10.4% 7.6% 8.4% 8.8% 4.1% 4.3% 2.1% Beazer (Jun Q3) KB Home (May Q2) Meritage (Jun Q2) Communities (Jun Q2) Finders (Jun Q2) M/I Homes (Jun Q2) LGI Homes (Jun Q2) TRI Pointe (Jun Q2) Hovnani
Slide 30: Move Up Market Portfolio Shift
PILLAR 05 OF 05 M o v e U p M a r ke t Portfolio Shift DR Horton (Jun Q3) $364,000 LGI Homes (Jun Q2) $367,000 communities Century $368,000 Communities (Jun Q2) Meritage (Jun Q2) $375,000 last twelve months Lennar (May Q2) $379,000 Dream $455,000 Finders (Jun Q2) NVR (Jun Q2) $457,000 KB Home (May Q
Slide 31: Appendix
Appendix
Slide 32: Subtle shift to more to-be-built homes
Subtle shift to more to-be-built homes QMIs as a percentage of gross contracts 79% 79% 72% 74% 71% 67% 69% 68% 69% 63% 65% 61% 61% 57% 52% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 32
Slide 33: Quarterly Land and Land Development Spend
Quarterly Land and Land Development Spend ($ in millions) $249 $248 $220 $232 $232 $193 $199 $181 2024 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Quarterly Average Note: Excludes HOV Global (Kingdom of Saudi Arabia) operations. 33
Slide 34: Percentage of Our Homebuyers That Used Buydowns
Percentage of Our Homebuyers That Used Buydowns 79% 78% 74% 75% 75% 74% 76% 73% 71% 72% 73% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Note: Represents the percentage of K. Hovnanian American Mortgage customers that used a buydown. 34
Slide 35: Land Positions by Geographic Segment
Land Positions by Geographic Segment July 31, 2026 Owned Excluding Segment Mothballed Lots Optioned Lots Total Lots Mothballed Lots Northeast 1,607 - 16,478 18,085 Southeast 919 - 5,250 6,169 West 1,692 390 8,037 10,119 Consolidated Total 4,218 390 29,765 34,373 Unconsolidated Joint Ventures 2,566 -
Slide 36: Adjusted EBIT ROI, Last Twelve Months
Adjusted EBIT ROI, Last Twelve Months 53.8% 19.2% 20.5% 14.0% 16.9% 10.4% 11.7% 13.1% 7.6% 8.4% 8.8% 2.1% 4.1% 4.3% Meritage (Jun Q2) M/I Homes (Jun Q2) Pulte (Jun Q2) DR Horton (Jun Q3) LGI Homes (Jun Q2) NVR (Jun Q2) Communities (Jun Q2) Finders (Jun Q2) TRI Pointe (Jun Q2) Hovnanian (Jul Q3) Toll
Slide 37: Base Construction & Option Costs Per Square Foot
Base Construction & Option Costs Per Square Foot $98.39 $97.42 $97.16 $96.71 $95.94 $95.84 $95.61 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Q3 '26 37
Slide 38: Annual Contracts Per Community
Annual Contracts Per Community Excluding Build for Rent Including Build for Rent 39.5 43.5 39.0 39.0 40.7 54.2 55.2 44.0 41.2 35.1 36.0 38.9 38.9 36.9 38.7 38.2 28.4 30.0 31.4 1997- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM ended 2002 07/31/2026 Average Note: Annual Contracts p
Slide 39: Profitable financial services business
Profitable financial services business Financial services overview Origination portfolio for the nine months ended July 31, 2026 Complements HOV’s homebuilding operations 1.5% Prime Allows ability for interest rate buy-down programs for homebuilder customers VHA / FHA 36.4% Nonconforming Provi
Slide 40: Credit Quality of Homebuyers
Credit Quality of Homebuyers Fiscal Year 2025 Third Quarter 2026 o Average LTV: 84% o Average LTV: 84% o Average CLTV: 84% o Average CLTV: 84% o ARMs: 0.3% o ARMs: 10.3% o FICO Score: 745 o FICO Score: 743 o Capture Rate: 80% o Capture Rate: 84% Note: Loans originated by our wholly-owned mortgage ba
Slide 41: Monthly Traffic per Community
Monthly Traffic per Community 37.8 34.4 34.2 33.2 32.6 29.6 28.9 28.4 28.2 27.3 27.3 26.5 Feb 2025 Feb 2026 Mar 2025 Mar 2026 Apr 2025 Apr 2026 May 2025 May 2026 Jun 2025 Jun 2026 Jul 2025 Jul 2026 Note: Excludes contracts from HOV Global (Kingdom of Saudi Arabia) operations. Note: Includes domestic
Slide 42: Monthly Contracts Per Community
Monthly Sundays Number of contracts 215 Aug-22 4 Aug-22 2.0 352 Aug-23 4 Aug-23 3.5 490 Aug-24 4 Aug-24 4.0 407 Aug-25 5 Aug-25 3.3 192 Sep-22 4 Sep-22 1.7 324 Sep-23 4 Sep-23 3.2 399 Sep-24 5 Sep-24 3.2 386 Sep-25 4 Sep-25 3.0 195 Oct-22 5 Oct-22 1.6 262 Oct-23 5 Oct-23 2.3 466 Oct-24 4 Oct-24 3.6
Slide 43: Phantom Stock Impact
Phantom Stock Impact ($ in millions, except stock prices) Stock Price at end of Reported Reported Total SG&A Incremental Phantom Stock Total SG&A Adjusted for Total SG&A Ratio Adjusted for quarter Total SG&A Ratio Benefit (Expense) Phantom Stock Phantom Stock Q1 2021 $51.16 - - - - - Q2 2021 $132.59
Slide 44: Reconciliation of (loss) income before income taxes excluding land-related charges
Reconciliation of (loss) income before income taxes excluding land-related charges and gain on extinguishment of debt, net to (loss) income before income taxes Hovnanian Enterprises, Inc. July 31, 2026 Reconciliation of (loss) income before income taxes excluding land-related charges and gain on ext
Slide 45: Reconciliation of Gross Margin
Reconciliation of Gross Margin Hovnanian Enterprises, Inc. July 31, 2026 Gross margin (In thousands) Homebuilding Gross Margin Homebuilding Gross Margin Three Months Ended Nine Months Ended July 31, July 31, 2026 2025 2026 2025 (Unaudited) (Unaudited) Sale of homes $ 679,042 $ 769,050 $ 1,858,989 $
Slide 46: Reconciliation of Adjusted EBITDA to Net (Loss) Income
Reconciliation of Adjusted EBITDA to Net (Loss) Income Hovnanian Enterprises, Inc. July 31, 2026 Reconciliation of adjusted EBITDA to net (loss) income (In thousands) Three Months Ended Nine Months Ended July 31, July 31, 2026 2025 2026 2025 (Unaudited) (Unaudited) Net (loss) income $ (2,215) $ 16,6
Slide 47: Reconciliation of Inventory Turnover
Reconciliation of Inventory Turnover Hovnanian Enterprises, Inc. July 31, 2026 Calculation of Inventory Turnover(1) TTM For the quarter ended ended (Dollars in thousands) 10/31/2025 1/31/2026 4/30/2026 7/31/2026 7/31/2026 Cost of sales, excluding interest $658,528 $509,631 $531,061 $579,576 $2,278,7
Slide 48: Reconciliation of Adjusted EBIT Return on Adjusted Investment
Reconciliation of Adjusted EBIT Return on Adjusted Investment Hovnanian Enterprises, Inc. July 31, 2026 Reconciliation of Adjusted EBIT Return on Adjusted Investment (in thousands) TTM For the quarter ended ended 10/31/2025 1/31/2026 4/30/2026 7/31/2026 7/31/2026 Net (loss) income $(667) $20,859 $(5
Slide 49: Key credit and balance sheet metrics reconciliations
Key credit and balance sheet metrics reconciliations October 31, LTM 2019 2020 2021 2022 2023 2024 2025 July 31, 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 $32,411 Senior notes and credit facilities (net of
Slide 50: Hovnanian Enterprises, Inc.
ovnanian Enterprises, Inc.
Hovnanian Enterprises — Q3 2026 Earnings Presentation on 6ix