Quarterly ResultMay 21, 2026, 09:17 AM
Hovnanian Q2 Revenue $667.6M; Gross Margins Improve Sequentially
AI Summary
Hovnanian Enterprises reported fiscal second-quarter 2026 results, meeting or exceeding guidance on nearly all metrics. Despite a net loss of $0.6 million, gross margins improved sequentially, and total domestic contracts increased by 2.3% year-over-year. The company maintained strong liquidity and repurchased $9.5 million in common stock, while also providing guidance for the third quarter.
Key Highlights
- Total revenues were $667.6 million in Q2 fiscal 2026, within guidance, down from $686.5 million YoY.
- Homebuilding gross margin percentage (before interest/land charges) was 14.3%, above guidance and improved sequentially.
- Net loss was $0.6 million, or $0.46 per diluted common share, compared to net income of $19.7 million YoY.
- Total domestic contracts increased 2.3% to 1,667 homes ($938.2 million) in Q2 fiscal 2026.
- Adjusted EBITDA was $41.1 million, above guidance, down from $61.3 million YoY.
- Total liquidity was $442.0 million, well above the target range of $170M-$245M.
- The company repurchased 90,507 shares of common stock for $9.5 million at an average price of $104.60.
- Q3 fiscal 2026 revenue guidance is $650M-$750M, adjusted gross margin 14.0%-15.0%.
Price Impact
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