HOV
Hovnanian Enterprises, Inc.108.42
+0.50+0.46%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
Reaffirms pace-over-price amid peers' shift
Q&A largely reaffirmed prepared remarks, with Ara Hovnanian addressing the key trade-off of incentives squeezing margins. He contrasted HOV's pace-over-price focus—burning lower-margin land to build liquidity—with peers cutting incentives for higher margins but slower volume. The rise in to-be-built sales to 29% reflects organic demand for customization, delivering 780bps better margins and fewer incentives than QMIs. Management picks pace over price. One analyst raised the incentives dilemma; response was direct but unyielding. Investors will watch spring sales momentum and H2 margin lift from newer communities.
Key Stats
Market Cap
644.06MP/E (TTM)
14.59Basic EPS (TTM)
7.43Dividend Yield
0%Recent Filings
10-Q
Q1 FY2026 results
Hovnanian posted Q1 FY2026 revenues of $632M, down 6% y/y from $674M, with homebuilding sales dropping 7% y/y to $613M on fewer deliveries yet steady margins at 10.1%. Net income fell to $20.9M or $2.62 diluted EPS from $28.2M or $3.58, reflecting a $26.8M JV consolidation gain versus $22.7M prior-year asset contribution gain; EPS aligns with 6,950k diluted shares. Cash swelled to $340M with $141M operating cash flow, $29M capex yielding ~$112M FCF (derived), while $901M senior debt held steady alongside $125M revolver capacity. Acquired KSA control Jan 1 for $7.6M cash, booking $31.7M goodwill and $88M inventory. Repurchased $9M stock. Yet affordability strains from high rates linger.
8-K
Q1 revenues down, met guidance
Hovnanian reported Q1 fiscal 2026 revenues of $632M, down from $674M last year, with net income at $20.9M ($2.62/share) versus $28.2M. Homebuilding gross margin before interest and land charges fell to 13.4% from 18.3%, yet hit guidance amid soft demand. Liquidity swelled to $471M. Contracts surged 11% in January.
10-K
FY2025 results
Hovnanian delivered 5,496 homes in FY2025 ended October 31, generating $2.85B in housing revenue—flat year-over-year despite a 3.5% drop in average sales price to $519K, thanks to 2.8% more deliveries from 140 active communities (up from 130). Gross margins cratered to 12.7% from 18.7% on heavier incentives and rate buydowns amid sticky high rates, while land charges ballooned to $39.6M (vs. $11.6M) after walking 14,902 optioned lots. Q4 backlog conversion accelerated via QMI focus, leaving 1,242 homes worth $727M. Liquidity stays stout at $404M with $925M unsecured debt post-refi. Yet interest rate volatility crimps quarterly momentum.
8-K
Refinanced debt, met guidance
Hovnanian reported fiscal 2025 results on December 4, with Q4 revenues at $817.9M (down from $979.6M) and full-year net income of $63.9M versus $242M last year; margins slipped to 16.3% before charges amid incentives and $19M land hits. Key win: $900M unsecured notes refinanced secured debt, extending maturities to 2031-2033 while cutting annual interest $12M. Debt simplified, liquidity hit $404M. Q1 guide: revenues $550M-$650M.
8-K
Refinances $900M debt cheaper
Hovnanian Enterprises' subsidiary K. Hovnanian completed a $900 million private placement of senior notes on September 25, 2025—$450M 8% due 2031 and $450M 8.375% due 2033—to redeem pricier secured debt, including 11.75% notes at par plus make-whole and 8% notes at 104%. All related liens released. Debt refinanced cheaper.
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