0001753926-26-000924
SEC filingHovnanian Enterprises reported fiscal Q2 2026 results with total revenues of $667.6 million and a net loss of $0.6 million, meeting or exceeding guidance on most metrics, and provided Q3 guidance targeting improvement.
Hovnanian's second-quarter performance was mixed: revenues came within guidance but declined year-over-year due to lower home sales volume (1,134 deliveries vs. 1,285), partially offset by a slight increase in average price ($532,794 vs. $506,081). Gross margins on both GAAP and non-GAAP bases decreased from the prior year, driven by higher land costs and inventory impairments ($8.8 million). However, margins improved sequentially from Q1, signaling a trough. The company maintained strong liquidity of $442 million, well above its target range, and continued share repurchases. Management's Q3 guidance implies a potential step-up in performance, with adjusted EBITDA expected between $30 million and $40 million, reflecting confidence in current market conditions and cost management.