Hovnanian Enterprises (HOV) investor relations material

Business overview and market position

• Ranks among the top 20 U.S. homebuilders by revenue and deliveries, with 6,430 homes delivered in 2025 and a focus on first-time and move-up buyers.

• Operates in 27 markets across 13 states, with a diversified footprint in the Northeast, Southeast, and West.

• Controlled 36,621 lots as of April 30, 2026, including both owned and optioned lots.

• Geographic diversification helps mitigate market-specific risks and supports organic growth.

• Exited five non-core markets since 2016 to focus on the most profitable locations.

Financial performance and guidance

• Q2 2026 revenues were $668M, within guidance, but down from $686M in Q2 2025.

• Adjusted homebuilding gross margin declined to 14.3% from 17.3% year-over-year.

• Adjusted EBITDA for Q2 2026 was $41M, above guidance.

• Adjusted income before income taxes was $9M, down from $29M in Q2 2025.

• Fiscal Q3 2026 guidance projects revenues of $650–$750M and adjusted gross margin of 14–15%.

Operational trends and sales metrics

• Contracts increased 2% year-over-year in Q2 2026, with 1,667 contracts signed.

• Monthly traffic per community rose 17% year-over-year in April 2026.

• Quarterly contracts per community remained stable at 11.3 in Q2 2026.

• Percentage of communities with net price increases was 21% in Q2 2026, down from 32% a year earlier.

• Quick move-in homes inventory declined 37% year-over-year to 731 units.