Hovnanian (HOV) Q2 2026 Earnings Transcript

Chairman and Chief Executive Officer — Ara K. Hovnanian Chief Financial Officer — Brad G. O Connor Vice President, Corporate Controller — David Mitrisin Vice President, Finance and Treasurer — Paul Eberly Senior Vice President, Corporate Legal — Jeffrey T. O Keefe Jeffrey T. O Keefe: Thank you, Didi, and thank you all for participating in this morning s call to review the results for our second quarter. All statements in this conference call 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 2000. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements. Such forward looking statements include, but are not limited to, statements related to the company s goals, and expectations with respect to financial results for future financial periods. Although we believe that our plans, intentions, and expectations reflected in or suggested by such forward looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. By their nature, forward looking statements speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties, and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward looking statements as a result of a variety of factors. Such risks, uncertainties, and other factors are described in detail in the sections entitled Risk Factors and Management Discussion and Analysis, particularly the portion of MD&A entitled Safe Harbor Statement in our annual report on Form 10-K for the fiscal year ended 10/31/2025 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable security laws, we undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events, changed circumstances, or any other reasons. Joining me today are Ara K. Hovnanian, Chairman and CEO; Brad O Connor, CFO; David Mitrisin, Vice president corporate Controller; Paul Eberly, Vice President, Finance and treasurer. Ara K. Hovnanian: Thanks, Jeffrey. Before we begin, let s take a moment to remember Ed Kangus, who passed this week, as our longest serving independent director, chair of our audit committee, and lead independent director, Ed brought valued judgment, integrity, and steady guidance to our board and our management team. His leadership and his dedication to Hovnanian s spanned many years as he joined our board shortly after retiring as chairman of Deloitte. Beyond his many professional contributions, he was also a trusted friend who will be deeply missed by everyone who knew him. The board of directors and everyone at the company extends heartfelt condolences for his family. I will also apologize in advance if my voice sounds raspy. I am on the tail end of a nasty virus that hopefully will be gone soon. Moving on to our results for the quarter. I will begin with a quick overview of our second quarter results and the progress we are making against our strategy in today s housing environment. Brad will then follow me with more details on our financial performance. Capital position, and outlook before we open the floor for questions. Turning to slide 5, this slide highlights our second quarter performance relative to the guidance we provided at the start of the period. Despite a continued choppy demand environment, we delivered solid execution coming in at or above nearly all of our targeted metrics including a meaningful outperformance in our adjusted gross margin. Starting on the top line, we generated total revenues of $668 million close to the midpoint of our projected range. Notably, our adjusted gross margin was 14.3% for the quarter exceeding the upper end of our forecast and improving sequentially from 13.4% in the first quarter which we believe marked the trough. We projected a trough in the first quarter with a rebound beginning in the second quarter and that scenario has come to fruition. Our SG&A came in at 12.6% right at the lower end and thus better end of what we expected. Our unconsolidated joint ventures contribute a $1 million loss this quarter modestly below our expectations This reflects start up costs ahead of our first deliveries in several joint venture communities, which is typical in the early stages of these projects. For the quarter, our adjusted EBITDA reached $41 million coming in above our projected range. And our adjusted pretax income totaled $9 million landing at the top end of our forecasted range. Stepping back the res

Hovnanian (HOV) Q2 2026 Earnings Transcript

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Hovnanian (HOV) Q2 2026 Earnings Transcript

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