Hovnanian Enterprises Q2 revenue falls on demand volatility

Hovnanian Enterprises

21/05/2026 14:26

Overview

US homebuilder's fiscal Q2 revenue declined yr/yr but was within guidance range

Company reported a net loss and negative EPS for the quarter

Gross margins improved sequentially

Outlook

Hovnanian expects Q3 revenue between $650 mln and $750 mln

Company sees Q3 adjusted homebuilding gross margin of 14.0% to 15.0%

Company expects Q3 adjusted EBITDA of $30 mln to $40 mln

Company anticipates improved Q4 volume and gross margins if current conditions persist

Result Drivers

SEQUENTIAL GROSS MARGIN IMPROVEMENT - Co said gross margins improved from Q1's trough, reflecting early progress toward normalization

DEMAND VOLATILITY - Co said sales momentum was encouraging early in Q2 but geopolitical tensions and inflation concerns caused homebuyer hesitation

INVENTORY IMPAIRMENTS - Higher inventory impairments and land option write-offs weighed on profitability

Company press release: ID:nGNX3k4D4h

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$667.65 mln
$626.40 mln (1 Analyst)
Q2 EPS
-$0.46
-$2.04 (1 Analyst)
Q2 Net Income
-$595,000
Q2 Pretax Profit
$339,000


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)