US home builder Hovnanian Enterprises' Q3 revenue falls, posts net loss

Hovnanian Enterprises

20/08/2026 14:26

Overview
US home builder's fiscal Q3 revenue fell yr/yr
Company posted a net loss for the quarter versus a profit a year ago
Gross margin improved sequentially for the second quarter in a row

Outlook
Hovnanian sees Q4 revenue between $800 mln and $900 mln
Company expects Q4 adjusted homebuilding gross margin of 15.0% to 16.5%
Hovnanian expects Q4 adjusted EBITDA of $50 mln to $65 mln

Result Drivers
JOINT VENTURE INCOME - Co said adjusted income before income taxes was below its guidance mainly due to lower income from unconsolidated joint ventures
MARGIN IMPROVEMENT - Gross margins improved sequentially for the second straight quarter as margins rebounded from the first-quarter trough
MARKET CHALLENGES - Management cited affordability concerns, elevated mortgage rates, and inconsistent consumer confidence as ongoing challenges impacting results

Company press release: ID:nGNX3dgfFc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$705.75 mln
$723.50 mln (1 Analyst)
Q3 Loss Per Share
Miss
$0.70
$0.56 (1 Analyst)
Q3 Net Loss
 
$2.22 mln
 
Q3 Pretax Loss
 
$2.78 mln
 

Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the homebuilding peer group is "hold."
Wall Street's median 12-month price target for Hovnanian Enterprises, Inc. is $74.00, about 42% below its August 19 closing price of $127.67

Reuters Recommended Reads
Aug 18 - Toll Brothers Q3 results fall on lower deliveries
Aug 17 - US home builder sentiment ticks up in August but remains weak overall
Aug 18 - Home Depot rides steady repair demand as housing market remains subdued

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)