Hovnanian Enterprises Q1 Revenue Falls 11% to $632M as Homebuilding Slows

Hovnanian Enterprises Inc. (NYSE: HOV), a Delaware-based homebuilder, reported total revenue of $631.95 million for the three months ending January 31, 2026, down 11% from $673.62 million in the year-ago quarter. Homebuilding revenue — the company's core business — fell to $575.76 million from $646.91 million a year earlier. Read more earnings reports.

Net income for the quarter reached $18.19 million, or $2.62 per diluted share, compared with $25.29 million, or $3.58 per diluted share, in the same period a year earlier. The company reported basic earnings per share of $2.80, down from $3.88 in the prior-year quarter.

Hovnanian's homebuilding gross profit margin compressed as cost of goods sold came in at $527.81 million, representing 91.7% of homebuilding revenue, compared with $554.09 million, or 85.7% of homebuilding revenue, in the year-ago period. Selling, general, and administrative expenses totaled $45.77 million for the quarter, down from $49.87 million a year earlier.

The company's financial services segment generated $19.01 million in revenue for the quarter, up from $16.94 million in the prior-year period. Land sales and other revenue contributed $37.19 million, a sharp increase from $9.77 million a year earlier.

Hovnanian reported income tax expense of $7.84 million for the quarter, down from $11.67 million in the year-ago period. The company recorded a provision for income taxes of $7.80 million compared with $11.70 million in the prior year.

Balance Sheet and Cash Position

Total assets stood at $2.73 billion as of January 31, 2026, up from $2.63 billion three months earlier. Cash and cash equivalents increased to $339.91 million from $272.77 million at the end of the prior quarter. Inventory rose to $542.18 million from $487.97 million.

The company carried long-term debt of $901.31 million as of January 31, 2026, essentially flat from $900.72 million at October 31, 2025. Total liabilities increased to $1.90 billion from $1.80 billion, while stockholders' equity edged up to $835.74 million from $830.94 million.

Hovnanian recorded goodwill of $31.71 million on its balance sheet as of January 31, 2026, up from zero in the prior quarter, suggesting a recent acquisition during the period.

Operating Cash Flow Rebounds

Cash from operations swung sharply positive to $140.89 million for the quarter, a reversal from negative $55.88 million in the year-ago period. The company used $29.12 million in investing activities and $52.63 million in financing activities during the three-month period.

Hovnanian had 6.49 million weighted average shares outstanding on a basic basis and 6.95 million on a diluted basis for the quarter. Common shares issued totaled 6.59 million as of January 31, 2026, up from 6.50 million three months earlier. The company held 812,387 shares of a separate class of common stock as of the quarter end.

Key Financial Metrics

Hovnanian's total liabilities and equity stood at $2.73 billion as of January 31, 2026, matching total assets. The company maintained preferred stock valued at $135.30 million and treasury stock of $198.15 million, up from $189.15 million in the prior quarter.