Hovnanian Enterprises(US:HOV)2026-02-25 15:09Financial Performance - Total revenues for the first quarter of fiscal 2026 were $632.0 million, down from $673.6 million in the same quarter last year[3]. - Net income for the first quarter was $20.9 million, or $2.62 per diluted share, compared to $28.2 million, or $3.58 per diluted share, in the prior year[3]. - Total revenues for the three months ended January 31, 2026, were $631.952 million, a decrease of 6.2% from $673.623 million in the same period of 2025[23]. - Net income available to common stockholders for the three months ended January 31, 2026, was $18.190 million, down 28.8% from $25.522 million in the prior year[23]. - Adjusted EBITDA for the first quarter was $63.1 million, exceeding the high end of the guidance range provided[3]. - Adjusted EBITDA for the three months ended January 31, 2026, was $63.081 million, a decrease of 12.4% from $72.074 million in the prior year[27]. - The company incurred interest expense of $28.749 million for the three months ended January 31, 2026, compared to $28.873 million in the same period of 2025[30]. - Income before income taxes excluding land-related charges for the three months ended January 31, 2026, was $31.061 million, down from $40.903 million in the prior year[24]. Homebuilding Operations - Domestic consolidated contracts increased by 3.1% to 1,242 homes, valued at $664.8 million, compared to 1,205 homes valued at $643.3 million in the prior year[4]. - Homebuilding gross margin percentage was 10.1% for the first quarter of fiscal 2026, down from 15.2% in the same quarter last year[3]. - Home deliveries decreased by 12.4% to 1,099 homes in the three months ended January 31, 2026, compared to 1,254 homes in the same period of 2025[40]. - Contracts signed during the three months ended January 31, 2026, totaled 1,365 homes, a decrease of 2.5% from 1,400 homes in the same period of 2025[40]. - The backlog of homes as of January 31, 2026, was valued at $964.122 million, an increase of 3.5% from $931.921 million in the prior year[40]. - The dollar value of consolidated domestic contract backlog decreased by 16.0% to $782.7 million compared to $931.9 million a year ago[4]. - The gross domestic contract cancellation rate for consolidated contracts improved to 14% from 16% in the prior year[4]. Liquidity and Assets - Total liquidity as of January 31, 2026, was $471.4 million, significantly above the target range of $170 million to $245 million[10]. - Total assets reached $2,734,676,000 as of January 31, 2026, up from $2,633,913,000 as of October 31, 2025[37]. - Total inventories as of January 31, 2026, amounted to $1,647,970,000, showing a slight increase from $1,637,470,000 as of October 31, 2025[37]. - Cash and cash equivalents increased to $339,910,000 as of January 31, 2026, compared to $272,772,000 as of October 31, 2025[37]. - Total liabilities decreased slightly to $1,897,042,000 as of January 31, 2026, from $1,802,978,000 as of October 31, 2025[37]. - The company’s retained earnings increased to $145,516,000 as of January 31, 2026, from $127,326,000 as of October 31, 2025[37]. - The total stockholders' equity for Hovnanian Enterprises, Inc. was $835,739,000 as of January 31, 2026, compared to $830,935,000 as of October 31, 2025[37]. Segment Performance - In the Northeast segment, home contracts decreased by 38.5% to 72 homes, while deliveries fell by 34.9% to 71 homes, with a backlog of 232 homes valued at $170.4 million, down 17.7%[46]. - The Southeast segment saw a 50.7% drop in home contracts to 33 homes and a 64.6% decline in deliveries to 28 homes, with a backlog of 83 homes valued at $61.4 million, down 21.7%[46]. - In the West segment, home contracts increased by 63.6% to 18 homes, and deliveries surged by 111.1% to 19 homes, with a backlog of 15 homes valued at $7.6 million, down 6.0%[46]. - Overall, unconsolidated joint ventures reported a 36.9% decrease in home contracts to 123 homes and a 40.1% decline in deliveries to 118 homes, with a backlog of 330 homes valued at $239.4 million, down 18.1%[46]. - The KSA joint venture experienced an 88.4% drop in home contracts to 23 homes and an 88.7% decline in revenue to $5.7 million, with no backlog reported[46]. Cost and Expenses - The cost of sales for homebuilding, excluding interest, was $509.631 million for the three months ended January 31, 2026, down from $533.290 million in the same period of 2025[39]. - Selling, general and administrative expenses decreased to $50.281 million in the three months ended January 31, 2026, from $54.253 million in the prior year[39]. - The company reported a homebuilding gross margin of $58.420 million for the three months ended January 31, 2026, down from $98.391 million in the same period of 2025[25]. - Land and lot sales gross margin for the three months ended January 31, 2026, was $23.470 million, significantly up from $1.663 million in the prior year[25]. - The company’s interest incurred to adjusted EBITDA ratio for the three months ended January 31, 2026, was 2.18, compared to 2.41 in the same period of 2025[27].