Homebuilder Hovnanian's Q4 revenue beats on domestic JV boost

Overview

• Hovnanian Q4 revenue beats analyst expectations despite a year-over-year decline

• Adjusted EPS for Q4 misses analyst expectations, reflecting refinancing and land charges

• Company completed $900 mln unsecured debt refinancing, extending maturities to 2031 and 2033

Outlook

• Company expects Q1 2026 revenue between $550 mln and $650 mln

• Hovnanian sees Q1 2026 adjusted EBITDA between $35 mln and $45 mln

• Company anticipates Q1 2026 adjusted income before taxes of $10 mln to $20 mln

Result Drivers

• JOINT VENTURE SALES - Domestic unconsolidated joint ventures saw a 27.3% increase in home sales revenue in Q4, contributing positively to results

• REFINANCING IMPACT - $34 mln expense from refinancing affected operating performance, contributing to net loss

• LAND CHARGES - $19 mln in land charges impacted gross margin, reflecting efforts to sell older, less profitable land

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the homebuilding peer group is "hold"

• Wall Street's median 12-month price target for Hovnanian Enterprises Inc is $120.00, about 10.4% below its December 3 closing price of $133.98

• The stock recently traded at 788 times the next 12-month earnings vs. a P/E of 86 three months ago

Press Release: ID:nGNX4jmVvK

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