Hovnanian Enterprises (HOV) investor relations material

Business overview and market position

• Ranks among the top 20 U.S. homebuilders by revenue and deliveries, with 6,430 homes delivered in FY2025 and a focus on first-time and move-up buyers.

• Operates in 27 markets across 13 states, with a diversified footprint in the Northeast, Southeast, and West.

• Controlled 38,764 lots as of January 31, 2026, providing a 6.7-year supply.

• Exited five non-core markets since 2016 to focus on the most profitable locations.

• Geographic diversification helps mitigate market-specific risks.

Recent financial and operating performance

• Q1 2026 revenues were $632M, within guidance, but down from $674M in Q1 2025.

• Adjusted homebuilding gross margin declined to 13.4% from 18.3% year-over-year.

• Adjusted EBITDA for Q1 2026 was $63M, exceeding guidance.

• Adjusted income before income taxes was $31M, down from $41M in Q1 2025.

• SG&A as a percentage of revenue improved to 13.3% from 12.9% year-over-year.

Sales, contracts, and community trends

• Q1 2026 contracts were 1,365, slightly down from 1,400 in Q1 2025.

• Monthly traffic per community increased year-over-year, with notable gains in late 2025 and early 2026.

• Contracts per community for Q1 2026 were 6.1, down from 9.4 in Q1 2025.

• Community count grew to 151 wholly owned and 20 joint ventures as of Q1 2026.

• Percentage of communities with net price increases was 31% in Q1 2026.