I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q1, the actual value is USD 631.95 M.
EPS: As of FY2026 Q1, the actual value is USD 2.62.
EBIT: As of FY2026 Q1, the actual value is USD 54.01 M.
Overall Company Performance
For the three months ended January 31, 2026, total revenues were $631,952 thousand, a -6.2% decrease from $673,623 thousand in 2025 . Net income for 2026 was $20,859 thousand, down from $28,191 thousand in 2025 . Income before income taxes decreased to $28,702 thousand in 2026 from $39,863 thousand in 2025 . Total expenses were $606,690 thousand in 2026, a reduction from $642,965 thousand in 2025 .
Homebuilding Segment Performance
Sale of homes revenue decreased by -11.0% to $575,759 thousand in 2026 from $646,914 thousand in 2025 . This was due to a -12.4% decrease in homes delivered, from 1,254 in 2025 to 1,099 in 2026, despite a 1.6% increase in the average sales price to $523,894 . Land sales and other revenues significantly increased by $27,418 thousand, reaching $37,185 thousand in 2026, up from $9,767 thousand in 2025 . Total homebuilding revenue was $612,944 thousand in 2026, down from $656,681 thousand in 2025 . The homebuilding gross margin percentage declined to 10.1% in 2026 from 15.2% in 2025, with gross margin dollars decreasing to $58,420 thousand from $98,391 thousand . Before cost of sales interest expense and land charges, the gross margin percentage was 13.4% in 2026, down from 18.3% in 2025 . Cost of sales interest expense decreased to $16,591 thousand in 2026 from $19,356 thousand in 2025 . Inventory impairments and land option write-offs increased to $2,359 thousand in 2026 from $1,040 thousand in 2025 . Selling, General and Administrative (SGA) expenses for homebuilding decreased by -$4,000 thousand to $50,281 thousand in 2026 .
Homebuilding Segment Details
- Northeast Segment: Homebuilding revenue decreased by -3.2% to $274,597 thousand in 2026 . Income before income taxes increased by 36.6% to $57,763 thousand . Homes delivered decreased by -6.3% to 417, and the average sales price decreased by -9.1% to $575,065 .
- Southeast Segment: Homebuilding revenue increased by 44.0% to $74,292 thousand in 2026 . However, it recorded a loss before income taxes of -$3,542 thousand, a -158.2% decrease from an income of $6,083 thousand in 2025 . Homes delivered increased by 27.4% to 158, and the average sales price increased by 13.3% to $469,816 .
- West Segment: Homebuilding revenue decreased by -18.1% to $262,057 thousand in 2026 . It reported a loss before income taxes of -$11,395 thousand, a -562.1% decrease from an income of $2,466 thousand in 2025 . Homes delivered decreased by -23.5% to 524, while the average sales price increased by 9.0% to $499,477 .
Financial Services Segment Performance
Financial services revenue increased to $19,008 thousand in 2026 from $16,942 thousand in 2025 . Income before income taxes for this segment increased by $2,268 thousand to $5,773 thousand in 2026 .
Corporate and Unallocated
Corporate general and administrative expenses were $33,718 thousand in 2026, up from $32,692 thousand in 2025 . Other interest expense increased to $12,158 thousand in 2026 from $9,517 thousand in 2025 .
Unique Operational Metrics
Total Selling, General and Administrative (Total SGA) expenses were $84,000 thousand in 2026, representing 13.3% of total revenues, compared to $86,900 thousand or 12.9% of total revenues in 2025 . Income from unconsolidated joint ventures decreased by -$5,765 thousand to $3,440 thousand in 2026 . Net domestic contracts increased by 3.1% to 1,242 homes in 2026 compared to 1,205 in 2025 . Net domestic contracts per active selling community were 9.5 in 2026, slightly down from 9.6 in 2025 . Domestic contract backlog decreased by -16.5% in number of homes to 1,335 and by -16.0% in dollar value to $782,655 thousand as of January 31, 2026 . Total liquidity as of January 31, 2026, was $471,400 thousand, including $339,900 thousand in homebuilding cash and cash equivalents and $125,000 thousand of borrowing capacity . Goodwill stood at $31,705 thousand as of January 31, 2026, primarily from the acquisition of a controlling interest in KSA . Customer deposits increased by $130,471 thousand to $176,847 thousand as of January 31, 2026 .
Cash Flow Activities
Net cash provided by operating activities was $140,886 thousand in 2026, a significant improvement from -$55,879 thousand used in 2025 . Net cash used in investing activities increased to -$29,121 thousand in 2026 from -$25,066 thousand in 2025 . Net cash used in financing activities also increased to -$52,625 thousand in 2026 from -$41,575 thousand in 2025 .
Future Outlook and Strategy
Hovnanian Enterprises, Inc. plans to leverage its increased inventory of quick move-in homes to address affordability challenges, offering mortgage interest rate buydown assistance through its mortgage banking subsidiary . The company prioritizes increasing sales pace over higher gross margins and aims to shorten construction cycle times while reducing costs with material providers and trade partners . The Board authorized an incremental $50.0 million increase to its stock repurchase program, bringing the total to $67.4 million as of February 27, 2026, and will continue to analyze its capital structure to strengthen its balance sheet, reduce leverage, and extend maturities .