Hovnanian reports $706 million third-quarter revenue, 14.6% gross margin

Hovnanian Enterprises (NYSE: HOV ) reported third-quarter financial results on Thursday.

The transcript from the company's third-quarter earnings call has been provided below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Hovnanian Enterprises reported total revenues of $706 million for the third quarter, slightly above the midpoint of guidance, with a gross margin of 14.6%.

The company is transitioning from older land inventory to new communities better aligned with current market conditions, contributing to improved gross margin forecasts for the fourth quarter.

Third quarter adjusted pretax income was a loss of $2 million, below the guidance range, primarily due to delays in joint venture deliveries.

Hovnanian continues to experience strong website traffic, indicating long-term interest, but buyers remain cautious due to macroeconomic factors.

The company maintains a strategy of using option lots to limit capital investment while increasing community count, expecting sequential growth in the fourth quarter.

Guidance for the fourth quarter includes revenues between $800 million and $900 million, with an adjusted gross margin of 15% to 16.5%.

Hovnanian is focusing on higher-value segments, such as move-up buyers and active adult communities, to enhance margins and returns.

Management remains committed to disciplined capital allocation and maintaining a strong liquidity position to capitalize on future opportunities.

Full Transcript Lisa, Operator Good morning and thank you for joining us today for the Hovnanian Enterprises Fiscal 2026 Third Quarter Earnings Conference call.

An archive of the webcast will be available after the completion of the call and run for 12 months.

This conference is being recorded for rebroadcast and all participants are currently in a listen-only mode.

Management will make some opening remarks about the third quarter results and then open the lines for questions.

The company will be, excuse me, webcasting a slide presentation along with the opening comments from management.

The slides are available on the Investors page of the company's website and at Those listeners who would like to follow along should now log into the website.

I will now turn the call over to Jeff O'Keefe, Vice President, Investor Relations.

Jeff, please go ahead.

Jeff O'Keefe, Vice President, Investor Relations Thank you, Lisa, and thank you all for participating in this morning's call to review the results for our third quarter.

All statements on this conference call that are not historical facts should be considered as forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

Such forward-looking statements include, but are not limited to, statements related to the company's goals and expectations with respect to its financial results for future financial periods.

Although we believe that our plans, intentions, and expectations reflected in or suggested by such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved.

By their nature, forward-looking statements speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties, and assumptions that are difficult to predict or quantify.

Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors.

Such risks, uncertainties, and other factors are described in detail in the sections entitled Risk Factors and Management's Discussion and Analysis, particularly the portion of MD&A entitled Safe Harbor Statement, in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025, and subsequent filings with the Securities and Exchange Commission.

Except as otherwise required by applicable securities laws, we undertake no obligation to update, publicly update, or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances, or any other reason.

Joining me today are Ara Hovnanian, Chairman and CEO; Brad O'Connor, CFO; David Mitreson, Vice President, Corporate Controller; and Paul Eberle, Vice President, Finance and Treasurer.

I'll now turn the call over to Ara.

Ara Hovnanian, Chairman, President and CEO Thanks, Jeff.

I'll begin with a review of our third quarter results and discuss how we continue to execute our strategy in a housing market that remains challenging.

Brad will then review the quarter in more detail and discuss our guidance for next quarter before we open the call for questions.

To begin, it's clear that the macro environment has been challenging.

World events, as well as high mortgage rates, high gas prices, inflation, and other factors have caused potential homebuyers to hesitate.

While website traffic has remained strong, indicating long-term homebuying interest, buyers remain slow to make the final decision to move forward.