Despite a choppy sales environment in the spring selling season, Hovnanian Enterprises grew closings on a year over year basis in the fiscal second quarter, that ended April 30.
“Overall, our performance reflects the resilience of our operating model and our team’s ability to execute in an unsettled market,” Ara Hovnanian, chairman of the board and CEO, said. “Furthermore, our gross margins improved sequentially in the second quarter, making early progress toward normalization after bottoming in the first quarter.”
In the second quarter, deliveries increased to 1,412 homes on $756.9 million in contracts from 1,398 homes on $706.6 million in contracts in the same period a year ago. For the period, Hovnanian Enterprises generated revenues of $667.6 million, down from $686.5 million in the second quarter of 2025.
The builder’s cancellation rate in the period was 17%, up 200 basis points from the second quarter of 2025. Total quick move-in (QMI) inventory was 731 at the end of the quarter, a decline of 31.9% compared to the same period in 2025.
“We began our second quarter with encouraging sales momentum, but escalating geopolitical tensions, particularly the war in Iran, reignited concerns and caused many home buyers to hesitate,” Hovnanian said. “While demand remained uneven, we stayed focused on managing pace, pricing, and costs.”
Hovnanian said the company is focused on working through older, lower-margin lots and selectively investing in new land opportunities. The builder allocated $232.3 million in the second quarter for land and land development spending. The company ended the period with 33,632 owned and controlled lots; of the total lots, 86% were optioned at the end of the second quarter.
Hovnanian reported a net loss in the second quarter of $0.6 million, or $0.46 per share, compared with profit of $19.7 million, or $2.43 per share, in the same period a year ago.
“In today’s environment, it’s difficult to provide meaningful visibility beyond the next quarter,” Hovnanian said. “However, if current housing conditions continue, we expect a significant step-up in our fourth quarter performance, particularly in volume and gross margins, driven by deliveries from newer communities. While week-to-week demand can be volatile, we are encouraged by current trends and believe the company is well-positioned to close out the year with strong momentum.”
