Hovnanian Enterprises Inc

Hovnanian Enterprises guided fiscal Q4 2026 revenue between $800 million and $900 million with adjusted gross margin of 15% to 16.5%, after reporting fiscal Q3 revenue of $706 million and an adjusted pretax loss of $2 million. CEO Ara Hovnanian said the pretax shortfall was primarily driven by delays at the company's newest joint venture deliveries, marking the first time in 23 quarters that adjusted pretax income finished below the guidance range. CFO Brad O'Connor also guided Q4 adjusted EBITDA between $50 million and $65 million and adjusted pretax income between $15 million and $30 million, while noting the company remains committed to underwriting discipline and will not pursue growth at returns that fail to meet its standards. The company said it is reducing exposure to the most competitive entry-level price points and placing greater emphasis on move-up buyers and active adult housing, supported by the recent hire of Deborah Blake to focus on the Four Seasons brand.

Al Tahaluf Real Estate Company has rebranded to HOV Global following an increase in majority ownership by K. Hovnanian M.E. Investments, a subsidiary of U.S. homebuilder Hovnanian Enterprises. The ownership increase is accompanied by additional foreign direct investment to support HOV Global's expansion across Saudi Arabia, including new housing, hospitality, and community development initiatives. Since its founding in 2013, the company has delivered approximately 2,400 homes and has another 3,000 under development across Riyadh, Makkah, Jeddah, and King Abdullah Economic City. HOV Global maintains active partnerships with the National Housing Company, the Tourism Development Fund, and Emaar, The Economic City.

Homebuilder stocks surged on Wednesday, with the iShares U.S. Home Construction ETF jumping about 6.3% in its sharpest one-day advance since July 2025, after Congress passed the 21st Century ROAD to Housing Act. KB Home led the rally with a 17.77% gain, while Dream Finders Homes rose 14.39% and Hovnanian Enterprises added 12.67%. The legislation restricts institutional investors owning 350 or more single-family homes from buying additional properties, removes the requirement for manufactured homes to be built on permanent steel chassis, and streamlines permitting and environmental reviews. The bill passed the House by a 358-32 vote and cleared the Senate earlier in the week, though President Trump announced he would not sign it until Congress passes a separate voter-identification measure. Investors appeared unconcerned, as the bill can become law without a presidential signature after 10 days.