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    Natalie Kulasekere • Zelman & Associates

    Natalie Kulasekere's questions to Hovnanian Enterprises Inc (HOV) leadership

    Natalie Kulasekere's questions to Hovnanian Enterprises Inc (HOV) leadership • Q2 2025

    Question

    Natalie Kulasekere of Wedbush Securities inquired about recent land acquisitions, asking if lower land prices were being seen despite commentary on stickiness, which markets offered easier terms, and the drivers behind the Q3 gross margin guidance.

    Answer

    Ara Hovnanian, Chairman, President and CEO, explained that while land sellers are slow to adjust, the company is finding enough opportunities to meet its return hurdles, particularly in markets like Delaware, Virginia, and New Jersey. He noted that Q3 margin confidence comes from community-by-community analysis and cost reduction efforts. CFO Brad O'Connor added that the Q3 margin guidance of 17-18% is very close to the 17.3% just reported, suggesting stability rather than a significant increase.

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    Natalie Kulasekere's questions to Beazer Homes USA Inc (BZH) leadership

    Natalie Kulasekere's questions to Beazer Homes USA Inc (BZH) leadership • Q2 2025

    Question

    Natalie Kulasekere asked about the impact of adjusted growth plans on overhead leverage, the strategy for potentially uneconomical land deals, and the ability to maintain a price premium for Zero Energy Ready homes amid competitor incentives.

    Answer

    Executives David Goldberg and Allan Merrill confirmed they still expect to achieve overhead leverage, as near-term growth investments are already made. Merrill stated they have discretion to walk away from or renegotiate land deals and affirmed his belief they can earn a premium on Zero Energy Ready homes, which have consistently shown better margins.

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