Hovnanian Enterprises Reports Strong Q1 2025 Results

Hovnanian ( (HOV) ) has released its Q2 earnings. Here is a breakdown of the information Hovnanian presented to its investors.

Hovnanian Enterprises, Inc., established in 1959 and headquartered in Matawan, New Jersey, is a prominent national homebuilder operating across multiple states in the United States. The company is recognized for its development of K. Hovnanian® Homes and active lifestyle communities under the K. Hovnanian® Four Seasons brand.

In its fiscal first quarter of 2025, Hovnanian Enterprises reported a 13% increase in total revenues, reaching $673.6 million, and a 22% rise in income before income taxes compared to the previous year. The company also experienced a 7% growth in consolidated contracts and a significant 29% increase in total consolidated lots controlled year-over-year.

Key financial highlights include a 12.8% increase in home sales revenue, amounting to $646.9 million from 1,254 homes sold. Despite a decline in homebuilding gross margin percentage to 15.2%, the company improved its SG&A ratio and reduced interest expenses. Net income rose to $28.2 million, or $3.58 per diluted share, while EBITDA increased to $71.0 million.

Looking forward, Hovnanian Enterprises aims to maintain strong returns on equity and investment by optimizing capital allocation and improving operational efficiencies. The company plans to continue leveraging joint ventures and options to manage risks and enhance profitability, positioning itself for sustained growth in the homebuilding sector.