Hovnanian ( (HOV) ) has released its Q3 earnings. Here is a breakdown of the information Hovnanian presented to its investors.
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Hovnanian Enterprises, Inc., founded in 1959, is one of the nation’s largest homebuilders, operating in multiple states across the U.S. The company is known for its K. Hovnanian® Homes and specializes in building active lifestyle communities.
In its fiscal 2025 third quarter earnings report, Hovnanian Enterprises announced an 11% year-over-year increase in total revenues, reaching $800.6 million. The company met or exceeded all guidance metrics and reported the highest percentage of optioned lots in its history.
Key financial metrics revealed a 10.8% increase in third-quarter revenues compared to the previous year. However, the homebuilding gross margin percentage declined to 11.7% from 19.1% a year ago. Net income for the quarter was $16.6 million, a significant drop from $72.9 million in the previous year. The company also reported a decrease in the dollar value of its contract backlog by 27.6% year-over-year.
Despite the challenging market conditions, Hovnanian’s management remains optimistic about the future. They are focused on growth opportunities and improving capital structure, with a belief in the long-term demand for new homes driven by demographic trends. The company aims to sustain returns that exceed industry benchmarks.
Looking ahead, Hovnanian Enterprises expects fourth-quarter revenues to range between $750 million and $850 million, with a focus on maintaining a disciplined approach to new land acquisitions and aligning starts with sales pace.