NYSE$HOV

Hovnanian Enterprises Inc · Q1 2025 earnings

Q1 2025 earnings · · Before market open · Investor relations

Briefing

Hovnanian Enterprises reported first quarter results with increased total revenues and income before income taxes.

Hovnanian Enterprises reported a 13.4% increase in total revenues to $673.6 million and a 22.4% increase in income before income taxes to $39.9 million for the first quarter of fiscal 2025. The company experienced growth in consolidated contracts and an increase in total consolidated lots controlled.

  • Total revenues increased by 13.4% to $673.6 million.
  • Income before income taxes increased by 22.4% year-over-year to $39.9 million.
  • Consolidated contracts increased by 6.9% to 1,205 homes.
  • Total consolidated lots controlled increased by 28.8% year-over-year.

Headline financials

Total Revenue

$674M

Previous: $594M+13.4%
EPS (adj)

$3.58

Previous: $2.91+23.0%
Total Contracts Incl. JVs

1.4K

No prior period
Total Contracts Value Incl. JVs

$771M

No prior period
Communities Incl. JVs

148

No prior period
Contracts per Community Incl. JVs

9.5

No prior period
Backlog Value Incl. JVs

$1.23B

No prior period
Homebuilding gross margin % before interest/land

18.3%

No prior period
Total SG&A

$86.9M

No prior period
SG&A as % of revenues

12.9%

No prior period
EBITDA

$71M

No prior period
Adjusted EBITDA

$72.1M

No prior period
Consolidated contracts

1.2K

No prior period
Consolidated communities

125

No prior period
Contracts per community

9.6

No prior period
Contract backlog $

$932M

No prior period
Cancellation rate

16.0%

No prior period
Land spending

$248M

Previous: $230M+7.5%
QMIs

1.2K

No prior period
Homebuilding gross margin %

15.2%

Previous: 18.3%-16.9%
Capital Expenditures

-$3.69M

Previous: -$5.44M+32.3%
Net Income

$28.2M

Previous: $23.9M+17.9%
Operating Income

$39.9M

Previous: $587M-93.2%
Gross Profit

$98.4M

Previous: $594M-83.4%

Revenue & EPS history

Hovnanian · Revenue · Quarterly

$674M

Q1 2025+13.4%vs Q1 2024
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Hovnanian · $668M total across 3 segments · Q2 2026

  • Sale of homes
    $604M
  • Land sales and other
    $40.1M
  • Financial services
    $23.4M

Forward guidance

For the second quarter of fiscal 2025, Hovnanian Enterprises expects total revenues between $675 million and $775 million, adjusted homebuilding gross margin between 17.5% and 18.5%, adjusted income before income taxes between $20 million and $30 million, and adjusted EBITDA between $50 million and $60 million.

Tailwinds

  • Total revenues are expected to be between $675 million and $775 million.
  • Adjusted homebuilding gross margin is expected to be between 17.5% and 18.5%.
  • Adjusted income before income taxes is expected to be between $20 million and $30 million.
  • Adjusted EBITDA is expected to be between $50 million and $60 million.
  • Intention to redeem early the remaining $26.6 million of the 13.5% senior notes maturing in February 2026.

Headwinds

  • Guidance assumes no adverse changes in current market conditions.
  • Excludes deterioration in supply chain or material increases in mortgage rates.
  • Excludes increases in inflation or cancellation rates.
  • Excludes impact to SG&A expenses from phantom stock expense related solely to stock price movements from the closing price of $132.39 on January 31, 2025.
  • Company cannot provide a reconciliation between its non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

+1.0%

Avg return

Earnings day

+1.7%

Avg return

5 days after

-1.6%

Avg return

30 days after

48%

32 / 67 earnings

Positive

+53.3%

Q3 2019

Best reaction

-23.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+16.6%+13.6%+34.4%
Q1 2026+3.1%-1.6%-13.1%
Q4 2025-23.5%-25.6%-27.0%
Q3 2025-11.9%-5.3%-3.4%
Q2 2025-12.6%-17.2%-16.7%
Q1 2025-12.4%-16.3%-12.5%
Q4 2024-10.5%-11.8%-31.7%
Q3 2024+10.0%+6.6%+3.5%
Q2 2024-16.3%-17.5%-16.0%
Q1 2024-12.6%-11.4%-11.1%
Q4 2023+19.6%+40.6%+49.6%
Q3 2023+18.4%+24.9%+1.3%
Q2 2023-9.3%-4.7%+5.7%
Q1 2023-1.5%+3.6%-3.8%
Q4 2022-11.9%-6.0%-7.0%
Q3 2022+2.7%-2.7%-11.0%
Q2 2022+10.5%+16.2%-9.7%
Q1 2022-4.4%-12.3%-38.5%
Q4 2021+22.6%+9.3%+4.5%
Q3 2021+10.1%+7.5%-12.2%
Q2 2021-19.3%-21.0%-26.2%
Q1 2021+48.9%+34.4%+97.5%
Q4 2020-8.2%-13.0%-16.7%
Q3 2020-14.7%-16.3%+4.8%
Q2 2020+48.7%+59.3%+26.6%
Q1 2020-13.0%-36.6%-75.9%
Q4 2019+25.6%+29.0%-2.4%
Q3 2019+53.3%+84.7%+126.9%
Q2 2019-15.2%-15.7%-18.0%
Q1 2019+7.8%+1.7%-11.5%
Q4 2018+6.4%+0.0%-29.1%
Q3 2018+3.2%+10.4%+0.0%
Q2 2018-3.0%+0.0%-13.4%
Q1 2018-6.6%-5.3%-18.0%
Q4 2017+4.9%+7.5%-4.1%
Q3 2017-7.0%-6.5%+21.0%
Q2 2017-9.6%-9.2%+11.6%
Q1 2017-9.9%-7.9%-9.5%
Q4 2016+2.5%+9.8%+11.5%
Q3 2016-15.2%-16.2%-16.2%
Q2 2016-14.0%-8.3%-11.4%
Q1 2016-16.5%
Q4 2015+7.6%
Q3 2015+2.6%
Q2 2015-8.5%
Q1 2015-0.6%
Q4 2014+10.0%
Q3 2014+1.9%
Q2 2014-2.8%
Q1 2014-14.0%
Q4 2013+7.6%
Q3 2013+0.8%
Q2 2013+2.3%
Q1 2013-2.3%
Q4 2012-3.5%
Q3 2012-1.9%
Q2 2012+22.4%
Q1 2011+16.3%
Q1 2012+16.3%
Q4 2011+9.2%
Q2 2011+9.2%
Q4 2009+9.2%
Q3 2010-12.2%
Q4 2010-12.2%
Q3 2011-12.2%
Q2 2010-13.1%
Q1 2010+2.4%

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