Homebuilder Hovnanian's Q4 revenue beats on domestic JV boost

Hovnanian Enterprises

04/12/2025 14:27

Overview

Hovnanian Q4 revenue beats analyst expectations despite a year-over-year decline

Adjusted EPS for Q4 misses analyst expectations, reflecting refinancing and land charges

Company completed $900 mln unsecured debt refinancing, extending maturities to 2031 and 2033

Outlook

Company expects Q1 2026 revenue between $550 mln and $650 mln

Hovnanian sees Q1 2026 adjusted EBITDA between $35 mln and $45 mln

Company anticipates Q1 2026 adjusted income before taxes of $10 mln to $20 mln

Result Drivers

JOINT VENTURE SALES - Domestic unconsolidated joint ventures saw a 27.3% increase in home sales revenue in Q4, contributing positively to results

REFINANCING IMPACT - $34 mln expense from refinancing affected operating performance, contributing to net loss

LAND CHARGES - $19 mln in land charges impacted gross margin, reflecting efforts to sell older, less profitable land

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$817.90 mln
$809.48 mln (1 Analyst)
Q4 EPS
Miss
-$0.51
$0.63 (1 Analyst)
Q4 Net Income
-$667,000
Q4 Pretax Profit
-$4.11 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the homebuilding peer group is "hold"

Wall Street's median 12-month price target for Hovnanian Enterprises Inc is $120.00, about 10.4% below its December 3 closing price of $133.98

The stock recently traded at 788 times the next 12-month earnings vs. a P/E of 86 three months ago

Press Release: ID:nGNX4jmVvK

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)