Homebuilder Hovnanian Enterprises Q3 revenue rises 10.8% on strong home sales growth

Hovnanian Enterprises

21/08/2025 14:30

Corrects EPS in Key Details table to $1.99, not $2.14; the first bullet of the story was previously corrected to show revenue just missed, not met, estimates

Overview

Hovnanian Q3 fiscal revenue rises 10.8% to $800.6 mln, just missing estimates

Net income for fiscal Q3 falls to $16.6 mln from $72.9 mln a year ago

86% of total lots are optioned, highest percentage ever achieved

Outlook

Company expects Q4 revenue between $750 mln and $850 mln

Hovnanian sees Q4 adjusted homebuilding gross margin at 15%-16.5%

Company anticipates Q4 adjusted EBITDA between $77 mln and $87 mln

Hovnanian projects Q4 adjusted income before taxes of $45 mln-$55 mln

Result Drivers

REVENUE INCREASE - Total revenues rose 10.8% to $800.6 mln in Q3, driven by a 9.3% increase in domestic unconsolidated joint ventures' home sales revenues to $165.0 mln

GROSS MARGIN DECLINE - Homebuilding gross margin percentage, after cost of sales interest expense and land charges, decreased to 11.7% from 19.1% a year ago, with a noted increase in land charges from 0.1% to 2.1%

CONTRACTS GROWTH - Consolidated contracts in Q3 increased 1.6% to 1,211 homes, while contracts including domestic unconsolidated joint ventures rose 1.4% to 1,416 homes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$800.58 mln
$801.20 mln (1 Analyst)
Q3 EPS
$1.99
Q3 Net Income
$16.62 mln
Q3 Pretax Profit
$23.80 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 24.1% below its August 20 closing price of $148.95

Press Release: ID:nGNX5c76LM

 (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.)