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Jan 31
Hovnanian Q1 2025 Earnings Report
Hovnanian Enterprises reported first quarter results with increased total revenues and income before income taxes.
Key Takeaways
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.
Hovnanian
Hovnanian
Hovnanian Revenue by Segment
Hovnanian Revenue by Geographic Location
Revenue by Segment
Home Sales Revenue
CapyFin.comLand & Other Rev Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comRevenue by Geographic Location
Northeast Revenue
CapyFin.comSoutheast Revenue
CapyFin.comWest Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income