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Jul 31
Hovnanian Q3 2025 Earnings Report
Hovnanian reported increased revenue and contract growth but saw a sharp decline in net income in Q3 2025.
Key Takeaways
Revenue rose to $800.6M in Q3 2025, but higher land charges and lower gross margins led to a significant drop in net income compared to the prior year.
Total revenue increased to $800.6M, up from $722.7M a year ago.
Net income fell sharply to $16.6M from $72.9M in Q3 2024.
Homebuilding gross margin dropped to 11.7%, impacted by land charges.
Contract cancellation rate increased to 19% from 17% last 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
Hovnanian expects Q4 2025 revenues between $750M–$850M with adjusted EBITDA between $77M–$87M, assuming no worsening of market conditions.
Positive Outlook
- Revenue guidance up to $850M for Q4.
- Adjusted EBITDA expected as high as $87M.
- Homebuilding gross margin expected up to 16.5%.
- Focus on margin improvement with land acquisitions.
- Liquidity remains above target range.
Challenges Ahead
- Market uncertainty continues to weigh on sentiment.
- Affordability challenges persist with high home prices.
- Increased use of incentives affecting margins.
- Gross margins remain under pressure.
- Higher land-related charges impacting profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income