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Oct 31, 2024

Hovnanian Q4 2024 Earnings Report

Hovnanian Enterprises' Q4 2024 earnings were reported.

Key Takeaways

Hovnanian Enterprises reported a 10.4% increase in total revenues to $979.6 million for the fourth quarter of fiscal 2024, compared to $887.0 million in the same quarter of the prior year. Net income was $94.3 million, or $12.79 per diluted common share, compared to $97.3 million, or $13.05 per diluted common share, in the same period of the previous fiscal year. Consolidated contracts increased 44.5% to 1,355 homes ($705.6 million).

Total revenues increased by 10.4% to $979.6 million.

Sale of homes revenues increased by 11.8% to $927.5 million.

Consolidated contracts increased by 44.5% to 1,355 homes.

Land and land development spending increased 45.0% to $318.4 million.

Total Revenue
$982M
Previous year: $887M
+10.7%
EPS
$12.8
Previous year: $13.1
-2.0%
Community Count
130
Gross Profit
$198M
Previous year: $21.4
+926298965.4%
Cash and Equivalents
$210M
Previous year: $434M
-51.6%
Free Cash Flow
$111M
Previous year: $138M
-19.3%
Total Assets
$2.61B
Previous year: $3.46B
-24.7%

Hovnanian

Hovnanian

Hovnanian Revenue by Segment

Forward Guidance

For the first quarter of fiscal 2025, total revenues are expected to be between $650 million and $750 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 $25 million and $35 million and adjusted EBITDA is expected to be between $55 million and $65 million.

Positive Outlook

  • Total revenues are expected to be between $650 million and $750 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 $25 million and $35 million.
  • Adjusted EBITDA is expected to be between $55 million and $65 million.

Challenges Ahead

  • Guidance assumes no adverse changes in current market conditions.
  • Guidance excludes deterioration in our supply chain.
  • Guidance excludes material increases in mortgage rates.
  • Guidance excludes material increases in inflation.
  • Guidance excludes material increases in cancellation rates.