Hovnanian Enterprises, Inc. reported an 11% increase in total revenues year-over-year, reaching $800.6 million in the third quarter of fiscal 2025. With 86% of total lots optioned, the company met or exceeded all guidance metrics provided. They also achieved the second-highest TTM ROE amongst midsized homebuilders. The company’s homebuilding gross margin percentage was 11.7% in the third quarter, lower than the 19.1% in the same period last year.

For the nine months ended July 31, 2025, total revenues increased by 6.7% to $2.16 billion. Homebuilding gross margin percentage was 13.5%, down from 18.9% in the same period of the prior fiscal year. Income before income taxes was $90.2 million, a decrease from $199.2 million in the first nine months of the previous fiscal year.

Hovnanian Enterprises reported adjusted EBITDA of $77.1 million for the quarter ended July 31, 2025, exceeding the guidance range. Adjusted EBITDA for the nine months ended July 31, 2025, was $210.4 million compared to $296.6 million in the same period of the previous fiscal year. Consolidated contracts increased to 1,211 homes in the third quarter, with a dollar value backlog decrease of 27.6% year-over-year.

Total liquidity as of July 31, 2025, was $277.9 million, above the target range of $170 million to $245 million. The company put approximately 3,500 lots under option or acquired in 30 consolidated communities during the third quarter. As of July 31, 2025, the total controlled consolidated lots were 40,246, with 86% optioned, the highest percentage ever. Total QMIs decreased by 5.3% to 1,016 as of July 31, 2025.

Hovnanian Enterprises provided financial guidance for the fourth quarter of fiscal 2025. Total revenues are expected to be between $750 million and $850 million, adjusted homebuilding gross margin between 15.0% and 16.5%, adjusted income before income taxes between $45 million and $55 million, and adjusted EBITDA between $77 million and $87 million. The company’s focus remains on growth opportunities, improving the capital structure, and strict underwriting discipline for new land acquisitions.

Read more at GlobeNewswire: Hovnanian Enterprises Reports Fiscal 2025 Third Quarter