Hovnanian Enterprises Inc. has recently released its 10-Q report, revealing details about its financial performance and operating results. The company, headquartered in Matawan, New Jersey, designs, constructs, markets, and sells residential homes in the United States. It offers various types of homes, including single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities such as clubhouses, swimming pools, and tennis courts.
In its 10-Q report, Hovnanian Enterprises Inc. outlined key performance indicators commonly used in the homebuilding industry. These include net contracts, contract backlog, active selling communities, net contracts per active selling community, and contract cancellation rates. These indicators provide insights into the company’s operating performance, market strength, and demand.
The report also discussed market conditions and operating results. It highlighted the impact of factors such as mortgage rates, affordability constraints, and consumer confidence on the demand for new homes. The company stated that it has been aggressive in its pricing, incentives, and concessions to align with the current market, focusing on increasing sales pace versus price.
During the nine months ended July 31, 2025, Hovnanian Enterprises Inc. spent $660.0 million on land purchases and land development for long-term growth. It also redeemed $26.6 million of senior notes and repurchased $30.1 million of its common stock. As of July 31, 2025, the company had total liquidity of $277.9 million, including $146.6 million of homebuilding cash and cash equivalents and $125.0 million of borrowing capacity under its senior secured revolving credit facility.
In terms of operating results, the company reported that sale of homes revenues increased to $769.1 million for the three months ended July 31, 2025, compared to $687.4 million for the same period in 2024. There was a 14.0% increase in the number of home deliveries, partially offset by a decrease in average price. Gross margin dollars decreased 31.3% for the three months ended July 31, 2025, compared to the same period in 2024.
The company also provided details on net contracts, net contracts per active selling community, and contract backlog. Net contracts increased 1.6% for the three months ended July 31, 2025, and decreased 0.4% for the nine months ended July 31, 2025, compared to the same periods in the prior year. The dollar value of contract backlog decreased by 27.6% compared to the prior year.
Today the company's shares have moved 0.78% to a price of $140.36. Check out the company's full 10-Q submission here.
