Hovnanian Enterprises | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 817.9 M

Revenue: As of FY2025 Q4, the actual value is USD 817.9 M, beating the estimate of USD 814.5 M.

EPS: As of FY2025 Q4, the actual value is USD -0.51, missing the estimate of USD 0.63.

EBIT: As of FY2025 Q4, the actual value is USD 30.34 M.

EBIT, EBITDA, and Adjusted EBITDA: These measures exclude inventory impairments, land option write-offs, and gains or losses on debt extinguishment. They are used to benchmark the company’s financial performance without the effects of items not characteristic of ongoing operations.
Homebuilding Gross Margin: Excludes cost of sales interest expense and land charges, providing a clearer view of operating performance by eliminating volatility from land charges.
Adjusted Income Before Taxes: Excludes land-related charges and gains or losses on debt extinguishment, offering a better metric of operating performance.
Adjusted Investment: Reflects inventory owned directly or through joint ventures, excluding off-balance sheet inventory.
Adjusted EBIT ROI: Measures operational performance irrespective of capital structure, reflecting the longer-term period required to build and sell homes.

Total revenues for the fourth quarter of fiscal 2025 were $817.9 million, compared to $979.6 million in the same quarter of the prior year. For the year ended October 31, 2025, total revenues were $2.98 billion compared to $3.00 billion in fiscal 2024.
Domestic unconsolidated joint ventures’ sale of homes revenues for the fourth quarter of fiscal 2025 increased 27.3% to $180.4 million compared to $141.7 million for the same period in 2024. For fiscal 2025, these revenues increased 17.6% to $621.6 million compared to $528.6 million in fiscal 2024.

Homebuilding gross margin percentage, after cost of sales interest expense and land charges, was 10.7% for the fourth quarter of fiscal 2025, compared to 18.0% in the same quarter a year ago. For fiscal 2025, it was 12.7% compared to 18.7% in the prior fiscal year.
Total SG&A was $91.5 million, or 11.2% of total revenues, in the fourth quarter of fiscal 2025 compared to $87.7 million, or 9.0% of total revenues, in the fourth quarter of fiscal 2024.
The company incurred losses related to the early extinguishment of debt and land charges of $52.9 million, contributing to a loss before income taxes for the fourth quarter of fiscal 2025 of $4.1 million compared to income before income taxes of $117.9 million in the fourth quarter of the prior fiscal year.
Net loss was $0.7 million, or $0.51 per diluted common share, for the three months ended October 31, 2025, compared with net income of $94.3 million, or $12.79 per diluted common share, in the same period of the previous fiscal year.

Total liquidity as of October 31, 2025, was $404.1 million, significantly above the target liquidity range of $170 million to $245 million.

The number of consolidated communities increased by 7.7% to 140 as of October 31, 2025, compared with 130 communities as of October 31, 2024.

For the first quarter of fiscal 2026, total revenues are expected to be between $550 million and $650 million, adjusted homebuilding gross margin is expected to be between 13.0% and 14.0%, adjusted income before income taxes is expected to be between $10 million and $20 million, and adjusted EBITDA is expected to be between $35 million and $45 million.