Hovnanian reports Q1 EPS $3.58 vs. $2.91 last year

Reports Q1 revenue $673.6M vs. $594.2M last year. “I’m pleased to report that our results for the first quarter were either within or better than the range of expectations we provided, reflecting the strength of our team’s efforts and our ability to adapt to the market conditions,” stated Ara K. Hovnanian (HOV), Chairman of the Board, President and Chief Executive Officer. “Despite the challenges presented by persistently high mortgage rates and monthly sales volatility, we have experienced healthy demand for our homes. Our consolidated contracts per community were 9.6 for the first quarter of fiscal 2025, which is significantly higher than our historical average for the first quarter since 1997 of 8.0 contracts per community. All in all, despite the slower start to the spring selling season and the month to month volatility, we are excited about the long-term fundamentals and our lot count growth as we continue to deliver exceptional homes to our homebuyers. As we navigate through the current homebuilding environment, we remain focused on driving strong return on equity and return on investment as key measures of our financial performance. Our recently approved land acquisitions were underwritten at the current sales pace and with a high level of incentives, which should lead to higher returns than land approved before the significant increase in incentives. Our goal is to improve operational efficiencies, optimize capital allocation and maintain disciplined cost management across all aspects of the business, and grow revenues which should enhance profitability without sacrificing our commitment to building quality homes. We are always looking for opportunities to maximize the value of our land assets, as well as reducing our risk through continued use of options and joint ventures. With these efforts in place, we are confident in our ability to generate sustained, strong returns for our shareholders in the long term,” concluded Mr. Hovnanian.