Financial Performance - Total revenues decreased 3.1% to $686.5 million in Q2 FY2025 compared to $708.4 million in Q2 FY2024[4] - Net income for Q2 FY2025 was $19.7 million, or $2.43 per diluted share, compared to $50.8 million, or $6.66 per diluted share in Q2 FY2024[6] - Adjusted EBITDA for the three months ended April 30, 2025, was $61.3 million, compared to $102.2 million for the same period in 2024, reflecting a decrease of 40.1%[29] - The net income available to common stockholders for the three months ended April 30, 2025, was $17,057,000, a decline of 64.6% from $48,167,000 in 2024[42] - Income before income taxes for the three months ended April 30, 2025, was $26,530,000, a significant decrease of 61.8% compared to $69,392,000 in 2024[42] Homebuilding Metrics - Homebuilding gross margin percentage after cost of sales was 13.8% in Q2 FY2025, down from 19.5% in Q2 FY2024[4] - Consolidated contracts decreased 7.5% to 1,398 homes valued at $706.6 million in Q2 FY2025 compared to 1,512 homes valued at $785.8 million in Q2 FY2024[6] - Home deliveries totaled 1,398 units for the three months ended April 30, 2025, a decrease of 7.5% from 1,512 units in 2024[44] - Total home deliveries decreased by 1.4% to 2,603 homes compared to 2,639 homes in the previous year[49] - The backlog of contracts as of April 30, 2025, was 1,711 homes, reflecting a decrease of 15.2% from 2,018 homes in 2024[44] Liquidity and Financial Position - Total liquidity as of April 30, 2025, was $202.4 million, within the targeted range of $170 million to $245 million[13] - Cash and cash equivalents decreased to $73,980,000 as of April 30, 2025, from $209,976,000 as of October 31, 2024[40] - The company reported a total liabilities figure of $1,732,729,000 as of April 30, 2025, down from $1,805,225,000 in the previous period[40] - The company’s total stockholders' equity increased to $820,370,000 as of April 30, 2025, compared to $800,349,000 as of October 31, 2024[40] Future Outlook - The company expects total revenues for Q3 FY2025 to be between $750 million and $850 million[9] - Adjusted homebuilding gross margin for Q3 FY2025 is expected to be between 17.0% and 18.0%[9] - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and supply chain issues that may impact future performance[23] Inventory and Assets - Total inventories increased to $1,743,965,000 as of April 30, 2025, compared to $1,644,804,000 as of October 31, 2024, reflecting a growth of approximately 6%[40] - Total assets decreased to $2,553,099,000 as of April 30, 2025, from $2,605,574,000 as of October 31, 2024[40] Segment Performance - The Northeast segment saw a 10.8% decrease in revenue to $513,432 thousand, while home deliveries increased by 35.0% to 895 homes[49] - The Southeast segment experienced a 12.1% increase in revenue to $159,970 thousand, with home deliveries rising by 10.9% to 304 homes[49] - The West segment reported a 2.2% decrease in revenue to $676,484 thousand, with home deliveries declining by 5.0% to 1,362 homes[49] Joint Ventures - Income from unconsolidated joint ventures for the three months ended April 30, 2025, was $9.0 million, down 19.0% from $11.2 million in the same period of 2024[25] - The company reports its proportionate share of income or loss from unconsolidated homebuilding and land development joint ventures as a separate line item in consolidated financial statements[61] - Overall, the unconsolidated joint ventures (excluding KSA JV) reported a 7.2% decrease in home deliveries to 231 units, with contract dollars down by 14.8% to $149.5 million[58]
Hovnanian Enterprises Inc(HOVNP) - 2025 Q2 - Quarterly Results