Financial Performance - Total revenues for Q4 fiscal 2025 were $817.9 million, down from $979.6 million in Q4 fiscal 2024, while total revenues for the year were $2.98 billion compared to $3.00 billion in fiscal 2024[3]. - The net loss for Q4 fiscal 2025 was $0.7 million, or $0.51 per diluted share, compared to net income of $94.3 million, or $12.79 per diluted share, in the same period last year[4]. - Adjusted EBITDA for Q4 fiscal 2025 was $88.6 million, exceeding the high end of guidance, compared to $159.0 million in Q4 fiscal 2024[4]. - Total revenues for the three months ended October 31, 2025, were $817.9 million, a decrease from $979.6 million for the same period in 2024, representing a decline of approximately 16.5%[25]. - The company reported a net loss of $0.7 million for the three months ended October 31, 2025, compared to a net income of $94.3 million for the same period in 2024[25]. - Adjusted EBITDA for the year ended October 31, 2025, was $299,050,000, a decrease from $455,563,000 in 2024, reflecting a decline of approximately 34.4%[30]. - The company experienced a loss on extinguishment of debt of $33.5 million for the three months ended October 31, 2025, compared to no such loss in the same period of 2024[25]. - Interest expense for the three months ended October 31, 2025, increased to $34,443,000 from $31,120,000 in the same period of 2024, representing an increase of 10.6%[30]. Home Sales and Deliveries - Domestic unconsolidated joint ventures' home sales revenues increased by 27.3% to $180.4 million in Q4 fiscal 2025, with 285 homes sold, compared to $141.7 million from 235 homes in Q4 fiscal 2024[3]. - Consolidated contracts decreased by 10.8% to 1,209 homes in Q4 fiscal 2025, with a dollar value of $629.2 million, compared to 1,355 homes valued at $705.6 million in Q4 fiscal 2024[4]. - Total home deliveries decreased by 10.8% to 1,209 homes in the three months ended October 31, 2025, compared to 1,355 homes in the same period of 2024[46]. - Total home deliveries decreased by 3.1% to 5,023 units compared to 5,186 units in the previous year[51]. - The Northeast segment saw a 19.6% increase in deliveries to 1,968 units, while revenue decreased by 11.7% to $983,961 thousand[51]. - The Southeast segment experienced a 23.6% increase in contracts to 639 units, with revenue rising by 16.1% to $324,393 thousand[51]. - The West segment reported a 9.5% decrease in contracts to 2,589 units, with revenue declining by 5.6% to $1,290,351 thousand[51]. Margins and Expenses - Homebuilding gross margin percentage for Q4 fiscal 2025 was 10.7%, down from 18.0% in Q4 fiscal 2024, with 2.5% attributable to land charges[3]. - Total SG&A expenses were $91.5 million, or 11.2% of total revenues, in Q4 fiscal 2025, compared to $87.7 million, or 9.0% of total revenues, in Q4 fiscal 2024[3]. - Homebuilding gross margin for the three months ended October 31, 2025, was $83.9 million, down from $167.2 million in 2024, resulting in a gross margin percentage of 10.7%, compared to 18.0% in the prior year[27]. - Homebuilding revenues for Q4 2025 were $789.8 million, a decrease of 17.5% from $956.9 million in Q4 2024[44]. - Cost of sales for homebuilding in Q4 2025 was $702.8 million, down from $769.3 million in Q4 2024, a reduction of 8.7%[44]. Liquidity and Assets - Total liquidity as of October 31, 2025, was $404.1 million, significantly above the target range of $170 million to $245 million[8]. - Total assets increased to $2.63 billion in 2025 from $2.61 billion in 2024, reflecting a growth of 1.3%[42]. - Total liabilities decreased slightly to $1.80 billion in 2025 from $1.81 billion in 2024[42]. - The company reported a total equity of $830.9 million in 2025, up from $800.3 million in 2024, indicating a growth of 3.8%[42]. Inventory and Impairments - Total inventories as of October 31, 2025, were $1,637,470,000, down from $1,692,932,000 as of July 31, 2025, indicating a decrease of approximately 3.3%[37]. - The company recorded inventory impairments and land option write-offs of $39,571,000 for the year ended October 31, 2025, compared to $11,556,000 in 2024, reflecting a significant increase[30]. - The company experienced an inventory impairment loss of $19.4 million in Q4 2025, compared to $7.9 million in Q4 2024[44]. Future Outlook - For Q1 fiscal 2026, the company expects total revenues between $550 million and $650 million, with adjusted homebuilding gross margin between 13.0% and 14.0%[10]. - The company anticipates challenges related to demand for homes, mortgage rates, and inflation, which may impact future financial performance[23]. - The company plans to consolidate remaining assets and liabilities from joint ventures, impacting future financial reporting[56].
Hovnanian Enterprises Inc(HOVNP) - 2025 Q4 - Annual Results