Hovnanian Enterprises Reports Fiscal 2025 Second Quarter Results

Core Insights - Hovnanian Enterprises, Inc. reported a 3.1% decrease in total revenues for the second quarter of fiscal 2025, totaling $686.5 million, compared to$708.4 million in the same quarter of the previous year [2] - The company achieved a 15% year-over-year increase in consolidated community count and controlled lots [1] - The return on equity (ROE) for the trailing twelve months was 27.0%, marking the second highest among midsized homebuilders [3] Financial Performance - Total revenues for the first half of fiscal 2025 increased by 4.4% to $1.36 billion compared to$1.30 billion in the first half of fiscal 2024 [2] - Domestic unconsolidated joint ventures' home sales revenues rose by 21.4% to $144.5 million in the second quarter, with 207 homes sold [2] - Homebuilding gross margin percentage decreased to 13.8$26.5 million, down from $69.4 million in the same quarter last year [2] - Net income for the second quarter was$19.7 million, or $2.43 per diluted share, compared to$50.8 million, or 6.66 per diluted share, in the prior year [2][21] - Total SG&A expenses were 80.6 million, or 11.7% of total revenues, compared to $79.0 million, or 11.2$988.2 million as of April 30, 2025, compared to $1.13 billion a year earlier [2] - The gross contract cancellation rate for consolidated contracts was 15$202.4 million, within the targeted range of $170 million to$245 million [9] - The company redeemed $26.6 million of senior notes due in 2026 and repurchased 126,448 shares of common stock for$12.2 million [9][8] - Land and land development spending was $219.8 million in the second quarter, down from$230.5 million in the same quarter last year [9] Guidance - For the third quarter of fiscal 2025, total revenues are expected to be between $750 million and$850 million, with adjusted homebuilding gross margin projected between 17.0% and 18.0% [6]