Hovnanian Q3 Sales Pace Tops Peers

Hovnanian Enterprises(NYSE:HOV) reported its fiscal third quarter ended July 31, 2025, posting $801 million in revenue (up 11% year-over-year), adjusted EBITDA of $77 million (above guidance for adjusted EBITDA), and adjusted pretax income of $40 million (at the top end of guidance for adjusted pretax income (non-GAAP)). The quarter highlighted above-peer sales pace per community, disciplined land strategy, and strong return metrics, despite ongoing macro and affordability pressures.

Contracts per community were 9.8, surpassing the long-term fiscal third quarter average since 2008 of 9.1, despite industry-wide year-over-year declines in this metric. Hovnanian reported that 75% of delivered homes used mortgage rate buy downs, and 79% of sales were quick move-in homes (QMI), nearly double the historic average.

This above-industry sales pace, driven by rapid QMI turnover and aggressive incentives, enhances liquidity, inventory rotation, and strengthens Hovnanian’s competitive positioning during market turbulence.

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Source Fool.com