Fri, May 30, 8:04 PM (24 days ago)
**Hovnanian Enterprises, Inc. (HOV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $686.5M (Q1 2025) vs. $708.4M (Q1 2024), a 3.1% decrease. - **Net Income:** $19.7M (Q1 2025) vs. $50.8M (Q1 2024), a 61.2% decrease. - **EPS:** $2.64 (basic) and $2.43 (diluted) for Q1 2025, down from $7.12 (basic) and $6.66 (diluted) in Q1 2024. - **Gross Margin:** 13.8% (Q1 2025) vs. 19.5% (Q1 2024). - **Cash Flow:** Negative $33.6M from operations (Q1 2025) due to increased inventory and prepaid expenses. **Key Metrics:** - **Home Deliveries:** 1,285 homes (Q1 2025) vs. 1,283 homes (Q1 2024), a slight 0.2% increase. - **Average Sales Price:** $506,081 (Q1 2025) vs. $535,408 (Q1 2024), a 5.5% decrease. - **Net Contracts:** Decreased 7.5% for Q1 2025 compared to Q1 2024. - **Backlog:** 1,711 homes (Q1 2025) vs. 2,018 homes (Q1 2024), a 15.2% decrease. **Segment Performance:** - **Northeast:** Revenue up 29.2%, income before taxes down 1.0%. - **Southeast:** Revenue down 42.0%, income before taxes down 98.6%. - **West:** Revenue down 8.0%, income before taxes down 46.8%. **Uncertainties & Future Operations:** - **Economic Uncertainty:** Volatility in the broader economy and affordability constraints led to a decrease in net contracts. - **Interest Rates:** Persistently high mortgage rates continue to challenge affordability. - **Inventory:** Increased inventory of quick move-in homes to meet buyer needs. - **Land Purchases:** Spent $467.4M on land purchases and development. - **Debt Redemption:** Redeemed $26.6M of senior notes. - **Stock Repurchase:** Repurchased $30.1M of common stock. **Liquidity & Debt:** - **Total Liquidity:** $202.4M, including $74.0M in homebuilding cash and $125.0M borrowing capacity. - **Debt:** $864.3M in senior notes and credit facilities, net of discounts and issuance costs. **Market Conditions:** - **Housing Demand:** Dependent on job growth, household formation, consumer confidence, and mortgage financing. - **Inflation:** Historically, price increases have been commensurate with the general rate of inflation. **Forward-Looking Statements:** - The company faces risks related to economic conditions, interest rates, inflation, weather, seasonality, land availability, subcontractor performance, regional economic factors, cancellations, tax laws, legal claims, competition, utility issues, IT failures, negative publicity, global instability, leverage, financing, credit ratings, government regulation, hazardous materials, joint ventures, stockholder influence, and key personnel.