A difficult housing market contributed to year-over-year declines in total revenue, orders, and deliveries in the fiscal fourth quarter for Hovnanian Enterprises. Despite the annual declines, the No. 17 company on the 2025 Builder 100 list met or exceeded all of its guidance targets for the period, demonstrating both the relative strength of 2024 and the challenges of 2025.
“Despite a tough housing market, our team performed very well, meeting or beating all of our guidance for the quarter. To maintain sales pace, we continued to rely on incentives, which lowered our gross profit margins but allowed us to sell older, less profitable land,” said chairman and CEO Ara Hovnanian.
In the fiscal fourth quarter, ended Oct. 31, total revenues declined to $817.9 million from $979.6 million in the same period a year ago. For the full fiscal year, total revenues were essentially flat ($2.98 billion in 2025 vs. $3.0 billion in 2024). Home sale revenues in the fourth quarter increased 27.3% to $180.4 million from $141.7 million while full-year fiscal home sales revenues increased 17.6% to $621.6 million.
In the period, Hovnanian Enterprises incurred losses related to the early extinguishment of debt and land charges of $52.9 million. As a result, the builder reported a net loss of $0.7 million, or $0.51 per share, in the fourth quarter, compared with a net profit of $94.3 million, or $12.79 per share, in the fourth quarter of 2024. For the full fiscal year 2025, Hovnanian Enterprises generated profit of $63.9 million, or $7.43 per share, down from profits of $242.0 million, or $31.79 per share, in fiscal 2024.
The builder generated 1,209 net orders in the fourth quarter, down 10.8% compared to the prior-year period. For the full year, net orders declined 1.9% to 5,895. Fourth quarter deliveries declined 8.6% to 1,811 homes, driven by a 27% year-over-year decline in the builder’s west region. For the full fiscal year, deliveries increased 4.5% to 6,430 homes.
Incentives accounted for 12.2% of the average sales price in the quarter, up 60 basis points from the third quarter, up 370 basis points from the fourth quarter of 2024, and up 920 basis points from fiscal 2022. Approximately 70% of Hovnanian buyers have utilized mortgage rate buydowns in the past two years, according to the company.
“We continue to use mortgage rate incentives to support our sales. Although the number of contracts in the fourth quarter fell by 8% compared to last year, it reflects the overall market conditions,” Hovnanian shared with investors during the company’s earnings call. “Our use of incentives has softened some of the challenges and maintained steady activity.”
The company’s utilization of incentives have included an elevated use and sale of quick move-in (QMI) homes. At the end of fiscal 2025, the builder had 907 QMIs, a decline of 10.7% compared to the third quarter of 2025. Additionally, 73% of total sales in the fourth quarter were QMIs, well above the company’s historical average of 40% of sales.
At the end of the fiscal year, Hovnanian Enterprises controlled 35,883 lots, down from 41,891 lots at the end of fiscal 2024. Approximately 85% of its lots were optioned at the end of the fourth quarter, supporting the builder’s land-light strategic focus.
