Hovnanian Q1 Revenues Drop to $632M as Gross Margin Falls to 10.1%
Fiscal Q1 revenues fell to $632 million with a homebuilding gross margin of 10.1% and net income of $20.9 million ($2.62 per share) versus $673.6 million revenue and 15.2% margin last year. Domestic contracts rose 3.1% to 1,242 homes, backlog slid 16% to $782.7 million with $471 million liquidity.
1. Q1 Financial Results
For the quarter ended January 31, Hovnanian reported total revenues of $632.0 million, down from $673.6 million a year earlier. Homebuilding gross margin fell to 10.1% after interest and land charges, net income was $20.9 million ($2.62 per share), and adjusted EBITDA reached $63.1 million, topping guidance.
2. Contract Activity and Backlog
Consolidated domestic contracts increased 3.1% to 1,242 homes in Q1, although total contracts including joint ventures dipped 2.5% to 1,365 homes. Contract backlog value declined 16.0% year-over-year to $782.7 million, reflecting higher sales of quick-move-in homes with shorter backlog durations.
3. Liquidity and Community Growth
As of January 31, total liquidity stood at $471 million. The number of consolidated domestic communities rose 4.8% to 131 sites, while contract cancellations improved to 14% from 16% a year earlier, supporting operational flexibility.