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HOVNP

Hovnanian Enterprises, Inc. PFD DEP1/1000A

HOVNP

Hovnanian Enterprises, Inc. PFD DEP1/1000A • NASDAQ
$20.20 ▲ 0.00% (+0.00)
Market Cap $2.98 B
52w High $21.35
52w Low $16.05
Dividend Yield 1.91%
P/E -8.17
Volume 18
Outstanding Shares 147.37M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $800.583M ▲ $55.77M ▼ $16.615M ▼ 2.075% ▼ $2.14 ▼ $34.143M ▲
Q2-2025 $686.471M ▲ $80.564M ▼ $19.726M ▼ 2.874% ▼ $2.64 ▼ $30.053M ▼
Q1-2025 $673.623M ▼ $86.945M ▼ $28.191M ▼ 4.185% ▼ $3.88 ▼ $51.678M ▼
Q4-2024 $979.638M ▲ $87.681M ▼ $94.349M ▲ 9.631% ▼ $13.84 ▲ $124.986M ▲
Q3-2024 $722.704M $89.469M $72.919M 10.09% $10.61 $105.598M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $158.747M ▲ $2.629B ▲ $1.794B ▲ $835.363M ▲
Q2-2025 $73.98M ▼ $2.553B ▲ $1.733B ▲ $820.37M ▲
Q1-2025 $94.258M ▼ $2.533B ▼ $1.722B ▼ $811.426M ▲
Q4-2024 $209.976M ▲ $2.606B ▲ $1.805B ▼ $800.349M ▲
Q3-2024 $122.036M $2.541B $1.837B $703.384M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $16.615M ▼ $52.781M ▲ $-27.689M ▼ $50.504M ▲ $75.596M ▲ $45.774M ▲
Q2-2025 $19.726M ▼ $22.303M ▲ $-7.88M ▲ $-39.446M ▲ $-25.023M ▲ $15.984M ▲
Q1-2025 $28.191M ▼ $-55.879M ▼ $-25.066M ▼ $-41.575M ▼ $-122.52M ▼ $-59.564M ▼
Q4-2024 $94.349M ▲ $115.824M ▲ $-6.177M ▼ $-26.757M ▼ $82.89M ▲ $111.402M ▲
Q3-2024 $72.919M $-92.283M $-3.095M $48.328M $-47.05M $-95.837M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Financial Service
Financial Service
 $40.00M ▲$20.00M ▼$20.00M ▲$30.00M ▲
Home Building
Home Building
 $1.54Bn ▲$660.00M ▼$670.00M ▲$770.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Over the past few years, the company has delivered steady sales with generally solid profitability, especially for a cyclical homebuilder. Margins have held up reasonably well even as the housing environment has become more challenging, which suggests decent cost control and pricing power in many communities. The unusually strong profit spike a few years ago now looks more like a one‑time event, with more recent earnings settling into a still healthy but more normal range. Overall, the income statement shows a builder that is making money consistently, but with profits that can swing as the housing cycle and interest rates shift.

Balance Sheet

Balance Sheet The balance sheet has improved meaningfully. Debt levels have been brought down step by step, while the equity base has been rebuilt, giving the company a thicker financial cushion than it had a few years ago. Total assets have grown moderately, indicating ongoing investment in land and communities, while cash has moved down recently as the company leans back into growth. The result is a still‑leveraged but clearly stronger balance sheet, with less financial strain than in the past and better capacity to absorb industry ups and downs—though housing remains inherently cyclical.

Cash Flow

Cash Flow Cash generation is the most volatile part of the story. Operating and free cash flow have swung from very strong to quite thin, reflecting the timing of land purchases, construction, and home deliveries rather than day‑to‑day profitability problems. The business itself is not very capital‑expenditure heavy; most of the cash swings come from how much is tied up in lots and inventory as growth ramps or slows. Recently, cash flow has tightened as the company invests more for future communities, which is typical for a builder in expansion mode but does raise the importance of careful liquidity and debt management, especially from a preferred stockholder’s perspective.

Competitive Edge

Competitive Edge Hovnanian competes in a tough, fragmented industry but has carved out a defensible niche. Its long operating history and recognized brand give it credibility with buyers. The “land‑light” approach—controlling many lots through options instead of owning them all outright—helps limit risk when the market turns, a key advantage in a cyclical business. The company serves a broad range of buyers and has particular strength in active adult communities, where demographic trends are favorable. Vertical integration into mortgage and title services adds convenience for customers and some extra profitability. At the same time, the firm still faces intense competition from other national and regional builders, and demand is very sensitive to interest rates and consumer confidence.

Innovation and R&D

Innovation and R&D Innovation is more about practical, customer‑facing improvements than heavy laboratory‑style R&D. The company has leaned into energy‑efficient and Zero Energy Ready homes, earning industry recognition and appealing to buyers focused on long‑term utility savings and sustainability. Smart home features and an upgraded digital experience—such as online design and pricing tools—aim to simplify buying and personalize homes. Programs like curated interior design “Looks” and a digital warranty portal reduce friction for customers and differentiate the brand. Operationally, the firm emphasizes streamlined processes and technology to manage projects more efficiently. The new joint venture in Saudi Arabia and ongoing focus on sustainable building and smart home evolution show a willingness to innovate in both products and markets, though these initiatives will take time to prove their impact.

Summary

Overall, Hovnanian looks like a cyclical but currently healthy homebuilder that has materially improved its financial foundation. Profits have been solid, the balance sheet is stronger with lower debt and higher equity, and the company has differentiated itself through energy‑efficient homes, smart‑home offerings, and a land‑light operating model. The main areas to watch are cash flow swings and the broader housing cycle, as renewed growth efforts tie up more cash in land and inventory at a time when interest rates and affordability pressures remain important uncertainties. For stakeholders in the preferred shares, the key questions are how well the company can navigate future housing slowdowns, maintain liquidity, and continue balancing growth with conservative financial management.