Company: HOVVB
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001753926-25-001413
Chunk: 5

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 fiscal 2025 and beyond.

During the nine months ended July 31, 2025, our cash position allowed us to spend $660.0 million on land purchases and land development for long-term growth, redeem $26.6 million of senior notes, repurchase $30.1 million of our common stock, and still have total liquidity of $277.9 million, including $146.6 million of homebuilding cash and cash equivalents and $125.0 million of borrowing capacity under our senior secured revolving credit facility as of July 31, 2025. 

Information on our operating results for the three and nine months ended July 31, 2025 are as follows:

● Sale of homes revenues increased to $769.1 million for the three months ended July 31, 2025 from $687.4 million for the three months ended July 31, 2024, and increased to $2.1 billion for the nine months ended July 31, 2025 from $1.9 billion for the nine months ended July 31, 2024. There was a 14.0% and 10.2% increase in the number of home deliveries for the three and nine months ended July 31, 2025, compared to the same periods of the prior year, partially offset by a decrease in average price of 1.9% and 3.8% for the three and nine months ended July 31, 2025, compared to the same periods of the prior year. The increase in deliveries was primarily the result of an increase in our backlog conversion ratio, while the decrease in average price was the result of the geographic and community mix of our deliveries. 

● Gross margin dollars decreased 31.3% and 24.8% for the three and nine months ended July 31, 2025, as compared to the same periods of the prior year, while gross margin percentage decreased to 11.7% and 13.5% for the three and nine months ended July 31, 2025, respectively, from 19.1% and 18.9% for the three and nine months ended July 31, 2024, respectively. Gross margin percentage, before cost of sales interest expense and land charges, decreased to 17.3% for the three months ended July 31, 2025 from