Company: HOVVB
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001753926-25-001413
Chunk: 11

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 11
---
$
131,202

$
278,233

$
369,954

 Homebuilding gross margin percentage 

11.7
%

19.1
%

13.5
%

18.9
%

 Homebuilding gross margin percentage, before cost of sales interest expense and land charges 

17.3
%

22.1
%

17.6
%

22.2
%

 Homebuilding gross margin percentage, after cost of sales interest expense, before land charges 

13.8
%

19.2
%

14.4
%

19.0
%

32

Cost of sales as a percentage of consolidated home sales revenues are presented below:

Three Months Ended

Nine Months Ended

July 31,

July 31,

2025

2024

2025

2024

 Sale of homes 

100.0
%

100.0
%

100.0
%

100.0
%

 Cost of sales, excluding interest expense and land charges: 

 Housing, land and development costs 

71.0
%

69.1
%

71.1
%

68.3
%

 Commissions 

3.2
%

3.0
%

3.2
%

3.3
%

 Financing concessions 

4.4
%

2.2
%

3.8
%

2.3
%

 Overheads 

4.1
%

3.6
%

4.3
%

3.9
%

 Total cost of sales, excluding interest expense and land charges 

82.7
%

77.9
%

82.4
%

77.8
%

 Cost of sales interest 

3.5
%

2.9
%

3.2
%

3.2
%

 Land charges 

2.1
%

0.1
%

0.9
%

0.1
%

 Homebuilding gross margin percentage 

11.7
%

19.1
%

13.5
%

18.9
%

 Homebuilding gross margin percentage, before cost of sales interest expense and land charges 

17.3
%

22.1
%

17.6
%

22.2
%

 Homebuilding gross margin percentage, after cost of sales interest expense, before land charges 

13.8
%

19.2
%

14.4
%

19.0
%

We sell a variety of home types in various communities, each yielding a different gross margin. As a result, depending on the mix of communities delivering homes, consolidated gross margin may fluctuate up or down. Total