Company: HOVVB
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0001753926-25-000907
Chunk: 12

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-05-30
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 percentage of consolidated home sales revenues are presented below:

Three Months Ended 

Six Months Ended

April 30, 

April 30,

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  

71.5
%

68.0
%

71.2
%

67.9
% 

 Commissions  

3.2
%

3.4
%

3.1
%

3.4
% 

 Financing concessions  

3.7
%

2.3
%

3.5
%

2.4
% 

 Overheads  

4.3
%

3.7
%

4.4
%

4.0
% 

 Total cost of sales, excluding interest expense and land charges  

82.7
%

77.4
%

82.2
%

77.7
% 

 Cost of sales interest  

3.0
%

3.1
%

3.0
%

3.3
% 

 Land charges  

0.5
%

0.0
%

0.3
%

0.1
% 

 Homebuilding gross margin percentage  

13.8
%

19.5
%

14.5
%

18.9
% 

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

17.3
%

22.6
%

17.8
%

22.3
% 

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

14.3
%

19.5
%

14.8
%

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 homebuilding gross margin percentage decreased to 13.8% and 14.5% for the three and six months ended April 30, 2025, compared to 19.5% and 18.9% for the prior year periods. Total homebuilding gross margin percentage, before cost of sales interest expense and land charges decreased to 17.3% and 17.8% for the three and six months ended April 30, 2025, compared to 22.6% and 22