Company: HOVVB
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0001753926-25-001413
Chunk: 7

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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, 2025 compared to $20.85 and $19.15, respectively, for the nine months ended July 31, 2024.

● Net contracts increased 1.6% for the three months ended July 31, 2025 and decreased 0.4% for the nine months ended July 31, 2025, compared to the same periods of the prior year. The increase for the three months ended is primarily due to our current strategy of using increased incentives to drive sale pace. During the third quarter of fiscal 2025,
incentives were 11.6% of the average sales price, which is up 3.9% from the
same period of the prior year and up 1.1% from the second quarter of fiscal 2025. The
slight decrease in net contracts for the nine months ended July 31, 2025 is due to continued macroeconomic uncertainty that permeated throughout the period leading to low consumer confidence.

● Net contracts per active selling community increased to 9.8 and 30.8 for the three and nine months ended July 31, 2025, respectively, compared to 9.5 and 30.4 in the same periods of the prior year, primarily due to our focus on sales pace over price.

● Contract backlog decreased from 2,041 homes at July 31, 2024 to 1,491 homes at July 31, 2025, and the dollar value of contract backlog decreased to $838.8 million, a 27.6% decrease in dollar value compared to the prior year, as our backlog conversion ratio has increased from the prior year period due to our having more QMI homes available to sell and deliver.

Results of Operations 

Total Revenues

Compared to the same period in the prior year, revenues increased (decreased) as follows:

Three Months Ended

July 31,

July 31,

 Dollar 

 Percentage 

 (Dollars in thousands) 

2025

2024

 Change 

 Change 

 Homebuilding: 

 Sale of homes 

$
769,050

$
687,424

$
81,626

11.9
%

 Land sales and other revenues 

2,967

 16,392  

(13,425
)

(81.9)
%

 Financial services 

28,566

18,888

9,678

51