A challenging third quarter saw total revenues, deliveries, and net contracts decline on a year-over-year basis for Hovnanian Enterprises.
“While we are disappointed to have fallen short of our profitability target, this marks the first time in more than five years that we reported adjusted pretax income below our guided range, and we remain focused on improving execution while continuing to navigate a housing market challenged by affordability concerns, elevated mortgage rates, and inconsistent consumer confidence due to geopolitical and economic uncertainty,” said chairman and CEO Ara Hovnanian.
In the period, total revenues fell to $705.7 million compared to $800.6 million in the same period a year ago. The builder generated 1,259 closings in the quarter with an average sales price of $539,500, compared to 1,431 closings with an average sales price of $537,421 in the third quarter of 2025.
Hovnanian Enterprises reported net contracts decreased 4.6% on a year-over-year basis to 1,155 homes while the builder’s cancellation rate was unchanged at 19% in the period.
The builder reported a net loss of $4.5 million, or $0.70 per share, compared to a profit of $13.9 million, or $1.99 per share, in the same period in 2025.
Hovnanian Enterprises allocated $231.9 million toward land and land development in the third quarter, up from $192.6 million in the third quarter of 2025. At quarter’s end, the builder controlled 34,373 lots and approximately 87% of its total lots were optioned at the end of the period.
“As we look ahead, we believe the company is well positioned for future success. Our inventory position is healthier, our land portfolio is increasingly aligned with today’s market conditions, and our balance sheet remains strong,” Hovnanian said. “At the same time, a growing percentage of our deliveries are expected to come from newer communities acquired and underwritten under current market assumptions, which we believe will support improved margins and returns over time.”
