Hovnanian Enterprises, Inc. (HOV) is one of the largest builders of residential homes in the United States. The company designs, constructs, markets, and sells a variety of residential homes, including single-family detached homes, townhomes, and condominiums. Additionally, HOV provides mortgage financing and title services to its homebuilding customers.
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Homebuilding - Designs, constructs, markets, and sells residential homes, including single-family detached homes, attached townhomes, and condominiums. Operates in 130 communities across 27 markets in 13 states, targeting diverse customer bases such as first-time buyers, move-up buyers, and luxury buyers.
- Northeast - Includes operations in Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia.
- Southeast - Includes operations in Florida, Georgia, and South Carolina.
- West - Includes operations in Arizona, California, and Texas.
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Financial Services - Provides mortgage loans and title services, offering interest rate buy-down programs and mortgage originations in every state where HOV operates.
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Corporate and Unallocated - Includes operations at the corporate level, such as administrative functions, contributing minimally to revenue.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ara K. Hovnanian ExecutiveBoard | Chairman of the Board, Chief Executive Officer, President, and Director | Ara K. Hovnanian has been with Hovnanian Enterprises since 1979, serving as Director from 1981, Executive Vice President from 1983, President since 1988, and CEO since July 1997. He was elected Chairman of the Board in November 2009, reflecting his long-standing leadership at the company. | View Report → | |
Alexander Hovnanian Executive | Executive Vice President, National Homebuilding Operations | Alexander Hovnanian joined HOV in 2012 and held various leadership roles, including Area President in November 2017 and Division President of the Northeast Division in December 2018 before becoming Executive Vice President, National Homebuilding Operations in March 2020. He is set to be appointed President effective November 1, 2025, while currently not serving on the Board of Directors. | ||
Brad G. O’Connor Executive | Chief Financial Officer | Brad G. O’Connor is the Chief Financial Officer of Hovnanian Enterprises since November 2023, having previously served as Senior Vice President and Treasurer since April 2020 and as Chief Accounting Officer from May 2011 to October 2023. | ||
Michael Wyatt Executive | Chief Operating Officer | Michael Wyatt is the Chief Operating Officer at HOV, effective November 1, 2025. He previously served as Group President and Region President, joining HOV as Division President in September 2015, and brings extensive homebuilding experience from his roles at Centex Corporation and PulteGroup, Inc.. |
- Based on your recent QMI sales success and the increased reliance on mortgage rate buydowns, how do you plan to mitigate the negative impact on your gross margins if the current sales pace does not improve?
- You mentioned that roughly 10% of your lots are from the '22 vintage and lower percentages from '21 on the West Coast; what specific timeline and strategies do you have in place to effectively burn through these vintages amid ongoing market challenges?
- With cost reductions yielding a 7% decrease in base construction cost per square foot since fiscal '23, what contingencies do you have if rising material costs, particularly lumber, begin to erode these savings in the latter half of the year?
- Given the dual approach of offering both mortgage rate buydowns and alternative price incentives, how do you ensure that these strategies do not further compress margins or confuse buyers in differing markets like Delaware or New Jersey?
- Considering the volatility in quarterly backlog conversion and the flat sales guidance for the next quarter, what measures are you taking to manage the inherent risks in your current QMI and incentive model to sustain profitability?
Research analysts who have asked questions during HOVNANIAN ENTERPRISES earnings calls.
Alan Ratner
Zelman & Associates
3 questions for HOV
Alex Barron
Housing Research Center
3 questions for HOV
James McCanless
Wedbush Securities
2 questions for HOV
Jay McCanless
Wedbush Securities
1 question for HOV
Jordon Hymowitz
Philadelphia Financial
1 question for HOV
Natalie Kulasekere
Zelman & Associates
1 question for HOV
Recent press releases and 8-K filings for HOV.
- HOVNANIAN ENTERPRISES, INC. has detailed the terms of its 8.000% Senior Notes due 2031, with the principal payable on April 1, 2031, and semi-annual interest payments commencing April 1, 2026.
- The company's $125,000,000 Senior Credit Facility was amended on September 10, 2025.
- The Issuer holds optional redemption rights for the Senior Notes starting April 1, 2028, at redemption prices of 104.000% in 2028, 102.000% in 2029, and 100.000% in 2030 and thereafter.
- Additionally, up to 40% of the aggregate principal amount of the Notes can be redeemed with net cash proceeds from an Equity Offering at 108.000% on or prior to April 1, 2028, provided at least 50% of the original principal amount remains outstanding.
- Annual limitations on restricted payments include up to $10.0 million for capital stock repurchases and up to $11.0 million for preferred stock dividends, subject to a Consolidated Fixed Charge Coverage Ratio of at least 1.50 to 1.00.
- Hovnanian Enterprises, Inc. (HOV) announced the pricing of $450 million aggregate principal amount of 8.000% Senior Notes due 2031 and $450 million aggregate principal amount of 8.375% Senior Notes due 2033 by its wholly-owned subsidiary, K. Hovnanian Enterprises, Inc..
- The net proceeds from this offering are intended to fund the redemption of its entire outstanding principal amount of 8.0% Senior Secured 1.125 Lien Notes due 2028 and 11.75% Senior Secured 1.25 Lien Notes due 2029, and to repay in full all outstanding loans under its Senior Secured 1.75 Lien Term Loan Facility due 2028.
- The sale of these Notes is expected to be consummated on or about September 25, 2025.
- K. Hovnanian Enterprises, Inc., a wholly owned subsidiary of Hovnanian Enterprises, Inc., priced an offering of $450 million aggregate principal amount of 8.000% Senior Notes due 2031 and $450 million aggregate principal amount of 8.375% Senior Notes due 2033.
- The total offering amount is $900 million in a private placement, with the notes guaranteed by the Company and its subsidiaries.
- The net proceeds are intended to fund the redemption of its 8.0% Senior Secured 1.125 Lien Notes due 2028 and 11.75% Senior Secured 1.25 Lien Notes due 2029, and to repay in full its Senior Secured 1.75 Lien Term Loan Facility due 2028.
- The sale of the Notes is expected to be consummated on or about September 25, 2025.
- Hovnanian Enterprises Inc. reported Q3 revenues up 11% year-over-year, though gross margins were down almost 500 basis points due to mortgage rate buy-down incentives. For Q4, the company expects revenues to be similar to Q3, gross margins to decline further, and adjusted EBITDA to be between $77 million and $87 million.
- The company has significantly improved its balance sheet, reducing debt-to-cap from 146-150% in 2020 to 47.9% by the end of the most recent quarter. Hovnanian plans to refinance its secured debt into unsecured debt within the next 12 months to reduce borrowing costs and simplify its debt structure.
- Hovnanian has strategically shifted to an asset-light model, with 86% of its lots now controlled by option, up from under 50% in 2015. Additionally, 80% of its sales are now "spec homes" (quick move-in homes), enabling the company to offer mortgage rate buy-downs and maintain sales pace despite market volatility.