Hovnanian Enterprises Slides on Loss, Sluggish Housing Market

Dow Jones
2025/12/05
 

By Katherine Hamilton

 

Hovnanian Enterprises shares slipped after the homebuilder swung to a loss, citing a challenging housing market.

The stock fell 20%, to $107.76, midday Thursday, putting it on track for its largest percentage decrease since 2020. Shares have lost 20% of their value this year.

The company recorded a loss of 51 cents a share in its fiscal fourth quarter, compared with a profit of $12.79 a share the year before. Revenue fell 17%, to $817.9 million.

Prospective homebuyers are slow to buy houses because mortgage rates remain high, management said. As a result, the Matawan, N.J., company is offering more incentives to customers, which are squeezing margins.

The homebuilding gross margin percentage was 10.7% in the quarter, down from 18%.

Hovnanian kept its guidance limited to the current quarter, despite entering a new fiscal year. It said it expects revenue to be $550 million to $650 million.

 

Write to Katherine Hamilton at katherine.hamilton@wsj.com

 

(END) Dow Jones Newswires

December 04, 2025 12:34 ET (17:34 GMT)

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