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Hovnanian Enterprises, Inc. HOV Southeast — Impairment Of Real Estate

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Other financials

Income statement

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Revenue$667.6M-2.7%
Net income-$284.0K-101%
EPS (diluted)-$0.46-119%

Balance sheet

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Cash & equivalents$8.8M-28.5%
Total debt$942.7M+6.2%
Total equity$824.9M+0.6%
Total assets$2.8B+10.8%

Cash flow

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Operating cash flow$140.9M+352%
CapEx$3.4M-46.9%
Free cash flow$132.1M+322%

Valuation

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Market cap$807.34M+3.6%
Enterprise value$1.74B+5.2%
P/E21.7×+16.8×
P/S0.3×0.0×

Profitability

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Net margin1.3%-5.8pp
FCF margin12.2%+10.9pp

Returns & leverage

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Return on equity4.5%-24.8pp
Debt / equity1.1×+0.1×

Where this comes from

Reported directly by Hovnanian Enterprises, Inc. in its filing.

Tagged under the XBRL concept us-gaap:ImpairmentOfRealEstate.

The source filing: Hovnanian Enterprises, Inc.’s 10-K, filed December 22, 2025.

Filed
Dec 22, 2025, 4:14 PM EST
Fiscal year
FY2025
Accession
0001753926-25-001938

We estimate the fair value of each impaired community by determining the present value of the estimated future cash flows at a discount rate commensurate with the risk of the respective community. For the year ended October 31, 2025, our discount rates used to determine the fair value ranged from 16.5% to 20.0%. We recorded inventory impairments, which are included in the Consolidated Statements of Operations as “Inventory impairments and land option write-offs” and deducted from inventory of $21.4 million and $10.0 million for the years ended October 31, 2025 and 2024, respectively. We did not have any assets measured at fair value on a nonrecurring basis during the year ended October 31, 2023 (see Note 12).

ITEM 7A

FAQ

What is Hovnanian Enterprises, Inc.'s southeast — impairment of real estate?
Hovnanian Enterprises, Inc. (HOV) reported southeast — impairment of real estate of $275K in Q3 2025.
What is the long-term trend for Hovnanian Enterprises, Inc.'s southeast — impairment of real estate?
Over 3 years (2021 to 2025), Hovnanian Enterprises, Inc.'s southeast — impairment of real estate has grown at a -2.9% compound annual growth rate (CAGR), from $1.2M to $1.1M.
What does southeast — impairment of real estate mean?
Represents the non-cash charge taken to write down the carrying value of real estate assets in the Southeast segment when their market value falls. This metric signals potential overvaluation of land or inventory and reflects regional market downturns.

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