HOVNANIAN ENTERPRISES INC Annual Report - How They Did This Year

This annual review covers HOVNANIAN ENTERPRISES INC's performance for the fiscal year ending October 31, 2025.

Business Segments: Beyond its primary homebuilding business, Hovnanian also operates a 'Financial Services' segment. This segment deals with loans held for sale and managing interest rate risks through commitments and forward contracts. The company also partners with others in 'Homebuilding and Land Development Joint Ventures'.

Funding & Debt: Hovnanian funds its operations through various types of debt. This includes senior secured notes (such as 10.0% notes due in 2025, 8.0% notes due in 2028, and 11.75% notes due in 2029) and unsecured senior notes (like the 13.5% notes due in 2026 and 5.0% notes due in 2040). The company also utilizes senior secured term loans.

Employee Compensation: Hovnanian uses a variety of share-based compensation plans for its employees and directors. These plans include employee stock options, Restricted Stock Units (RSUs), restricted stock, time-based share units, and performance-based share units (PSUs).

Key Takeaways:

• Hovnanian Enterprises Inc. operates beyond traditional homebuilding, including a Financial Services segment and joint ventures in homebuilding and land development.
• The company employs a diverse capital structure, relying on various debt instruments including both secured and unsecured senior notes with different interest rates and maturity dates, as well as senior secured term loans.
• Employee and director compensation includes a range of share-based incentives such as stock options, RSUs, restricted stock, time-based, and performance-based share units.