Hovnanian Enterprises reported first-quarter revenues of $632 million, meeting guidance expectations despite challenges in the housing market. Adjusted EBITDA and pretax income significantly exceeded forecasts, driven by strategic management of incentives.

• Total revenues decreased by 6% year-over-year, primarily due to a 12% reduction in home deliveries.
• Adjusted gross margin was 13.4%, marginally below expectations, influenced by increased sales incentives costing 12.6% of average sales prices.
• Adjusted EBITDA reached $63 million, surpassing guidance, while adjusted pretax income hit $31 million, also exceeding forecasts.
• SG&A expenses decreased in absolute terms but rose as a percentage of revenue due to lower sales, reflecting ongoing investments in technology and processes.
• The company successfully maintained a steady sales pace, with only a minor decrease in contract signings amidst a challenging market environment.