HOVNANIAN ENTERPRISES INC Segments Disclosure
10. Operating and Reporting Segments
HEI’s operating segments are components of the Company’s business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance, make resource allocations and guide strategic decisions. The Chief Executive Officer uses income (loss) before income taxes as the key operating metric used to measure segment profit or loss. Actual income (loss) before income taxes is reviewed monthly against budgeted amounts from the semi-annual financial plans.
We currently have homebuilding operations in 13 states that are aggregated into reportable segments based primarily upon geographic proximity.
HEI’s reportable segments consist of the following three homebuilding segments and a financial services segment.
Homebuilding:
|
(1) |
Northeast (Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia and West Virginia) |
|
|
(2) |
Southeast (Florida, Georgia and South Carolina) |
|
|
(3) |
West (Arizona, California and Texas) |
Operations of the homebuilding segments primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Operations of the financial services segment include mortgage banking and title services provided to the homebuilding operations’ customers. Our financial services subsidiaries do not typically retain or service mortgages that we originate but sell the mortgages and related servicing rights to investors.
Financial information relating to our reportable segments are as follows:
| Year Ended October 31, 2025 | |||||||||||||||||||
| (In thousands) | Northeast | Southeast | West | Financial Services | Total | ||||||||||||||
| Homebuilding revenues | $ | 1,146,746 | $ | 349,448 | $ | 1,356,714 | $ | - | $ | 2,852,908 | |||||||||
| Financial services revenues | - | - | - | 94,975 | 94,975 | ||||||||||||||
| All other revenues (1) | 4,895 | 532 | 20,359 | - | 25,786 | ||||||||||||||
| Total | 1,151,641 | 349,980 | 1,377,073 | 94,975 | 2,973,669 | ||||||||||||||
| Cost of sales (2) | 945,566 | 308,978 | 1,243,226 | - | 2,497,770 | ||||||||||||||
| Selling, general and administrative | 63,117 | 33,970 | 97,685 | - | 194,772 | ||||||||||||||
| Financial services expenses | - | - | - | 56,001 | 56,001 | ||||||||||||||
| Other segment items (3) | (22,572 | ) | (8,427 | ) | 21,047 | - | (9,952 | ) | |||||||||||
| Total segment profit | $ | 165,530 | $ | 15,459 | $ | 15,115 | $ | 38,974 | $ | 235,078 | |||||||||
| Corporate and unallocated (4) | 148,991 | ||||||||||||||||||
| Income before income taxes | $ | 86,087 | |||||||||||||||||
| Year Ended October 31, 2024 | |||||||||||||||||||
| (In thousands) | Northeast | Southeast | West | Financial Services | Total | ||||||||||||||
| Homebuilding revenues | $ | 1,007,595 | $ | 447,804 | $ | 1,420,088 | $ | - | $ | 2,875,487 | |||||||||
| Financial services revenues | - | - | - | 74,064 | 74,064 | ||||||||||||||
| All other revenues (1) | 28,453 | 1,098 | 17,806 | - | 47,357 | ||||||||||||||
| Total | 1,036,048 | 448,902 | 1,437,894 | 74,064 | 2,996,908 | ||||||||||||||
| Cost of sales (2) | 799,549 | 351,152 | 1,214,675 | - | 2,365,376 | ||||||||||||||
| Selling, general and administrative | 62,665 | 34,607 | 85,317 | - | 182,589 | ||||||||||||||
| Financial services expenses | - | - | - | 49,940 | 49,940 | ||||||||||||||
| Other segment items (3) | (17,219 | ) | (14,532 | ) | 11,189 | - | (20,562 | ) | |||||||||||
| Total segment profit | $ | 191,053 | $ | 77,675 | $ | 126,713 | $ | 24,124 | $ | 419,565 | |||||||||
| Corporate and unallocated (4) | 102,476 | ||||||||||||||||||
| Income before income taxes | $ | 317,089 | |||||||||||||||||
| Year Ended October 31, 2023 | |||||||||||||||||||
| (In thousands) | Northeast | Southeast | West | Financial Services | Total | ||||||||||||||
| Homebuilding revenues | $ | 933,156 | $ | 419,656 | $ | 1,277,645 | $ | - | $ | 2,630,457 | |||||||||
| Financial services revenues | - | - | - | 60,088 | 60,088 | ||||||||||||||
| All other revenues (1) | 35,697 | 639 | 18,347 | - | 54,683 | ||||||||||||||
| Total | 968,853 | 420,295 | 1,295,992 | 60,088 | 2,745,228 | ||||||||||||||
| Cost of sales (2) | 740,829 | 323,228 | 1,071,256 | - | 2,135,313 | ||||||||||||||
| Selling, general and administrative | 63,793 | 29,562 | 84,367 | - | 177,722 | ||||||||||||||
| Financial services expenses | - | - | - | 40,724 | 40,724 | ||||||||||||||
| Other segment items (3) | (16,033 | ) | (10,893 | ) | 21,087 | - | (5,839 | ) | |||||||||||
| Total Segment Profit | $ | 180,264 | $ | 78,398 | $ | 119,282 | $ | 19,364 | $ | 397,308 | |||||||||
| Corporate and unallocated (4) | 141,357 | ||||||||||||||||||
| Income before income taxes | $ | 255,951 | |||||||||||||||||
| (1) | Consists primarily of land sales revenue, interest income, and income from forfeited customer deposits due to contract cancellations. |
| (2) | Consists primarily of homebuilding and land sale costs, amortization of capitalized interest, inventory impairments and land option write-offs. |
| (3) | Consists primarily of other interest expensed, and income (loss) from unconsolidated joint ventures. |
| (4) | Consists primarily of corporate costs and shared services functions that are not allocated to the homebuilding or financial services reportable segments. |
|
October 31, |
||||||||
|
(In thousands) |
2025 |
2024 |
||||||
|
Assets: |
||||||||
|
Northeast |
$ | 672,021 | $ | 664,064 | ||||
|
Southeast |
358,383 | 296,058 | ||||||
|
West |
829,683 | 889,704 | ||||||
|
Financial services |
151,211 | 203,589 | ||||||
|
Total |
$ | 2,011,298 | $ | 2,053,415 | ||||
|
October 31, |
||||||||
|
(In thousands) |
2025 |
2024 |
||||||
|
Investments in and advances to unconsolidated joint ventures: |
||||||||
|
Northeast |
$ | 97,024 | $ | 79,659 | ||||
|
Southeast |
29,765 | 55,344 | ||||||
|
West |
34,065 | 6,348 | ||||||
|
Total |
$ | 160,854 | $ | 141,351 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 22, 2025 | Showing above |
| 2024 | Dec 18, 2024 | |
| 2023 | Dec 18, 2023 | |
| 2022 | Dec 19, 2022 | |
| 2021 | Jan 4, 2022 | |
| 2020 | Dec 22, 2020 | |
| 2019 | Dec 19, 2019 | |
| 2018 | Dec 20, 2018 | |
| 2017 | Dec 28, 2017 | |
| 2016 | Dec 20, 2016 | |
| 2015 | Dec 18, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.