NVR, Inc. Announces First Quarter Results

RESTON, Va., April 22, 2025 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2025 of $299.6 million, or $94.83 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2025 decreased 24% and 19%, respectively, when compared to 2024 first quarter net income of $394.3 million, or $116.41 per diluted share. Consolidated revenues for the first quarter of 2025 totaled $2.40 billion, which increased 3% from $2.33 billion in the first quarter of 2024.

Homebuilding

New orders in the first quarter of 2025 decreased by 12% to 5,345 units, when compared to 6,049 units in the first quarter of 2024. The average sales price of new orders in the first quarter of 2025 was $448,500, a decrease of 1% when compared with the first quarter of 2024. The cancellation rate in the first quarter of 2025 was 16% compared to 13% in the first quarter of 2024. Settlements in the first quarter of 2025 increased by 1% to 5,133 units, compared to 5,089 units in the first quarter of 2024. The average settlement price in the first quarter of 2025 was $457,900, an increase of 2% from the first quarter of 2024. Our backlog of homes sold but not settled as of March 31, 2025 decreased on a unit basis by 9% to 10,165 units and decreased on a dollar basis by 7% to $4.84 billion when compared to the respective backlog unit and dollar balances as of March 31, 2024.

Homebuilding revenues of $2.35 billion in the first quarter of 2025 increased by 3% compared to homebuilding revenues of $2.29 billion in the first quarter of 2024. Gross profit margin in the first quarter of 2025 decreased to 21.9%, compared to 24.5% in the first quarter of 2024. Gross profit margin was negatively impacted by higher lot costs and pricing pressure due to continued affordability challenges. Income before tax from the homebuilding segment totaled $369.5 million in the first quarter of 2025, a decrease of 16% when compared to the first quarter of 2024.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2025 totaled $1.43 billion, an increase of 4% when compared to the first quarter of 2024. Income before tax from the mortgage banking segment totaled $32.5 million in the first quarter of 2025, an increase of 12% when compared to $29.0 million in the first quarter of 2024.

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2025 was 25.5% compared to 16.2% for the three months ended March 31, 2024. The increase in the effective tax rate in the first quarter of 2025 is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $2.7 million and $43.8 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

About NVR

NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-six metropolitan areas in sixteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.

Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should" or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.

NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited)
		Three Months Ended March 31,
		2025		2024
Homebuilding:
Revenues		$ 2,350,445		$ 2,286,177
Other income		26,712		40,866
Cost of sales		(1,835,375)		(1,726,213)
Selling, general and administrative		(165,117)		(152,503)
Operating income		376,665		448,327
Interest expense		(7,181)		(6,649)
Homebuilding income		369,484		441,678
Mortgage Banking:
Mortgage banking fees		52,587		47,286
Interest income		3,806		4,092
Other income		1,093		1,171
General and administrative		(24,693)		(23,358)
Interest expense		(273)		(177)
Mortgage banking income		32,520		29,014
Income before taxes		402,004		470,692
Income tax expense		(102,428)		(76,423)
Net income		$ 299,576		$ 394,269
Basic earnings per share		$ 100.41		$ 123.76
Diluted earnings per share		$ 94.83		$ 116.41
Basic weighted average shares outstanding		2,984		3,186
Diluted weighted average shares outstanding		3,159		3,387

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
		March 31, 2025		December 31, 2024
ASSETS
Homebuilding:
Cash and cash equivalents		$ 2,176,902		$ 2,561,339
Restricted cash		64,264		42,172
Receivables		36,543		32,622
Inventory:
Lots and housing units, covered under sales agreements with customers		1,774,287		1,727,243
Unsold lots and housing units		242,217		237,177
Land under development		70,050		65,394
Building materials and other		23,818		28,893
		2,110,372		2,058,707
Contract land deposits, net		757,197		726,675
Property, plant and equipment, net		98,038		95,619
Operating lease right-of-use assets		84,791		78,340
Reorganization value in excess of amounts allocable to identifiable assets, net		41,580		41,580
Other assets		264,138		251,178
		5,633,825		5,888,232
Mortgage Banking:
Cash and cash equivalents		34,204		49,636
Restricted cash		12,540		11,520
Mortgage loans held for sale, net		391,914		355,209
Property and equipment, net		7,286		7,373
Operating lease right-of-use assets		22,686		23,482
Reorganization value in excess of amounts allocable to identifiable assets, net		7,347		7,347
Other assets		85,731		38,189
		561,708		492,756
Total assets		$ 6,195,533		$ 6,380,988

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
		March 31, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable		$ 364,929		$ 332,772
Accrued expenses and other liabilities		455,369		441,300
Customer deposits		315,746		322,926
Operating lease liabilities		90,489		83,939
Senior notes		910,633		911,118
		2,137,166		2,092,055
Mortgage Banking:
Accounts payable and other liabilities		79,009		53,433
Operating lease liabilities		24,694		25,428
		103,703		78,861
Total liabilities		2,240,869		2,170,916
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2025 and December 31, 2024		206		206
Additional paid-in capital		3,057,037		3,031,637
Deferred compensation trust - 106,697 shares of NVR, Inc. common stock as of both March 31, 2025 and December 31, 2024		(16,710)		(16,710)
Deferred compensation liability		16,710		16,710
Retained earnings		15,346,529		15,046,953
Less treasury stock at cost - 17,610,715 and 17,543,686 shares as of March 31, 2025 and December 31, 2024, respectively		(14,449,108)		(13,868,724)
Total shareholders' equity		3,954,664		4,210,072
Total liabilities and shareholders' equity		$ 6,195,533		$ 6,380,988

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
		Three Months Ended March 31,
		2025				2024
		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic (1)		1,866		$ 514.5		2,282		$ 515.4
North East (2)		377		$ 695.0		527		$ 612.6
Mid East (3)		1,098		$ 419.9		1,263		$ 409.9
South East (4)		2,004		$ 356.3		1,977		$ 369.9
Total		5,345		$ 448.5		6,049		$ 454.3
		Three Months Ended March 31,
		2025				2024
		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic (1)		2,050		$ 527.9		1,966		$ 517.5
North East (2)		471		$ 613.2		463		$ 552.2
Mid East (3)		1,013		$ 407.1		1,049		$ 397.5
South East (4)		1,599		$ 354.6		1,611		$ 370.0
Total		5,133		$ 457.9		5,089		$ 449.2
		As of March 31,
		2025				2024
		Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic (1)		3,884		$ 535.7		4,410		$ 521.0
North East (2)		961		$ 694.4		1,092		$ 628.2
Mid East (3)		2,130		$ 422.6		2,190		$ 417.7
South East (4)		3,190		$ 372.9		3,497		$ 377.5
Total		10,165		$ 475.9		11,189		$ 466.4

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
		Three Months Ended March 31,
		2025		2024
Average active communities:
Mid Atlantic (1)		120		157
North East (2)		24		34
Mid East (3)		93		100
South East (4)		164		136
Total		401		427
		Three Months Ended March 31,
		2025		2024
Homebuilding data:
New order cancellation rate		16 %		13 %
Lots controlled at end of period		167,600		143,200
Mortgage banking data:
Loan closings		$ 1,432,922		$ 1,378,009
Capture rate		86 %		86 %
Common stock information:
Shares outstanding at end of period		2,944,615		3,167,625
Number of shares repurchased		77,120		66,858
Aggregate cost of shares repurchased		$ 583,394		$ 496,936

(1)	Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
(2)	New Jersey and Eastern Pennsylvania
(3)	New York, Ohio, Western Pennsylvania, Indiana and Illinois
(4)	North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

SOURCE NVR, INC.