NVR, Inc. Reports Impressive Financial Growth for Q4 2024
NVR, Inc. Reports Impressive Financial Growth for Q4 2024
NVR, Inc., a leading homebuilding and mortgage banking company in the U.S., recently reported its financial results for the fourth quarter ended December 31, 2024. The company achieved a net income of $457.4 million or $139.93 per diluted share, marking a significant 12% increase from the previous year’s Q4 net income of $410.1 million. Additionally, NVR's consolidated revenues for this quarter totalled $2.85 billion, reflecting a substantial 17% improvement from $2.43 billion in Q4 2023.
For the full year ending December 31, 2024, NVR reported revenues of $10.52 billion, representing an 11% rise from $9.52 billion in 2023. The net income for the entire year was $1.68 billion, indicating a 6% growth compared to the $1.59 billion earned in 2023. Per diluted share earnings for the year increased by 9%, reaching $506.69 as compared to $463.31 in 2023.
Homebuilding Performance Insights
The company saw a decrease in new orders during Q4 2024, down 8% to 4,794 units from 5,190 in Q4 2023. However, the average sales price for these new orders escalated by 4% to $469,000. Additionally, the cancellation rate jumped to 17% from 13% the previous year. The number of settlements, conversely, surged by 16% to 6,180 units, up from 5,332 units.
NVR’s homebuilding revenues reached $2.78 billion for Q4 2024, a 16% increase from $2.39 billion a year ago. Despite this growth, the gross profit margin declined slightly to 23.6% from 24.1% in the previous Q4. The pre-tax income from the homebuilding segment was $526.7 million, reflecting a 16% increase compared to the same quarter in 2023.
Yearly Homebuilding Highlights
Overall for the year 2024, new orders rose by 4%, culminating in 22,560 units versus 21,729 in 2023. The total settlements increased by 11%, reaching 22,836 units for the year. Total homebuilding revenues for 2024 stood at $10.29 billion, marking an 11% growth in comparison to $9.25 billion in 2023.
Mortgage Banking Division Growth
The mortgage banking segment also reported a strong increase, with closed loan production reaching $1.70 billion in Q4 2024, up 13% year-on-year. The pre-tax income in this segment saw an impressive jump of 55%, totaling $45.9 million, driven largely by increased secondary marketing gains. For the year, closed loan production hit $6.26 billion, up 9% from the previous year, with pre-tax income growing by 17% to $154.9 million.
Management and Tax Insights
NVR’s effective tax rate for the quarter was 20.1%, slightly rising from 15.3% in the prior year’s quarter. The change in tax rates is largely attributed to a lower income tax benefit related to stock option exercises.
Conclusion
NVR, Inc. has demonstrated robust financial health and growth in both the homebuilding and mortgage banking sectors as of year-end 2024. The company continues to operate under its well-known brands—Ryan Homes, NVHomes, and Heartland Homes—across thirty-six metropolitan areas in various states. As NVR moves forward, stakeholders remain optimistic about the potential for continued success amidst fluctuating market conditions.
For more detailed information on NVR’s financial performance, you can visit their official sites: NVR, Inc., Ryan Homes, NVHomes, and Heartland Luxury Homes.
Topics Financial Services & Investing）
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