NVR, Inc. Reports Year-End Results with Declining Revenue and Net Income

NVR, Inc. Reports Year-End Results

NVR, Inc., a prominent name in homebuilding and mortgage banking in the United States, recently disclosed its financial results for the fourth quarter and the entire year of 2025. The figures reveal a notable decrease in both net income and revenues, reflective of the challenging market conditions faced by the company.

Financial Performance Overview

In the fourth quarter ending December 31, 2025, NVR reported a net income of $363.8 million, translating to $121.54 per diluted share. This marked a significant decrease of 20% from the net income of $457.4 million, or $139.93 per diluted share, recorded in the same quarter of 2024. The consolidated revenues for the quarter amounted to $2.71 billion, down from $2.85 billion in the previous year.

For the full year ending December 31, 2025, NVR's consolidated revenues totaled $10.32 billion, declining by 2% from the previous year's figure of $10.52 billion. The company's net income decreased by 20%, landing at $1.34 billion compared to $1.68 billion in 2024, while diluted earnings per share decreased by 14%, from $506.69 to $436.55.

Homebuilding Segment Performance

The homebuilding segment faced its challenges as well. New orders in the fourth quarter of 2025 saw a slight increase of 3%, totaling 4,951 units against 4,794 units for the same quarter in 2024. However, the average sales price of these new orders dropped by 3% to $454,200. The cancellation rate for new orders slightly improved from 16.9% to 16.6% year-on-year, indicating a marginal shift in customer commitment amid market volatility.

Settlements in the fourth quarter experienced an 8% decline, falling to 5,668 units compared to 6,180 units in the fourth quarter of 2024. The average settlement price did see a small uptick of 3%, rising to $464,900, compared to $450,000 in the prior year. The backlog of homes sold but not yet settled decreased by 15% to 8,448 units, reflecting a dip in future revenue assurance.

Homebuilding revenues for the fourth quarter stood at $2.64 billion, down by 5% from $2.78 billion in the fourth quarter of 2024. The gross profit margin took a hit, declining to 20.4%, compared to the 23.6% reported in the year-ago quarter. Increased lot costs and ongoing pricing pressures contributed to this downturn.

Yearly Overview of Homebuilding Segment

For the year 2025, new orders dipped by 10% to 20,410 units. The segment reported total homebuilding revenues of $10.09 billion, a 2% decline year-on-year. With the gross profit margin falling to 21.2%, NVR cited impairments of approximately $75.9 million on contract land deposits as a significant factor affecting profitability.

Mortgage Banking Segment Insights

In the mortgage banking arena, closed loan production for the fourth quarter totaled $1.51 billion, reflecting an 11% decrease compared to $1.69 billion in the same period last year. However, the mortgage banking segment reported an increase in income before tax, rising by 24% to $57.2 million as a result of improved secondary marketing gains.

On an annual basis, mortgage closed loan production decreased by 4% to $6.04 billion, with income for the mortgage segment dropping by 2% to $152 million. The effective tax rate also increased to 22.4% for the quarter, while the yearly effective tax rate was noted at 24.0%.

Looking Ahead

Despite the current downturn in business metrics, NVR remains optimistic about adapting to market challenges and returning to growth. The company continues to operate under its popular homebuilding brands, Ryan Homes, NVHomes, and Heartland Homes, and maintains operations across various metropolitan areas in multiple states.

As the real estate market evolves, investors and stakeholders eagerly await how NVR will adjust its strategies moving forward to weather these economic uncertainties. For those interested in further details on NVR, Inc. and its operational insights, become familiar with its online presence here.