#USA #Reston #earnings report #NVR #homebuilding

NVR, Inc. Announces Third Quarter Results

On October 22, 2025, NVR, Inc. (NYSE: NVR), one of the leading homebuilding and mortgage banking firms in the United States, revealed its financial results for the third quarter that ended on September 30, 2025. The company reported a net income of $342.7 million, translating to $112.33 per diluted share. This represents a significant drop of 20% in net income and a 14% decrease in diluted earnings per share when compared to the same quarter in the prior year, which showed net income of $429.3 million or $130.50 per diluted share.

NVR’s consolidated revenues for the third quarter amounted to $2.61 billion, down from $2.73 billion in the third quarter of 2024. This decrease reflects ongoing challenges faced by the company as the housing market adapts to changing economic conditions.

In analyzing the first three quarters of 2025, NVR reported consolidated revenues of $7.61 billion, which is a 1% decline from the previous year’s $7.68 billion. Furthermore, the net income for this nine-month period stood at $976.0 million, marking a 20% drop compared to $1.22 billion in net income for the same timeframe in 2024. Diluted earnings per share for the nine months fell to $315.33 from $367.20.

Homebuilding Segment Performance

Focusing on the homebuilding side of the business, new orders in the third quarter of 2025 experienced a notable decline of 16%, totaling 4,735 units versus 5,650 in the prior year’s third quarter. Despite this, the average sales price for new orders rose slightly by 3%, reaching $464,800. However, this slight increase occurred alongside a rise in the cancellation rate, which grew to 19% from 15% year-on-year.

The number of settlements also fell by 5%, with the company completing 5,639 units in the third quarter of 2025 compared to the 5,908 units in the same quarter of the previous year. The average settlement price remained relatively stable at $454,000. As of September 30, 2025, NVR had a backlog of homes that were sold but not yet settled, totaling 9,165 units, a decline of 19% in units compared to the previous year, totaling $4.39 billion in dollar value which shows a 17% drop.

The homebuilding revenues totaled $2.56 billion for the third quarter of 2025, reflecting a decrease of 4% compared to the $2.68 billion reported for the same quarter in 2024. Along with reduced revenues, the gross profit margin also saw a decline, dropping to 21.0% from 23.4% due to heightened lot costs, persistent affordability issues, and land deposit impairments totaling approximately $18.9 million.

Income before taxes from the homebuilding segment was reported at $411.4 million, down 18% year-on-year.

Mortgage Banking Performance

In terms of mortgage banking, NVR reported closed loan production of $1.54 billion, which was a 7% decrease compared to $1.66 billion in the same period last year. The income before taxes from the mortgage banking segment was recorded at $32.7 million, a slight decline from $34.9 million in the third quarter of 2024.

Tax Implications

NVR noted an effective tax rate of 22.8% for the three months and 24.5% for the nine months ended September 30, 2025, compared to 20.3% and 20.6% for the same periods in 2024 respectively. The increase was primarily due to a lower tax benefit from stock option exercises.

Overview of NVR

NVR, Inc. operates primarily within two segments—homebuilding and mortgage banking. Under its various brands including Ryan Homes, NVHomes, and Heartland Homes, the company serves 36 metropolitan areas across 16 states and Washington, D.C. For further information about NVR and its offerings, visit their website.

In closing, coupled with prevailing economic challenges like rising interest rates and supply chain constraints, NVR's recent financial performance indicates that the housing market continues to navigate a complex landscape. Investors and industry stakeholders will be keeping a close watch on how these trends develop in future quarters.