RESTON, Va., Oct. 22, 2025 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2025 of $342.7 million, or $112.33 per diluted share. For the third quarter ended September 30, 2025, net income and diluted earnings per share decreased 20% and 14%, respectively, when compared to 2024 third quarter net income of $429.3 million, or $130.50 per diluted share. Consolidated revenues for the third quarter of 2025 totaled $2.61 billion, compared to $2.73 billion in the third quarter of 2024.
For the nine months ended September 30, 2025, consolidated revenues were $7.61 billion, a 1% decrease from $7.68 billion reported for the same period of 2024. Net income for the nine months ended September 30, 2025 was $976.0 million, a decrease of 20% when compared to net income for the nine months ended September 30, 2024 of $1.22 billion. Diluted earnings per share for the nine months ended September 30, 2025 was $315.33, a decrease of 14% from $367.20 per diluted share for the same period of 2024.
Homebuilding
New orders in the third quarter of 2025 decreased by 16% to 4,735 units, when compared to 5,650 units in the third quarter of 2024. The average sales price of new orders in the third quarter of 2025 was $464,800, an increase of 3% when compared to the third quarter of 2024. The cancellation rate in the third quarter of 2025 was 19% compared to 15% in the third quarter of 2024. Settlements in the third quarter of 2025 decreased by 5% to 5,639 units, compared to 5,908 units in the third quarter of 2024. The average settlement price in the third quarter of 2025 was $454,000, which remained relatively flat when compared to the third quarter of 2024. Our backlog of homes sold but not settled as of September 30, 2025 decreased on a unit basis by 19% to 9,165 units and decreased on a dollar basis by 17% to $4.39 billion when compared to the respective backlog unit and dollar balances as of September 30, 2024.
Homebuilding revenues of $2.56 billion in the third quarter of 2025 decreased by 4% compared to homebuilding revenues of $2.68 billion in the third quarter of 2024. Gross profit margin in the third quarter of 2025 decreased to 21.0%, from 23.4% in the third quarter of 2024. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges, and contract land deposit impairments totaling approximately $18.9 million. Income before tax from the homebuilding segment totaled $411.4 million in the third quarter of 2025, a decrease of 18% when compared to the third quarter of 2024.
Mortgage Banking
Mortgage closed loan production in the third quarter of 2025 totaled $1.54 billion, a decrease of 7% when compared to the third quarter of 2024. Income before tax from the mortgage banking segment totaled $32.7 million in the third quarter of 2025, a decrease of 6% when compared to $34.9 million in the third quarter of 2024.
Effective Tax Rate
Our effective tax rate for the three and nine month periods ended September 30, 2025 was 22.8% and 24.5%, respectively, compared to 20.3% and 20.6% for the three and nine month periods ended September 30, 2024, respectively. The increase in the effective tax rate in each period is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $13.4 million and $19.7 million for the three and nine months ended September 30, 2025, respectively, compared to $23.1 million and $73.7 million for the three and nine months ended September 30, 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.
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NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited)
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Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ 2,560,343 |
|
$ 2,677,640 |
|
$ 7,459,055 |
|
$ 7,511,708 |
|
Other income |
|
22,000 |
|
33,746 |
|
73,800 |
|
110,796 |
|
Cost of sales |
|
(2,021,398) |
|
(2,051,087) |
|
(5,856,756) |
|
(5,724,916) |
|
Selling, general and administrative |
|
(142,736) |
|
(149,777) |
|
(457,023) |
|
(443,493) |
|
Interest expense |
|
(6,855) |
|
(6,855) |
|
(20,721) |
|
(20,214) |
|
Homebuilding income |
|
411,354 |
|
503,667 |
|
1,198,355 |
|
1,433,881 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking: |
|
|
|
|
|
|
|
|
|
Mortgage banking fees |
|
49,162 |
|
55,311 |
|
152,296 |
|
167,163 |
|
Interest income |
|
4,881 |
|
4,728 |
|
13,180 |
|
13,492 |
|
Other income |
|
1,400 |
|
1,414 |
|
3,794 |
|
3,918 |
|
General and administrative |
|
(22,397) |
|
(26,317) |
|
(73,515) |
|
(75,026) |
|
Interest expense |
|
(327) |
|
(191) |
|
(900) |
|
(556) |
|
Mortgage banking income |
|
32,719 |
|
34,945 |
|
94,855 |
|
108,991 |
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
444,073 |
|
538,612 |
|
1,293,210 |
|
1,542,872 |
|
Income tax expense |
|
(101,385) |
|
(109,289) |
|
(317,209) |
|
(318,376) |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ 342,688 |
|
$ 429,323 |
|
$ 976,001 |
|
$ 1,224,496 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ 119.26 |
|
$ 139.65 |
|
$ 333.86 |
|
$ 391.37 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ 112.33 |
|
$ 130.50 |
|
$ 315.33 |
|
$ 367.20 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
2,874 |
|
3,074 |
|
2,923 |
|
3,129 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
3,051 |
|
3,290 |
|
3,095 |
|
3,335 |
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NVR, Inc. |
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Consolidated Balance Sheets |
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(in thousands, except share and per share data) |
||||
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(unaudited) |
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|
|
|
|
|
|
|
|
September 30, 2025 |
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December 31, 2024 |
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ASSETS |
|
|
|
|
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Homebuilding: |
|
|
|
|
|
Cash and cash equivalents |
|
$ 1,932,167 |
|
$ 2,561,339 |
|
Restricted cash |
|
44,034 |
|
42,172 |
|
Receivables |
|
41,377 |
|
32,622 |
|
Inventory: |
|
|
|
|
|
Lots and housing units, covered under sales agreements with customers |
|
1,758,906 |
|
1,727,243 |
|
Unsold lots and housing units |
|
313,971 |
|
237,177 |
|
Land under development |
|
38,017 |
|
65,394 |
|
Building materials and other |
|
20,531 |
|
28,893 |
|
|
|
2,131,425 |
|
2,058,707 |
|
|
|
|
|
|
|
Contract land deposits, net |
|
868,308 |
|
726,675 |
|
Property, plant and equipment, net |
|
102,479 |
|
95,619 |
|
Operating lease right-of-use assets |
|
87,116 |
|
78,340 |
|
Reorganization value in excess of amounts allocable to identifiable assets, net |
|
41,580 |
|
41,580 |
|
Other assets |
|
291,748 |
|
251,178 |
|
|
|
5,540,234 |
|
5,888,232 |
|
Mortgage Banking: |
|
|
|
|
|
Cash and cash equivalents |
|
39,280 |
|
49,636 |
|
Restricted cash |
|
8,123 |
|
11,520 |
|
Mortgage loans held for sale, net |
|
341,579 |
|
355,209 |
|
Property and equipment, net |
|
8,081 |
|
7,373 |
|
Operating lease right-of-use assets |
|
25,252 |
|
23,482 |
|
Reorganization value in excess of amounts allocable to identifiable assets, net |
|
7,347 |
|
7,347 |
|
Other assets |
|
65,562 |
|
38,189 |
|
|
|
495,224 |
|
492,756 |
|
Total assets |
|
$ 6,035,458 |
|
$ 6,380,988 |
|
NVR, Inc. |
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Consolidated Balance Sheets (Continued) |
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(in thousands, except share and per share data) |
||||
|
(unaudited) |
||||
|
|
|
|
|
|
|
|
|
September 30, 2025 |
|
December 31, 2024 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Homebuilding: |
|
|
|
|
|
Accounts payable |
|
$ 361,209 |
|
$ 332,772 |
|
Accrued expenses and other liabilities |
|
344,658 |
|
441,300 |
|
Customer deposits |
|
277,351 |
|
322,926 |
|
Operating lease liabilities |
|
93,191 |
|
83,939 |
|
Senior notes |
|
909,654 |
|
911,118 |
|
|
|
1,986,063 |
|
2,092,055 |
|
Mortgage Banking: |
|
|
|
|
|
Accounts payable and other liabilities |
|
55,249 |
|
53,433 |
|
Operating lease liabilities |
|
27,384 |
|
25,428 |
|
|
|
82,633 |
|
78,861 |
|
Total liabilities |
|
2,068,696 |
|
2,170,916 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares |
|
206 |
|
206 |
|
Additional paid-in capital |
|
3,131,980 |
|
3,031,637 |
|
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of |
|
(16,710) |
|
(16,710) |
|
Deferred compensation liability |
|
16,710 |
|
16,710 |
|
Retained earnings |
|
16,022,954 |
|
15,046,953 |
|
Less treasury stock at cost – 17,694,431 and 17,543,686 shares as of September 30, |
|
(15,188,378) |
|
(13,868,724) |
|
Total shareholders' equity |
|
3,966,762 |
|
4,210,072 |
|
Total liabilities and shareholders' equity |
|
$ 6,035,458 |
|
$ 6,380,988 |
|
NVR, Inc. |
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Operating Activity |
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(dollars in thousands) |
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(unaudited) |
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|
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|
|
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|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
Units |
|
Average |
|
Units |
|
Average |
|
Units |
|
Average |
|
Units |
|
Average |
|
New orders, net of cancellations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Mid Atlantic (1) |
|
1,714 |
|
$ 529.7 |
|
2,206 |
|
$ 514.7 |
|
5,510 |
|
$ 525.1 |
|
6,785 |
|
$ 522.2 |
|
North East (2) |
|
433 |
|
$ 647.1 |
|
536 |
|
$ 616.4 |
|
1,234 |
|
$ 664.6 |
|
1,541 |
|
$ 617.2 |
|
Mid East (3) |
|
931 |
|
$ 431.9 |
|
1,105 |
|
$ 400.2 |
|
3,101 |
|
$ 425.0 |
|
3,630 |
|
$ 404.8 |
|
South East (4) |
|
1,657 |
|
$ 368.6 |
|
1,803 |
|
$ 354.1 |
|
5,614 |
|
$ 361.8 |
|
5,810 |
|
$ 363.9 |
|
Total |
|
4,735 |
|
$ 464.8 |
|
5,650 |
|
$ 450.7 |
|
15,459 |
|
$ 456.8 |
|
17,766 |
|
$ 454.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
Units |
|
Average |
|
Units |
|
Average |
|
Units |
|
Average |
|
Units |
|
Average |
|
Settlements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic (1) |
|
2,008 |
|
$ 517.9 |
|
2,229 |
|
$ 514.9 |
|
6,159 |
|
$ 527.8 |
|
6,394 |
|
$ 515.9 |
|
North East (2) |
|
420 |
|
$ 694.6 |
|
495 |
|
$ 606.9 |
|
1,365 |
|
$ 651.7 |
|
1,445 |
|
$ 583.6 |
|
Mid East (3) |
|
1,200 |
|
$ 423.8 |
|
1,219 |
|
$ 411.1 |
|
3,295 |
|
$ 416.1 |
|
3,343 |
|
$ 404.5 |
|
South East (4) |
|
2,011 |
|
$ 357.9 |
|
1,965 |
|
$ 370.5 |
|
5,428 |
|
$ 358.8 |
|
5,474 |
|
$ 368.5 |
|
Total |
|
5,639 |
|
$ 454.0 |
|
5,908 |
|
$ 453.2 |
|
16,247 |
|
$ 459.1 |
|
16,656 |
|
$ 451.0 |
|
|
|
As of September 30, |
|
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|
|
|
2025 |
|
2024 |
|
||||
|
|
|
Units |
|
Average |
|
Units |
|
Average |
|
|
Backlog: |
|
|
|
|
|
|
|
|
|
|
Mid Atlantic (1) |
|
3,419 |
|
$ 539.7 |
|
4,485 |
|
$ 531.4 |
|
|
North East (2) |
|
924 |
|
$ 676.0 |
|
1,124 |
|
$ 646.5 |
|
|
Mid East (3) |
|
1,851 |
|
$ 431.3 |
|
2,263 |
|
$ 411.5 |
|
|
South East (4) |
|
2,971 |
|
$ 379.1 |
|
3,467 |
|
$ 369.8 |
|
|
Total |
|
9,165 |
|
$ 479.5 |
|
11,339 |
|
$ 469.5 |
|
|
NVR, Inc. |
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Operating Activity (Continued) |
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(dollars in thousands) |
||||||||
|
(unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Average active communities: |
|
|
|
|
|
|
|
|
|
Mid Atlantic (1) |
|
125 |
|
146 |
|
122 |
|
152 |
|
North East (2) |
|
34 |
|
32 |
|
28 |
|
32 |
|
Mid East (3) |
|
100 |
|
98 |
|
96 |
|
100 |
|
South East (4) |
|
191 |
|
146 |
|
180 |
|
143 |
|
Total |
|
450 |
|
422 |
|
426 |
|
427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Homebuilding data: |
|
|
|
|
|
|
|
|
|
New order cancellation rate |
|
19.4 % |
|
14.5 % |
|
17.1 % |
|
13.5 % |
|
Lots controlled at end of period |
|
|
|
|
|
175,300 |
|
151,800 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking data: |
|
|
|
|
|
|
|
|
|
Loan closings |
|
$ 1,539,781 |
|
$ 1,656,507 |
|
$ 4,527,982 |
|
$ 4,564,597 |
|
Capture rate |
|
86 % |
|
86 % |
|
86 % |
|
86 % |
|
|
|
|
|
|
|
|
|
|
|
Common stock information: |
|
|
|
|
|
|
|
|
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Shares outstanding at end of period |
|
|
|
|
|
2,860,899 |
|
3,064,790 |
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Number of shares repurchased |
|
35,224 |
|
42,629 |
|
178,178 |
|
192,655 |
|
Aggregate cost of shares repurchased |
|
$ 276,405 |
|
$ 357,450 |
|
$ 1,331,212 |
|
$ 1,493,362 |
|
|
|
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(1) |
Maryland, Virginia, West Virginia, Delaware and Washington, D.C. |
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(2) |
New Jersey and Eastern Pennsylvania |
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(3) |
New York, Ohio, Western Pennsylvania, Indiana and Illinois |
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(4) |
North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky |
SOURCE NVR, INC.
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