NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

Rhea-AI Summary

NVR (NYSE:NVR) reported fourth-quarter 2025 net income of $363.8M ($121.54 diluted EPS), down 20% and 13% versus Q4 2024. Full-year 2025 net income was $1.34B with diluted EPS of $436.55, down 20% and 14% year-over-year.

Homebuilding backlog units fell 15% to 8,448 and backlog dollars declined 16% to $4.01B. Gross margin contracted to 21.2% for the year. Mortgage banking income rose on higher secondary marketing gains.

Positive

• Mortgage banking income +24% in Q4 2025
• Share repurchases aggregate cost of $1.82B in 2025
• Average settlement price +3% in Q4 2025

Negative

• Net income -20% year-over-year for 2025
• Diluted EPS -14% year-over-year for 2025
• Backlog units -15% and backlog dollars -16% versus 12/31/2024
• Gross profit margin down ~250 bps to 21.2% for 2025
• Contract land deposit impairments totaling ~$75.9M in 2025

Market Reaction

+4.69% $7778.59

15m delay 3 alerts

+4.69% Since News

$7778.59 Last Price

$7538.11 $7851.22 Day Range

+$989M Valuation Impact

$22.09B Market Cap

0.1x Rel. Volume

Following this news, NVR has gained 4.69%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $7778.59. This price movement has added approximately $989M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 net income: $363.8M Q4 2025 diluted EPS: $121.54 Q4 2025 revenue: $2.71B +5 more

8 metrics

Q4 2025 net income $363.8M Quarter ended Dec 31, 2025; down 20% vs Q4 2024 ($457.4M)

Q4 2025 diluted EPS $121.54 Quarter ended Dec 31, 2025; down 13% vs $139.93 in Q4 2024

Q4 2025 revenue $2.71B Consolidated revenue vs $2.85B in Q4 2024

2025 full-year revenue $10.32B Year ended Dec 31, 2025 vs $10.52B in 2024 (2% decrease)

2025 full-year net income $1.34B Year ended Dec 31, 2025 vs $1.68B in 2024 (20% decrease)

2025 diluted EPS $436.55 Year ended Dec 31, 2025 vs $506.69 in 2024 (14% decrease)

Q4 2025 homebuilding gross margin 20.4% Down from 23.6% in Q4 2024; pressured by costs and impairments

Contract land deposit impairments $35.7M / $75.9M Impairments in Q4 2025 and full-year 2025 homebuilding segment

Market Reality Check

Price: $7499.76 Vol: Volume 39,869 is 1.28x th...

normal vol

$7499.76 Last Close

Volume Volume 39,869 is 1.28x the 20-day average of 31,151, indicating elevated trading activity ahead of this release. normal

Technical Shares at 7,499.76 are trading below the 200-day MA of 7,548.18, reflecting a slightly weaker intermediate trend.

Peers on Argus

NVR fell 2.15% while key homebuilder peers showed modest moves: PHM (-0.27%), LE...

NVR fell 2.15% while key homebuilder peers showed modest moves: PHM (-0.27%), LEN (-0.21%), TMHC (-0.78%), with TOL and DHI roughly flat. The data point to primarily stock-specific pressure rather than a broad sector rotation.

Historical Context

3 past events · Latest: Oct 22 (Negative)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Oct 22	Quarterly earnings	Negative	-1.2%	Q3 2025 earnings showed 20% net income decline and margin compression.
Oct 01	Board appointment	Positive	+0.0%	Appointment of experienced independent director to the Board and committee.
Aug 08	Share repurchase plan	Positive	+0.4%	Authorization of up to $750M in additional common stock repurchases.

Pattern Detected

Limited history shows price reactions generally aligning with the tone of news: negative earnings accompanied by modest declines, and positive capital return or governance items seeing small gains.

Recent Company History

Over recent months, NVR has reported softer results and incremental capital allocation moves. On Oct 22, 2025, Q3 2025 earnings showed revenue of $2.61B and net income down 20%, with the stock slipping about 1.22%. A new board member was added on Oct 1, 2025 with minimal price impact, while an August $750M repurchase authorization saw a small positive reaction. Today’s weaker Q4 and full‑year figures extend that earnings deceleration trend.

Market Pulse Summary

This announcement highlights continued earnings and margin pressure for 2025, with full‑year revenue...

Analysis

This announcement highlights continued earnings and margin pressure for 2025, with full‑year revenue of $10.32B and diluted EPS of $436.55, both down versus 2024. Homebuilding gross margin fell to 21.2% for the year, weighed by land deposit impairments totaling $75.9M. Investors may track trends in new orders, backlog (now 8,448 units and $4.01B), and the company’s sizable cash balance of $1.88B when assessing future updates.

Key Terms

forward-looking statements, senior notes, operating lease right-of-use assets, treasury stock, +3 more

7 terms

forward-looking statements regulatory

"Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

senior notes financial

"Senior notes | | 909,160 | | 911,118"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

operating lease right-of-use assets technical

"Operating lease right-of-use assets | | 110,535 | | 78,340"

An operating lease right-of-use (ROU) asset is an accounting entry that shows the value of a leased item you have the legal right to use—like a building, vehicle, or equipment—recorded on a company’s balance sheet along with the corresponding lease obligation. Investors care because it adds to reported assets and liabilities, changing measures like leverage and return on assets much like bringing a long-term rental onto the company’s financial snapshot, which can affect credit terms and valuation.

treasury stock financial

"Less treasury stock at cost – 17,755,943 and 17,543,686 shares as of December 31..."

Treasury stock is shares that a company has bought back from the public and kept in its own control rather than retiring them. Think of it like a company holding its own tickets in a drawer: those shares no longer vote or receive dividends while held, but the company can reissue or retire them later; this reduces the number of shares available to outside investors and can boost per‑share earnings and influence ownership and stock price.

mortgage loans held for sale financial

"Mortgage loans held for sale, net | | 571,596 | | 355,209"

Mortgage loans held for sale are home loans a lender has originated but plans to sell to another investor or institution instead of keeping on its books, recorded as inventory awaiting sale—like goods on a store shelf waiting for a buyer. For investors, the amount and valuation of these loans signal a lender’s recent lending activity, near-term cash flow and revenue opportunities, and exposure to changes in interest rates or housing demand that can affect profitability.

stock options financial

"Director George Oliver received an award of 338 stock options on 10/01/2025 under the NVR, Inc. 2018 Equity Incentive Plan."

Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.

effective tax rate financial

"Our effective tax rate for the three and twelve month periods ended December 31, 2025 was 22.4% and 24.0%, respectively..."

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

AI-generated analysis. Not financial advice.

RESTON, Va., Jan. 28, 2026 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December 31, 2025 of $363.8 million, or $121.54 per diluted share.  For the fourth quarter ended December 31, 2025, net income and diluted earnings per share decreased 20% and 13%, respectively, when compared to 2024 fourth quarter net income of $457.4 million, or $139.93 per diluted share.  Consolidated revenues for the fourth quarter of 2025 totaled $2.71 billion, compared to $2.85 billion in the fourth quarter of 2024. 

For the year ended December 31, 2025, consolidated revenues were $10.32 billion, a 2% decrease from $10.52 billion reported for the same period of 2024. Net income for the year ended December 31, 2025 was $1.34 billion, a decrease of 20% when compared to net income for the year ended December 31, 2024 of $1.68 billion. Diluted earnings per share for the year ended December 31, 2025 was $436.55, a decrease of 14% from $506.69 per diluted share for the same period of 2024.

Homebuilding

New orders in the fourth quarter of 2025 increased by 3% to 4,951 units, when compared to 4,794 units in the fourth quarter of 2024. The average sales price of new orders in the fourth quarter of 2025 was $454,200, a decrease of 3% when compared to the fourth quarter of 2024.  The cancellation rate in the fourth quarter of 2025 was 16.6% compared to 16.9% in the fourth quarter of 2024.  Settlements in the fourth quarter of 2025 decreased by 8% to 5,668 units, compared to 6,180 units in the fourth quarter of 2024. The average settlement price in the fourth quarter of 2025 increased by 3% to $464,900, compared to $450,000 in the fourth quarter of 2024. Our backlog of homes sold but not settled as of December 31, 2025 decreased on a unit basis by 15% to 8,448 units and decreased on a dollar basis by 16% to $4.01 billion when compared to the respective backlog unit and dollar balances as of December 31, 2024.

Homebuilding revenues of $2.64 billion in the fourth quarter of 2025 decreased by 5% compared to homebuilding revenues of $2.78 billion in the fourth quarter of 2024. Gross profit margin in the fourth quarter of 2025 decreased to 20.4%, from 23.6% in the fourth 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 $35.7 million. Income before tax from the homebuilding segment totaled $411.5 million in the fourth quarter of 2025, a decrease of 22% when compared to the fourth quarter of 2024.

New Orders for the year ended December 31, 2025 decreased by 10% to 20,410 units, compared to 22,560 units in 2024. Settlements for the year ended December 31, 2025 decreased by 4% to 21,915 units, compared to 22,836 units settled in 2024. Homebuilding revenues for the year ended December 31, 2025 totaled $10.09 billion, a 2% decrease from 2024. Gross profit margin for the year ended December 31, 2025 decreased to 21.2%, compared to 23.7% in 2024. Gross profit margin was negatively impacted by contract land deposit impairments totaling approximately $75.9 million. Income before tax for the homebuilding segment decreased 18% for the year ended December 31, 2025 to $1.61 billion, compared to $1.96 billion in 2024.

Mortgage Banking

Mortgage closed loan production in the fourth quarter of 2025 totaled $1.51 billion, a decrease of 11% when compared to the fourth quarter of 2024. Income before tax from the mortgage banking segment totaled $57.2 million in the fourth quarter of 2025, an increase of 24% when compared to $45.9 million in the fourth quarter of 2024. The increase was primarily attributable to an increase in secondary marketing gains on sales of loans.

Mortgage closed loan production for the year ended December 31, 2025 decreased 4% to $6.04 billion, compared to $6.26 billion in 2024. Income before tax from the mortgage banking segment for the year ended December 31, 2025 decreased 2% to $152.0 million from $154.9 million in 2024.

Effective Tax Rate

Our effective tax rate for the three and twelve month periods ended December 31, 2025 was 22.4% and 24.0%, respectively, compared to 20.1% and 20.5% for the three and twelve month periods ended December 31, 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 $8.7 million and $28.3 million for the three and twelve months ended December 31, 2025, respectively, compared to $21.3 million and $95.1 million for the three and twelve months ended December 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-seven 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)
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
		(unaudited)		(unaudited)		(unaudited)
Homebuilding:
Revenues		$          2,635,214		$          2,780,717		$        10,094,269		$        10,292,425
Other income		22,460		33,094		96,260		143,890
Cost of sales		(2,096,645)		(2,125,633)		(7,953,401)		(7,850,549)
Selling, general and administrative		(142,644)		(154,714)		(599,667)		(598,207)
Interest expense		(6,857)		(6,774)		(27,578)		(26,988)
Homebuilding income		411,528		526,690		1,609,883		1,960,571
Mortgage Banking:
Mortgage banking fees		77,394		64,891		229,690		232,054
Interest income		4,706		5,600		17,886		19,092
Other income		1,395		1,562		5,189		5,480
General and administrative		(25,944)		(25,870)		(99,459)		(100,896)
Interest expense		(357)		(239)		(1,257)		(795)
Mortgage banking income		57,194		45,944		152,049		154,935
Income before taxes		468,722		572,634		1,761,932		2,115,506
Income tax expense		(104,907)		(115,202)		(422,116)		(433,578)
Net income		$              363,815		$              457,432		$          1,339,816		$          1,681,928
Basic earnings per share		$                128.52		$                149.84		$                462.00		$                540.88
Diluted earnings per share		$                121.54		$                139.93		$                436.55		$                506.69
Basic weighted average shares outstanding		2,831		3,053		2,900		3,110
Diluted weighted average shares outstanding		2,993		3,269		3,069		3,319

 

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
		December 31, 2025		December 31, 2024
		(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents		$              1,883,844		$              2,561,339
Restricted cash		34,348		42,172
Receivables		32,742		32,622
Inventory:
Lots and housing units, covered under sales agreements with customers		1,410,695		1,727,243
Unsold lots and housing units		252,029		237,177
Land under development		39,312		65,394
Building materials and other		21,524		28,893
		1,723,560		2,058,707
Contract land deposits, net		851,458		726,675
Property, plant and equipment, net		103,770		95,619
Operating lease right-of-use assets		110,535		78,340
Deferred tax assets, net		143,666		142,192
Other assets		205,640		150,566
		5,089,563		5,888,232
Mortgage Banking:
Cash and cash equivalents		32,642		49,636
Restricted cash		6,047		11,520
Mortgage loans held for sale, net		571,596		355,209
Property and equipment, net		7,727		7,373
Operating lease right-of-use assets		23,953		23,482
Other assets		125,402		45,536
		767,367		492,756
Total assets		$              5,856,930		$              6,380,988

 

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
		December 31, 2025		December 31, 2024
		(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable		$                  259,244		$                  332,772
Accrued expenses and other liabilities		376,976		441,300
Customer deposits		249,210		322,926
Operating lease liabilities		117,589		83,939
Senior notes		909,160		911,118
		1,912,179		2,092,055
Mortgage Banking:
Accounts payable and other liabilities		53,738		53,433
Operating lease liabilities		26,144		25,428
		79,882		78,861
Total liabilities		1,992,061		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 December 31, 2025 and December 31, 2024		206		206
Additional paid-in capital		3,155,367		3,031,637
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both December 31, 2025 and December 31, 2024		(16,710)		(16,710)
Deferred compensation liability		16,710		16,710
Retained earnings		16,386,769		15,046,953
Less treasury stock at cost – 17,755,943 and 17,543,686 shares as of December 31, 2025 and December 31, 2024, respectively		(15,677,473)		(13,868,724)
Total shareholders' equity		3,864,869		4,210,072
Total liabilities and shareholders' equity		$              5,856,930		$              6,380,988

 

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic (1)		1,869		$         504.9		1,726		$         547.1		7,379		$         520.0		8,511		$         527.3
North East (2)		544		$         578.8		453		$         639.9		1,778		$         638.3		1,994		$         622.4
Mid East (3)		965		$         431.4		1,024		$         419.6		4,066		$         426.5		4,654		$         408.0
South East (4)		1,573		$         364.8		1,591		$         367.4		7,187		$         362.5		7,401		$         364.6
Total		4,951		$         454.2		4,794		$         469.0		20,410		$         456.2		22,560		$         457.7
		Three Months Ended December 31,								Twelve Months Ended December 31,
		2025				2024				2025				2024
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic (1)		2,128		$         526.8		2,143		$         524.8		8,287		$         527.6		8,537		$         518.1
North East (2)		495		$         632.1		522		$         617.7		1,860		$         646.5		1,967		$         592.6
Mid East (3)		1,183		$         425.9		1,242		$         410.3		4,478		$         418.7		4,585		$         406.0
South East (4)		1,862		$         374.6		2,273		$         362.5		7,290		$         362.8		7,747		$         366.7
Total		5,668		$         464.9		6,180		$         450.0		21,915		$         460.6		22,836		$         450.7

 

		As of December 31,
		2025				2024
		Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic (1)		3,160		$         527.8		4,068		$         541.6
North East (2)		973		$         644.0		1,055		$         658.1
Mid East (3)		1,633		$         435.2		2,045		$         416.5
South East (4)		2,682		$         373.9		2,785		$         374.3
Total		8,448		$         474.4		9,953		$         481.4

 

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
Average active communities:
Mid Atlantic (1)		134		132		125		147
North East (2)		35		29		30		31
Mid East (3)		98		104		96		101
South East (4)		183		161		181		148
Total		450		426		432		427
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
Homebuilding data:
New order cancellation rate		16.6 %		16.9 %		17.0 %		14.2 %
Lots controlled at end of period						180,100		162,400
Mortgage banking data:
Loan closings		$         1,511,639		$         1,695,831		$       6,039,621		$       6,260,428
Capture rate		84 %		86 %		86 %		86 %
Common stock information:
Shares outstanding at end of period						2,799,387		3,011,644
Number of shares repurchased		64,904		64,216		243,082		256,871
Aggregate cost of shares repurchased		$            487,383		$            564,315		$       1,818,595		$       2,057,677

(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

 

View original content:https://www.prnewswire.com/news-releases/nvr-inc-announces-fourth-quarter-and-full-year-results-302671755.html

SOURCE NVR, INC.

FAQ

What were NVR's (NVR) fourth-quarter 2025 earnings and EPS?

NVR reported Q4 2025 net income of $363.8 million and diluted EPS of $121.54. According to the company, these results represent decreases of 20% in net income and 13% in diluted EPS versus Q4 2024.

How did NVR's (NVR) full-year 2025 results compare to 2024?

For 2025 NVR reported net income of $1.34 billion and diluted EPS of $436.55, declines of 20% and 14% respectively. According to the company, revenue edged down 2% to $10.32 billion year-over-year.

Why did NVR's (NVR) homebuilding gross margin decline in 2025?

Gross margin fell to 21.2% in 2025 primarily due to higher lot costs, pricing pressure, and contract land deposit impairments totaling about $75.9 million. According to the company, these factors materially reduced homebuilding profitability.

What happened to NVR's (NVR) backlog and new orders as of December 31, 2025?

As of 12/31/2025 backlog units declined to 8,448 (15% lower) and backlog dollars to $4.01 billion (16% lower). According to the company, full-year new orders fell about 10% to 20,410 units in 2025.

How did NVR's (NVR) mortgage banking segment perform in Q4 2025?

Mortgage banking income increased in Q4 2025, with income before tax of $57.2 million, up 24% year-over-year. According to the company, the rise was driven mainly by higher secondary marketing gains on loan sales.

Did NVR (NVR) continue share repurchases in 2025 and how much was spent?

Yes. Aggregate repurchase cost for 2025 was $1.82 billion, with 243,082 shares repurchased during the year. According to the company, share buybacks remained a material use of capital in 2025.