NVR, INC. ANNOUNCES SECOND QUARTER RESULTS

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NVR Inc. (NYSE: NVR), a major homebuilding and mortgage banking company, reported its Q2 2025 financial results with notable declines in key metrics. Net income fell 17% to $333.7 million, or $108.54 per diluted share, compared to $400.9 million in Q2 2024. Consolidated revenues remained relatively flat at $2.60 billion.

The homebuilding segment saw new orders decrease 11% to 5,379 units, while the cancellation rate increased to 17% from 13% year-over-year. Gross profit margin declined to 21.5% from 23.6%, impacted by higher lot costs and pricing pressures. The mortgage banking segment's income before tax decreased 34% to $29.6 million, primarily due to lower secondary marketing gains.

Positive

• Mortgage closed loan production increased 2% to $1.56 billion in Q2 2025
• Average settlement price rose 3% to $465,400 in Q2 2025
• Mortgage banking capture rate improved to 87% from 86% year-over-year
• Lots controlled increased to 171,400 from 149,700 year-over-year

Negative

• Net income decreased 17% to $333.7 million in Q2 2025
• New orders declined 11% to 5,379 units
• Cancellation rate increased to 17% from 13% year-over-year
• Gross profit margin decreased to 21.5% from 23.6%
• Backlog decreased 13% to 10,069 units worth $4.75 billion
• Mortgage banking income before tax fell 34% to $29.6 million

RESTON, Va., July 23, 2025 /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2025 of $333.7 million, or $108.54 per diluted share.  For the second quarter ended June 30, 2025, net income and diluted earnings per share decreased 17% and 10%, respectively, when compared to 2024 second quarter net income of $400.9 million, or $120.69 per diluted share.  Consolidated revenues for the second quarter of 2025 totaled $2.60 billion, compared to $2.61 billion in the second quarter of 2024. 

For the six months ended June 30, 2025, consolidated revenues were $5.00 billion, a 1% increase from $4.95 billion reported for the same period of 2024. Net income for the six months ended June 30, 2025 was $633.3 million, a decrease of 20% when compared to net income for the six months ended June 30, 2024 of $795.2 million. Diluted earnings per share for the six months ended June 30, 2025 was $203.20, a decrease of 14% from $237.05 per diluted share for the same period of 2024.

Homebuilding

New orders in the second quarter of 2025 decreased by 11% to 5,379 units, when compared to 6,067 units in the second quarter of 2024. The average sales price of new orders in the second quarter of 2025 was $458,100, which remained relatively flat when compared to the second quarter of 2024.  The cancellation rate in the second quarter of 2025 was 17% compared to 13% in the second quarter of 2024.  Settlements in the second quarter of 2025 decreased by 3% to 5,475 units, compared to 5,659 units in the second quarter of 2024. The average settlement price in the second quarter of 2025 was $465,400, an increase of 3% when compared to the second quarter of 2024. Our backlog of homes sold but not settled as of June 30, 2025 decreased on both a unit basis and a dollar basis by 13% to 10,069 units and $4.75 billion when compared to the respective backlog unit and dollar balances as of June 30, 2024.

Homebuilding revenues of $2.55 billion in the second quarter of 2025 remained flat when compared to the second quarter of 2024. Gross profit margin in the second quarter of 2025 decreased to 21.5%, from 23.6% in the second 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 $13.2 million. Income before tax from the homebuilding segment totaled $417.5 million in the second quarter of 2025, a decrease of 15% when compared to the second quarter of 2024.

Mortgage Banking

Mortgage closed loan production in the second quarter of 2025 totaled $1.56 billion, an increase of 2% when compared to the second quarter of 2024. Income before tax from the mortgage banking segment totaled $29.6 million in the second quarter of 2025, a decrease of 34% when compared to $45.0 million in the second quarter of 2024.  This decrease was primarily attributable to a decrease in secondary marketing gains on sales of loans.

Effective Tax Rate

Our effective tax rate for the three and six month periods ended June 30, 2025 was 25.4% in each respective period, compared to 24.9% and 20.8% for the three and six month periods ended June 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 $3.5 million and $6.2 million for the three and six months ended June 30, 2025, respectively, compared to $6.8 million and $50.6 million for the three and six months ended June 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.

 

NVR, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Homebuilding:
Revenues		$          2,548,267		$          2,547,891		$          4,898,712		$          4,834,068
Other income		25,088		36,184		51,800		77,050
Cost of sales		(1,999,983)		(1,947,616)		(3,835,358)		(3,673,829)
Selling, general and administrative		(149,170)		(141,213)		(314,287)		(293,716)
Interest expense		(6,685)		(6,710)		(13,866)		(13,359)
Homebuilding income		417,517		488,536		787,001		930,214
Mortgage Banking:
Mortgage banking fees		50,547		64,566		103,134		111,852
Interest income		4,493		4,672		8,299		8,764
Other income		1,301		1,333		2,394		2,504
General and administrative		(26,425)		(25,351)		(51,118)		(48,709)
Interest expense		(300)		(188)		(573)		(365)
Mortgage banking income		29,616		45,032		62,136		74,046
Income before taxes		447,133		533,568		849,137		1,004,260
Income tax expense		(113,396)		(132,664)		(215,824)		(209,087)
Net income		$              333,737		$              400,904		$              633,313		$              795,173
Basic earnings per share		$                114.52		$                128.21		$                214.78		$                251.94
Diluted earnings per share		$                108.54		$                120.69		$                203.20		$                237.05
Basic weighted average shares outstanding		2,914		3,127		2,949		3,156
Diluted weighted average shares outstanding		3,075		3,322		3,117		3,355

 

NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
		June 30, 2025		December 31, 2024
ASSETS
Homebuilding:
Cash and cash equivalents		$              1,726,865		$              2,561,339
Restricted cash		53,240		42,172
Receivables		41,496		32,622
Inventory:
Lots and housing units, covered under sales agreements with customers		1,797,104		1,727,243
Unsold lots and housing units		304,743		237,177
Land under development		39,450		65,394
Building materials and other		28,743		28,893
		2,170,040		2,058,707
Contract land deposits, net		837,845		726,675
Property, plant and equipment, net		100,280		95,619
Operating lease right-of-use assets		86,206		78,340
Reorganization value in excess of amounts allocable to identifiable assets, net		41,580		41,580
Other assets		295,858		251,178
		5,353,410		5,888,232
Mortgage Banking:
Cash and cash equivalents		39,307		49,636
Restricted cash		10,513		11,520
Mortgage loans held for sale, net		415,974		355,209
Property and equipment, net		8,053		7,373
Operating lease right-of-use assets		24,515		23,482
Reorganization value in excess of amounts allocable to identifiable assets, net		7,347		7,347
Other assets		80,220		38,189
		585,929		492,756
Total assets		$              5,939,339		$              6,380,988

 

NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
		June 30, 2025		December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable		$                  367,929		$                  332,772
Accrued expenses and other liabilities		333,456		441,300
Customer deposits		295,145		322,926
Operating lease liabilities		92,160		83,939
Senior notes		910,145		911,118
		1,998,835		2,092,055
Mortgage Banking:
Accounts payable and other liabilities		68,785		53,433
Operating lease liabilities		26,588		25,428
		95,373		78,861
Total liabilities		2,094,208		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 June 30, 2025 and December 31, 2024		206		206
Additional paid-in capital		3,085,904		3,031,637
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both June 30, 2025 and December 31, 2024		(16,710)		(16,710)
Deferred compensation liability		16,710		16,710
Retained earnings		15,680,266		15,046,953
Less treasury stock at cost – 17,672,115 and 17,543,686 shares as of June 30, 2025 and December 31, 2024, respectively		(14,921,245)		(13,868,724)
Total shareholders' equity		3,845,131		4,210,072
Total liabilities and shareholders' equity		$              5,939,339		$              6,380,988

 

NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic (1)		1,930		$         531.3		2,297		$         536.2		3,796		$         523.0		4,579		$         525.9
North East (2)		424		$         655.3		478		$         623.4		801		$         674.0		1,005		$         617.7
Mid East (3)		1,072		$         424.2		1,262		$         403.7		2,170		$         422.0		2,525		$         406.8
South East (4)		1,953		$         361.7		2,030		$         366.7		3,957		$         359.0		4,007		$         368.3
Total		5,379		$         458.1		6,067		$         458.8		10,724		$         453.3		12,116		$         456.6
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
		Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic (1)		2,101		$         537.2		2,199		$         515.5		4,151		$         532.6		4,165		$         516.5
North East (2)		474		$         651.7		487		$         589.8		945		$         632.5		950		$         571.5
Mid East (3)		1,082		$         415.8		1,075		$         403.7		2,095		$         411.6		2,124		$         400.6
South East (4)		1,818		$         363.3		1,898		$         365.1		3,417		$         359.2		3,509		$         367.3
Total		5,475		$         465.4		5,659		$         450.2		10,608		$         461.8		10,748		$         449.7

 

		As of June 30,
		2025				2024
		Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic (1)		3,713		$         532.6		4,508		$         531.4
North East (2)		911		$         698.4		1,083		$         643.3
Mid East (3)		2,120		$         426.8		2,377		$         416.6
South East (4)		3,325		$         371.6		3,629		$         378.0
Total		10,069		$         472.1		11,597		$         470.3

 

NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Average active communities:
Mid Atlantic (1)		120		153		120		155
North East (2)		26		31		25		33
Mid East (3)		94		101		93		100
South East (4)		186		148		175		142
Total		426		433		413		430
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
Homebuilding data:
New order cancellation rate		16.5 %		12.9 %		16.0 %		13.0 %
Lots controlled at end of period						171,400		149,700
Mortgage banking data:
Loan closings		$         1,555,280		$         1,530,081		$       2,988,201		$       2,908,090
Capture rate		87 %		86 %		87 %		86 %
Common stock information:
Shares outstanding at end of period						2,883,215		3,090,266
Number of shares repurchased		65,834		83,168		142,954		150,026
Aggregate cost of shares repurchased		$            471,413		$            638,976		$       1,054,807		$       1,135,912

(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

 

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SOURCE NVR, INC.

FAQ

What were NVR's key financial results for Q2 2025?

NVR reported net income of $333.7 million ($108.54 per diluted share), down 17% year-over-year, with consolidated revenues of $2.60 billion.

How did NVR's new home orders perform in Q2 2025?

New orders decreased 11% to 5,379 units, with an average sales price of $458,100. The cancellation rate increased to 17% from 13% year-over-year.

What was NVR's gross profit margin in Q2 2025?

Gross profit margin decreased to 21.5% from 23.6% in Q2 2024, impacted by higher lot costs, pricing pressure, and contract land deposit impairments of $13.2 million.

How did NVR's mortgage banking segment perform in Q2 2025?

Mortgage banking income before tax decreased 34% to $29.6 million, despite closed loan production increasing 2% to $1.56 billion.

What was NVR's backlog status as of June 30, 2025?

The backlog decreased 13% to 10,069 units worth $4.75 billion compared to June 30, 2024.