NVR, INC. ANNOUNCES FIRST QUARTER RESULTS
NVR Inc reported mixed Q1 2025 financial results with some concerning trends. Revenue increased 3% to $2.40 billion, but net income declined 24% to $299.6 million, with diluted EPS falling 19% to $94.83.
The homebuilding segment showed signs of pressure with new orders decreasing 12% to 5,345 units and a higher cancellation rate of 16% (vs 13% in Q1 2024). The average sales price of new orders declined 1% to $448,500. Backlog decreased 9% in units and 7% in dollar value to $4.84 billion.
Gross profit margin contracted to 21.9% from 24.5%, impacted by higher lot costs and pricing pressure. The mortgage banking segment performed better, with loan production up 4% to $1.43 billion and income before tax increasing 12% to $32.5 million.
NVR Inc ha riportato risultati finanziari del primo trimestre 2025 contrastanti con alcune tendenze preoccupanti. I ricavi sono aumentati del 3% raggiungendo 2,40 miliardi di dollari, ma l'utile netto è diminuito del 24% a 299,6 milioni di dollari, con un utile per azione diluito in calo del 19% a 94,83 dollari.
Il segmento edilizio residenziale ha mostrato segnali di difficoltà con nuovi ordini in calo del 12% a 5.345 unità e un tasso di cancellazione più alto del 16% (rispetto al 13% del primo trimestre 2024). Il prezzo medio di vendita dei nuovi ordini è diminuito dell'1% a 448.500 dollari. L'arretrato ordini è sceso del 9% in unità e del 7% in valore, attestandosi a 4,84 miliardi di dollari.
Il margine di profitto lordo si è ridotto al 21,9% dal 24,5%, influenzato da costi dei lotti più elevati e pressioni sui prezzi. Il segmento di intermediazione ipotecaria ha avuto una performance migliore, con la produzione di prestiti in aumento del 4% a 1,43 miliardi di dollari e un reddito ante imposte cresciuto del 12% a 32,5 milioni di dollari.
NVR Inc reportó resultados financieros mixtos en el primer trimestre de 2025 con algunas tendencias preocupantes. Los ingresos aumentaron un 3% hasta 2,40 mil millones de dólares, pero el ingreso neto disminuyó un 24% a 299,6 millones de dólares, con una caída del 19% en las ganancias por acción diluidas, que quedaron en 94,83 dólares.
El segmento de construcción de viviendas mostró señales de presión con nuevos pedidos que disminuyeron un 12% a 5.345 unidades y una tasa de cancelación más alta del 16% (frente al 13% en el primer trimestre de 2024). El precio promedio de venta de los nuevos pedidos bajó un 1% a 448.500 dólares. La cartera de pedidos disminuyó un 9% en unidades y un 7% en valor, situándose en 4,84 mil millones de dólares.
El margen bruto se redujo al 21,9% desde el 24,5%, afectado por mayores costos de terrenos y presión en los precios. El segmento de banca hipotecaria tuvo un mejor desempeño, con la producción de préstamos aumentando un 4% a 1,43 mil millones de dólares y los ingresos antes de impuestos creciendo un 12% a 32,5 millones de dólares.
NVR Inc는 2025년 1분기 재무 실적에서 혼재된 결과를 보고했으며 일부 우려스러운 추세가 나타났습니다. 매출은 3% 증가하여 24억 달러를 기록했지만, 순이익은 24% 감소한 2억 9960만 달러, 희석 주당순이익(EPS)은 19% 하락한 94.83달러를 기록했습니다.
주택 건설 부문은 신규 주문이 12% 감소한 5,345세대를 기록하고 취소율이 16%(2024년 1분기 13% 대비)로 상승하는 등 압박 신호를 보였습니다. 신규 주문의 평균 판매 가격은 1% 감소한 44만 8,500달러였습니다. 미완성 주문 잔고는 단위 기준 9%, 금액 기준 7% 감소하여 48억 4천만 달러가 되었습니다.
총이익률은 부지 비용 상승과 가격 압박의 영향으로 24.5%에서 21.9%로 축소되었습니다. 반면 모기지 뱅킹 부문은 대출 생산이 4% 증가한 14억 3천만 달러, 세전 수익은 12% 증가한 3,250만 달러로 더 좋은 성과를 보였습니다.
NVR Inc a publié des résultats financiers mitigés pour le premier trimestre 2025, avec certaines tendances préoccupantes. Le chiffre d'affaires a augmenté de 3 % pour atteindre 2,40 milliards de dollars, mais le bénéfice net a chuté de 24 % à 299,6 millions de dollars, avec un BPA dilué en baisse de 19 % à 94,83 dollars.
Le secteur de la construction résidentielle a montré des signes de tension avec une baisse de 12 % des nouvelles commandes à 5 345 unités et un taux d'annulation plus élevé de 16 % (contre 13 % au premier trimestre 2024). Le prix moyen de vente des nouvelles commandes a diminué de 1 % pour s'établir à 448 500 dollars. Le carnet de commandes a diminué de 9 % en unités et de 7 % en valeur, atteignant 4,84 milliards de dollars.
La marge brute s'est contractée à 21,9 % contre 24,5 %, impactée par des coûts fonciers plus élevés et une pression sur les prix. Le segment de la banque hypothécaire a mieux performé, avec une production de prêts en hausse de 4 % à 1,43 milliard de dollars et un résultat avant impôts en hausse de 12 % à 32,5 millions de dollars.
NVR Inc meldete gemischte Finanzergebnisse für das erste Quartal 2025 mit einigen besorgniserregenden Trends. Der Umsatz stieg um 3 % auf 2,40 Milliarden US-Dollar, das Nettoergebnis sank jedoch um 24 % auf 299,6 Millionen US-Dollar, wobei das verwässerte Ergebnis je Aktie um 19 % auf 94,83 US-Dollar fiel.
Der Wohnungsbau-Segment zeigte Anzeichen von Druck, da die Neubestellungen um 12 % auf 5.345 Einheiten zurückgingen und die Stornierungsrate mit 16 % höher war (gegenüber 13 % im ersten Quartal 2024). Der durchschnittliche Verkaufspreis der Neubestellungen sank um 1 % auf 448.500 US-Dollar. Der Auftragsbestand verringerte sich um 9 % bei den Einheiten und um 7 % im Dollarwert auf 4,84 Milliarden US-Dollar.
Die Bruttogewinnmarge schrumpfte von 24,5 % auf 21,9 %, beeinflusst durch höhere Grundstückskosten und Preisdruck. Das Hypothekenbankgeschäft schnitt besser ab, mit einer Kreditproduktion, die um 4 % auf 1,43 Milliarden US-Dollar stieg, und einem Vorsteuerergebnis, das um 12 % auf 32,5 Millionen US-Dollar zunahm.
- Consolidated revenues increased 3% to $2.40 billion
- Mortgage banking income before tax grew 12% to $32.5 million
- Mortgage loan production increased 4% to $1.43 billion
- Settlements increased 1% to 5,133 units
- Net income decreased 24% to $299.6 million
- New orders declined 12% to 5,345 units
- Gross profit margin contracted to 21.9% from 24.5%
- Cancellation rate increased to 16% from 13%
- Backlog decreased 9% in units and 7% in dollar value
- Effective tax rate increased to 25.5% from 16.2%
Insights
NVR reports significant profit decline despite revenue growth as housing affordability challenges impact margins and new orders.
NVR's Q1 2025 results reveal substantial profitability challenges despite modest revenue growth. The company reported consolidated revenues of
The homebuilding segment shows concerning operational trends. New orders decreased
Regional performance varied considerably. The Mid Atlantic region saw an
The mortgage banking segment provided a modest bright spot, with closed loan production increasing
Adding to the profit pressure, NVR's effective tax rate jumped to
Despite declining profitability, the company continued substantial share repurchases, buying back 77,120 shares for
Homebuilding
New orders in the first quarter of 2025 decreased by
Homebuilding revenues of
Mortgage Banking
Mortgage closed loan production in the first quarter of 2025 totaled
Effective Tax Rate
Our effective tax rate for the three months ended March 31, 2025 was
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
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 March 31, | |||||
2025 | 2024 | ||||
Homebuilding: | |||||
Revenues | $ 2,350,445 | $ 2,286,177 | |||
Other income | 26,712 | 40,866 | |||
Cost of sales | (1,835,375) | (1,726,213) | |||
Selling, general and administrative | (165,117) | (152,503) | |||
Operating income | 376,665 | 448,327 | |||
Interest expense | (7,181) | (6,649) | |||
Homebuilding income | 369,484 | 441,678 | |||
Mortgage Banking: | |||||
Mortgage banking fees | 52,587 | 47,286 | |||
Interest income | 3,806 | 4,092 | |||
Other income | 1,093 | 1,171 | |||
General and administrative | (24,693) | (23,358) | |||
Interest expense | (273) | (177) | |||
Mortgage banking income | 32,520 | 29,014 | |||
Income before taxes | 402,004 | 470,692 | |||
Income tax expense | (102,428) | (76,423) | |||
Net income | $ 299,576 | $ 394,269 | |||
Basic earnings per share | $ 100.41 | $ 123.76 | |||
Diluted earnings per share | $ 94.83 | $ 116.41 | |||
Basic weighted average shares outstanding | 2,984 | 3,186 | |||
Diluted weighted average shares outstanding | 3,159 | 3,387 | |||
NVR, Inc. | ||||
Consolidated Balance Sheets | ||||
(in thousands, except share and per share data) | ||||
(unaudited) | ||||
March 31, 2025 | December 31, 2024 | |||
ASSETS | ||||
Homebuilding: | ||||
Cash and cash equivalents | $ 2,176,902 | $ 2,561,339 | ||
Restricted cash | 64,264 | 42,172 | ||
Receivables | 36,543 | 32,622 | ||
Inventory: | ||||
Lots and housing units, covered under sales agreements with customers | 1,774,287 | 1,727,243 | ||
Unsold lots and housing units | 242,217 | 237,177 | ||
Land under development | 70,050 | 65,394 | ||
Building materials and other | 23,818 | 28,893 | ||
2,110,372 | 2,058,707 | |||
Contract land deposits, net | 757,197 | 726,675 | ||
Property, plant and equipment, net | 98,038 | 95,619 | ||
Operating lease right-of-use assets | 84,791 | 78,340 | ||
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 | ||
Other assets | 264,138 | 251,178 | ||
5,633,825 | 5,888,232 | |||
Mortgage Banking: | ||||
Cash and cash equivalents | 34,204 | 49,636 | ||
Restricted cash | 12,540 | 11,520 | ||
Mortgage loans held for sale, net | 391,914 | 355,209 | ||
Property and equipment, net | 7,286 | 7,373 | ||
Operating lease right-of-use assets | 22,686 | 23,482 | ||
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 | ||
Other assets | 85,731 | 38,189 | ||
561,708 | 492,756 | |||
Total assets | $ 6,195,533 | $ 6,380,988 | ||
NVR, Inc. | ||||
Consolidated Balance Sheets (Continued) | ||||
(in thousands, except share and per share data) | ||||
(unaudited) | ||||
March 31, 2025 | December 31, 2024 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Homebuilding: | ||||
Accounts payable | $ 364,929 | $ 332,772 | ||
Accrued expenses and other liabilities | 455,369 | 441,300 | ||
Customer deposits | 315,746 | 322,926 | ||
Operating lease liabilities | 90,489 | 83,939 | ||
Senior notes | 910,633 | 911,118 | ||
2,137,166 | 2,092,055 | |||
Mortgage Banking: | ||||
Accounts payable and other liabilities | 79,009 | 53,433 | ||
Operating lease liabilities | 24,694 | 25,428 | ||
103,703 | 78,861 | |||
Total liabilities | 2,240,869 | 2,170,916 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Common stock, | 206 | 206 | ||
Additional paid-in capital | 3,057,037 | 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 | 15,346,529 | 15,046,953 | ||
Less treasury stock at cost – 17,610,715 and 17,543,686 shares as of March 31, | (14,449,108) | (13,868,724) | ||
Total shareholders' equity | 3,954,664 | 4,210,072 | ||
Total liabilities and shareholders' equity | $ 6,195,533 | $ 6,380,988 | ||
NVR, Inc. | |||||||||
Operating Activity | |||||||||
(dollars in thousands) | |||||||||
(unaudited) | |||||||||
Three Months Ended March 31, | |||||||||
2025 | 2024 | ||||||||
Units | Average | Units | Average | ||||||
New orders, net of cancellations: | |||||||||
Mid Atlantic (1) | 1,866 | $ 514.5 | 2,282 | $ 515.4 | |||||
North East (2) | 377 | $ 695.0 | 527 | $ 612.6 | |||||
Mid East (3) | 1,098 | $ 419.9 | 1,263 | $ 409.9 | |||||
South East (4) | 2,004 | $ 356.3 | 1,977 | $ 369.9 | |||||
Total | 5,345 | $ 448.5 | 6,049 | $ 454.3 | |||||
Three Months Ended March 31, | |||||||||
2025 | 2024 | ||||||||
Units | Average | Units | Average | ||||||
Settlements: | |||||||||
Mid Atlantic (1) | 2,050 | $ 527.9 | 1,966 | $ 517.5 | |||||
North East (2) | 471 | $ 613.2 | 463 | $ 552.2 | |||||
Mid East (3) | 1,013 | $ 407.1 | 1,049 | $ 397.5 | |||||
South East (4) | 1,599 | $ 354.6 | 1,611 | $ 370.0 | |||||
Total | 5,133 | $ 457.9 | 5,089 | $ 449.2 | |||||
As of March 31, | |||||||||
2025 | 2024 | ||||||||
Units | Average | Units | Average | ||||||
Backlog: | |||||||||
Mid Atlantic (1) | 3,884 | $ 535.7 | 4,410 | $ 521.0 | |||||
North East (2) | 961 | $ 694.4 | 1,092 | $ 628.2 | |||||
Mid East (3) | 2,130 | $ 422.6 | 2,190 | $ 417.7 | |||||
South East (4) | 3,190 | $ 372.9 | 3,497 | $ 377.5 | |||||
Total | 10,165 | $ 475.9 | 11,189 | $ 466.4 | |||||
NVR, Inc. | |||||
Operating Activity (Continued) | |||||
(dollars in thousands) | |||||
(unaudited) | |||||
Three Months Ended March 31, | |||||
2025 | 2024 | ||||
Average active communities: | |||||
Mid Atlantic (1) | 120 | 157 | |||
North East (2) | 24 | 34 | |||
Mid East (3) | 93 | 100 | |||
South East (4) | 164 | 136 | |||
Total | 401 | 427 | |||
Three Months Ended March 31, | |||||
2025 | 2024 | ||||
Homebuilding data: | |||||
New order cancellation rate | 16 % | 13 % | |||
Lots controlled at end of period | 167,600 | 143,200 | |||
Mortgage banking data: | |||||
Loan closings | $ 1,432,922 | $ 1,378,009 | |||
Capture rate | 86 % | 86 % | |||
Common stock information: | |||||
Shares outstanding at end of period | 2,944,615 | 3,167,625 | |||
Number of shares repurchased | 77,120 | 66,858 | |||
Aggregate cost of shares repurchased | $ 583,394 | $ 496,936 | |||
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(3) | New |
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SOURCE NVR, INC.
FAQ
What caused NVR's net income to decline by 24% in Q1 2025?
How did NVR's new home orders perform in Q1 2025?
What is NVR's current backlog status as of March 31, 2025?
How did NVR's mortgage banking segment perform in Q1 2025?
