EX-99.1 2 q22025ex991_earningsrelease.htm EX-99.1 Document

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Exhibit 99.1
NVR, INC. ANNOUNCES SECOND QUARTER RESULTS

July 23, 2025, Reston, VA—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.
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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)

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Homebuilding:
Revenues$2,548,267 $2,547,891 $4,898,712 $4,834,068 
Other income25,088 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 income417,517 488,536 787,001 930,214 
Mortgage Banking:
Mortgage banking fees50,547 64,566 103,134 111,852 
Interest income4,493 4,672 8,299 8,764 
Other income1,301 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 income29,616 45,032 62,136 74,046 
Income before taxes447,133 533,568 849,137 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 outstanding2,914 3,127 2,949 3,156 
Diluted weighted average shares outstanding3,075 3,322 3,117 3,355 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
June 30, 2025December 31, 2024
ASSETS
Homebuilding:
Cash and cash equivalents$1,726,865 $2,561,339 
Restricted cash53,240 42,172 
Receivables41,496 32,622 
Inventory:
Lots and housing units, covered under sales agreements with customers1,797,104 1,727,243 
Unsold lots and housing units304,743 237,177 
Land under development39,450 65,394 
Building materials and other28,743 28,893 
2,170,040 2,058,707 
Contract land deposits, net837,845 726,675 
Property, plant and equipment, net100,280 95,619 
Operating lease right-of-use assets86,206 78,340 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets295,858 251,178 
5,353,410 5,888,232 
Mortgage Banking:
Cash and cash equivalents39,307 49,636 
Restricted cash10,513 11,520 
Mortgage loans held for sale, net415,974 355,209 
Property and equipment, net8,053 7,373 
Operating lease right-of-use assets24,515 23,482 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets80,220 38,189 
585,929 492,756 
Total assets$5,939,339 $6,380,988 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
June 30, 2025December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$367,929 $332,772 
Accrued expenses and other liabilities333,456 441,300 
Customer deposits295,145 322,926 
Operating lease liabilities92,160 83,939 
Senior notes910,145 911,118 
1,998,835 2,092,055 
Mortgage Banking:
Accounts payable and other liabilities68,785 53,433 
Operating lease liabilities26,588 25,428 
95,373 78,861 
Total liabilities2,094,208 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, 2024206 206 
Additional paid-in capital3,085,904 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 liability16,710 16,710 
Retained earnings15,680,266 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' equity3,845,131 4,210,072 
Total liabilities and shareholders' equity$5,939,339 $6,380,988 

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NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,

2025202420252024
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage 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,
2025202420252024
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage 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,
20252024
UnitsAverage PriceUnitsAverage 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 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Average active communities:
Mid Atlantic (1)
120153120155
North East (2)
26312533
Mid East (3)
9410193100
South East (4)
186148175142
Total
426433413430
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
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
65,83483,168142,954 150,026 
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
Investor Relations Contact:
Ryan Sheplee
(703) 956-4243
ir@nvrinc.com

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