EX-99.1 2 q42024ex991_earningsrelease.htm EX-99.1 Document

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Exhibit 99.1
NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

January 28, 2025, Reston, VA—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, 2024 of $457.4 million, or $139.93 per diluted share. For the fourth quarter ended December 31, 2024, net income increased 12% and diluted earnings per share increased 15%, when compared to 2023 fourth quarter net income of $410.1 million, or $121.56 per diluted share. Consolidated revenues for the fourth quarter of 2024 totaled $2.85 billion, which increased 17% from $2.43 billion in the fourth quarter of 2023.
For the year ended December 31, 2024, consolidated revenues were $10.52 billion, an 11% increase from $9.52 billion reported for the same period of 2023. Net income for the year ended December 31, 2024 was $1.68 billion, an increase of 6% when compared to net income for the year ended December 31, 2023 of $1.59 billion. Diluted earnings per share for the year ended December 31, 2024 was $506.69, an increase of 9% from $463.31 per diluted share for the same period of 2023.
Homebuilding
New orders in the fourth quarter of 2024 decreased by 8% to 4,794 units, when compared to 5,190 units in the fourth quarter of 2023. The average sales price of new orders in the fourth quarter of 2024 was $469,000, an increase of 4% when compared with the fourth quarter of 2023. The cancellation rate in the fourth quarter of 2024 was 17% compared to 13% in the fourth quarter of 2023. Settlements in the fourth quarter of 2024 increased by 16% to 6,180 units, compared to 5,332 units in the fourth quarter of 2023. The average settlement price in the fourth quarter of 2024 was $450,000, which was relatively flat when compared with the fourth quarter of 2023. Our backlog of homes sold but not settled as of December 31, 2024 decreased on a unit basis by 3% to 9,953 units and increased on a dollar basis by 1% to $4.79 billion when compared to the respective backlog unit and dollar balances as of December 31, 2023.
Homebuilding revenues of $2.78 billion in the fourth quarter of 2024 increased by 16% compared to homebuilding revenues of $2.39 billion in the fourth quarter of 2023. Gross profit margin in the fourth quarter of 2024 decreased to 23.6%, from 24.1% in the fourth quarter of 2023. Income before tax from the homebuilding segment totaled $526.7 million in the fourth quarter of 2024, an increase of 16% when compared to the fourth quarter of 2023.
New orders for the year ended December 31, 2024 increased by 4% to 22,560 units, compared to 21,729 units in 2023. Settlements for the year ended December 31, 2024 increased by 11% to 22,836 units, compared to 20,662 units settled in 2023. Homebuilding revenues for the year ended December 31, 2024 totaled $10.29 billion, an 11% increase from 2023. Gross profit margin for the year ended December 31, 2024 decreased to 23.7%, compared to 24.3% in 2023. Income before tax for the homebuilding segment increased 9% for the year ended December 31, 2024 to $1.96 billion, compared to $1.80 billion in 2023.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2024 totaled $1.70 billion, an increase of 13% when compared to the fourth quarter of 2023. Income before tax from the mortgage banking segment totaled $45.9 million in the fourth quarter of 2024, an increase of 55% when compared to $29.7 million in the fourth quarter of 2023. This 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, 2024 increased 9% to $6.26 billion. Income before tax from the mortgage banking segment for the year ended December 31, 2024 increased 17% to $154.9 million from $132.8 million in 2023.


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Effective Tax Rate
Our effective tax rate for the three and twelve months ended December 31, 2024 was 20.1% and 20.5%, respectively, compared to 15.3% and 17.5% for the three and twelve months ended December 31, 2023, 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 $21.3 million and $95.1 million for the three and twelve months ended December 31, 2024, respectively, compared to $42.5 million and $153.6 million for the three and twelve months ended December 31, 2023, 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)


Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(unaudited)(unaudited)(unaudited)
Homebuilding:
Revenues$2,780,717 $2,387,094 $10,292,425 $9,314,605 
Other income33,094 40,891 143,890 148,010 
Cost of sales(2,125,633)(1,812,968)(7,850,549)(7,051,198)
Selling, general and administrative(154,714)(154,086)(598,207)(588,962)
Operating income533,464 460,931 1,987,559 1,822,455 
Interest expense(6,774)(6,618)(26,988)(26,875)
Homebuilding income526,690 454,313 1,960,571 1,795,580 
Mortgage Banking:
Mortgage banking fees64,891 45,476 232,054 203,597 
Interest income5,600 4,779 19,092 16,687 
Other income1,562 1,189 5,480 4,449 
General and administrative(25,870)(21,537)(100,896)(91,075)
Interest expense(239)(173)(795)(865)
Mortgage banking income45,944 29,734 154,935 132,793 
Income before taxes572,634 484,047 2,115,506 1,928,373 
Income tax expense(115,202)(73,972)(433,578)(336,762)
Net income$457,432 $410,075 $1,681,928 $1,591,611 
Basic earnings per share$149.84 $128.46 $540.88 $491.52 
Diluted earnings per share$139.93 $121.56 $506.69 $463.31 
Basic weighted average shares outstanding3,053 3,192 3,110 3,238 
Diluted weighted average shares outstanding3,269 3,373 3,319 3,435 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31, 2024December 31, 2023
(unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents$2,561,339 $3,126,472 
Restricted cash42,172 41,483 
Receivables32,622 29,000 
Inventory:
Lots and housing units, covered under sales agreements with customers1,727,243 1,674,686 
Unsold lots and housing units237,177 214,666 
Land under development65,394 36,895 
Building materials and other28,893 23,903 
2,058,707 1,950,150 
Contract land deposits, net726,675 576,551 
Property, plant and equipment, net95,619 63,716 
Operating lease right-of-use assets78,340 70,384 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Deferred tax assets, net142,192 148,005 
Other assets108,986 94,746 
5,888,232 6,142,087 
Mortgage Banking:
Cash and cash equivalents49,636 36,422 
Restricted cash11,520 11,067 
Mortgage loans held for sale, net355,209 222,560 
Property and equipment, net7,373 6,348 
Operating lease right-of-use assets23,482 23,541 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets38,189 152,385 
492,756 459,670 
Total assets$6,380,988 $6,601,757 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
December 31, 2024December 31, 2023
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$332,772 $347,738 
Accrued expenses and other liabilities441,300 413,043 
Customer deposits322,926 334,441 
Operating lease liabilities83,939 75,797 
Senior notes911,118 913,027 
2,092,055 2,084,046 
Mortgage Banking:
Accounts payable and other liabilities53,433 127,511 
Operating lease liabilities25,428 25,475 
78,861 152,986 
Total liabilities2,170,916 2,237,032 
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, 2024 and December 31, 2023206 206 
Additional paid-in capital3,031,637 2,848,528 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both December 31, 2024 and December 31, 2023(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings15,046,953 13,365,025 
Less treasury stock at cost – 17,543,686 and 17,360,454 shares as of December 31, 2024 and December 31, 2023, respectively(13,868,724)(11,849,034)
Total shareholders' equity4,210,072 4,364,725 
Total liabilities and shareholders' equity$6,380,988 $6,601,757 

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NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,

2024202320242023
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
New orders, net of cancellations:
Mid Atlantic (1)
1,726$547.1 2,029$500.9 8,511 $527.3 8,434 $515.5 
North East (2)
453$639.9 526$597.7 1,994 $622.4 1,879 $573.2 
Mid East (3)
1,024$419.6 942$412.2 4,654 $408.0 4,514 $396.5 
South East (4)
1,591$367.4 1,693$366.9 7,401 $364.6 6,902 $366.4 
Total
4,794$469.0 5,190$450.9 22,560 $457.7 21,729 $448.4 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
Settlements:
Mid Atlantic (1)
2,143$524.8 2,008$519.5 8,537 $518.1 8,032 $521.5 
North East (2)
522$617.7 465$567.1 1,967 $592.6 1,736 $546.2 
Mid East (3)
1,242$410.3 1,126$391.3 4,585 $406.0 4,391 $392.4 
South East (4)
2,273$362.5 1,733$368.9 7,747 $366.7 6,503 $377.2 
Total
6,180$450.0 5,332$447.6 22,836 $450.7 20,662 $450.7 
As of December 31,
20242023
UnitsAverage PriceUnitsAverage Price
Backlog:
Mid Atlantic (1)
4,068$541.6 4,094$522.5 
North East (2)
1,055$658.1 1,028$602.0 
Mid East (3)
2,045$416.5 1,976$412.1 
South East (4)
2,785$374.3 3,131$378.4 
Total
9,953$481.4 10,229$465.0 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Average active communities:
Mid Atlantic (1)
132167147166
North East (2)
29363136
Mid East (3)
104105101110
South East (4)
161130148115
Total
426438427427
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Homebuilding data:
New order cancellation rate
16.9 %13.0 %14.2 %12.8 %
Lots controlled at end of period
162,400 141,500 
Mortgage banking data:
Loan closings
$1,695,831$1,496,003$6,260,428 $5,736,532 
Capture rate
86 %88 %86 %87 %
Common stock information:
Shares outstanding at end of period
3,011,644 3,194,876 
Number of shares repurchased
64,21646,748256,871 181,499 
Aggregate cost of shares repurchased
$564,315$286,428$2,057,677 $1,081,815 

(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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