EX-99.1 2 q12025ex991_earningsrelease.htm EX-99.1 Document

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Exhibit 99.1
NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

April 22, 2025, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2025 of $299.6 million, or $94.83 per diluted share. Net income and diluted earnings per share for the first quarter ended March 31, 2025 decreased 24% and 19%, respectively, when compared to 2024 first quarter net income of $394.3 million, or $116.41 per diluted share. Consolidated revenues for the first quarter of 2025 totaled $2.40 billion, which increased 3% from $2.33 billion in the first quarter of 2024.
Homebuilding
New orders in the first quarter of 2025 decreased by 12% to 5,345 units, when compared to 6,049 units in the first quarter of 2024. The average sales price of new orders in the first quarter of 2025 was $448,500, a decrease of 1% when compared with the first quarter of 2024. The cancellation rate in the first quarter of 2025 was 16% compared to 13% in the first quarter of 2024. Settlements in the first quarter of 2025 increased by 1% to 5,133 units, compared to 5,089 units in the first quarter of 2024. The average settlement price in the first quarter of 2025 was $457,900, an increase of 2% from the first quarter of 2024. Our backlog of homes sold but not settled as of March 31, 2025 decreased on a unit basis by 9% to 10,165 units and decreased on a dollar basis by 7% to $4.84 billion when compared to the respective backlog unit and dollar balances as of March 31, 2024.
Homebuilding revenues of $2.35 billion in the first quarter of 2025 increased by 3% compared to homebuilding revenues of $2.29 billion in the first quarter of 2024. Gross profit margin in the first quarter of 2025 decreased to 21.9%, compared to 24.5% in the first quarter of 2024. Gross profit margin was negatively impacted by higher lot costs and pricing pressure due to continued affordability challenges. Income before tax from the homebuilding segment totaled $369.5 million in the first quarter of 2025, a decrease of 16% when compared to the first quarter of 2024.
Mortgage Banking
Mortgage closed loan production in the first quarter of 2025 totaled $1.43 billion, an increase of 4% when compared to the first quarter of 2024. Income before tax from the mortgage banking segment totaled $32.5 million in the first quarter of 2025, an increase of 12% when compared to $29.0 million in the first quarter of 2024.
Effective Tax Rate
Our effective tax rate for the three months ended March 31, 2025 was 25.5% compared to 16.2% for the three months ended March 31, 2024. The increase in the effective tax rate in the first quarter of 2025 is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $2.7 million and $43.8 million for the three months ended March 31, 2025 and March 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-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
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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 March 31,
20252024
Homebuilding:
Revenues$2,350,445 $2,286,177 
Other income26,712 40,866 
Cost of sales(1,835,375)(1,726,213)
Selling, general and administrative(165,117)(152,503)
Operating income376,665 448,327 
Interest expense(7,181)(6,649)
Homebuilding income369,484 441,678 
Mortgage Banking:
Mortgage banking fees52,587 47,286 
Interest income3,806 4,092 
Other income1,093 1,171 
General and administrative(24,693)(23,358)
Interest expense(273)(177)
Mortgage banking income32,520 29,014 
Income before taxes402,004 470,692 
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 outstanding2,984 3,186 
Diluted weighted average shares outstanding3,159 3,387 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
March 31, 2025December 31, 2024
ASSETS
Homebuilding:
Cash and cash equivalents$2,176,902 $2,561,339 
Restricted cash64,264 42,172 
Receivables36,543 32,622 
Inventory:
Lots and housing units, covered under sales agreements with customers1,774,287 1,727,243 
Unsold lots and housing units242,217 237,177 
Land under development70,050 65,394 
Building materials and other23,818 28,893 
2,110,372 2,058,707 
Contract land deposits, net757,197 726,675 
Property, plant and equipment, net98,038 95,619 
Operating lease right-of-use assets84,791 78,340 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets264,138 251,178 
5,633,825 5,888,232 
Mortgage Banking:
Cash and cash equivalents34,204 49,636 
Restricted cash12,540 11,520 
Mortgage loans held for sale, net391,914 355,209 
Property and equipment, net7,286 7,373 
Operating lease right-of-use assets22,686 23,482 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets85,731 38,189 
561,708 492,756 
Total assets$6,195,533 $6,380,988 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
March 31, 2025December 31, 2024
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$364,929 $332,772 
Accrued expenses and other liabilities455,369 441,300 
Customer deposits315,746 322,926 
Operating lease liabilities90,489 83,939 
Senior notes910,633 911,118 
2,137,166 2,092,055 
Mortgage Banking:
Accounts payable and other liabilities79,009 53,433 
Operating lease liabilities24,694 25,428 
103,703 78,861 
Total liabilities2,240,869 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 March 31, 2025 and December 31, 2024206 206 
Additional paid-in capital3,057,037 3,031,637 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both March 31, 2025 and December 31, 2024(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings15,346,529 15,046,953 
Less treasury stock at cost – 17,610,715 and 17,543,686 shares as of March 31, 2025 and December 31, 2024, respectively(14,449,108)(13,868,724)
Total shareholders' equity3,954,664 4,210,072 
Total liabilities and shareholders' equity$6,195,533 $6,380,988 

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

20252024
UnitsAverage PriceUnitsAverage Price
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,
20252024
UnitsAverage PriceUnitsAverage Price
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,
20252024
UnitsAverage PriceUnitsAverage Price
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 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
20252024
Average active communities:
Mid Atlantic (1)
120157
North East (2)
2434
Mid East (3)
93100
South East (4)
164136
Total
401427
Three Months Ended March 31,
20252024
Homebuilding data:
New order cancellation rate
16 %13 %
Lots controlled at end of period
167,600143,200
Mortgage banking data:
Loan closings
$1,432,922$1,378,009
Capture rate
86 %86 %
Common stock information:
Shares outstanding at end of period
2,944,6153,167,625
Number of shares repurchased
77,12066,858
Aggregate cost of shares repurchased
$583,394$496,936

(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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