NVR Q3 Net Income Declines 20%, Revenue Falls to $2.61 Billion

NVR INC (NYSE:NVR) reported a significant decline in its financial performance for the third quarter ended September 30, 2025, with net income decreasing 20% to $342.7 million, or $112.33 per diluted share, compared to $429.3 million, or $130.50 per diluted share, in the same period of 2024.

Consolidated revenues for the third quarter of 2025 totaled $2.61 billion, down from $2.73 billion in the third quarter of 2024. For the first nine months of 2025, consolidated revenues decreased 1% to $7.61 billion from $7.68 billion in 2024. Net income for the nine months ended September 30, 2025, was $976.0 million, a 20% decrease from $1.22 billion in the prior year, with diluted earnings per share falling 14% to $315.33 from $367.20.

The homebuilding segment saw new orders decrease 16% to 4,735 units in Q3 2025, although the average sales price of new orders rose 3% to $464,800. The cancellation rate increased to 19% from 15% in Q3 2024. Settlements fell 5% to 5,639 units, with the average settlement price remaining relatively flat at $454,000. Homebuilding revenues declined 4% to $2.56 billion. Gross profit margin decreased to 21.0% from 23.4%, impacted by higher lot costs, pricing pressure due to affordability challenges, and approximately $18.9 million in contract land deposit impairments. Income before tax for the homebuilding segment decreased 18% to $411.4 million.

As of September 30, 2025, the backlog of homes sold but not settled decreased 19% on a unit basis to 9,165 units and 17% on a dollar basis to $4.39 billion. Mortgage closed loan production in the third quarter of 2025 decreased 7% to $1.54 billion, while income before tax from the mortgage banking segment decreased 6% to $32.7 million. The effective tax rate for Q3 2025 was 22.8%, up from 20.3% in Q3 2024, primarily due to a lower income tax benefit from stock option exercises.