On October 22, 2025, NVR, Inc. released its third‑quarter 2025 financial results, reporting net income of $342.7 million and diluted earnings per share of $112.33. The company’s consolidated revenue for the quarter was $2.61 billion, a 4 % decline from the $2.73 billion reported in the same period a year earlier. Net income fell 20 % year‑over‑year, while diluted EPS decreased 14 % to $112.33 from $130.50 in Q3 2024.
Operational metrics reflected a tightening market: new orders dropped 16 % to 4,735 units, and the cancellation rate rose to 19 % from 15 % in Q3 2024. Settlements fell 5 % to 5,639 units, and the average settlement price remained flat at $454,000. The backlog of homes sold but not yet settled fell 19 % in units to 9,165 and 17 % in dollar value to $4.39 billion, down from $4.84 billion a year earlier.
The homebuilding segment’s revenue declined 4 % to $2.56 billion, and gross profit margin contracted to 21.0 % from 23.4 % due to higher lot costs, pricing pressure, and $18.9 million in contract land deposit impairments. Income before tax from homebuilding fell 18 % to $411.4 million. The mortgage banking segment produced $1.54 billion in closed loans, a 7 % decline, and reported income before tax of $32.7 million, down 6 % from the prior year.
The company’s effective tax rate increased to 22.8 % from 20.3 % year‑over‑year, reflecting a lower tax benefit from stock‑option exercises. Despite the headwinds, NVR maintained a robust balance sheet with $2.2 billion in cash and strong free‑cash‑flow generation, positioning it to continue share repurchases and support long‑term shareholder value.
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