NVR, Inc. announced net income of $299.6 million, or $94.83 per diluted share, for the first quarter ended March 31, 2025. This represents a 24% decrease in net income and a 19% decrease in diluted earnings per share compared to the first quarter of 2024. Consolidated revenues for the quarter increased by 3% to $2.40 billion.
New orders in the homebuilding segment decreased by 12% to 5,345 units, with the average sales price of new orders declining by 1% to $448,500. The cancellation rate for new orders increased to 16% from 13% in the prior year period. Settlements saw a modest 1% increase to 5,133 units.
The homebuilding gross profit margin decreased to 21.9% from 24.5% in the first quarter of 2024, primarily due to higher lot costs and pricing pressure from affordability challenges. Homebuilding income before tax consequently decreased by 16% to $369.5 million. The backlog of homes sold but not settled decreased by 9% in units to 10,165 and by 7% in dollar value to $4.84 billion.
The mortgage banking segment reported an increase in income before tax of 12% to $32.5 million, driven by a 4% increase in closed loan production to $1.43 billion. However, the effective tax rate significantly increased to 25.5% from 16.2% in the first quarter of 2024, largely due to a lower income tax benefit from stock option exercises.
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