NVR, Inc. reported net income of $333.7 million, or $108.54 per diluted share, for the second quarter ended June 30, 2025. This marks a 17% decrease in net income and a 10% decrease in diluted earnings per share compared to the second quarter of 2024. Consolidated revenues for the quarter remained flat at $2.60 billion.
For the six months ended June 30, 2025, consolidated revenues increased by 1% to $5.00 billion, but net income decreased by 20% to $633.3 million, and diluted earnings per share fell by 14% to $203.20. New orders in the second quarter decreased by 11% to 5,379 units, and the cancellation rate increased to 17% from 13% in the prior year.
The homebuilding gross profit margin decreased to 21.5% from 23.6% in the second quarter of 2024, impacted by higher lot costs, pricing pressure, and approximately $13.2 million in contract land deposit impairments. Homebuilding income before tax decreased by 15% to $417.5 million. Backlog units and dollar value both decreased by 13% to 10,069 units and $4.75 billion, respectively.
Mortgage closed loan production increased by 2% to $1.56 billion, but mortgage banking income before tax decreased by 34% to $29.6 million, primarily due to lower secondary marketing gains on sales of loans. The effective tax rate for the quarter was 25.4%, up from 24.9% in the second quarter of 2024.
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