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Mar 31, 2025
NVR Q1 2025 Earnings Report
NVR, Inc. reported a decrease in net income and diluted EPS for Q1 2025, despite a slight increase in consolidated revenues, primarily due to higher lot costs and pricing pressure.
Key Takeaways
NVR, Inc. experienced a decrease in net income and diluted earnings per share in the first quarter of 2025 compared to the same period in 2024, primarily driven by higher lot costs, pricing pressure, and a lower income tax benefit from stock option exercises. Despite these challenges, consolidated revenues saw a modest increase.
Consolidated revenues increased by 3% to $2,403,032,000 in Q1 2025 compared to Q1 2024.
Net income decreased by 24% to $299,576,000, and diluted EPS decreased by 19% to $94.83 in Q1 2025.
Homebuilding gross profit margin percentage decreased to 21.9% in Q1 2025 from 24.5% in Q1 2024.
New orders decreased by 12% and the average sales price of new orders decreased by 1% in Q1 2025.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
NVR expects continued affordability issues, interest rate volatility, and economic volatility to impact demand and home prices, leading to ongoing margin pressure. However, the company believes its strong balance sheet and disciplined lot acquisition strategy position it well to capitalize on future market opportunities.
Positive Outlook
- Strong balance sheet provides resilience against market volatility.
- Disciplined lot acquisition strategy minimizes market risk and enhances returns.
- Focus on pre-sold homes reduces inventory risk.
- Leading market position in served markets provides competitive advantages.
- Ability to increase commitment under credit agreement provides financial flexibility.
Challenges Ahead
- Continued affordability issues are expected to weigh on demand and home prices.
- Interest rate volatility may negatively impact customer financing and demand.
- Economic volatility could further impact operational and financial performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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