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Sep 30, 2022

NVR Q3 2022 Earnings Report

Announced third quarter results with increased net income and diluted earnings per share compared to the previous year.

Key Takeaways

NVR, Inc. reported a strong third quarter with a 16% increase in consolidated revenues, a 24% increase in net income, and a 37% increase in diluted earnings per share compared to the third quarter of 2021. The homebuilding segment saw a 17% increase in revenues and a rise in gross profit margin, while the mortgage banking segment experienced a decrease in income before tax due to lower secondary marketing gains.

Net income increased by 24% to $411.4 million, or $118.51 per diluted share.

Consolidated revenues increased by 16% to $2.78 billion.

Homebuilding revenues increased by 17% to $2.74 billion, with a gross profit margin increase to 23.6%.

New orders decreased by 15% to 4,421 units, while settlements increased by 5% to 5,949 units.

Total Revenue
$2.78B
Previous year: $2.4B
+15.9%
EPS
$119
Previous year: $86.4
+37.1%
New Orders
4.42K
Previous year: 5.2K
-15.0%
Avg Sales Price of New Orders
$453K
Settlements
5.95K
Previous year: 5.68K
+4.7%
Gross Profit
$527M
Previous year: $408M
+29.2%
Cash and Equivalents
$1.77B
Previous year: $2.7B
-34.6%
Free Cash Flow
$602M
Previous year: $456M
+32.1%
Total Assets
$5.39B
Previous year: $5.79B
-6.9%

NVR

NVR

NVR Revenue by Segment

NVR Revenue by Geographic Location

Forward Guidance

The document does not contain explicit forward guidance. It includes cautionary language regarding forward-looking statements and the various risks and uncertainties that may impact future results.

Positive Outlook

  • Not Applicable
  • Not Applicable
  • Not Applicable
  • Not Applicable
  • Not Applicable

Challenges Ahead

  • Impact of COVID-19 on the economy and supply chains
  • General economic and business conditions
  • Interest rate changes
  • Access to financing by NVR and its customers
  • Competition and availability/cost of land and raw materials

Revenue & Expenses

Visualization of income flow from segment revenue to net income