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Dec 31, 2022

NVR Q4 2022 Earnings Report

NVR reported increased net income and revenue for Q4 2022.

Key Takeaways

NVR, Inc. reported a strong fourth quarter with a 22% increase in consolidated revenues and a 36% increase in net income compared to the same period in 2021. The homebuilding segment saw revenue growth and improved gross profit margins, while the mortgage banking segment experienced a decrease in income before tax due to lower secondary marketing gains.

Net income increased by 36% to $454.8 million, or $133.44 per diluted share.

Consolidated revenues rose by 22% to $2.71 billion.

Homebuilding revenues increased by 23% to $2.67 billion, with a gross profit margin of 25.3%.

New orders decreased by 27% to 4,153 units, while settlements increased by 13% to 5,749 units.

Total Revenue
$2.71B
Previous year: $2.23B
+21.6%
EPS
$133
Previous year: $89.1
+49.8%
New Orders
4.15K
Previous year: 5.69K
-26.9%
Settlements
5.75K
Previous year: 5.1K
+12.7%
Loan Closings
$1.52B
Previous year: $1.48B
+3.0%
Gross Profit
$555M
Previous year: $586M
-5.4%
Cash and Equivalents
$2.57B
Previous year: $2.64B
-2.4%
Free Cash Flow
$811M
Previous year: $254M
+219.0%
Total Assets
$5.66B
Previous year: $5.83B
-3.0%

NVR

NVR

Forward Guidance

The company did not provide specific forward guidance in the press release. The release contains forward-looking statements that are subject to risks and uncertainties.

Positive Outlook

  • Not applicable, no positives mentioned

Challenges Ahead

  • The impact of COVID-19 on the economy and related supply chain disruptions
  • General economic and business conditions (on both a national and regional level)
  • Interest rate changes
  • Access to suitable financing by NVR and NVR’s customers
  • Increased regulation in the mortgage banking industry