NVR (NVR) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income was $333.7M, down 17% year-over-year, with diluted EPS at $108.54, a 10% decrease.

• Consolidated revenues for Q2 2025 were $2.60B, nearly flat compared to Q2 2024.

• New orders declined 11% and cancellation rates rose to 16.5%–17% in Q2 2025, with average sales prices flat.

• Six-month net income dropped 20% to $633.3M, while revenues rose 1% to $5.00B year-over-year.

• The company maintains a conservative lot acquisition strategy and strong balance sheet to navigate volatility.

Financial highlights

• Q2 2025 homebuilding revenues were $2.55B, flat year-over-year; gross profit margin declined to 21.5% from 23.6%.

• Diluted EPS for Q2 2025 was $108.54, down from $120.69 in Q2 2024.

• Operating cash flow for the first half was $242.9M, with $1.83B in cash and equivalents at period end.

• Q2 2025 mortgage closed loan production increased 2% to $1.56B; mortgage banking income before tax dropped 33%–34%.

• Effective tax rate for Q2 2025 was 25.4%, up from 24.9% in Q2 2024.

Outlook and guidance

• Management expects continued margin pressure and demand challenges due to affordability and economic volatility.

• The company believes its strong balance sheet and disciplined lot strategy position it to capitalize on future opportunities.