NVR (NVR) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $342.7 million, down 20% year-over-year, with diluted EPS at $112.33, down 14%.

• Revenues for Q3 2025 were $2.61 billion, a 5% decrease year-over-year.

• Homebuilding gross margin declined to 21.0% from 23.4% year-over-year, impacted by higher lot costs, pricing pressure, and contract land deposit impairments.

• New orders fell 16% to 4,735 units and backlog units dropped 19% compared to the prior year.

• Mortgage banking segment profit decreased 8% for the quarter, primarily due to lower gains on loan sales.

Financial highlights

• Net income for Q3 2025 was $342.7 million, down from $429.3 million in Q3 2024.

• Diluted EPS for Q3 2025 was $112.33, compared to $130.50 in Q3 2024.

• Homebuilding gross profit margin was 21.0% in Q3 2025, down from 23.4% in Q3 2024.

• Effective tax rate for Q3 2025 was 22.8%, up from 20.3% in Q3 2024.

• Cash and cash equivalents at September 30, 2025: ~$2.0 billion.

Outlook and guidance

• Management expects continued margin pressure and demand headwinds due to affordability issues, interest rate volatility, and economic uncertainty.

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