NVR Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 22 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS declined: Third-quarter net income was $342.7 million, or $112.33 per diluted share, down 20% and 14% from $429.3 million and $130.50 a year earlier. Source
• New orders fell 16% in units: New orders were 4,735 units, down 16% from 5,650 units a year earlier. Source
• Gross margin fell to 21.0%: Gross profit margin was 21.0%, down from 23.4% a year earlier and from 21.5% in the second quarter. Source
• Lot costs and impairments cited: The company cited higher lot costs and contract land deposit impairments of about $18.9 million, up from $13.2 million in the second quarter. Source
• Homebuilding pre-tax income down 18%: Homebuilding income before tax was $411.4 million, down 18% from a year earlier and from $417.5 million in the second quarter. Source
• Share repurchases fell to $276.4 million: The company repurchased 35,224 shares for $276.4 million in the quarter, against 42,629 shares for $357.5 million. Nine-month spend was $1.33 billion, against $1.49 billion. Source

“Our backlog of homes sold but not settled as of September 30, 2025 decreased on a unit basis by 19% to 9,165 units and decreased on a dollar basis by 17% to $4.39 billion”

NVR Inc., press release

Results and earnings

• Net income and EPS declined: Third-quarter net income was $342.7 million, or $112.33 per diluted share, down 20% and 14% from $429.3 million and $130.50 a year earlier. Source
• Revenue slightly lower than last year: Consolidated revenues were $2.61 billion, down from $2.73 billion. Nine-month revenues were $7.61 billion, down 1% from $7.68 billion. Source
• Nine-month EPS down 14%: Nine-month net income was $976.0 million, down 20%. Diluted EPS for the nine months was $315.33, down 14% from $367.20. Source
• Net income higher than second quarter: Second-quarter net income was $333.7 million, or $108.54 per diluted share, so third-quarter net income and diluted EPS were higher than the prior quarter.

Orders and cancellations

• New orders fell 16% in units: New orders were 4,735 units, down 16% from 5,650 units a year earlier. Source
• Average new-order price rose 3%: The average sales price of new orders was $464,800, up 3% from a year earlier. Source
• Cancellation rate rose to 19%: The cancellation rate was 19%, compared with 15% a year earlier. Source

“Our effective tax rate for the three and nine month periods ended September 30, 2025 was 22.8% and 24.5%, respectively, compared to 20.3% and 20.6% for the three and nine month periods ended September 30, 2024, respectively.”

NVR Inc., press release

Settlements and gross margin

• Settlements fell 5% in units: Settlements were 5,639 units, down 5% from 5,908 units a year earlier. Source
• Settlement price about flat: The average settlement price was $454,000, relatively flat from a year earlier and down from $465,400 in the second quarter. Source
• Gross margin fell to 21.0%: Gross profit margin was 21.0%, down from 23.4% a year earlier and from 21.5% in the second quarter. Source
• Lot costs and impairments cited: The company cited higher lot costs and contract land deposit impairments of about $18.9 million, up from $13.2 million in the second quarter. Source

Homebuilding and mortgage segments

• Homebuilding pre-tax income down 18%: Homebuilding income before tax was $411.4 million, down 18% from a year earlier and from $417.5 million in the second quarter. Source
• Mortgage loan production down 7%: Mortgage closed loan production was $1.54 billion, down 7%. Second-quarter production was $1.56 billion, up 2%. Source
• Mortgage pre-tax income down 6%: Mortgage banking income before tax was $32.7 million, down 6% from $34.9 million a year earlier. Source

Communities, lots and footprint

• Active communities rose to 450: Average active communities were 450, against 422 a year earlier. South East rose to 191 from 146. Source
• Lots controlled rose to 175,300: Lots controlled at period end were 175,300, up from 151,800 a year earlier and from 171,400 at June 30, 2025. Source
• Mid Atlantic orders fell most: Mid Atlantic net orders were 1,714 units against 2,206, the largest unit decline of any region, and its backlog was 3,419 units against 4,485. Source
• Operations in 36 metro areas: The homebuilding segment builds under Ryan Homes, NVHomes and Heartland Homes names in thirty-six metropolitan areas across sixteen states and Washington, D.C. Source

Capital, cash and share repurchases

• Share repurchases fell to $276.4 million: The company repurchased 35,224 shares for $276.4 million in the quarter, against 42,629 shares for $357.5 million. Nine-month spend was $1.33 billion, against $1.49 billion. Source
• Homebuilding cash at $1.93 billion: Homebuilding cash and cash equivalents were $1.93 billion at September 30, 2025, up from $1.73 billion at June 30 and down from $2.56 billion at December 31, 2024. Source
• Contract land deposits rose: Contract land deposits, net, were $868.3 million, up from $837.8 million at June 30 and $726.7 million at December 31, 2024. Source
• Shareholders' equity declined: Total shareholders' equity was $3.97 billion, down from $4.21 billion at December 31, 2024, as treasury stock rose to 17,694,431 shares. Source

Figures management reported

Risks management discussed

• Financial: Lower excess tax benefits from stock option exercises raised the effective tax rate. The benefit was $13.4 million in the quarter, against $23.1 million a year earlier. Source
• Demand: Management cited continued affordability challenges as a source of pricing pressure on gross margin. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.