Nvr — Financial Results
Revenue and Profit Both Declined as Demand Weakened
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total revenues | $10.32B | $10.52B | -2% |
| Net income | $1.34B | $1.67B | -20% |
| Diluted EPS | $436.55 | $508.42 | -14% |
| Gross profit margin | 21.2% | 23.7% | -2.5 pts |
Revenue dipped modestly, but net income fell much harder — down 20% — because profit margins compressed significantly. Higher lot costs, buyer affordability pressures, and $75.9 million in contract land deposit impairments (write-offs on deposits paid to reserve land that the company decided to walk away from) all ate into profitability.
New Orders and Backlog Are Shrinking, Signaling a Softer 2026
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| New orders (units) | 20,410 | 22,560 | -10% |
| Backlog (units) | 8,448 | 9,953 | -15% |
| Backlog (dollars) | $4.01B | $4.79B | -16% |
| Cancellation rate | 17.0% | 14.2% | +2.8 pts |
Fewer buyers are signing contracts, and more existing buyers are backing out. Backlog — homes sold but not yet built and handed over — is a leading indicator of future revenue, so a 15% drop in units means the pipeline heading into 2026 is noticeably thinner. Management explicitly warned of a significant revenue decline in Q1 2026.
The South East Region Is the Biggest Drag on Earnings
| Segment | Gross margin 2025 | Gross margin 2024 | Segment profit change |
|---|---|---|---|
| South East | 18.3% | 22.3% | -48% |
| Mid Atlantic | 23.3% | 25.0% | -11% |
| Mid East | 21.1% | 22.3% | -8% |
| North East | 25.5% | 26.0% | -2% |
The South East saw its segment profit nearly cut in half, driven by rising resale and new home inventory in several markets, higher lot and operating costs, and a surge in land deposit write-offs. Every region saw margin compression, but the South East's problems were by far the most severe.
The Company Is Buying Back Stock Aggressively Despite Weaker Earnings
NVR repurchased 243,082 shares in 2025 at a total cost of approximately $1.82 billion, leaving roughly $549.6 million still available under existing buyback authorizations. This is a meaningful use of cash — more than the company's entire net income for the year flowed back to shareholders through repurchases. While this rewards existing shareholders by reducing the share count, it also means less cash on hand for future opportunities.
The Balance Sheet Remains a Key Competitive Advantage
NVR ended 2025 with approximately $1.8 billion in cash and no borrowings drawn on its credit lines. Its $900 million in debt does not mature until May 2030, so there is no near-term refinancing pressure. The company's strategy of controlling land through option agreements — rather than outright ownership — limits its exposure if market conditions worsen further, since walking away costs only the forfeited deposit rather than the full land value.