NVR, Inc. reported a consolidated revenue of $10.32 billion for the fiscal year ending December 31, 2025, reflecting a 2% decrease from $10.52 billion in 2024. The company's net income also declined by 20% to $1.34 billion, or $436.55 per diluted share, compared to $1.67 billion in the previous year. The homebuilding gross profit margin fell to 21.2% from 23.7% in 2024, primarily due to increased lot costs and pricing pressures amid ongoing affordability challenges. Settlements decreased by 4% to 21,915 units, while new orders dropped by 10% to 20,410 units, indicating a challenging market environment.
The company's backlog of homes sold but not yet settled decreased significantly, with 8,448 units valued at approximately $4.01 billion as of December 31, 2025, down from 9,953 units worth $4.79 billion a year earlier. The average price of homes in backlog also saw a decline, dropping to $474,400 from $481,400. NVR's cancellation rate increased to 17% in 2025, up from 14% in 2024, reflecting the impact of economic conditions on customer purchasing decisions.
In terms of operational developments, NVR maintained a workforce of approximately 6,300 employees as of December 31, 2025, a reduction from 7,000 employees in the previous year. The company continues to focus on its lot acquisition strategy, controlling approximately 180,100 lots, which includes 169,250 lots under lot purchase agreements (LPAs). This strategy aims to mitigate financial risks associated with direct land ownership and development. NVR also reported a decrease in its mortgage banking segment's income, which totaled $152 million, down 2% from $155 million in 2024, attributed to a decline in loan closings.
Looking ahead, NVR anticipates continued challenges in the housing market, with expectations of weak demand impacting home sales, prices, and gross margins throughout 2026. The company has indicated that it is well-positioned to navigate potential market volatility due to its strong balance sheet and disciplined lot acquisition approach. However, the outlook remains cautious as the company adjusts to the current economic landscape, which has been characterized by declining consumer confidence and high inventory levels in certain markets.
About NVR INC
NVR, Inc. is a leading U.S. homebuilder specializing in the construction and sale of single-family homes, townhomes, and condominiums across multiple regions. The company primarily operates on a pre-sold basis, acquiring finished lots through third-party agreements, and offers mortgage banking and title services to support its homebuilding activities. Its business emphasizes market share growth, cost management, and maintaining a strong balance sheet.
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