NVR, Inc. Reports $10.5 Billion Revenue and 6% Net Income Growth for Fiscal Year 2024

NVR, Inc. reported a consolidated revenue of $10.5 billion for the fiscal year ending December 31, 2024, marking an 11% increase from $9.5 billion in 2023. The company's net income rose to $1.68 billion, or $506.69 per diluted share, reflecting a 6% increase in net income and a 9% increase in diluted earnings per share compared to the previous year. The homebuilding gross profit margin slightly decreased to 23.7% from 24.3% in 2023, attributed to rising lot costs and closing cost assistance. Settlements for the year totaled 22,836 units, also an 11% increase from 2023, while new orders rose by 4% to 22,560 units.

In terms of operational metrics, NVR's backlog of homes sold but not yet settled decreased by 3% to 9,953 units, although the dollar value of the backlog increased by 1% to approximately $4.79 billion. The average price of homes in backlog rose to $481,400 from $465,000 in the previous year. The company experienced a cancellation rate of approximately 14%, consistent with the previous two years. NVR's mortgage banking segment reported an income before tax of $154.9 million, a 17% increase from $132.8 million in 2023, driven by higher loan closing volumes.

NVR's strategic focus remains on maintaining a leading market position across its operational regions, which include 36 metropolitan areas in 16 states and Washington, D.C. The company primarily constructs homes on a pre-sold basis and utilizes a conservative lot acquisition strategy through fixed price finished lot purchase agreements (LPAs). As of December 31, 2024, NVR controlled approximately 162,400 lots, a significant increase from 141,500 lots in 2023. The company also reported a headcount of approximately 7,000 full-time employees, up from 6,300 in the previous year, reflecting its commitment to expanding its workforce to support growth.

Looking ahead, NVR anticipates continued challenges in the housing market, including rising mortgage interest rates and affordability issues that may impact demand. The company expects to face ongoing cost pressures related to building materials, labor, and land costs, which could affect profit margins. Despite these challenges, NVR believes it is well-positioned to capitalize on potential opportunities arising from market volatility, supported by a strong balance sheet and disciplined lot acquisition strategy. The company remains focused on expanding its market share in existing regions while exploring opportunities in contiguous markets.