July 23 (Reuters) - NVR NVR.N on Wednesday posted a decline in second-quarter profit, as incentives for buyers lowered margins on home sales amid higher interest rates and rising costs.
The homebuilder's net income fell 17% to $333.7 million in the quarter ended June 30 from a year ago, amounting to a 10% decline in per share profit to $108.54.
Elevated interest rates and U.S. President Donald Trump's import tariffs have lifted costs of construction materials for homebuilders.
They have also been offering incentives to buyers such as mortgage rate buydowns and smaller, affordable homes to overcome weakening consumer sentiment, hurting their margins.
NVR also noted a negative impact on margins from higher lot costs and contract land deposit impairments during the quarter.
Gross profit margin in the reported quarter decreased to 21.5%, from 23.6% a year ago.
The Reston, Virginia-based company's revenue was mostly flat from a year ago at $2.55 billion, but was still ahead of analysts' estimate of $2.42 billion, according to data compiled by LSEG.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber)
((Aatreyee.Dasgupta@thomsonreuters.com;))
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