Homebuilder NVR Q3 net income, homebuilding revenue down as new orders decline

Reuters
Oct 22
Homebuilder NVR Q3 net income, homebuilding revenue down as new orders decline

Overview

  • NVR Q3 net income falls 20% yr/yr, with diluted EPS down 14%

  • Company's Q3 homebuilding revenues decrease 4% yr/yr

  • NVR's Q3 mortgage closed loan production down 7% yr/yr

Outlook

  • NVR did not provide specific future financial guidance in its press release

Result Drivers

  • NEW ORDERS DECLINE - New orders in Q3 2025 decreased by 16% compared to Q3 2024, with higher cancellation rates impacting results

  • GROSS MARGIN PRESSURE - Gross profit margin decreased due to higher lot costs and pricing pressure from affordability challenges

  • MORTGAGE LOAN PRODUCTION - Mortgage closed loan production fell 7% in Q3 2025 compared to Q3 2024, affecting mortgage banking income

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Homebuilding Revenues

$2.56 bln

Q3 EPS

$112.33

Q3 Net Income

$342.68 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the homebuilding peer group is "buy."

  • Wall Street's median 12-month price target for NVR Inc is $8,575.00, about 9.1% above its October 21 closing price of $7,792.13

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn9Jpbbza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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