NVR, Inc. NVR reported third-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Meanwhile, both earnings and Homebuilding revenues declined on a year-over-year basis.
The third-quarter results highlight continued softness in the housing market, with affordability challenges persisting amid macroeconomic uncertainty and inflationary pressures. The Homebuilding segment saw a year-over-year decline in settlements, while average selling prices remained consistent with the prior-year quarter. Backlog units and new orders also fell, indicating continued caution among homebuyers, reflecting ongoing weakness in overall housing demand.
Additionally, the bottom line declined annually as a result of contract land deposit impairments, unfavorable pricing pressures from affordability concerns, and increased lot costs.
Inside NVR’s Headlines
The company reported earnings of $112.33 per share, topping the Zacks Consensus Estimate of $107.88 by 4.1%. Contrarily, the reported figure decreased 14% from the prior-year quarter’s earnings of $130.50 per share.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Homebuilding revenues of $2.56 billion also surpassed the consensus mark of $2.41 billion by 6.3% but declined 4.4% year over year. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.61 billion, marginally down 4.5% on a year-over-year basis.
Segment Details of NVR
Homebuilding: Segment revenues declined 4.4% year over year to $2.56 billion. Settlements in the quarter were down 5% year over year to 5,639 units. Our model predicted settlements to decline 11.6% year over year to 5,224 units. The ASP for settlements remained consistent with the prior-year quarter at $454,000. Our estimate for the metric was $460,000.
The gross margin contracted 240 basis points year over year to 21%. Our estimate for the metric was 21.3%. The decline primarily reflects higher lot costs, pricing pressure stemming from ongoing affordability challenges and contract land deposit impairments totaling approximately $18.9 million.
New orders decreased 16% from the prior-year quarter’s level to 4,735 units. However, the ASP of new orders increased 3% year over year at $464,800. Our model predicted the ASP of new orders at $446,800. The cancellation rate increased to 19%, up from 15% a year ago.
On a unit basis, backlog at the end of Sept. 30, 2025, decreased 19% to 9,165 homes and $4.39 billion on a dollar basis from the prior-year quarter’s figure.
The average number of active communities was 450 in the quarter, up from 422 reported a year ago.
Mortgage Banking: Mortgage banking fees tumbled 11.1% year over year to $49.2 million. Mortgage closed loan production totalled $1.54 billion, down 7% year over year. The capture rate was 86% in the third quarter, at par with the year-ago quarter.
NVR’s Financials
As of Sept. 30, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.93 billion and $39.3 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.
During the first nine months of 2025, NVR repurchased 178,178 shares for $1.33 billion. At the end of Sept. 30, 2025, the company had 2,860,899 shares outstanding.
NVR's Zacks Rank & Key Picks
Currently, NVR carries a Zacks Rank #3 (Hold).
Here are some better top-ranked stocks from the Construction sector.
Construction Partners, Inc. ROAD presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 93.4%, on average. ROAD stock has jumped 35.1% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ROAD’s 2025 sales and earnings per share (EPS) indicates growth of 54% and 59.4%, respectively, from the year-ago period’s levels.
Everus Construction Group, Inc. ECG has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 42.7%, on average. ECG stock has jumped 27.1% year to date.
The Zacks Consensus Estimate for ECG’s 2025 sales and EPS indicates growth of 18% and 4.6%, respectively, from the prior-year levels.
MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 25.2%, on average. MTZ stock has gained 47.9% year to date.
The Zacks Consensus Estimate for MasTec’s 2025 sales and EPS indicates growth of 13.6% and 60%, respectively, from the prior-year levels.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
