NVR Q3 Earnings & Homebuilding Revenues Top, New Orders Down Y/Y

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.

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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.

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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).

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