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NVR's Q2 Earnings & Homebuilding Revenues Top, New Orders Down Y/Y
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Key Takeaways
Q2 EPS of $108.54 beat by 3.5%, but declined 10.1% YoY on higher lot costs and pricing pressure.
New orders dropped 11% to 5,379 units, while backlog fell 13% in units and value amid rising cancellations.
Homebuilding revenues were flat at $2.55B, with a 3% ASP increase offsetting a 3% drop in settlements.
NVR, Inc. (NVR - Free Report) reported better-than-expected second-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. However, on a year-over-year basis, earnings declined while Homebuilding revenues remained flat.
The quarter’s results reflect the continued impact of the ongoing affordability challenges faced by homebuyers amid macro risks and inflationary pressures. The Homebuilding segment faced a pullback with settlements declining year over year, partially offset by a higher average selling price (ASP). Also, the backlog units and value both weakened due to the lingering uncertainties in the housing market.
Moreover, the bottom line tumbled year over year due to higher lot costs, unfavorable pricing pressures from affordability issues and contract land deposit impairments.
Inside NVR’s Headlines
The company reported earnings of $108.54 per share, topping the Zacks Consensus Estimate of $104.89 by 3.5%. Contrarily, the reported figure decreased 10.1% from the prior-year quarter’s earnings of $120.69 per share.
Homebuilding revenues of $2.55 billion also surpassed the consensus mark of $2.4 billion by 6.1%, but were flat year over year. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.60 billion, marginally down 0.4% on a year-over-year basis.
Segment Details of NVR
Homebuilding: The segment’s revenues were at par with the year-ago quarter. Settlements in the quarter were down 3% year over year to 5,475 units. Our model predicted settlements to decline 4.2% year over year to 5,422 units. The ASP for settlements was up 3% year over year to $465,400. Our estimate for the metric was $443,500.
The gross margin contracted 210 basis points year over year to 21.5%. Our estimate for the metric was 22.1%.
New orders decreased 11% from the prior-year quarter’s level to 5,379 units. However, the ASP of new orders remained flat year over year at $458,100. Our model predicted the ASP of new orders at $456,500. The cancellation rate increased to 17%, up from 13% a year ago.
On a unit basis, backlog at the end of June 30, 2025, decreased 13% to 10,069 homes and $4.75 billion on a dollar basis, from the prior-year quarter’s figure.
The average active communities were 426 in the quarter, down from 433 reported a year ago.
Mortgage Banking: Mortgage banking fees tumbled 21.7% year over year to $50.5 million. Mortgage closed loan production totaled $1.56 billion, up 2% year over year. The capture rate was 87% in the second quarter, up from 86% in the year-ago quarter.
NVR’s Financials
As of June 30, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.73 billion and $39.3 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.
During the first six months of 2025, NVR repurchased 142,954 shares for $1.05 billion. At the end of June 30, 2025, the company had 2,883,215 shares outstanding.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected third-quarter fiscal 2025 (ended June 30, 2025) results, with earnings and total revenues topping the Zacks Consensus Estimate but decreasing on a year-over-year basis.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings, alongside decreased ASP. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility. Its disciplined approach to capital allocation, combined with its flexible lot supply and affordable product offerings, positions D.R. Horton to maximize returns across its communities while adapting to evolving market conditions.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected second-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate.
During the quarter, home sale revenues decreased 4.1% year over year to $4.27 billion, with the number of homes closed dropping 5.7% to 7639 units from the year-ago level. Net new home orders declined 7.4% year over year to 7,083 units. Moreover, PulteGroup’s backlog, which represents orders yet to be closed, was 10,779 units, down from 12,982 units a year ago. Currently, PulteGroup is adjusting home production and land investments to current market conditions while preparing to capitalize on future demand growth.
KB Home (KBH - Free Report) reported second-quarter fiscal 2025 results wherein earnings and total revenues surpassed the Zacks Consensus Estimate. However, both metrics decreased on a year-over-year basis.
The quarter’s result reflects the softness in the housing market as homebuyers are still navigating through affordability concerns due to high mortgage rates. Owing to these market uncertainties and a lower net orders level at the end of the quarter, KB Home lowered its fiscal 2025 guidance. Although market conditions have softened, it remains focused on managing assets efficiently. Going forward, KB Home aims to maintain pricing clarity, enhance buyer value and support margins and returns.
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NVR's Q2 Earnings & Homebuilding Revenues Top, New Orders Down Y/Y
Key Takeaways
NVR, Inc. (NVR - Free Report) reported better-than-expected second-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. However, on a year-over-year basis, earnings declined while Homebuilding revenues remained flat.
The quarter’s results reflect the continued impact of the ongoing affordability challenges faced by homebuyers amid macro risks and inflationary pressures. The Homebuilding segment faced a pullback with settlements declining year over year, partially offset by a higher average selling price (ASP). Also, the backlog units and value both weakened due to the lingering uncertainties in the housing market.
Moreover, the bottom line tumbled year over year due to higher lot costs, unfavorable pricing pressures from affordability issues and contract land deposit impairments.
Inside NVR’s Headlines
The company reported earnings of $108.54 per share, topping the Zacks Consensus Estimate of $104.89 by 3.5%. Contrarily, the reported figure decreased 10.1% from the prior-year quarter’s earnings of $120.69 per share.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Homebuilding revenues of $2.55 billion also surpassed the consensus mark of $2.4 billion by 6.1%, but were flat year over year. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.60 billion, marginally down 0.4% on a year-over-year basis.
Segment Details of NVR
Homebuilding: The segment’s revenues were at par with the year-ago quarter. Settlements in the quarter were down 3% year over year to 5,475 units. Our model predicted settlements to decline 4.2% year over year to 5,422 units. The ASP for settlements was up 3% year over year to $465,400. Our estimate for the metric was $443,500.
The gross margin contracted 210 basis points year over year to 21.5%. Our estimate for the metric was 22.1%.
New orders decreased 11% from the prior-year quarter’s level to 5,379 units. However, the ASP of new orders remained flat year over year at $458,100. Our model predicted the ASP of new orders at $456,500. The cancellation rate increased to 17%, up from 13% a year ago.
On a unit basis, backlog at the end of June 30, 2025, decreased 13% to 10,069 homes and $4.75 billion on a dollar basis, from the prior-year quarter’s figure.
The average active communities were 426 in the quarter, down from 433 reported a year ago.
Mortgage Banking: Mortgage banking fees tumbled 21.7% year over year to $50.5 million. Mortgage closed loan production totaled $1.56 billion, up 2% year over year. The capture rate was 87% in the second quarter, up from 86% in the year-ago quarter.
NVR’s Financials
As of June 30, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.73 billion and $39.3 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.
During the first six months of 2025, NVR repurchased 142,954 shares for $1.05 billion. At the end of June 30, 2025, the company had 2,883,215 shares outstanding.
NVR's Zacks Rank & Recent Peer Releases
NVR currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected third-quarter fiscal 2025 (ended June 30, 2025) results, with earnings and total revenues topping the Zacks Consensus Estimate but decreasing on a year-over-year basis.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings, alongside decreased ASP. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility. Its disciplined approach to capital allocation, combined with its flexible lot supply and affordable product offerings, positions D.R. Horton to maximize returns across its communities while adapting to evolving market conditions.
PulteGroup Inc. (PHM - Free Report) has reported better-than-expected second-quarter 2024 results, wherein adjusted earnings and total revenues handily beat the Zacks Consensus Estimate.
During the quarter, home sale revenues decreased 4.1% year over year to $4.27 billion, with the number of homes closed dropping 5.7% to 7639 units from the year-ago level. Net new home orders declined 7.4% year over year to 7,083 units. Moreover, PulteGroup’s backlog, which represents orders yet to be closed, was 10,779 units, down from 12,982 units a year ago. Currently, PulteGroup is adjusting home production and land investments to current market conditions while preparing to capitalize on future demand growth.
KB Home (KBH - Free Report) reported second-quarter fiscal 2025 results wherein earnings and total revenues surpassed the Zacks Consensus Estimate. However, both metrics decreased on a year-over-year basis.
The quarter’s result reflects the softness in the housing market as homebuyers are still navigating through affordability concerns due to high mortgage rates. Owing to these market uncertainties and a lower net orders level at the end of the quarter, KB Home lowered its fiscal 2025 guidance. Although market conditions have softened, it remains focused on managing assets efficiently. Going forward, KB Home aims to maintain pricing clarity, enhance buyer value and support margins and returns.