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NVR's Q4 Earnings & Homebuilding Revenues Top Estimates, Both Down Y/Y
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Key Takeaways
NVR's Q4 EPS and homebuilding revenues beat estimates, but both declined year over year.
Settlements and backlog fell Y/Y, reflecting affordability pressures despite modest order growth.
Strong liquidity and buybacks support returns, even as housing demand remains cautious.
NVR, Inc. (NVR - Free Report) reported better-than-expected fourth-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Conversely, both earnings and Homebuilding revenues declined on a year-over-year basis.
The quarter’s performance highlights 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 were up compared with the prior-year quarter.
Backlog units fell year over year, indicating continued caution among homebuyers, but the slight improvement in net new orders advocates optimism.
NVR stock gained 1.7% during yesterday’s trading hours and inched up 0.3% in the after-hours.
Inside NVR’s Q4 Headlines
The company reported earnings of $121.54 per share, topping the Zacks Consensus Estimate of $104.96 by 15.8%. Contrarily, the reported figure decreased 13% from the prior-year quarter’s earnings of $139.93 per share.
Homebuilding revenues of $2.635 billion also surpassed the consensus mark of $2.375 billion by 12%. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.713 billion, down 4.7% on a year-over-year basis.
Homebuilding: Segment revenues declined 5.2% year over year. Settlements in the quarter were down 8.3% year over year to 5,668 units. Our model predicted settlements to decline 18% year over year to 5,067 units. The ASP for settlements increased year over year by 3.3% to $464,900. Our estimate for the metric was $461,200.
The gross margin contracted 320 basis points year over year to 20.4%. Our estimate for the metric was 21.1%. The decline primarily reflects higher lot costs, pricing pressure stemming from ongoing affordability challenges and contract land deposit impairments totaling approximately $35.7 million.
New orders improved 3.3% from the prior-year quarter’s level to 4,951 units. However, the ASP of new orders decreased 3.2% year over year at $454,200. Our model predicted the ASP of new orders at $476,600. The cancellation rate inched down to 16.6% from 16.9% a year ago.
On a unit basis, backlog at the end of Dec. 31, 2025, decreased 15.1% to 8,448 homes and 16% to $4.01 billion on a dollar basis from the prior-year quarter’s figure.
The average number of active communities was 432 in the quarter, up from 427 reported a year ago.
Mortgage Banking: Mortgage banking fees grew 19.3% year over year to $77.4 million. Mortgage closed loan production totaled $1.51 billion, down 11% year over year. The capture rate was 84% in the fourth quarter, down from 86% in the year-ago quarter.
NVR’s 2025 Highlights
Homebuilding revenues in 2025 were down 1.9% year over year to $10.09 billion, with earnings per share of $436.55, a downturn of 13.8%.
Mortgage banking fees were down 1% to $229.7 million from $232.1 million in 2024.
NVR’s Financials
As of Dec. 31, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.88 billion and $32.6 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.
During 2025, NVR repurchased 243,082 shares for $1.82 billion. At the end of Dec. 31, 2025, the company had 2,799,387 shares outstanding.
D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected first-quarter fiscal 2026 (ended Dec. 31, 2025) results, with earnings and total revenues beating the Zacks Consensus Estimate. However, on a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings. D.R. Horton expects affordability constraints and cautious consumer sentiment to continue to impact new housing demand. It expects consolidated revenues to be in the range of $33.5-$35 billion, with homes closed within 86,000-88,000.
KB Home (KBH - Free Report) reported fourth-quarter fiscal 2025 results. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.
KB Home’s quarterly performance remained under pressure amid a challenging economic and geopolitical environment, with low consumer confidence, affordability concerns and a still-high mortgage rate continuing to constrain demand. In response to these headwinds, management has adopted a measured outlook for the first quarter and full fiscal year 2026. For the first quarter of fiscal 2026, the company is expecting housing revenues to be in the $1.05-$1.15 billion band, down from $1.39 billion reported in the year-ago period. It expects deliveries to be in the range of 2,300-2,500 homes compared with 2,770 homes delivered in the year-ago period.
Lennar Corporation (LEN - Free Report) reported mixed results for the fourth quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate, while total revenues beat the same. Meanwhile, both metrics tumbled on a year-over-year basis.
Lennar’s quarterly performance was hurt by a still-challenging housing market, as affordability issues and buyer uncertainty kept demand weak. A six-week government shutdown and softer market conditions added further pressure. In response, the company remained focused on maintaining volumes, adapting to evolving conditions, reducing costs and supporting long-term housing demand rather than reacting to short-term volatility. For the first quarter of fiscal 2026, Lennar expects deliveries to be in the range of 17,000-18,000 homes compared with 17,834 homes delivered in the year-ago period.
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NVR's Q4 Earnings & Homebuilding Revenues Top Estimates, Both Down Y/Y
Key Takeaways
NVR, Inc. (NVR - Free Report) reported better-than-expected fourth-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Conversely, both earnings and Homebuilding revenues declined on a year-over-year basis.
The quarter’s performance highlights 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 were up compared with the prior-year quarter.
Backlog units fell year over year, indicating continued caution among homebuyers, but the slight improvement in net new orders advocates optimism.
NVR stock gained 1.7% during yesterday’s trading hours and inched up 0.3% in the after-hours.
Inside NVR’s Q4 Headlines
The company reported earnings of $121.54 per share, topping the Zacks Consensus Estimate of $104.96 by 15.8%. Contrarily, the reported figure decreased 13% from the prior-year quarter’s earnings of $139.93 per share.
Homebuilding revenues of $2.635 billion also surpassed the consensus mark of $2.375 billion by 12%. Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.713 billion, down 4.7% on a year-over-year basis.
NVR, Inc. Price, Consensus and EPS Surprise
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Segment Details of NVR
Homebuilding: Segment revenues declined 5.2% year over year. Settlements in the quarter were down 8.3% year over year to 5,668 units. Our model predicted settlements to decline 18% year over year to 5,067 units. The ASP for settlements increased year over year by 3.3% to $464,900. Our estimate for the metric was $461,200.
The gross margin contracted 320 basis points year over year to 20.4%. Our estimate for the metric was 21.1%. The decline primarily reflects higher lot costs, pricing pressure stemming from ongoing affordability challenges and contract land deposit impairments totaling approximately $35.7 million.
New orders improved 3.3% from the prior-year quarter’s level to 4,951 units. However, the ASP of new orders decreased 3.2% year over year at $454,200. Our model predicted the ASP of new orders at $476,600. The cancellation rate inched down to 16.6% from 16.9% a year ago.
On a unit basis, backlog at the end of Dec. 31, 2025, decreased 15.1% to 8,448 homes and 16% to $4.01 billion on a dollar basis from the prior-year quarter’s figure.
The average number of active communities was 432 in the quarter, up from 427 reported a year ago.
Mortgage Banking: Mortgage banking fees grew 19.3% year over year to $77.4 million. Mortgage closed loan production totaled $1.51 billion, down 11% year over year. The capture rate was 84% in the fourth quarter, down from 86% in the year-ago quarter.
NVR’s 2025 Highlights
Homebuilding revenues in 2025 were down 1.9% year over year to $10.09 billion, with earnings per share of $436.55, a downturn of 13.8%.
Mortgage banking fees were down 1% to $229.7 million from $232.1 million in 2024.
NVR’s Financials
As of Dec. 31, 2025, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $1.88 billion and $32.6 million, respectively, compared with $2.56 billion and $49.6 million at 2024-end.
During 2025, NVR repurchased 243,082 shares for $1.82 billion. At the end of Dec. 31, 2025, the company had 2,799,387 shares outstanding.
NVR's Zacks Rank & Peer Releases
Currently, NVR carries 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 first-quarter fiscal 2026 (ended Dec. 31, 2025) results, with earnings and total revenues beating the Zacks Consensus Estimate. However, on a year-over-year basis, both metrics declined.
The continued housing market softness due to declining consumer confidence and affordability concerns marred the company’s quarterly performance, resulting in lower home closings. D.R. Horton expects affordability constraints and cautious consumer sentiment to continue to impact new housing demand. It expects consolidated revenues to be in the range of $33.5-$35 billion, with homes closed within 86,000-88,000.
KB Home (KBH - Free Report) reported fourth-quarter fiscal 2025 results. The quarter’s earnings and total revenues surpassed the Zacks Consensus Estimate but decreased on a year-over-year basis.
KB Home’s quarterly performance remained under pressure amid a challenging economic and geopolitical environment, with low consumer confidence, affordability concerns and a still-high mortgage rate continuing to constrain demand. In response to these headwinds, management has adopted a measured outlook for the first quarter and full fiscal year 2026. For the first quarter of fiscal 2026, the company is expecting housing revenues to be in the $1.05-$1.15 billion band, down from $1.39 billion reported in the year-ago period. It expects deliveries to be in the range of 2,300-2,500 homes compared with 2,770 homes delivered in the year-ago period.
Lennar Corporation (LEN - Free Report) reported mixed results for the fourth quarter of fiscal 2025, wherein its adjusted earnings missed the Zacks Consensus Estimate, while total revenues beat the same. Meanwhile, both metrics tumbled on a year-over-year basis.
Lennar’s quarterly performance was hurt by a still-challenging housing market, as affordability issues and buyer uncertainty kept demand weak. A six-week government shutdown and softer market conditions added further pressure. In response, the company remained focused on maintaining volumes, adapting to evolving conditions, reducing costs and supporting long-term housing demand rather than reacting to short-term volatility. For the first quarter of fiscal 2026, Lennar expects deliveries to be in the range of 17,000-18,000 homes compared with 17,834 homes delivered in the year-ago period.