NVR, Inc. Announces Third Quarter Results

NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2023 of $433.2 million, or $125.26 per diluted share.  Net income and diluted earnings per share for the third quarter ended September 30, 2023 increased 5% and 6%, respectively, when compared to 2022 third quarter net income of $411.4 million, or $118.51 per diluted share.  Consolidated revenues for the third quarter of 2023 totaled $2.57 billion, which decreased 7% from $2.78 billion in the third quarter of 2022. 

For the nine months ended September 30, 2023, consolidated revenues were $7.09 billion, a 9% decrease from $7.81 billion reported in 2022. Net income for the nine months ended September 30, 2023 was $1.18 billion, a decrease of 7% when compared to net income for the nine months ended September 30, 2022 of $1.27 billion. Diluted earnings per share for the nine months ended September 30, 2023 was $341.97, a decrease of 5% from $358.61 per diluted share for 2022.

Homebuilding

New orders in the third quarter of 2023 increased by 7% to 4,746 units, when compared to 4,421 units in the third quarter of 2022. The average sales price of new orders in the third quarter of 2023 was $456,100, an increase of 1% when compared with the third quarter of 2022.  The cancellation rate in the third quarter of 2023 was 14% compared to 15% in the third quarter of 2022.  Settlements in the third quarter of 2023 decreased by 6% to 5,606 units, compared to 5,949 units in the third quarter of 2022. The average settlement price in the third quarter of 2023 was $448,000, a decrease of 3% when compared with the third quarter of 2022. Our backlog of homes sold but not settled as of September 30, 2023 decreased on a unit basis by 4% to 10,371 units and decreased on a dollar basis by 6% to $4.80 billion when compared to the respective backlog unit and dollar balances as of September 30, 2022.

Homebuilding revenues of $2.51 billion in the third quarter of 2023 decreased by 8% compared to homebuilding revenues of $2.74 billion in the third quarter of 2022.  Gross profit margin in the third quarter of 2023 increased to 24.3%, compared to 23.6% in the third quarter of 2022.  Income before tax from the homebuilding segment totaled $500.8 million in the third quarter of 2023, a decrease of 4% when compared to the third quarter of 2022.

Mortgage Banking

Mortgage closed loan production in the third quarter of 2023 totaled $1.62 billion, a decrease of 2% when compared to the third quarter of 2022.  Income before tax from the mortgage banking segment totaled $38.5 million in the third quarter of 2023, an increase of 119% when compared to $17.6 million in the third quarter of 2022.  This increase was primarily attributable to an increase in secondary marketing gains on sales of loans.

Effective Tax Rate

Our effective tax rate for the three and nine months ended September 30, 2023 was 19.7% and 18.2%, respectively, compared to 23.6% and 24.3% for the three and nine months ended September 30, 2022, respectively.  The decrease in the effective tax rate in each period is primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $31.9 million and $111.0 million for the three and nine months ended September 30, 2023, respectively, and $10.6 million and $27.7 million for the three and nine months ended September 30, 2022, respectively.

For the complete press release, click here.

About NVR

NVR, Inc. operates in two business segments:  homebuilding and mortgage banking.  The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-five metropolitan areas in fifteen states and Washington, D.C.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com
and www.heartlandluxuryhomes.com.

Contact:

Curt McKay – Investor Relations – ir@nvrinc.com – (703) 956-4058

Source: NVR, Inc.