NVR shares have dropped over 15% since December, Q1 earnings missed expectations significantly, with gross margins pressured by higher lot costs and pricing competition. The company is well run but gets sparse coverage from Wall Street despite a higher than $20 billion market capitalization. Recent quarterly results highlighted several trends that are negatively impacting the home building industry in 2025.
RESTON, Va. , May 6, 2025 /PRNewswire/ -- NVR, Inc. (NYSE: NVR) announced today that its Board of Directors has authorized the repurchase of up to an aggregate of $750 million of its outstanding common stock.
NVR faces significant macro headwinds, with declining community count, order book, and rising cancellations indicating weak forward sales momentum and pressure on profitability. 1Q25 results show cracks with a modest revenue increase but notable declines in net income, EPS, and gross profit margin due to higher lot costs and pricing pressure. The macro environment, including elevated mortgage rates and inflation, is creating a tough setup, leading to increased cancellations and the need for heavier incentives.
Residential Construction Industry | Consumer Cyclical Sector | Eugene James Bredow CEO | XDUS Exchange | US62944T1051 ISIN |
US Country | 7,000 Employees | - Last Dividend | 1 Oct 1993 Last Split | 25 Jun 1987 IPO Date |
NVR, Inc., established in 1980 and headquartered in Reston, Virginia, is a prominent homebuilder operating across the United States. The company’s operations are segmented into Homebuilding and Mortgage Banking, serving a diverse clientele through high-quality construction and real estate financing services. NVR, Inc. focuses on delivering single-family detached homes, townhomes, and condominiums primarily under the flagship brands of Ryan Homes, NVHomes, and Heartland Homes. Their market presence spans several key areas, including Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C., positioning NVR, Inc. as a leading figure in the national homebuilding sector.
NVR, Inc.’s core business focuses on constructing and selling single-family detached homes, townhomes, and condominiums. These houses are marketed under three premier brands:
Moreover, the company extends various mortgage-related services to its homebuilding customers to streamline the homebuying process. These services encompass: