NVRMEDIUM SIGNALFINANCIAL10-K

NVR experienced a notable decline in profitability with net income falling 20% alongside reduced operating cash flow, while maintaining active share repurchase programs.

The earnings decline suggests NVR faced margin pressure or volume challenges in fiscal 2025, which is concerning for a mature homebuilder. However, the company's continued substantial share buyback activity of $1.8 billion indicates management confidence in the business fundamentals and commitment to returning capital to shareholders.

Comparing 2026-02-11 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

NVR's financial performance weakened materially in fiscal 2025, with net income declining 20% to $1.3 billion and operating cash flow falling 18% to $1.1 billion. Despite these headwinds, the company maintained an aggressive capital return strategy with $1.8 billion in share buybacks, though at a modestly reduced level from the prior year. The overall picture suggests operational challenges in a difficult housing market environment, but management appears committed to shareholder returns and business investment.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-20.3%
$1.7B→$1.3B

Net income declined 20.3% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
-18.4%
$1.4B→$1.1B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Share Buybacks
Cash Flow
-10.9%
$2.1B→$1.8B

Buyback activity reduced 10.9% — capital being redeployed elsewhere or cash conservation underway.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-12
ADDED
s most recently completed second fiscal quarter, was approximately $ 20,284,815,000 .
As of February 9, 2026 there were 2,793,760 total shares of common stock outstanding.
We operate in thirty-seven metropolitan areas in sixteen states, and Washington, D.C.
Once we acquire control of raw ground, we generally sell the raw parcel to a developer and enter into an LPA with the developer to purchase the finished lots or, on a limited basis, hire a developer to develop the land on our behalf.
Our homes combine traditional, transitional, cottage or urban exterior designs with contemporary interior designs and amenities, generally include two to five bedrooms and range from approximately 900 to 7,000 finished square feet.
During 2025, the prices at which we settled homes ranged from approximately $170,000 to $2.3 million.
The average price of homes settled was $460,600 and $450,700 in 2025 and 2024, respectively.
The average price of homes in backlog decreased to $474,400 as of December 31, 2025 from $481,400 as of December 31, 2024.
During the four quarters of each of 2025, 2024 and 2023, approximately 6%, 5% and 4% of a reporting quarter s opening backlog, respectively, cancelled during the quarter.
Other than those units that are cancelled, we expect to settle substantially all of our December 31, 2025 backlog during 2026.
REMOVED
s most recently completed second fiscal quarter, was approximately $ 22,402,443,000 .
As of February 10, 2025 there were 2,990,451 total shares of common stock outstanding.
We operate in thirty-six metropolitan areas in sixteen states, and Washington, D.C.
Our homes combine traditional, transitional, cottage or urban exterior designs with contemporary interior designs and amenities, generally include two to four bedrooms and range from approximately 1,000 to 9,000 finished square feet.
During 2024, the prices at which we settled homes ranged from approximately $190,000 to $2.3 million.
The average price of homes settled was $450,700 in both 2024 and 2023.
The average price of homes in backlog increased to $481,400 as of December 31, 2024 from $465,000 as of December 31, 2023.
During the four quarters of each of 2024, 2023 and 2022, approximately 5% in 2024, 4% in 2023 and 4% in 2022 of a reporting quarter s opening backlog cancelled during the quarter.
Other than those units that are cancelled, we expect to settle substantially all of our December 31, 2024 backlog during 2025.
The garages of these model homes are usually converted into temporary sales centers where alternative facades and floor plans are displayed and designs for other models are available for review.
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