AI Takeaway
NVR, Inc. reported a challenging FY2025 with revenue declining 1.9% to $10.32B and net income falling 20.3% to $1.34B, though the company maintained a strong balance sheet and continued returning capital to shareholders via $1.83B in share buybacks.
Revenue
$10.32B
-1.91% YoY
EPS (Basic)
$462.00
-14.58% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
NVR's total revenue fell 1.9% year-over-year from $10.52B to $10.32B in FY2025, reflecting softness in the homebuilding market likely driven by elevated mortgage rates and affordability pressures weighing on new home demand.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Net income dropped 20.3% from $1.68B to $1.34B, with net margin contracting to approximately 13.0% from an implied ~16.0% in the prior year, indicating meaningful cost pressures or pricing headwinds that outpaced the modest revenue decline.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating cash flow fell 18.4% to $1.12B from $1.37B, tracking the decline in net income, though the company still generated substantial free cash flow to fund its capital return program.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockNVR's revenue and profitability are highly sensitive to changes in mortgage interest rates, which directly affect housing affordability and buyer demand. The 1.9% revenue decline in FY2025 may reflect ongoing pressure from elevated rate environments. Sustained high rates could further suppress order volumes and pricing power.
Source: Source: 10-K Financial Data (XBRL)
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Upgrade to unlockReported EPS of $121.54 versus the $106.96 analyst consensus — a +13.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.32B | $10.52B | -1.91% |
Net Income | $1.34B | $1.68B | -20.34% |
EPS (Basic) | $462.00 | $540.88 | -14.58% |
EPS (Diluted) | $436.55 | $506.69 | -13.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.86B | $6.38B | -8.21% |
Total Liabilities | $1.99B | $2.17B | -8.24% |
Stockholders' Equity | $3.86B | $4.21B | -8.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.12B | $1.37B | -18.42% |
Investing Cash Flow | $-71.21M | $-26.55M | -168.17% |
Financing Cash Flow | $-1.76B | $-1.9B | +7.42% |
Share Buybacks | $1.83B | $2.06B | -10.90% |
D&A | $24.51M | $18.38M | +33.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 13.0% | — | — |
ROE | 34.7% | — | — |
ROA | 22.9% | — | — |
Debt to Equity | $0.515 | — | — |
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NVR had a difficult FY2025, with revenue declining 1.9% to $10.32B and net income falling a steeper 20.3% to $1.34B. The disproportionate earnings decline relative to revenue suggests significant margin compression, likely from cost pressures in the homebuilding business.
The key takeaways from NVR's FY2025 results are declining profitability, with net margin falling to ~13.0% from ~16.0%, and continued aggressive capital returns via $1.83B in share buybacks. Despite weaker earnings, NVR maintained a conservative balance sheet with a debt-to-equity ratio of just 0.52.
Yes, NVR repurchased $1.83B of its shares in FY2025, though this was down 10.9% from $2.06B in FY2024. The buybacks helped support diluted EPS of $436.55, which declined only 13.8% despite a 20.3% drop in net income.
NVR's FY2025 results highlight key risks including sensitivity to mortgage rate-driven demand weakness, ongoing margin compression where earnings fell far faster than revenue, and the sustainability of its large buyback program given that repurchases exceeded operating cash flow of $1.12B. The company's asset base also shrank 8.2%, which could limit its ability to ramp production in a recovery.
NVR remains financially sound with a low debt-to-equity ratio of 0.52, strong ROE of 34.7%, and ROA of 22.9%, reflecting its asset-light business model. However, the sharp 20.3% decline in net income and 18.4% drop in operating cash flow to $1.12B signal that near-term profitability is under meaningful pressure.