RESTON,
Va., Jan. 28, 2025 /PRNewswire/ -- NVR,
Inc. (NYSE: NVR), one of the nation's largest homebuilding and
mortgage banking companies, announced net income for its fourth
quarter ended December 31, 2024 of $457.4 million, or $139.93 per diluted share. For the fourth quarter
ended December 31, 2024, net income increased 12% and diluted
earnings per share increased 15%, when compared to 2023 fourth
quarter net income of $410.1 million,
or $121.56 per diluted share.
Consolidated revenues for the fourth quarter of 2024 totaled
$2.85 billion, which increased 17%
from $2.43 billion in the fourth
quarter of 2023.
For the year ended December 31,
2024, consolidated revenues were $10.52 billion, an 11% increase from $9.52 billion reported for the same period of
2023. Net income for the year ended December
31, 2024 was $1.68 billion, an
increase of 6% when compared to net income for the year ended
December 31, 2023 of $1.59 billion. Diluted earnings per share for the
year ended December 31, 2024 was
$506.69, an increase of 9% from
$463.31 per diluted share for the
same period of 2023.
Homebuilding
New orders in the fourth quarter of 2024 decreased by 8% to
4,794 units, when compared to 5,190 units in the fourth quarter of
2023. The average sales price of new orders in the fourth quarter
of 2024 was $469,000, an increase of
4% when compared with the fourth quarter of 2023. The
cancellation rate in the fourth quarter of 2024 was 17% compared to
13% in the fourth quarter of 2023. Settlements in the fourth
quarter of 2024 increased by 16% to 6,180 units, compared to 5,332
units in the fourth quarter of 2023. The average settlement price
in the fourth quarter of 2024 was $450,000, which was relatively flat when compared
with the fourth quarter of 2023. Our backlog of homes sold but not
settled as of December 31, 2024 decreased on a unit basis by
3% to 9,953 units and increased on a dollar basis by 1% to
$4.79 billion when compared to the
respective backlog unit and dollar balances as of December 31,
2023.
Homebuilding revenues of $2.78
billion in the fourth quarter of 2024 increased by 16%
compared to homebuilding revenues of $2.39
billion in the fourth quarter of 2023. Gross profit
margin in the fourth quarter of 2024 decreased to 23.6%, from 24.1%
in the fourth quarter of 2023. Income before tax from the
homebuilding segment totaled $526.7
million in the fourth quarter of 2024, an increase of 16%
when compared to the fourth quarter of 2023.
New orders for the year ended December
31, 2024 increased by 4% to 22,560 units, compared to 21,729
units in 2023. Settlements for the year ended December 31, 2024 increased by 11% to 22,836
units, compared to 20,662 units settled in 2023. Homebuilding
revenues for the year ended December 31,
2024 totaled $10.29 billion,
an 11% increase from 2023. Gross profit margin for the year ended
December 31, 2024 decreased to 23.7%,
compared to 24.3% in 2023. Income before tax for the homebuilding
segment increased 9% for the year ended December 31, 2024 to $1.96
billion, compared to $1.80
billion in 2023.
Mortgage Banking
Mortgage closed loan production in the fourth quarter of 2024
totaled $1.70 billion, an increase of
13% when compared to the fourth quarter of 2023. Income
before tax from the mortgage banking segment totaled $45.9 million in the fourth quarter of 2024, an
increase of 55% when compared to $29.7
million in the fourth quarter of 2023. This increase was
primarily attributable to an increase in secondary marketing gains
on sales of loans.
Mortgage closed loan production for the year ended December 31, 2024 increased 9% to $6.26 billion. Income before tax from the
mortgage banking segment for the year ended December 31, 2024 increased 17% to $154.9 million from $132.8
million in 2023.
Effective Tax Rate
Our effective tax rate for the three and twelve months ended
December 31, 2024 was 20.1% and 20.5%, respectively, compared
to 15.3% and 17.5% for the three and twelve months ended
December 31, 2023, respectively. The increase in the
effective tax rate in each period is primarily attributable to a
lower income tax benefit recognized for excess tax benefits from
stock option exercises, which totaled $21.3
million and $95.1 million for
the three and twelve months ended December 31, 2024,
respectively, compared to $42.5
million and $153.6 million for
the three and twelve months ended December 31, 2023,
respectively.
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-six metropolitan areas in sixteen 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.
Some of the statements in this release made by the Company
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Certain, but not
necessarily all, of such forward-looking statements can be
identified by the use of forward-looking terminology, such as
"believes," "expects," "may," "will," "should" or "anticipates" or
the negative thereof or other comparable terminology. All
statements other than of historical facts are forward-looking
statements. Forward-looking statements contained in this
document may include those regarding market trends, NVR's financial
position and financial results, business strategy, the outcome of
pending litigation, investigations or similar contingencies,
projected plans and objectives of management for future
operations. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results or performance of NVR to be materially different
from future results, performance or achievements expressed or
implied by the forward-looking statements. Such risk factors
include, but are not limited to the following: general economic and
business conditions (on both a national and regional level);
interest rate changes; access to suitable financing by NVR and
NVR's customers; increased regulation in the mortgage banking
industry; the ability of our mortgage banking subsidiary to sell
loans it originates into the secondary market; competition; the
availability and cost of land and other raw materials used by NVR
in its homebuilding operations; shortages of labor; the economic
impact of a major epidemic or pandemic; weather related slow-downs;
building moratoriums; governmental regulation; fluctuation and
volatility of stock and other financial markets; mortgage financing
availability; and other factors over which NVR has little or no
control. NVR undertakes no obligation to update such
forward-looking statements except as required by law.
NVR,
Inc.
|
Consolidated Statements
of Income
|
(in thousands, except
per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
2,780,717
|
|
$
2,387,094
|
|
$
10,292,425
|
|
$
9,314,605
|
Other
income
|
|
33,094
|
|
40,891
|
|
143,890
|
|
148,010
|
Cost of
sales
|
|
(2,125,633)
|
|
(1,812,968)
|
|
(7,850,549)
|
|
(7,051,198)
|
Selling, general and
administrative
|
|
(154,714)
|
|
(154,086)
|
|
(598,207)
|
|
(588,962)
|
Operating
income
|
|
533,464
|
|
460,931
|
|
1,987,559
|
|
1,822,455
|
Interest
expense
|
|
(6,774)
|
|
(6,618)
|
|
(26,988)
|
|
(26,875)
|
Homebuilding
income
|
|
526,690
|
|
454,313
|
|
1,960,571
|
|
1,795,580
|
|
|
|
|
|
|
|
|
|
Mortgage
Banking:
|
|
|
|
|
|
|
|
|
Mortgage banking
fees
|
|
64,891
|
|
45,476
|
|
232,054
|
|
203,597
|
Interest
income
|
|
5,600
|
|
4,779
|
|
19,092
|
|
16,687
|
Other
income
|
|
1,562
|
|
1,189
|
|
5,480
|
|
4,449
|
General and
administrative
|
|
(25,870)
|
|
(21,537)
|
|
(100,896)
|
|
(91,075)
|
Interest
expense
|
|
(239)
|
|
(173)
|
|
(795)
|
|
(865)
|
Mortgage banking
income
|
|
45,944
|
|
29,734
|
|
154,935
|
|
132,793
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
572,634
|
|
484,047
|
|
2,115,506
|
|
1,928,373
|
Income tax
expense
|
|
(115,202)
|
|
(73,972)
|
|
(433,578)
|
|
(336,762)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
457,432
|
|
$
410,075
|
|
$
1,681,928
|
|
$
1,591,611
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
$
149.84
|
|
$
128.46
|
|
$
540.88
|
|
$
491.52
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
139.93
|
|
$
121.56
|
|
$
506.69
|
|
$
463.31
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
3,053
|
|
3,192
|
|
3,110
|
|
3,238
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
3,269
|
|
3,373
|
|
3,319
|
|
3,435
|
NVR,
Inc.
|
Consolidated Balance
Sheets
|
(in thousands, except
share and per share data)
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,561,339
|
|
$
3,126,472
|
Restricted
cash
|
|
42,172
|
|
41,483
|
Receivables
|
|
32,622
|
|
29,000
|
Inventory:
|
|
|
|
|
Lots and housing
units, covered under sales agreements with customers
|
|
1,727,243
|
|
1,674,686
|
Unsold lots and
housing units
|
|
237,177
|
|
214,666
|
Land under
development
|
|
65,394
|
|
36,895
|
Building materials and
other
|
|
28,893
|
|
23,903
|
|
|
2,058,707
|
|
1,950,150
|
|
|
|
|
|
Contract land
deposits, net
|
|
726,675
|
|
576,551
|
Property, plant and
equipment, net
|
|
95,619
|
|
63,716
|
Operating lease
right-of-use assets
|
|
78,340
|
|
70,384
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
41,580
|
|
41,580
|
Deferred tax assets,
net
|
|
142,192
|
|
148,005
|
Other
assets
|
|
108,986
|
|
94,746
|
|
|
5,888,232
|
|
6,142,087
|
Mortgage
Banking:
|
|
|
|
|
Cash and cash
equivalents
|
|
49,636
|
|
36,422
|
Restricted
cash
|
|
11,520
|
|
11,067
|
Mortgage loans held
for sale, net
|
|
355,209
|
|
222,560
|
Property and
equipment, net
|
|
7,373
|
|
6,348
|
Operating lease
right-of-use assets
|
|
23,482
|
|
23,541
|
Reorganization value
in excess of amounts allocable to identifiable assets,
net
|
|
7,347
|
|
7,347
|
Other
assets
|
|
38,189
|
|
152,385
|
|
|
492,756
|
|
459,670
|
Total
assets
|
|
$
6,380,988
|
|
$
6,601,757
|
|
|
|
|
|
NVR,
Inc.
|
Consolidated Balance
Sheets (Continued)
|
(in thousands, except
share and per share data)
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
(unaudited)
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
|
$
332,772
|
|
$
347,738
|
Accrued expenses and
other liabilities
|
|
441,300
|
|
413,043
|
Customer
deposits
|
|
322,926
|
|
334,441
|
Operating lease
liabilities
|
|
83,939
|
|
75,797
|
Senior
notes
|
|
911,118
|
|
913,027
|
|
|
2,092,055
|
|
2,084,046
|
Mortgage
Banking:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
53,433
|
|
127,511
|
Operating lease
liabilities
|
|
25,428
|
|
25,475
|
|
|
78,861
|
|
152,986
|
Total
liabilities
|
|
2,170,916
|
|
2,237,032
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock, $0.01
par value; 60,000,000 shares authorized; 20,555,330 shares
issued as of both December 31, 2024 and December 31,
2023
|
|
206
|
|
206
|
Additional paid-in
capital
|
|
3,031,637
|
|
2,848,528
|
Deferred compensation
trust – 106,697 shares of NVR, Inc. common stock as of
both December 31, 2024 and December 31, 2023
|
|
(16,710)
|
|
(16,710)
|
Deferred compensation
liability
|
|
16,710
|
|
16,710
|
Retained
earnings
|
|
15,046,953
|
|
13,365,025
|
Less treasury stock at
cost – 17,543,686 and 17,360,454 shares as of December
31, 2024 and December 31, 2023, respectively
|
|
(13,868,724)
|
|
(11,849,034)
|
Total shareholders'
equity
|
|
4,210,072
|
|
4,364,725
|
Total liabilities
and shareholders' equity
|
|
$
6,380,988
|
|
$
6,601,757
|
|
|
|
|
|
NVR,
Inc.
|
Operating
Activity
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
New orders, net
of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
1,726
|
|
$
547.1
|
|
2,029
|
|
$
500.9
|
|
8,511
|
|
$
527.3
|
|
8,434
|
|
$
515.5
|
North East
(2)
|
|
453
|
|
$
639.9
|
|
526
|
|
$
597.7
|
|
1,994
|
|
$
622.4
|
|
1,879
|
|
$
573.2
|
Mid East
(3)
|
|
1,024
|
|
$
419.6
|
|
942
|
|
$
412.2
|
|
4,654
|
|
$
408.0
|
|
4,514
|
|
$
396.5
|
South East
(4)
|
|
1,591
|
|
$
367.4
|
|
1,693
|
|
$
366.9
|
|
7,401
|
|
$
364.6
|
|
6,902
|
|
$
366.4
|
Total
|
|
4,794
|
|
$
469.0
|
|
5,190
|
|
$
450.9
|
|
22,560
|
|
$
457.7
|
|
21,729
|
|
$
448.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
Settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
2,143
|
|
$
524.8
|
|
2,008
|
|
$
519.5
|
|
8,537
|
|
$
518.1
|
|
8,032
|
|
$
521.5
|
North East
(2)
|
|
522
|
|
$
617.7
|
|
465
|
|
$
567.1
|
|
1,967
|
|
$
592.6
|
|
1,736
|
|
$
546.2
|
Mid East
(3)
|
|
1,242
|
|
$
410.3
|
|
1,126
|
|
$
391.3
|
|
4,585
|
|
$
406.0
|
|
4,391
|
|
$
392.4
|
South East
(4)
|
|
2,273
|
|
$
362.5
|
|
1,733
|
|
$
368.9
|
|
7,747
|
|
$
366.7
|
|
6,503
|
|
$
377.2
|
Total
|
|
6,180
|
|
$
450.0
|
|
5,332
|
|
$
447.6
|
|
22,836
|
|
$
450.7
|
|
20,662
|
|
$
450.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Average
Price
|
|
Units
|
|
Average
Price
|
|
|
|
|
|
|
|
|
Backlog:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
4,068
|
|
$
541.6
|
|
4,094
|
|
$
522.5
|
|
|
|
|
|
|
|
|
North East
(2)
|
|
1,055
|
|
$
658.1
|
|
1,028
|
|
$
602.0
|
|
|
|
|
|
|
|
|
Mid East
(3)
|
|
2,045
|
|
$
416.5
|
|
1,976
|
|
$
412.1
|
|
|
|
|
|
|
|
|
South East
(4)
|
|
2,785
|
|
$
374.3
|
|
3,131
|
|
$
378.4
|
|
|
|
|
|
|
|
|
Total
|
|
9,953
|
|
$
481.4
|
|
10,229
|
|
$
465.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NVR,
Inc.
|
Operating Activity
(Continued)
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Average active
communities:
|
|
|
|
|
|
|
|
|
Mid Atlantic
(1)
|
|
132
|
|
167
|
|
147
|
|
166
|
North East
(2)
|
|
29
|
|
36
|
|
31
|
|
36
|
Mid East
(3)
|
|
104
|
|
105
|
|
101
|
|
110
|
South East
(4)
|
|
161
|
|
130
|
|
148
|
|
115
|
Total
|
|
426
|
|
438
|
|
427
|
|
427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Homebuilding
data:
|
|
|
|
|
|
|
|
|
New order cancellation
rate
|
|
16.9 %
|
|
13.0 %
|
|
14.2 %
|
|
12.8 %
|
Lots controlled at end
of period
|
|
|
|
|
|
162,400
|
|
141,500
|
|
|
|
|
|
|
|
|
|
Mortgage banking
data:
|
|
|
|
|
|
|
|
|
Loan
closings
|
|
$
1,695,831
|
|
$
1,496,003
|
|
$
6,260,428
|
|
$
5,736,532
|
Capture
rate
|
|
86 %
|
|
88 %
|
|
86 %
|
|
87 %
|
|
|
|
|
|
|
|
|
|
Common stock
information:
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
|
|
|
|
|
3,011,644
|
|
3,194,876
|
Number of shares
repurchased
|
|
64,216
|
|
46,748
|
|
256,871
|
|
181,499
|
Aggregate cost of
shares repurchased
|
|
$
564,315
|
|
$
286,428
|
|
$
2,057,677
|
|
$
1,081,815
|
|
|
(1)
|
Maryland, Virginia,
West Virginia, Delaware and Washington, D.C.
|
(2)
|
New Jersey and Eastern
Pennsylvania
|
(3)
|
New York, Ohio, Western
Pennsylvania, Indiana and Illinois
|
(4)
|
North Carolina, South
Carolina, Tennessee, Florida, Georgia and Kentucky
|
View original
content:https://www.prnewswire.com/news-releases/nvr-inc-announces-fourth-quarter-and-full-year-results-302361306.html
SOURCE NVR, INC.