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RESTON, Va. - On Wednesday, NVR, Inc. (NYSE:NVR) reported third-quarter earnings that exceeded analyst expectations, despite facing challenges in the housing market. The homebuilder posted earnings of $112.33 per diluted share, surpassing the analyst estimate of $109.36, while revenue came in at $2.56 billion, slightly above the consensus estimate of $2.55 billion.
Despite the earnings beat, NVR’s financial performance showed a significant decline compared to the same period last year. Net income fell 20% to $342.7 million from $429.3 million in the third quarter of 2024, while revenue decreased 4% from $2.68 billion.
New orders declined 16% to 4,735 units compared to 5,650 units in the prior-year quarter, while the cancellation rate increased to 19% from 15% a year ago. Settlements decreased 5% to 5,639 units. The company’s backlog of homes sold but not settled decreased 19% on a unit basis to 9,165 units and 17% on a dollar basis to $4.39 billion compared to the same period last year.
Gross profit margin contracted to 21.0% from 23.4% in the third quarter of 2024, negatively impacted by higher lot costs, pricing pressure due to affordability challenges, and contract land deposit impairments totaling approximately $18.9 million.
For the first nine months of 2025, NVR reported consolidated revenues of $7.61 billion, a 1% decrease from the same period in 2024, while net income fell 20% to $976.0 million.
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