NVR(US:NVR)2025-04-22 17:10Financial Performance - Net income for Q1 2025 was $299.6 million, a decrease of 24% from $394.3 million in Q1 2024[2] - Consolidated revenues for Q1 2025 totaled $2.40 billion, an increase of 3% from $2.33 billion in Q1 2024[2] - Gross profit margin in Q1 2025 decreased to 21.9%, down from 24.5% in Q1 2024[4] - The effective tax rate for Q1 2025 was 25.5%, up from 16.2% in Q1 2024[6] Orders and Settlements - New orders in Q1 2025 decreased by 12% to 5,345 units compared to 6,049 units in Q1 2024[3] - Total new orders for Q1 2025 were 5,345 units with an average price of $448.5, a decrease of 11.6% in units from 6,049 units in Q1 2024 with an average price of $454.3[21] - Settlements in Q1 2025 totaled 5,133 units at an average price of $457.9, compared to 5,089 units in Q1 2024 with an average price of $449.2, indicating a slight increase in settlements[21] - Backlog of homes sold but not settled decreased by 9% to 10,165 units, and by 7% to $4.84 billion in dollar terms compared to Q1 2024[3] - The backlog as of March 31, 2025, was 10,165 units with an average price of $475.9, down from 11,189 units in the previous year with an average price of $466.4[21] Pricing and Market Trends - The average sales price of new orders in Q1 2025 was $448,500, a decrease of 1% from Q1 2024[3] - The average price for new orders in the North East region increased to $695.0 in Q1 2025 from $612.6 in Q1 2024, reflecting a significant price appreciation in that market[21] Mortgage Banking - Mortgage closed loan production in Q1 2025 totaled $1.43 billion, an increase of 4% from Q1 2024[5] - Income before tax from the mortgage banking segment increased by 12% to $32.5 million in Q1 2025[5] - Loan closings in mortgage banking reached $1,432,922 in Q1 2025, up from $1,378,009 in Q1 2024, reflecting a positive trend in mortgage activity[24] - The capture rate for mortgage banking remained stable at 86% for both Q1 2025 and Q1 2024, suggesting consistent performance in loan origination[24] Operational Metrics - The average active communities decreased to 401 in Q1 2025 from 427 in Q1 2024, reflecting a reduction in operational scale[24] - The new order cancellation rate increased to 16% in Q1 2025 from 13% in Q1 2024, indicating a rise in customer cancellations[24] - Lots controlled at the end of the period increased to 167,600 in Q1 2025 from 143,200 in Q1 2024, showing growth in land acquisition[24] Shareholder Returns - The company repurchased 77,120 shares at an aggregate cost of $583,394 in Q1 2025, compared to 66,858 shares for $496,936 in Q1 2024, indicating a commitment to returning value to shareholders[24]