NVR(US:NVR)2025-11-05 20:57Financial Performance - Homebuilding revenues for the three months ended September 30, 2025, were $2,560,343 thousand, a decrease of 4.4% compared to $2,677,640 thousand for the same period in 2024[15]. - Net income for the nine months ended September 30, 2025, was $976,001 thousand, down 20.2% from $1,224,496 thousand for the same period in 2024[18]. - Basic earnings per share for the three months ended September 30, 2025, were $119.26, a decrease of 14.6% compared to $139.65 for the same period in 2024[15]. - Total consolidated revenues for Q3 2025 were $2,609,505, a decrease of 4.5% compared to $2,732,951 in Q3 2024[58]. - Total segment profit for Q3 2025 was $386,614, a decrease of 20.0% from $483,008 in Q3 2024[61]. - The company reported a net income of $429,323 for the three months ended September 30, 2024, contributing to a total net income of $1,224,496 for the nine months ended September 30, 2024[48]. Assets and Liabilities - Total assets decreased from $6,380,988 thousand as of December 31, 2024, to $6,035,458 thousand as of September 30, 2025, representing a decline of approximately 5.4%[9]. - Total liabilities decreased from $2,170,916 thousand as of December 31, 2024, to $2,068,696 thousand as of September 30, 2025, a reduction of about 4.7%[12]. - Cash and cash equivalents at the end of the period decreased to $2,023,604 thousand from $2,568,667 thousand, a decline of approximately 21.4%[18]. - The carrying value of land under development as of September 30, 2025, was $38,017, down from $65,394 as of December 31, 2024[39]. - Total segment assets increased to $3,788,694 as of September 30, 2025, compared to $3,502,540 as of December 31, 2024, reflecting a growth of 8.2%[64]. Customer and Deposits - The company reported a decrease in customer deposits from $322,926 thousand as of December 31, 2024, to $277,351 thousand as of September 30, 2025, a decline of approximately 14.1%[12]. - The total risk of loss related to contract land deposits as of September 30, 2025, was approximately $872,323, up from $735,397 as of December 31, 2024[30]. - The allowance for losses on contract land deposits was $85.4 million as of September 30, 2025, compared to $58.6 million as of December 31, 2024[30]. Cash Flow and Operating Activities - The company’s cash flows from operating activities for the nine months ended September 30, 2025, were $681,592 thousand, a decrease of 7.6% from $737,412 thousand for the same period in 2024[18]. - The company incurred interest expense of $20,721 thousand for the nine months ended September 30, 2025, compared to $20,214 thousand for the same period in 2024, reflecting a slight increase of 2.5%[15]. - The company reported a net cash provided by operating activities of $681,592 thousand for the nine months ended September 30, 2025, compared to $737,412 thousand for the same period in 2024, a decrease of 7.6%[18]. Shareholder Equity and Stock Activity - Shareholders' equity increased to $3,966,762 thousand as of September 30, 2025, up from $3,845,131 thousand at June 30, 2025, reflecting a net income of $342,688 thousand during the quarter[46]. - The company repurchased 35,224 shares of common stock during the three months ended September 30, 2025, and 178,178 shares during the nine months ended September 30, 2025[46]. - The weighted average number of shares outstanding used to calculate basic earnings per share (EPS) for the three months ended September 30, 2025, was 2,873,501, down from 3,074,230 in 2024[43]. Mortgage Banking - Mortgage banking income for the nine months ended September 30, 2025, was $94,855 thousand, down 12.9% from $108,991 thousand for the same period in 2024[15]. - Mortgage banking income for the three months ended September 30, 2025, was $32,719 thousand, a decrease of 6.4% from $34,945 thousand in the same period of 2024[15]. - The company’s mortgage banking segment profit consists of revenues generated from mortgage financing, title insurance, and closing services, with no corporate capital allocation charge applied[55]. Impairment and Reserves - For the three months ended September 30, 2025, the company incurred pre-tax impairment charges on lot deposits of approximately $18,900, compared to $3,900 for the same period in 2024[28]. - Warranty Reserve decreased to $124,851 thousand at the end of September 2025 from $127,440 thousand at the beginning of the period, with provisions of $20,989 thousand and payments of $23,578 thousand during the quarter[51]. Tax and Lease Expenses - The effective tax rate for the three months ended September 30, 2025, was 22.8%, up from 20.3% in the same period of 2024[91]. - Operating lease expense for the three months ended September 30, 2025, was $10,835, compared to $10,078 for the same period in 2024[89]. - Cash paid for operating leases in the nine months ended September 30, 2025, was $24,659, compared to $23,466 in 2024[89]. Credit Facilities and Commitments - Senior Notes outstanding as of September 30, 2025, totaled $900,000, maturing on May 15, 2030, with an interest rate of 3.00%[77]. - The Amended Credit Agreement provides for a $300,000 senior unsecured revolving credit facility, maturing on March 11, 2030[81]. - Contractual commitments to extend credit to borrowers totaled $1,714,602 as of September 30, 2025[70].