NVR(US:NVR) ZACKSยท2025-07-24 15:26Core Insights - NVR, Inc. reported better-than-expected second-quarter 2025 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate, although year-over-year earnings declined and Homebuilding revenues remained flat [1][4]. Financial Performance - Earnings per share were $108.54, exceeding the Zacks Consensus Estimate of $104.89 by 3.5%, but decreased 10.1% from the prior-year quarter's earnings of $120.69 [4][9]. - Homebuilding revenues reached $2.55 billion, surpassing the consensus mark of $2.4 billion by 6.1%, but were flat year over year [4][9]. - Consolidated revenues, including Homebuilding and Mortgage Banking fees, amounted to $2.60 billion, a slight decline of 0.4% year over year [4]. Homebuilding Segment Analysis - Homebuilding segment revenues were flat compared to the year-ago quarter, with settlements down 3% year over year to 5,475 units [5][9]. - The average selling price (ASP) for settlements increased by 3% year over year to $465,400, while gross margin contracted by 210 basis points to 21.5% [5][6]. - New orders decreased by 11% year over year to 5,379 units, with the ASP of new orders remaining flat at $458,100 [6][9]. Market Conditions - The results reflect ongoing affordability challenges for homebuyers amid macroeconomic risks and inflationary pressures, leading to a pullback in the Homebuilding segment [2][3]. - Backlog units and value weakened due to uncertainties in the housing market, with backlog decreasing 13% to 10,069 homes and $4.75 billion in value [6][9]. Mortgage Banking Performance - Mortgage banking fees fell 21.7% year over year to $50.5 million, while closed loan production totaled $1.56 billion, up 2% year over year [7][9]. - The capture rate improved to 87% in the second quarter, up from 86% in the prior year [7]. Shareholder Actions - During the first six months of 2025, NVR repurchased 142,954 shares for $1.05 billion, with 2,883,215 shares outstanding at the end of June 30, 2025 [10].