NVR · Q2 2025 Earnings

Cautious

NVR, Inc.

Reported July 23, 2025

30-second summary

Homebuilding revenue was flat YoY at $2.55B while new orders fell 11% to 5,379 units and gross margin compressed to 21.5% — every major geography posted double-digit order declines except the South East. With no earnings call or management commentary available, the print speaks for itself: NVR is absorbing weaker demand and pricing pressure to move units, and the backlog is shrinking.

Headline numbers

EPS

Q2 FY2025

$108.54

Revenue

Q2 FY2025

$2.60B

-0.4% YoY

Gross margin

Q2 FY2025

21.5%

Key financials

Q2 FY2025

Metric	Q2 FY2025	YoY
Revenue	$2.60B	-0.4%
EPS	$108.54	—
Gross margin	21.5%	—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q2 FY2025

Segment	Q2 FY2025	YoY
Homebuilding	$2.548B	—
Mortgage Banking	$0.052B	-22.0%

Platform metrics

Q2 FY2025

Segment	Q2 FY2025
New orders (units)	5,379
New order cancellation rate	17.0%
Settlements (units)	5,475
Average settlement price	$465,400
Backlog (units)	10,069
Backlog (dollar value)	$4.75B
Mortgage closed loan production	$1.56B
Mortgage capture rate	87%

Management tone

No earnings call or transcript was available for this quarter, so management commentary cannot be assessed. NVR's release is numerical-only by company practice.

What to watch into next quarter

Whether new orders return to YoY growth in any region. A second consecutive quarter of double-digit declines in Mid Atlantic / Mid East would signal the slowdown is structural for 2025, not a rate-cycle blip.

Homebuilding gross margin trajectory. 21.5% this quarter is well below the 23–24% range NVR ran at in 2024. Watch whether it stabilizes or steps down further as incentive intensity persists.

Backlog dollars vs. units. Average settlement price of $465,400 has held; if pricing softens while units shrink, the dollar backlog could compress faster than the unit count suggests.

Cancellation rate trend. 17.0% is elevated for NVR's historical norm in the low-to-mid teens; a move toward 20% would flag buyer stress.

Mortgage Banking fee recovery. Down 22% YoY this quarter — a stabilization here would suggest the rate-driven origination drag has bottomed.

Sources

NVR, Inc. Q2 2025 Earnings Release — https://www.sec.gov/Archives/edgar/data/906163/000090616325000080/q22025ex991_earningsrelease.htm

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