tapebrief
NVR · Q3 2025

NVR · Q4 2025 Earnings

Cautious

NVR, Inc.

Reported January 28, 2026

30-second summary

Q4 homebuilding revenue fell 5% YoY to $2.64B and gross margin compressed to 20.4% — down 320bps from 23.6% in Q4-2024 — with management attributing the step-down to higher lot costs, affordability-driven pricing pressure, and ~$35.7M of contract land deposit impairments (FY impairments: ~$75.9M). Orders ticked up 3% YoY to 4,951 units and cancellations held at 16.6% (vs. 16.9% Q4-2024), but backlog is down 15% in units / 16% in dollars YoY to 8,448 units / $4.01B. Full-year revenue closed at $10.32B (-2%) with FY gross margin at 21.2% (vs. 23.7% in 2024). Demand metrics are stable-to-slightly-better; margin and backlog are the pressure points.

Headline numbers

EPS

Q4 FY2025

$121.54

Revenue

Q4 FY2025

$2.71B

-4.9% YoY

Gross margin

Q4 FY2025

20.4%

Key financials

Q4 FY2025
MetricQ4 FY2025YoYQ3 FY2025QoQ
Revenue$2.71B-4.9%$2.61B+3.8%
EPS$121.54—$112.33+8.2%
Gross margin20.4%—21.0%-60bps

Guidance

No comparable guidance available; unable to assess beat/miss or guidance raises/cuts.

No comparable guidance available; unable to assess beat/miss or guidance raises/cuts.

Segment performance

Q4 FY2025
SegmentQ4 FY2025YoY
Homebuilding$2.635B-5.2%
Mortgage Banking$0.083B+24.6%

Platform metrics

Q4 FY2025
SegmentQ4 FY2025
New Orders (units)4,951
New Order Cancellation Rate16.6%
Average Sales Price (New Orders)$454,200
Settlements (units)5,668
Average Settlement Price$464,900
Backlog Units8,448
Backlog Value$4.01 billion
Mortgage Loan Closings$1.51 billion

Management tone

No earnings call or transcript exists; NVR's disclosure is the numerical release only. What the print communicates without commentary: management is explicitly calling out lot costs, affordability-driven pricing pressure, and contract land deposit impairments ($35.7M Q4 / $75.9M FY) as the drivers of margin compression. Order count grew 3% YoY and cancellations held — but the cost of holding volume is showing up in the gross margin line.

Answers to last quarter's watch list

Whether cancellation rate breaches 20%. No. Cancellations were 16.6% in Q4 vs. 16.9% in Q4-2024 — comfortably below the 20% threshold.
Resolved positively
Homebuilding gross margin floor. Failed. Q4 gross margin printed 20.4% vs. 23.6% in Q4-2024 (-320bps YoY). The release explicitly cites ~$35.7M of Q4 contract land deposit impairments (and ~$75.9M FY) as a driver, alongside higher lot costs and affordability-related pricing pressure.
Resolved negatively
Backlog refill rate. Did not recover. Backlog is down 15% in units (8,448) and 16% in dollars ($4.01B) YoY, with Q4 settlements (5,668) exceeding orders (4,951) by ~720 units.
Resolved negatively
Settlement ASP vs. new order ASP gap. Settlement ASP rose 3% YoY to $464,900 while new order ASP fell 3% YoY to $454,200. NVR is pricing new orders below what backlog is clearing, consistent with using price to defend volume.
Resolved negatively
Whether any region returns to flat or positive orders. Yes, two regions. North East orders +20.1% YoY and Mid Atlantic +8.3% YoY. Mid East (-5.8%) and South East (-1.1%) remain negative but South East is near flat.
Resolved positively

What to watch into next quarter

Whether Q1-2026 gross margin holds 20.4% or breaks lower. Gross margin compressed 320bps YoY in Q4 (23.6% → 20.4%) with $35.7M of land deposit impairments. A Q1 print sustaining ~20% — or breaking below — would confirm the step-down is structural and re-rate steady-state earnings power. Watch whether further impairments recur.

Whether the order recovery sustains and broadens. Total orders +3% YoY in Q4, with North East and Mid Atlantic carrying the print. Watch whether Mid East and South East turn positive in Q1, and whether North East / Mid Atlantic hold double-digit gains as comps stiffen.

Backlog re-acceleration. Backlog ended Q4 at 8,448 units / $4.01B, down 15% / 16% YoY from 9,953 / $4.79B. For revenue to stabilize in 1H-2026, Q1 orders need to exceed settlements — a reversal of the Q4 trend.

New order ASP trajectory. New order ASP -3% YoY in Q4 vs. settlement ASP +3% YoY. If new order ASP keeps falling into Q1, the gap will flow through to realized margin as that order book settles later in 2026.

Mortgage Banking sustainability. Segment income +24.5% YoY in Q4 driven by secondary marketing gains, despite closed loan production -11% YoY. Watch whether secondary gains hold as homebuilding settlements decline into 1H-2026.

Sources

  1. NVR, Inc. Q4 2025 Earnings Release — https://www.sec.gov/Archives/edgar/data/906163/000090616326000004/q42025ex991_earningsrelease.htm

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