NVR, Inc. Announces Second Quarter Results

NVR, Inc., one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2022 of $433.3 million, or $123.65 per diluted share. Net income and diluted earnings per share for the second quarter ended June 30, 2022 increased 35% and 50%, respectively, when compared to 2021 second quarter net income of $321.3 million, or $82.45 per diluted share. Consolidated revenues for the second quarter of 2022 totaled $2.66 billion, which increased 16% from $2.28 billion in the second quarter of 2021.

For the six months ended June 30, 2022, consolidated revenues were $5.04 billion, a 16% increase from $4.33 billion reported in 2021. Net income for the six months ended June 30, 2022 was $859.4 million, an increase of 51% when compared to the six months ended June 30, 2021. Diluted earnings per share for the six months ended June 30, 2022 was $240.05, an increase of 65% from $145.53 per diluted share for 2021.

Homebuilding

New orders in the second quarter of 2022 decreased by 16% to 4,663 units, when compared to 5,521 units in the second quarter of 2021. The average sales price of new orders in the second quarter of 2022 was $471,600, an increase of 7% when compared with the second quarter of 2021. The cancellation rate in the second quarter of 2022 was 14% compared to 8% in the second quarter of 2021. Settlements in the second quarter of 2022 increased by 2% to 5,820 units, compared to 5,685 units in the second quarter of 2021. The average settlement price in the second quarter of 2022 was $448,400, an increase of 15% from the second quarter of 2021. Our backlog of homes sold but not settled as of June 30, 2022 decreased on a unit basis by 3% to 12,286 units and increased on a dollar basis by 8% to $5.82 billion when compared to the respective backlog unit and dollar balances as of June 30, 2021.

Homebuilding revenues of $2.61 billion in the second quarter of 2022 increased by 17% compared to homebuilding revenues of $2.22 billion in the second quarter of 2021. Gross profit margin in the second quarter of 2022 increased to 26.3%, compared to 22.6% in the second quarter of 2021. Gross profit margins were favorably impacted by the aforementioned increase in the average settlement price in the second quarter of 2022. Income before tax from the homebuilding segment totaled $544.9 million in the second quarter of 2022, an increase of 44% when compared to the second quarter of 2021.

Mortgage Banking

Mortgage closed loan production in the second quarter of 2022 totaled $1.65 billion, an increase of 5% when compared to the second quarter of 2021. Income before tax from the mortgage banking segment totaled $29.1 million in the second quarter of 2022, a decrease of 26% when compared to $39.2 million in the second quarter of 2021. This decrease was primarily attributable to a decrease in secondary marketing gains.

Effective Tax Rate

Our effective tax rate for the three and six months ended June 30, 2022 was 24.5% and 24.6%, respectively, compared to 23.0% and 21.9% for the three and six months ended June 30, 2021, respectively. The increase in the effective tax rate in each period is primarily attributable to a lower income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $8.7 million and $17.2 million for the three and six months ended June 30, 2022, respectively, and $11.2 million and $28.6 million for the three and six months ended June 30, 2021, respectively.

For the full second quarter results, click here.

About NVR

NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-four metropolitan areas in fourteen states and Washington, D.C. For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.

Contact:

Curt McKay – Investor Relations Contact – ir@nvrinc.com – (703) 956-4058

Source: NVR, Inc.