NVR, Inc. Announces First Quarter Results

NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2023 of $344.4 million, or $99.89 per diluted share.  Net income and diluted earnings per share for the first quarter ended March 31, 2023 decreased 19% and 14%, respectively, when compared to 2022 first quarter net income of $426.1 million, or $116.56 per diluted share.  Consolidated revenues for the first quarter of 2023 totaled $2.18 billion, which decreased 8% from $2.38 billion in the first quarter of 2022. 

Homebuilding

New orders in the first quarter of 2023 decreased by 1% to 5,888 units, when compared to 5,927 units in the first quarter of 2022. The average sales price of new orders in the first quarter of 2023 was $441,200, a decrease of 5% when compared with the first quarter of 2022.  The cancellation rate in the first quarter of 2023 was 14% compared to 10% in the first quarter of 2022.  Settlements in the first quarter of 2023 decreased by 11% to 4,639 units, compared to 5,214 units in the first quarter of 2022. The average settlement price in the first quarter of 2023 was $459,400, an increase of 4% from the first quarter of 2022. Our backlog of homes sold but not settled as of March 31, 2023 decreased on a unit basis by 23% to 10,411 units and decreased on a dollar basis by 23% to $4.79 billion when compared to the respective backlog unit and dollar balances as of March 31, 2022.

Homebuilding revenues of $2.13 billion in the first quarter of 2023 decreased by 8% compared to homebuilding revenues of $2.31 billion in the first quarter of 2022.  Gross profit margin in the first quarter of 2023 decreased to 24.6%, compared to 28.5% in the first quarter of 2022.  Income before tax from the homebuilding segment totaled $405.8 million in the first quarter of 2023, a decrease of 22% when compared to the first quarter of 2022.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2023 totaled $1.24 billion, a decrease of 17% when compared to the first quarter of 2022.  Income before tax from the mortgage banking segment totaled $28.1 million in the first quarter of 2023, a decrease of 43% when compared to $49.1 million in the first quarter of 2022.  The decrease was primarily attributable to a decrease in secondary marketing gains on loan sales.

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2023 was 20.6% compared to 24.7% for the three months ended March 31, 2022.  The decrease in the effective tax rate in the first quarter of 2023 is primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $23.2 million and $8.4 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

For the complete first 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-five metropolitan areas in fifteen 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 – ir@nvrinc.com – (703) 956-4058

Source: NVR, Inc.