NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its fourth quarter ended December31, 2024 of $457.4 million, or $139.93 per diluted share. For the fourth quarter ended December31, 2024, net income increased 12% and diluted earnings per share increased 15%, when compared to 2023 fourth quarter net income of $410.1 million, or $121.56 per diluted share. Consolidated revenues for the fourth quarter of 2024 totaled $2.85 billion, which increased 17% from $2.43 billion in the fourth quarter of 2023.

For the year ended December 31, 2024, consolidated revenues were $10.52 billion, an 11% increase from $9.52 billion reported for the same period of 2023. Net income for the year ended December 31, 2024 was $1.68 billion, an increase of 6% when compared to net income for the year ended December 31, 2023 of $1.59 billion. Diluted earnings per share for the year ended December 31, 2024 was $506.69, an increase of 9% from $463.31 per diluted share for the same period of 2023.

Homebuilding

New orders in the fourth quarter of 2024 decreased by 8% to 4,794 units, when compared to 5,190 units in the fourth quarter of 2023. The average sales price of new orders in the fourth quarter of 2024 was $469,000, an increase of 4% when compared with the fourth quarter of 2023. The cancellation rate in the fourth quarter of 2024 was 17% compared to 13% in the fourth quarter of 2023. Settlements in the fourth quarter of 2024 increased by 16% to 6,180 units, compared to 5,332 units in the fourth quarter of 2023. The average settlement price in the fourth quarter of 2024 was $450,000, which was relatively flat when compared with the fourth quarter of 2023. Our backlog of homes sold but not settled as of December31, 2024 decreased on a unit basis by 3% to 9,953 units and increased on a dollar basis by 1% to $4.79 billion when compared to the respective backlog unit and dollar balances as of December31, 2023.

Homebuilding revenues of $2.78 billion in the fourth quarter of 2024 increased by 16% compared to homebuilding revenues of $2.39 billion in the fourth quarter of 2023. Gross profit margin in the fourth quarter of 2024 decreased to 23.6%, from 24.1% in the fourth quarter of 2023. Income before tax from the homebuilding segment totaled $526.7 million in the fourth quarter of 2024, an increase of 16% when compared to the fourth quarter of 2023.

New orders for the year ended December 31, 2024 increased by 4% to 22,560 units, compared to 21,729 units in 2023. Settlements for the year ended December 31, 2024 increased by 11% to 22,836 units, compared to 20,662 units settled in 2023. Homebuilding revenues for the year ended December 31, 2024 totaled $10.29 billion, an 11% increase from 2023. Gross profit margin for the year ended December 31, 2024 decreased to 23.7%, compared to 24.3% in 2023. Income before tax for the homebuilding segment increased 9% for the year ended December 31, 2024 to $1.96 billion, compared to $1.80 billion in 2023.

Mortgage Banking

Mortgage closed loan production in the fourth quarter of 2024 totaled $1.70 billion, an increase of 13% when compared to the fourth quarter of 2023. Income before tax from the mortgage banking segment totaled $45.9 million in the fourth quarter of 2024, an increase of 55% when compared to $29.7 million in the fourth quarter of 2023. This increase was primarily attributable to an increase in secondary marketing gains on sales of loans.

Mortgage closed loan production for the year ended December 31, 2024 increased 9% to $6.26 billion. Income before tax from the mortgage banking segment for the year ended December 31, 2024 increased 17% to $154.9 million from $132.8 million in 2023.

Effective Tax Rate

Our effective tax rate for the three and twelve months ended December31, 2024 was 20.1% and 20.5%, respectively, compared to 15.3% and 17.5% for the three and twelve months ended December31, 2023, 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 $21.3 million and $95.1 million for the three and twelve months ended December31, 2024, respectively, compared to $42.5 million and $153.6 million for the three and twelve months ended December31, 2023, respectively.

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-six metropolitan areas in sixteen 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.

Some of the statements in this release made by the Company constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should” or “anticipates” or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.

NVR, Inc.Consolidated Statements of Income(in thousands, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited)Homebuilding:Revenues $ 2,780,717 $ 2,387,094 $ 10,292,425 $ 9,314,605Other income 33,094 40,891 143,890 148,010Cost of sales (2,125,633) (1,812,968) (7,850,549) (7,051,198)Selling, general and administrative (154,714) (154,086) (598,207) (588,962)Operating income 533,464 460,931 1,987,559 1,822,455Interest expense (6,774) (6,618) (26,988) (26,875)Homebuilding income 526,690 454,313 1,960,571 1,795,580Mortgage Banking:Mortgage banking fees 64,891 45,476 232,054 203,597Interest income 5,600 4,779 19,092 16,687Other income 1,562 1,189 5,480 4,449General and administrative (25,870) (21,537) (100,896) (91,075)Interest expense (239) (173) (795) (865)Mortgage banking income 45,944 29,734 154,935 132,793Income before taxes 572,634 484,047 2,115,506 1,928,373Income tax expense (115,202) (73,972) (433,578) (336,762)Net income $ 457,432 $ 410,075 $ 1,681,928 $ 1,591,611Basic earnings per share $ 149.84 $ 128.46 $ 540.88 $ 491.52Diluted earnings per share $ 139.93 $ 121.56 $ 506.69 $ 463.31Basic weighted average shares outstanding 3,053 3,192 3,110 3,238Diluted weighted average shares outstanding 3,269 3,373 3,319 3,435NVR, Inc.Consolidated Balance Sheets(in thousands, except share and per share data) December 31, 2024 December 31, 2023 (unaudited)ASSETSHomebuilding:Cash and cash equivalents $ 2,561,339 $ 3,126,472Restricted cash 42,172 41,483Receivables 32,622 29,000Inventory:Lots and housing units, covered under sales agreements with customers 1,727,243 1,674,686Unsold lots and housing units 237,177 214,666Land under development 65,394 36,895Building materials and other 28,893 23,903 2,058,707 1,950,150Contract land deposits, net 726,675 576,551Property, plant and equipment, net 95,619 63,716Operating lease right-of-use assets 78,340 70,384Reorganization value in excess of amounts allocable to identifiable assets, net 41,580 41,580Deferred tax assets, net 142,192 148,005Other assets 108,986 94,746 5,888,232 6,142,087Mortgage Banking:Cash and cash equivalents 49,636 36,422Restricted cash 11,520 11,067Mortgage loans held for sale, net 355,209 222,560Property and equipment, net 7,373 6,348Operating lease right-of-use assets 23,482 23,541Reorganization value in excess of amounts allocable to identifiable assets, net 7,347 7,347Other assets 38,189 152,385 492,756 459,670Total assets $ 6,380,988 $ 6,601,757NVR, Inc.Consolidated Balance Sheets (Continued)(in thousands, except share and per share data) December 31, 2024 December 31, 2023 (unaudited)LIABILITIES AND SHAREHOLDERS' EQUITYHomebuilding:Accounts payable $ 332,772 $ 347,738Accrued expenses and other liabilities 441,300 413,043Customer deposits 322,926 334,441Operating lease liabilities 83,939 75,797Senior notes 911,118 913,027 2,092,055 2,084,046Mortgage Banking:Accounts payable and other liabilities 53,433 127,511Operating lease liabilities 25,428 25,475 78,861 152,986Total liabilities 2,170,916 2,237,032Commitments and contingenciesShareholders' equity:Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares 206 206issued as of both December 31, 2024 and December 31, 2023Additional paid-in capital 3,031,637 2,848,528Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of (16,710) (16,710)both December 31, 2024 and December 31, 2023Deferred compensation liability 16,710 16,710Retained earnings 15,046,953 13,365,025Less treasury stock at cost – 17,543,686 and 17,360,454 shares as of December (13,868,724) (11,849,034)31, 2024 and December 31, 2023, respectivelyTotal shareholders' equity 4,210,072 4,364,725Total liabilities and shareholders' equity $ 6,380,988 $ 6,601,757NVR, Inc.Operating Activity(dollars in thousands)(unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Units Average Price Units Average Units Average Price Units Average Price PriceNew orders, net of cancellations:Mid Atlantic (1) 1,726 $ 547.1 2,029 $ 500.9 8,511 $ 527.3 8,434 $ 515.5North East (2) 453 $ 639.9 526 $ 597.7 1,994 $ 622.4 1,879 $ 573.2Mid East (3) 1,024 $ 419.6 942 $ 412.2 4,654 $ 408.0 4,514 $ 396.5South East (4) 1,591 $ 367.4 1,693 $ 366.9 7,401 $ 364.6 6,902 $ 366.4Total 4,794 $ 469.0 5,190 $ 450.9 22,560 $ 457.7 21,729 $ 448.4 Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Units Average Units Average Price Units Average Units Average Price Price PriceSettlements:Mid Atlantic (1) 2,143 $ 524.8 2,008 $ 519.5 8,537 $ 518.1 8,032 $ 521.5North East (2) 522 $ 617.7 465 $ 567.1 1,967 $ 592.6 1,736 $ 546.2Mid East (3) 1,242 $ 410.3 1,126 $ 391.3 4,585 $ 406.0 4,391 $ 392.4South East (4) 2,273 $ 362.5 1,733 $ 368.9 7,747 $ 366.7 6,503 $ 377.2Total 6,180 $ 450.0 5,332 $ 447.6 22,836 $ 450.7 20,662 $ 450.7 As of December 31, 2024 2023 Units Average Units Average Price PriceBacklog:Mid Atlantic (1) 4,068 $ 541.6 4,094 $ 522.5North East (2) 1,055 $ 658.1 1,028 $ 602.0Mid East (3) 2,045 $ 416.5 1,976 $ 412.1South East (4) 2,785 $ 374.3 3,131 $ 378.4Total 9,953 $ 481.4 10,229 $ 465.0NVR, Inc.Operating Activity (Continued)(dollars in thousands)(unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Average active communities:Mid Atlantic (1) 132 167 147 166North East (2) 29 36 31 36Mid East (3) 104 105 101 110South East (4) 161 130 148 115Total 426 438 427 427 Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023Homebuilding data:New order cancellation rate 16.9% 13.0% 14.2% 12.8%Lots controlled at end of period 162,400 141,500Mortgage banking data:Loan closings $ 1,695,831 $ 1,496,003 $ 6,260,428 $ 5,736,532Capture rate 86% 88% 86% 87%Common stock information:Shares outstanding at end of period 3,011,644 3,194,876Number of shares repurchased 64,216 46,748 256,871 181,499Aggregate cost of shares repurchased $ 564,315 $ 286,428 $ 2,057,677 $ 1,081,815(1) Maryland, Virginia, West Virginia, Delaware and Washington, D.C.(2) New Jersey and Eastern Pennsylvania(3) New York, Ohio, Western Pennsylvania, Indiana and Illinois(4) North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

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SOURCE NVR, INC.

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