NVR, INC. ANNOUNCES SECOND QUARTER RESULTS

NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June30, 2025 of $333.7 million, or $108.54 per diluted share. For the second quarter ended June30, 2025, net income and diluted earnings per share decreased 17% and 10%, respectively, when compared to 2024 second quarter net income of $400.9 million, or $120.69 per diluted share. Consolidated revenues for the second quarter of 2025 totaled $2.60 billion, compared to $2.61 billion in the second quarter of 2024.

For the six months ended June 30, 2025, consolidated revenues were $5.00 billion, a 1% increase from $4.95 billion reported for the same period of 2024. Net income for the six months ended June 30, 2025 was $633.3 million, a decrease of 20% when compared to net income for the six months ended June 30, 2024 of $795.2 million. Diluted earnings per share for the six months ended June 30, 2025 was $203.20, a decrease of 14% from $237.05 per diluted share for the same period of 2024.

Homebuilding

New orders in the second quarter of 2025 decreased by 11% to 5,379 units, when compared to 6,067 units in the second quarter of 2024. The average sales price of new orders in the second quarter of 2025 was $458,100, which remained relatively flat when compared to the second quarter of 2024. The cancellation rate in the second quarter of 2025 was 17% compared to 13% in the second quarter of 2024. Settlements in the second quarter of 2025 decreased by 3% to 5,475 units, compared to 5,659 units in the second quarter of 2024. The average settlement price in the second quarter of 2025 was $465,400, an increase of 3% when compared to the second quarter of 2024. Our backlog of homes sold but not settled as of June30, 2025 decreased on both a unit basis and a dollar basis by 13% to 10,069 units and $4.75 billion when compared to the respective backlog unit and dollar balances as of June30, 2024.

Homebuilding revenues of $2.55 billion in the second quarter of 2025 remained flat when compared to the second quarter of 2024. Gross profit margin in the second quarter of 2025 decreased to 21.5%, from 23.6% in the second quarter of 2024. Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges, and contract land deposit impairments totaling approximately $13.2 million. Income before tax from the homebuilding segment totaled $417.5 million in the second quarter of 2025, a decrease of 15% when compared to the second quarter of 2024.

Mortgage Banking

Mortgage closed loan production in the second quarter of 2025 totaled $1.56 billion, an increase of 2% when compared to the second quarter of 2024. Income before tax from the mortgage banking segment totaled $29.6 million in the second quarter of 2025, a decrease of 34% when compared to $45.0 million in the second quarter of 2024. This decrease was primarily attributable to a decrease in secondary marketing gains on sales of loans.

Effective Tax Rate

Our effective tax rate for the three and six month periods ended June 30, 2025 was 25.4% in each respective period, compared to 24.9% and 20.8% for the three and six month periods ended June 30, 2024, 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 $3.5 million and $6.2 million for the three and six months ended June 30, 2025, respectively, compared to $6.8 million and $50.6 million for the three and six months ended June 30, 2024, 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)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Homebuilding:Revenues $ 2,548,267 $ 2,547,891 $ 4,898,712 $ 4,834,068Other income 25,088 36,184 51,800 77,050Cost of sales (1,999,983) (1,947,616) (3,835,358) (3,673,829)Selling, general and administrative (149,170) (141,213) (314,287) (293,716)Interest expense (6,685) (6,710) (13,866) (13,359)Homebuilding income 417,517 488,536 787,001 930,214Mortgage Banking:Mortgage banking fees 50,547 64,566 103,134 111,852Interest income 4,493 4,672 8,299 8,764Other income 1,301 1,333 2,394 2,504General and administrative (26,425) (25,351) (51,118) (48,709)Interest expense (300) (188) (573) (365)Mortgage banking income 29,616 45,032 62,136 74,046Income before taxes 447,133 533,568 849,137 1,004,260Income tax expense (113,396) (132,664) (215,824) (209,087)Net income $ 333,737 $ 400,904 $ 633,313 $ 795,173Basic earnings per share $ 114.52 $ 128.21 $ 214.78 $ 251.94Diluted earnings per share $ 108.54 $ 120.69 $ 203.20 $ 237.05Basic weighted average shares outstanding 2,914 3,127 2,949 3,156Diluted weighted average shares outstanding 3,075 3,322 3,117 3,355NVR, Inc.Consolidated Balance Sheets(in thousands, except share and per share data)(unaudited) June 30, 2025 December 31, 2024ASSETSHomebuilding:Cash and cash equivalents $ 1,726,865 $ 2,561,339Restricted cash 53,240 42,172Receivables 41,496 32,622Inventory:Lots and housing units, covered under sales agreements with customers 1,797,104 1,727,243Unsold lots and housing units 304,743 237,177Land under development 39,450 65,394Building materials and other 28,743 28,893 2,170,040 2,058,707Contract land deposits, net 837,845 726,675Property, plant and equipment, net 100,280 95,619Operating lease right-of-use assets 86,206 78,340Reorganization value in excess of amounts allocable to identifiable assets, net 41,580 41,580Other assets 295,858 251,178 5,353,410 5,888,232Mortgage Banking:Cash and cash equivalents 39,307 49,636Restricted cash 10,513 11,520Mortgage loans held for sale, net 415,974 355,209Property and equipment, net 8,053 7,373Operating lease right-of-use assets 24,515 23,482Reorganization value in excess of amounts allocable to identifiable assets, net 7,347 7,347Other assets 80,220 38,189 585,929 492,756Total assets $ 5,939,339 $ 6,380,988NVR, Inc.Consolidated Balance Sheets (Continued)(in thousands, except share and per share data)(unaudited) June 30, 2025 December 31, 2024LIABILITIES AND SHAREHOLDERS' EQUITYHomebuilding:Accounts payable $ 367,929 $ 332,772Accrued expenses and other liabilities 333,456 441,300Customer deposits 295,145 322,926Operating lease liabilities 92,160 83,939Senior notes 910,145 911,118 1,998,835 2,092,055Mortgage Banking:Accounts payable and other liabilities 68,785 53,433Operating lease liabilities 26,588 25,428 95,373 78,861Total liabilities 2,094,208 2,170,916Commitments and contingenciesShareholders' equity:Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares 206 206issued as of both June 30, 2025 and December 31, 2024Additional paid-in capital 3,085,904 3,031,637Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both (16,710) (16,710)June 30, 2025 and December 31, 2024Deferred compensation liability 16,710 16,710Retained earnings 15,680,266 15,046,953Less treasury stock at cost – 17,672,115 and 17,543,686 shares as of June 30, 2025 (14,921,245) (13,868,724)and December 31, 2024, respectivelyTotal shareholders' equity 3,845,131 4,210,072Total liabilities and shareholders' equity $ 5,939,339 $ 6,380,988NVR, Inc.Operating Activity(dollars in thousands)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Units Average Price Units Average Price Units Average Price Units Average PriceNew orders, net of cancellations:Mid Atlantic (1) 1,930 $ 531.3 2,297 $ 536.2 3,796 $ 523.0 4,579 $ 525.9North East (2) 424 $ 655.3 478 $ 623.4 801 $ 674.0 1,005 $ 617.7Mid East (3) 1,072 $ 424.2 1,262 $ 403.7 2,170 $ 422.0 2,525 $ 406.8South East (4) 1,953 $ 361.7 2,030 $ 366.7 3,957 $ 359.0 4,007 $ 368.3Total 5,379 $ 458.1 6,067 $ 458.8 10,724 $ 453.3 12,116 $ 456.6 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Units Average Price Units Average Price Units Average Price Units Average PriceSettlements:Mid Atlantic (1) 2,101 $ 537.2 2,199 $ 515.5 4,151 $ 532.6 4,165 $ 516.5North East (2) 474 $ 651.7 487 $ 589.8 945 $ 632.5 950 $ 571.5Mid East (3) 1,082 $ 415.8 1,075 $ 403.7 2,095 $ 411.6 2,124 $ 400.6South East (4) 1,818 $ 363.3 1,898 $ 365.1 3,417 $ 359.2 3,509 $ 367.3Total 5,475 $ 465.4 5,659 $ 450.2 10,608 $ 461.8 10,748 $ 449.7 As of June 30, 2025 2024 Units Average Price Units Average PriceBacklog:Mid Atlantic (1) 3,713 $ 532.6 4,508 $ 531.4North East (2) 911 $ 698.4 1,083 $ 643.3Mid East (3) 2,120 $ 426.8 2,377 $ 416.6South East (4) 3,325 $ 371.6 3,629 $ 378.0Total 10,069 $ 472.1 11,597 $ 470.3NVR, Inc.Operating Activity (Continued)(dollars in thousands)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Average active communities:Mid Atlantic (1) 120 153 120 155North East (2) 26 31 25 33Mid East (3) 94 101 93 100South East (4) 186 148 175 142Total 426 433 413 430 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Homebuilding data:New order cancellation rate 16.5% 12.9% 16.0% 13.0%Lots controlled at end of period 171,400 149,700Mortgage banking data:Loan closings $ 1,555,280 $ 1,530,081 $ 2,988,201 $ 2,908,090Capture rate 87% 86% 87% 86%Common stock information:Shares outstanding at end of period 2,883,215 3,090,266Number of shares repurchased 65,834 83,168 142,954 150,026Aggregate cost of shares repurchased $ 471,413 $ 638,976 $ 1,054,807 $ 1,135,912(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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