NVR, Inc. (NVR) FY2025 10-K Annual Report

Filed: Feb 11, 2026
Industrials
Operative BuildersSEC EDGAR

NVR, Inc. (NVR) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 11, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

NVR, Inc. FY2025 10-K Analysis

Business Overview

  • Core business: construction and sale of single-family detached homes, townhomes, condominiums on primarily pre-sold basis
  • Continued reliance on fixed price lot purchase agreements (LPAs) with forfeitable deposits, avoiding direct land ownership and developmental risk
  • Emphasis on market leadership in 37 metropolitan areas across 16 states and D.C. with three distinct trade brands targeting different buyer demographics
  • Strategic flexibility to engage in joint ventures or direct land development in limited cases, deviating from historical lot acquisition strategy
  • Focus on maintaining lot inventory to support five-year business plan, minimizing financial risk related to land acquisitions

Management Discussion & Analysis

  • Revenue $10.3B in 2025, down 2% from $10.5B in 2024 due to 4% fewer units settled
  • Gross margin 21.2% in 2025 vs 23.7% in 2024, impacted by higher lot costs and $75.9M land deposit impairments
  • Mid Atlantic segment strongest, no segment-specific data but overall unit settlements down 4% to 21,915 units
  • Net income $1.34B in 2025, down 20% YoY; mortgage banking income $152M, down 2%
  • Backlog down 16% to $4.01B with 8,448 units, new orders down 10% at 20,410 units, cancellation rate up to 17%
  • Cash deposits for lots $920.1M with additional $42.3M for raw land; no direct disclosure of buybacks/dividends/capex
  • Guidance: Expect continued demand weakness, margin pressure, revenue decline in Q1 2026, but confident due to strong balance sheet and disciplined lot acquisition strategy

Risk Factors

  • Regulatory risk: Increased contract land deposit impairment allowance due to economic challenges, impacting reserve adequacy for potential losses on land deposits
  • Macroeconomic threat: 13-17% New Order cancellations and 3-16% decrease in average active communities in key regions, highlighting demand weakness and affordability pressure
  • Operational risk: Higher lot costs and material cost increases causing gross margin declines to as low as 18.3% in South East segment in 2025
  • Competitive risk: Mortgage banking segment exposure to tightening credit markets and increased mortgage lending regulation affecting loan closing volume and fees
  • Financial risk: $900 million Senior Notes maturing in 2030 with $27 million interest due within 12 months, and $733.9 million due on land purchase commitments within 3 years

NVR, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$10.3B

-1.9% YoY

Net Income

$1.3B

-20.3% YoY

Net Margin

13.0%

-300bp YoY

ROE

34.7%

-528bp YoY

Total Assets

$5.9B

-8.2% YoY

EPS (Diluted)

$436.55

-13.8% YoY

Operating Cash Flow

$1.1B

-18.4% YoY

Source: XBRL data from NVR, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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