US homebuilder NVR reported a sharp decline in its Q1 performance, amid a backdrop of high interest rates and rising raw materials costs. These factors, combined with tariffs and persistent inflation, weighed on demand and the group's operations. The stock fell about 4% during trading on Wednesday, reflecting investor concerns over this unfavorable environment.
The number of homes delivered plunged 22% y-o-y to 4,015 units, primarily due to a lower backlog at the start of the period. Gross margin from homebuilding operations contracted to 19.6%, compared to 21.9% a year earlier, driven by rising land costs and pricing pressures. The average price of new orders also slipped 2% to $440,100.
Consolidated revenue decreased by 22% to $1.88bn, a level nonetheless slightly above market expectations. Quarterly earnings fell 29% to $67.76 per share, confirming the significant impact of economic conditions on the group's profitability.
NVR, Inc. is a leading U.S. homebuilder of single-family homes. Income breaks down by activity as follows:
- single home sales (91.4%): single-family detached, semi-detached and row homes (Ryan Homes, NVHomes and Heartland Homes brands);
- mortgage loans (8.6%): USD 6 billion outstanding loans granted in 2025.
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