Mon, May 5, 6:46 PM (18 days ago)
**NVR, Inc. (NVR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,403,032 (up 3% YoY) - **Net Income:** $299,576 (down 24% YoY) - **EPS (Diluted):** $94.83 (down 19% YoY) - **Gross Profit Margin:** 21.9% (down from 24.5% YoY) - **Cash Flow from Operations:** $207,781 (up from $146,458 YoY) **Segment Performance:** - **Homebuilding:** Revenue up 3%, but margins pressured by higher lot costs and pricing challenges. - **Mortgage Banking:** Segment profit up 14% due to higher gains on loan sales. **Key Trends & Uncertainties:** - **Affordability Issues:** Continued challenges impacting demand and pricing. - **Economic Volatility:** Potential impacts on demand and home prices. - **Margin Pressure:** Due to affordability issues and cost pressures. - **Seasonality:** Historical variability in quarterly results, with higher settlements and income in the second half of the year. **Future Operations & Impact:** - **Lot Acquisition Strategy:** Continues to focus on finished lots with forfeitable deposits. - **Share Repurchase:** Repurchased 77,120 shares at $583,394, with $284,800 available under Board approval. - **Liquidity:** Strong cash position and available credit facilities to support operations and growth. **Notable Changes:** - **Credit Agreement:** Extended maturity to March 2030 and increased commitment to $600M with an accordion feature. - **Repurchase Agreement:** Renewal expected with similar terms before July 2025 expiration. **Risk Factors:** - **Economic Conditions:** General economic and business conditions, interest rate changes, and access to financing. - **Regulatory Environment:** Increased regulation in the mortgage banking industry. - **Market Risks:** Competition, availability and cost of land and raw materials, labor shortages, and weather-related slowdowns. **Conclusion:** NVR's Q1 2025 reflects a mixed performance with revenue growth but margin pressures and lower net income. The company remains focused on its lot acquisition strategy and has a strong liquidity position to support future operations. However, economic volatility and affordability issues pose ongoing challenges.