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Published: 2024-10-22 11:16:56 ET
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EX-99.1 2 q32024ex991_earningsrelease.htm EX-99.1 Document

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Exhibit 99.1
NVR, INC. ANNOUNCES THIRD QUARTER RESULTS

October 22, 2024, Reston, VA—NVR, Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, announced net income for its third quarter ended September 30, 2024 of $429.3 million, or $130.50 per diluted share. For the third quarter ended September 30, 2024, net income decreased 1% and diluted earnings per share increased 4%, when compared to 2023 third quarter net income of $433.2 million, or $125.26 per diluted share. Consolidated revenues for the third quarter of 2024 totaled $2.73 billion, which increased 6% from $2.57 billion in the third quarter of 2023.
For the nine months ended September 30, 2024, consolidated revenues were $7.68 billion, an 8% increase from $7.09 billion reported for the same period of 2023. Net income for the nine months ended September 30, 2024 was $1.22 billion, an increase of 4% when compared to net income for the nine months ended September 30, 2023 of $1.18 billion. Diluted earnings per share for the nine months ended September 30, 2024 was $367.20, an increase of 7% from $341.97 per diluted share for the same period of 2023.
Homebuilding
New orders in the third quarter of 2024 increased by 19% to 5,650 units, when compared to 4,746 units in the third quarter of 2023. The average sales price of new orders in the third quarter of 2024 was $450,700, a decrease of 1% when compared with the third quarter of 2023. The cancellation rate in the third quarter of 2024 was 15% compared to 14% in the third quarter of 2023. Settlements in the third quarter of 2024 increased by 5% to 5,908 units, compared to 5,606 units in the third quarter of 2023. The average settlement price in the third quarter of 2024 was $453,200, an increase of 1% when compared with the third quarter of 2023. Our backlog of homes sold but not settled as of September 30, 2024 increased on a unit basis by 9% to 11,339 units and increased on a dollar basis by 11% to $5.32 billion when compared to the respective backlog unit and dollar balances as of September 30, 2023.
Homebuilding revenues of $2.68 billion in the third quarter of 2024 increased by 7% compared to homebuilding revenues of $2.51 billion in the third quarter of 2023. Gross profit margin in the third quarter of 2024 decreased to 23.4%, from 24.3% in the third quarter of 2023. Gross profit margin was negatively impacted by higher lot costs and closing cost assistance. Income before tax from the homebuilding segment totaled $503.7 million in the third quarter of 2024, an increase of 1% when compared to the third quarter of 2023.
Mortgage Banking
Mortgage closed loan production in the third quarter of 2024 totaled $1.66 billion, an increase of 2% when compared to the third quarter of 2023. Income before tax from the mortgage banking segment totaled $34.9 million in the third quarter of 2024, a decrease of 9% when compared to $38.5 million in the third quarter of 2023. 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 nine months ended September 30, 2024 was 20.3% and 20.6%, respectively, compared to 19.7% and 18.2% for the three and nine months ended September 30, 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 $23.1 million and $73.7 million for the three and nine months ended September 30, 2024, respectively, compared to $31.9 million and $111.0 million for the three and nine months ended September 30, 2023, respectively.
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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.
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NVR, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Homebuilding:
Revenues$2,677,640 $2,512,409 $7,511,708 $6,927,511 
Other income33,746 39,914 110,796 107,119 
Cost of sales(2,051,087)(1,902,174)(5,724,916)(5,238,230)
Selling, general and administrative(149,777)(142,715)(443,493)(434,876)
Operating income510,522 507,434 1,454,095 1,361,524 
Interest expense(6,855)(6,628)(20,214)(20,257)
Homebuilding income503,667 500,806 1,433,881 1,341,267 
Mortgage Banking:
Mortgage banking fees55,311 56,616 167,163 158,121 
Interest income4,728 5,067 13,492 11,908 
Other income1,414 1,169 3,918 3,260 
General and administrative(26,317)(24,050)(75,026)(69,538)
Interest expense(191)(268)(556)(692)
Mortgage banking income34,945 38,534 108,991 103,059 
Income before taxes538,612 539,340 1,542,872 1,444,326 
Income tax expense(109,289)(106,183)(318,376)(262,790)
Net income$429,323 $433,157 $1,224,496 $1,181,536 
Basic earnings per share$139.65 $132.92 $391.37 $363.14 
Diluted earnings per share$130.50 $125.26 $367.20 $341.97 
Basic weighted average shares outstanding3,074 3,259 3,129 3,254 
Diluted weighted average shares outstanding3,290 3,458 3,335 3,455 
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NVR, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
September 30, 2024December 31, 2023
ASSETS
Homebuilding:
Cash and cash equivalents$2,474,219 $3,126,472 
Restricted cash46,474 41,483 
Receivables35,563 29,000 
Inventory:
Lots and housing units, covered under sales agreements with customers1,946,533 1,674,686 
Unsold lots and housing units223,828 214,666 
Land under development63,339 36,895 
Building materials and other23,697 23,903 
2,257,397 1,950,150 
Contract land deposits, net668,436 576,551 
Property, plant and equipment, net85,998 63,716 
Operating lease right-of-use assets74,415 70,384 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets251,027 242,751 
5,935,109 6,142,087 
Mortgage Banking:
Cash and cash equivalents36,727 36,422 
Restricted cash11,247 11,067 
Mortgage loans held for sale, net379,232 222,560 
Property and equipment, net7,086 6,348 
Operating lease right-of-use assets21,499 23,541 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets89,912 152,385 
553,050 459,670 
Total assets$6,488,159 $6,601,757 

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NVR, Inc.
Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
September 30, 2024December 31, 2023
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable$370,131 $347,738 
Accrued expenses and other liabilities406,319 413,043 
Customer deposits358,609 334,441 
Operating lease liabilities79,796 75,797 
Senior notes911,599 913,027 
2,126,454 2,084,046 
Mortgage Banking:
Accounts payable and other liabilities67,029 127,511 
Operating lease liabilities23,428 25,475 
90,457 152,986 
Total liabilities2,216,911 2,237,032 
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2024 and December 31, 2023206 206 
Additional paid-in capital2,989,776 2,848,528 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both September 30, 2024 and December 31, 2023(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings14,589,521 13,365,025 
Less treasury stock at cost – 17,490,540 and 17,360,454 shares as of September 30, 2024 and December 31, 2023, respectively(13,308,255)(11,849,034)
Total shareholders' equity4,271,248 4,364,725 
Total liabilities and shareholders' equity$6,488,159 $6,601,757 

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NVR, Inc.
Operating Activity
(dollars in thousands)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,

2024202320242023
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
New orders, net of cancellations:
Mid Atlantic (1)
2,206$514.7 1,822$526.2 6,785 $522.2 6,405 $520.2 
North East (2)
536$616.4 448$561.3 1,541 $617.2 1,353 $563.7 
Mid East (3)
1,105$400.2 916$407.2 3,630 $404.8 3,572 $392.4 
South East (4)
1,803$354.1 1,560$372.8 5,810 $363.9 5,209 $366.3 
Total
5,650$450.7 4,746$456.1 17,766 $454.7 16,539 $447.7 
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
UnitsAverage PriceUnitsAverage PriceUnitsAverage PriceUnitsAverage Price
Settlements:
Mid Atlantic (1)
2,229$514.9 2,199$521.2 6,394 $515.9 6,024 $522.2 
North East (2)
495$606.9 476$563.5 1,445 $583.6 1,271 $538.6 
Mid East (3)
1,219$411.1 1,209$387.5 3,343 $404.5 3,265 $392.8 
South East (4)
1,965$370.5 1,722$365.2 5,474 $368.5 4,770 $380.2 
Total
5,908$453.2 5,606$448.0 16,656 $451.0 15,330 $451.8 
As of September 30,
20242023
UnitsAverage PriceUnitsAverage Price
Backlog:
Mid Atlantic (1)
4,485$531.4 4,073$531.7 
North East (2)
1,124$646.5 967$587.5 
Mid East (3)
2,263$411.5 2,160$401.1 
South East (4)
3,467$369.8 3,171$379.3 
Total
11,339$469.5 10,371$463.1 
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NVR, Inc.
Operating Activity (Continued)
(dollars in thousands)
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Average active communities:
Mid Atlantic (1)
146167152166
North East (2)
32363237
Mid East (3)
98109100111
South East (4)
146119143110
Total
422431427424
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Homebuilding data:
New order cancellation rate
14.5 %13.6 %13.5 %12.7 %
Lots controlled at end of period
151,800 133,900 
Mortgage banking data:
Loan closings
$1,656,507$1,621,599$4,564,597 $4,240,529 
Capture rate
86 %89 %86 %86 %
Common stock information:
Shares outstanding at end of period
3,064,790 3,209,977 
Number of shares repurchased
42,62978,750192,655 134,751 
Aggregate cost of shares repurchased
$357,450$484,262$1,493,362 $795,387 

(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
Investor Relations Contact:
Ryan Sheplee
(703) 956-4243
ir@nvrinc.com

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