US homebuilder NVR's quarterly profit falls on lower margins

(Reuters) -NVR posted a fall in third-quarter profit on Wednesday as the homebuilder's margins shrank amid high interest rates and tariff-related uncertainties, sending its shares down 2.3%.

For the quarter ended September 30, 2025, profit fell 20% from a year ago and 14% on a per-share basis.

US homebuilders are feeling the pinch as high interest rates have forced them in recent quarters to offer downsized homes and incentives like mortgage rate buydowns to customers.

Adding to the squeeze, the companies are grappling with cost uncertainty stemming from tariffs on key construction materials and regulatory hurdles.

Margins fell due to higher lot costs, pricing pressure due to affordability challenges and contract land deposit impairments, the company said.

Reston, Virginia-based NVR's quarterly gross profit margin for homebuilding decreased to 21.0% from 23.4% a year ago.

Its quarterly net income fell to $342.7 million, or $112.33 per share, from last year's $429.3 million, or $130.50 per diluted share.

Analysts were expecting per share profit of $109.36, according to data compiled by LSEG.

NVR also noted a 16% fall in quarterly new orders for homes. Its order cancellation rate increased to 19% from 15% in the prior year's quarter.

Homebuilding revenues for the third quarter fell 4.4% year-over-year to $2.56 billion, compared with analysts' estimate of $2.50 billion.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sahal Muhammed)

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