NVR posted fourth quarter profits of $410.1 million, or $121.56 per share. The results represented year-over-year increases of 10% and 9%, respectively. Additionally, NVR’s profits per share beat Wall Street estimates of $118.63 for the quarter. The builder’s profits have outperformed analyst projections in each quarter of 2023.
The fourth largest company on the 2023 BUILDER 100 list reported full-year consolidated revenue of $9.52 billion, a 10% decrease from the $10.53 billion in revenue reported for 2022. Profit for the 2023 fiscal year was $1.59 billion, an 8% decrease compared with the prior year.
New orders in the fourth quarter for NVR increased by 25% to 5,190 units with an average sales price of $405,900. The builder’s cancellation rate in the fourth quarter was 13%, compared with 18% in the fourth quarter of 2022.
Settlements in the fourth quarter decreased by 7% to 5,332 units with an average settlement price of $447,600. At the end of the year, NVR had 10,299 units in backlog valued at $4.76 billion. Home building revenue in the fourth quarter decreased 11% to $2.39 billion.
For the full year, orders increased 13% to 21,729 units, while settlements declined 9% to 20,662 units. Home building revenue for the year totaled $9.31 billion, a 10% decrease compared with 2022.
NVR operates in the home building and mortgage banking business segments. The company’s home building segment sells and builds under the Ryan Homes, NVHomes, and Heartland Homes brand names and operates in 35 metros across 15 states and Washington, D.C
