NVR, the fourth-largest company on the 2023 BUILDER 100, beat analyst estimates with a third quarter profit of $433.2 million. The company said it earned $125.26 a share, compared with Wall Street estimates of $112.79.
Consolidated revenues in the third quarter were $2.57 billion, a 7% decrease on a year-over-year basis.
Third quarter new orders increased 7% year over year to 4,756 units, and the average sales price of new orders increased marginally to $456,100 from $453,400. Regionally, new orders increased in the Mid-Atlantic, Northeast, and Southeast but decreased in the Mid-East, a region that includes New York, Ohio, western Pennsylvania, Indiana, and Illinois.
The cancellation rate for NVR in the third quarter was 13.6%, an improvement from 15% in the third quarter of 2022.
NVR reported settlements in the third quarter decreased by 6% year over year to 5,606 units. The average settlement price in the third quarter was $448,00, a 3% decrease compared with the prior-year period. NVR’s backlog of homes sold but not settled as of Sept. 30 decreased on unit basis by 4% to 10,371 units and on a dollar basis by 6% to $4.8 billion.
In the third quarter, mortgage closed loan production totaled $1.62 billion, a 2% decrease compared with the third quarter of 2022. Income before tax from the mortgage banking segment increased 119% to $38.5 million in the quarter. NVR attributed the increase to an increase in secondary marketing gains on sales of loans.
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.
