NVR Reports 24% Drop in First-Quarter Profit

(Reuters) – NVR on Tuesday posted a 24% fall in first-quarter profit, as the homebuilder’s margins were impacted by higher lot costs and pricing pressure amid weak housing demand.

Homebuilders are experiencing ongoing weakness in demand as consumers have refrained from purchasing houses due to elevated interest rates in the U.S.

Rising economic uncertainty in the U.S., driven by President Donald Trump’s tariff policies, could further strain homebuilders.

Last week, peer D.R. Horton reduced its annual revenue forecast after missing quarterly profit and revenue estimates, citing a slower-than-expected spring selling season attributed to declining consumer confidence.

NVR (NYSE:NVR)’s net income and earnings per share for the first quarter ending in March decreased 24% and 19% from a year ago, respectively, amounting to $299.6 million, or $94.83 per share.

Gross profit margin for the first quarter shrank to 21.9%, compared to 24.5% in the first quarter of 2024.

The Reston, Virginia-based company reported total revenue rising 3% to $2.40 billion, exceeding analysts’ average expectation of $2.33 billion, according to data compiled by LSEG.