NVR Inc. experienced a sharp decline following the release of its 2025 10-K report, which disclosed significant financial headwinds. The company reported a 2% decrease in revenues to $10,094 million and a 20% decrease in net income to $1,340 million. The decline was driven by lower units settled, higher lot costs, and pricing pressure. Management indicated expectations for negative impacts on gross margins in the short term during 2026. Despite these challenges, the company's Board of Directors authorized a $750 million share repurchase program on February 11, 2026, with no expiration date. As of February 9, 2026, NVR had 2,793,760 shares outstanding. The company stated it plans to maintain a strong balance sheet and utilize disciplined lot acquisition strategies going forward.
Read full analysisNVR Inc. experienced a sharp decline following the release of its 2025 10-K report, which disclosed significant financial headwinds. The company reported a 2% decrease in revenues to $10,094 million and a 20% decrease in net income to $1,340 million. The decline was driven by lower units settled, higher lot costs, and pricing pressure. Management indicated expectations for negative impacts on gross margins in the short term during 2026. Despite these challenges, the company's Board of Directors authorized a $750 million share repurchase program on February 11, 2026, with no expiration date. As of February 9, 2026, NVR had 2,793,760 shares outstanding. The company stated it plans to maintain a strong balance sheet and utilize disciplined lot acquisition strategies going forward.
NVR is one of the largest U.S. homebuilders, operating under the Ryan Homes, NVHomes, and Heartland Homes brands, with a distinctive asset-light model that acquires finished lots rather than raw land. The company is known for its aggressive share repurchase program, having bought back stock since 1994. Its 2025 10-K revealed significant margin and earnings deterioration, which is driving today's sharp selloff.