Financial Analysis

Commitments and Contingent Liabilities Litigation We are involved in various litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred. Contract Land Deposits We generally do not engage in land development. Instead, we typically acquire finished building lots from various third-party land developers under LPAs. The LPAs require deposits that may be forfeited if we fail to perform under the agreements. The deposits required under the LPAs are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots. As of December 31, 2025, assuming that contractual development milestones are met and we exercise our option, we expect to place additional forfeitable deposits with land developers under existing LPAs of approximately $733,900. Bonds and Letters of Credit During the ordinary course of operating the homebuilding and mortgage banking businesses, we are required to enter into bond or letter of credit arrangements with local municipalities, government agencies, or land developers to collateralize our obligations under various contracts. As of December 31, 2025, we had contingent obligations of approximately $46,300 in bon …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt As of December 31, 2025, we had the following debt instruments outstanding: Senior Notes On May 4, 2020, we issued $600,000 of the 2030 Senior Notes. The 2030 Senior Notes were issued at a discount to yield 3.02% and have been reflected net of the unamortized discount and unamortized debt issuance costs in the accompanying consolidated balance sheet. The offering of the 2030 Senior Notes resulted in aggregate net proceeds of approximately $595,200, after deducting underwriting discount and offering expenses. The 2030 Senior Notes mature on May 15, 2030 and bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. As of December 31, 2025 and 2024, the unamortized discount was $540 and $653, respectively, and unamortized debt issuance costs were $1,580 and $1,941, respectively. On September 9 and September 17, 2020, we issued an additional $250,000 and $50,000, respectively, of the 2030 Senior Notes (the ""2030 Additional Notes"" and together with the 2030 Senior Notes, the ""Senior Notes""). The 2030 Additional Notes were issued at a premium to yield 2.00% and have been reflected net of the unamortized premium and unamortized debt issuance costs in the accompanying consolidated balance sheet. The offering of the 2030 Additional Notes resulted in aggregate net proceeds of approximately $323,600, including the underwriting premium, less offering expenses. As of December 31, 2025 and 2024, the 2030 Additional Notes unamortized premium was $11,929 a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans Equity-Based Compensation Plans Our equity-based compensation plans provide for the granting of Options and RSUs to key management employees, including executive officers and members of our Board of Directors (""Directors""). The exercise price of Options granted is equal to the closing price of our common stock on the New York Stock Exchange (the NYSE) on the day prior to the date of grant, and are granted for a 10-year term. Both Option and RSU grants typically vest in separate tranches over periods of 3 to 6 years. Grants to key management employees are generally divided such that vesting for 50% of the grant is contingent solely on continued employment, while vesting for the remaining 50% of the grant is contingent upon both continued employment and the achievement of a performance metric based on our return on capital performance relative to a peer group during a 3-year period specified on the date of grant. Grants to directors generally vest solely based on continued service as a Director. The following table provides a summary of each of our equity-based compensation plans with grants outstanding as of December 31, 2025. Each of the following plans was approved by our shareholders: Equity-Based Compensation Plans Shares Authorized Options/RSUs Outstanding Shares Available to Issue 2010 Equity Incentive Plan (1) 700,000 9,415 2014 Equity Incentive Plan (2) 950,000 188,908 2018 Equity Incentive Pl …

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"Fair Value GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs. Financial Instruments The estimated fair values of our Senior Notes as of December 31, 2025 and 2024 were $852,930 and $811,161, respectively. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. The carrying values as of December 31, 2025 and 2024 were $909,160 and $911,118, respectively. Due to the short term nature of our cash equivalents, we believe that differences between their carrying value and fair value are insignificant. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, NVRM enters into contractual commitments to extend credit to homebuyers with fixed expiration dates. The commitments become effective when the borrowers lock-in a specified interest rate within time frames established by NVRM, and some of these commitments include a float down option. All borrowers are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the lock-in of rates by the borrower and the sale date of the loan to an i …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2025 2024 2023 Current: Federal $ 329,813 $ 326,357 $ 261,481 State 93,746 101,428 79,023 Deferred: Federal (610) 5,470 (3,986) State (833) 323 244 Income tax expense $ 422,116 $ 433,578 $ 336,762 Deferred income taxes on our consolidated balance sheets were comprised of the following: As of December 31, 2025 2024 Deferred tax assets: Other accrued expenses and contract land deposit allowance $ 79,308 $ 68,784 Deferred compensation 4,351 4,349 Equity-based compensation expense 48,518 47,467 Inventory 16,727 18,468 Unrecognized tax benefit 5,400 6,998 Other 9,833 13,595 Total deferred tax assets 164,137 159,661 Less: Deferred tax liabilities 13,168 10,135 Net deferred tax asset $ 150,969 $ 149,526 Deferred tax assets arise principally as a result of various accruals required for financial reporting purposes and equity-based compensation expense, which are not currently deductible for tax return purposes. Management believes that we will have sufficient future taxable income to make it more likely than not that the net deferred tax assets will be realized. Federal taxable income is estimated to be approximately $1,588,000 for the year ended December 31, 2025, and was $1,679,957 for the year ended December 31, 2024. A reconciliation of our provision for income taxes and effective tax rate to the applicable statutory rates is as follows: Year Ended December 31, 2025 2024 2023 Amount Per …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have entered into finance leases for two of our production facilities and certain plant equipment. Our leases have remaining lease terms of up to 15 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the lease. Operating leases are reported in ""Operating lease right-of-use assets"" and ""Operating lease liabilities"" and finance leases are recorded in homebuilding ""Property, plant and equipment, net"" and ""Accrued expenses and other liabilities"" on the accompanying consolidated balance sheets. Our finance lease ROU assets and liabilities were $39,080 and $42,474, respectively, as of December 31, 2025 and $37,638 and $40,036, respectively, as of December 31, 2024. See Note 1 herein for additional information regarding leases. The components of lease expense were as follows: Year Ended December 31, 2025 2024 2023 Lease expense Operating lease expense $ 43,099 $ 39,245 $ 37,262 Finance lease expense: Amortization of ROU assets 5,727 3,377 2,059 Interest on lease liabilities 1,866 1,071 421 Short-term lease expense 33,035 33,108 30,607 Total lease expense $ 83,727 $ 76,801 $ 70,349 Other information related to leases was as follows: Year Ended December 31, 2025 2024 Supplemental Cash Flows Information: Cash paid for amounts included in …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2024-03, ""Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses"", requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, ""Income Taxes - Improvements to Income Tax Disclosures."" The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. Public entities are required to apply the disclosure requirements in ASU 2023-09 on an annual basis. The Company adopted ASU 2023-09 during the year ended December 31, 2025. See Note 9 in the accompanying notes to the consolidated financial statements for further detail."

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"2. Segment Information, Nature of Operations, and Certain Concentrations Our homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominiums under three trade names: Ryan Homes, NVHomes and Heartland Homes. The Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-seven metropolitan areas located in Maryland, Virginia, Washington, D.C., Delaware, West Virginia, Pennsylvania, Ohio, New York, New Jersey, Indiana, Illinois, North Carolina, South Carolina, Georgia, Florida, Tennessee and Kentucky. The NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware, New Jersey, and the Washington, D.C., Baltimore, MD and Philadelphia, PA metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area. Our mortgage banking operations primarily operate in the markets where we have homebuilding operations, as substantially all of our loan closing activity is for our homebuilding customers. Our mortgage banking business generates revenues primarily from origination fees, gains on sales of loans, and title fees. The following disclosure includes four homebuilding operating and reportable segments that aggregate geographically our homebuilding divisions, and the mortgage banking operations presented as a single reportable segment. The homebuilding reportable segments are comprised of divisions in the foll …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (NVR, the Company, ""we"", ""us"", or ""our"") and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 3 and 4 herein for additional information). All significant intercompany transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management continually evaluates the estimates used to prepare the consolidated financial statements and updates those estimates as necessary. In general, our estimates are based on historical experience, on information from third-party professionals, and other various assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ materially from those estimates made by management. Cash and Cash Equivalents Cash and cash equivalents include short-term investments with maturities at acquisition of three months or …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Common Stock There were 2,799,387 and 3,011,644 common shares outstanding as of December 31, 2025 and 2024, respectively. We issue shares from the treasury account for all equity plan activity. We made the following share repurchases and issuances during the years indicated: Year Ended December 31, 2025 2024 2023 Aggregate purchase price $ 1,818,595 $ 2,057,677 $ 1,081,815 Number of shares repurchased 243,082 256,871 181,499 Number of treasury shares issued 30,825 73,009 158,022

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Commitments and Contingencies We are involved in various litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

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"Debt As of September 30, 2025, we had the following debt instruments outstanding: Senior Notes Our outstanding Senior Notes have an aggregate principal balance of $900,000, mature on May 15, 2030 and bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness. The Senior Notes were issued in three separate issuances, $600,000 issued at a discount to yield 3.02%, and the two additional issuances totaling $300,000 issued at a premium to yield 2.00%. The Senior Notes have been reflected net of the unamortized discount or premium, as applicable, and the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet. The indenture governing the Senior Notes does not contain any financial covenants; however, it does contain, among other items, and subject to certain exceptions, covenants that restrict our ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. We were in compliance with all covenants under the Senior Notes as of September 30, 2025. Credit Agreement On March 11, 2025, we entered into the Second Amended and Restated Credit Agreement (""Amended Credit Agreement"") providing for a $300,000 senior unsecured revolving credit facility among the lenders and Bank of A …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Fair Value GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs. Financial Instruments The estimated fair values of our Senior Notes as of September 30, 2025 and December 31, 2024 were $850,950 and $811,161, respectively. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. The carrying values as of September 30, 2025 and December 31, 2024 were $909,654 and $911,118, respectively. Due to the short term nature of our cash equivalents, we believe that the differences between their carrying value and fair value are insignificant. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, our wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (NVRM), enters into contractual commitments to extend credit to our homebuyers with fixed expiration dates. The commitments become effective when the borrowers ""lock-in"" a specified interest rate within time frames established by NVRM, and some of these commitments include a prepaid float down option. All borrowers are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"14. Income Taxes Our effective tax rate for the three and nine month periods ended September 30, 2025 was 22.8% and 24.5%, respectively, compared to 20.3% and 20.6% for the three and nine months ended September 30, 2024, respectively. The increase in the effective tax rate in each period in 2025 is primarily attributable to recognizing a lower income tax benefit related to excess tax benefits from stock option exercises, which totaled $13,436 and $19,655 for the three and nine months ended September 30, 2025, respectively, compared to $23,128 and $73,736 for the three and nine months ended September 30, 2024, respectively. On July 4, 2025, the One Big Beautiful Bill Act (the ""Act"") was signed into law, implementing several changes to U.S. federal tax law. The Company has evaluated the provisions of the Act and does not expect the Act to have a material impact on its consolidated financial statements."

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"Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain production equipment and facilities which are recorded in homebuilding ""Property, plant and equipment, net"" and ""Accrued expenses and other liabilities"" on the accompanying condensed consolidated balance sheets. Our finance lease right-of-use (""ROU"") assets and finance lease liabilities were $38,516 and $41,709, respectively, as of September 30, 2025, and $37,638 and $40,036, respectively, as of December 31, 2024. Our leases have remaining lease terms of up to 14.9 years, some of which include options to extend the lease for up to 20 years, and some of which include options to terminate the lease. We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis. We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less (""Short-term leases""). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities. The …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2024-03, ""Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,"" requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, ""Income Taxes - Improvements to Income Tax Disclosures."" The amendments in the ASU require disclosure of specific categories in the rate reconciliation and for the entity to provide additional information for reconciling items that meet a quantitative threshold. The ASU will be effective for annual periods beginning with our fiscal year ending December 31, 2025. The amendments in the ASU are to be applied on a prospective basis and early adoption is permitted. We do not expect the adoption of ASU 2023-09 to have a material impact on our consolidated financial statements and related disclosures."

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"Segment Disclosures We disclose four homebuilding operating and reportable segments that aggregate geographically our homebuilding divisions, and we present our mortgage banking operations as a single reportable segment. The homebuilding reportable segments are comprised of divisions in the following geographic areas: Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C. North East: New Jersey and Eastern Pennsylvania Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois South East: North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky The Company's Chief Operating Decision Maker (""CODM""), identified as the Chief Executive Officer, utilizes segment profit to evaluate the performance of the Company's homebuilding and mortgage banking operating segments against the annual plan to make resource allocation decisions. Homebuilding segment profit includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segments average net assets employed. The corporate capital allocation charged to the operating segment allows the CODM to determine whether the operating segments results are providing the desired rate of return after covering our cost of capital. Assets not allocated to the operating segments are not includ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders Equity A summary of changes in shareholders equity for the three months ended September 30, 2025 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, June 30, 2025 $ 206 $ 3,085,904 $ 15,680,266 $ (14,921,245) $ (16,710) $ 16,710 $ 3,845,131 Net income 342,688 342,688 Purchase of common stock for treasury (278,094) (278,094) Equity-based compensation 17,356 17,356 Proceeds from Options exercised 39,681 39,681 Treasury stock issued upon Option exercise and RSU vesting (10,961) 10,961 Balance, September 30, 2025 $ 206 $ 3,131,980 $ 16,022,954 $ (15,188,378) $ (16,710) $ 16,710 $ 3,966,762 A summary of changes in shareholders equity for the nine months ended September 30, 2025 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2024 $ 206 $ 3,031,637 $ 15,046,953 $ (13,868,724) $ (16,710) $ 16,710 $ 4,210,072 Net income 976,001 976,001 Purchase of common stock for treasury (1,342,349) (1,342,349) Equity-based compensation 53,695 53,695 Proceeds from Options exercised 69,343 69,343 Treasury stock issued upon Option exercise and RSU vesting (22,695) 22,695 Balance, September 30, 2025 $ 206 $ 3,131,980 $ 16,022,954 $ (15,188,378) $ (16,710) $ 16,710 $ 3,966,762 We repurchased 35,224 and 178,178 shares of our outstanding common st …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing