(Reuters) -NVR on Tuesday posted a 24% fall in first-quarter profit, as the homebuilder’s margins were hit by higher lot costs and pricing pressure amid weak housing demand.
Homebuilders are facing persistent weakness in demand as consumers have avoided buying houses due to high interest rates in the U.S.
Rising economic uncertainty in the U.S. stemming from President Donald Trump’s tariff policies could further pressure homebuilders.
Last week, peer D.R. Horton lowered its annual revenue forecast after it missed quarterly profit and revenue estimates. The company cited a slower-than-expected spring selling season due to declining consumer confidence.
NVR’s net income and earnings per share for the first quarter ended March decreased 24% and 19% from a year ago, respectively, to $299.6 million, or $94.83 per share.
Gross profit margin in the first quarter decreased to 21.9%, compared with 24.5% in the first quarter of 2024.
The Reston, Virginia-based company’s total revenue rose 3% to $2.40 billion, compared with analysts’ average of $2.33 billion, according to data compiled by LSEG.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)
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