10-K 0000906163-26-000018 (2026-02-11) vs 10-K 0000906163-25-000011 (2025-02-12)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 3,988 |
8.8% |
| MD&A | Item 7 | 6,214 |
22.7% |
| Legal Proceedings | Item 3 | 60 |
not compared |
| Accounting Policies | 10-K text (note not found) | 0 |
not compared |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 244 words changed in this paragraph; it is 36% similar to last year's version.
The Mid South East segment had an approximate $33,000, $186,100, or 13%, increase 48%, decrease in segment profit in 2024 2025 compared to 2023. 2024. The increase decrease in segment profit was driven primarily due to a decrease in the segment's gross profit margin percentage, a decrease in segment revenues and increases in SG&A expenses and the corporate capital allocation charge. The segment's gross profit margin percentage decreased to 18.3% in 2025 from 22.3% in 2024. Gross profit margins were negatively impacted primarily by higher lot costs, an increase in segment revenues of approximately $138,200, or 8%, coupled with certain operating costs, and an increase in gross profit margins lot deposit impairment charges year over year. Segment revenues increased in 2025 decreased by approximately $196,200, or 7%, due primarily to a 4% increase 6% decrease in settlements the number of units settled year over year, coupled with a 3% increase year. The decrease in the average settlement price. The increase in settlements resulted from a 7% higher number of units settled is primarily attributable to an 11% lower backlog unit balance entering 2024 2025 compared to backlog entering 2023, coupled with 2024, offset partially by a higher backlog turnover rate year over year. The SG&A expenses were 12% higher year over year, resulting primarily from higher personnel and marketing costs attributable to a 23% increase in the average settlement price is attributable to a 2% higher average price number of units in backlog entering 2024 compared to backlog entering 2023, coupled with a 5% higher average price of New Orders for the first six months of 2024 compared to the same period of 2023. The segment’s gross profit margin percentage increased to 22.3% in 2024 from 21.6% in 2023. Gross profit margin was favorably impacted by the improved leveraging of certain operating costs as settlement activity increased, offset partially by higher lot costs and closing cost assistance active communities year over year.
Source: Item 7, 10-K 0000906163-26-000018 vs Item 7, 10-K 0000906163-25-000011
Risk Factors 91 words changed in this paragraph; it is 55% similar to last year's version.
Our mortgage banking operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to certain representations and warranties that the loans sold meet certain requirements, including representations as to underwriting standards, the type of collateral, the existence of private mortgage insurance, and the validity of certain borrower representations in connection with the loan. The resolution of claims related to alleged breaches of these representations and warranties and repurchase claims could have a material adverse effect on our financial condition, cash flows and results of operations and could result in losses that exceed existing estimates and accruals. Because of the uncertainties inherent in estimating these matters, there can be no assurance that any amounts reserved will be adequate or that any potential inadequacies will not have a material adverse effect on our results of operations.
Source: Item 1A, 10-K 0000906163-26-000018 vs Item 1A, 10-K 0000906163-25-000011
Every change, by type
Sentences and paragraphs of NVR's Risk Factors and MD&A, 10-K 2026-02-11 against 10-K 2025-02-12.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
RewordedRisk Factors
In the event that disruptions to the secondary markets tighten or eliminate the available liquidity for mortgage loans in the secondary markets, or the underwriting requirements by our secondary market investors become more stringent, our ability to sell future mortgages could decline and such circumstances, we could be required, among other things, to fund our commitments to our buyers with our own financial resources, which are limited, or require our home buyers to find another source of financing.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
In the event that disruptions to the secondary markets tighten or eliminate the available liquidity for mortgage loans in the secondary markets, or the underwriting requirements imposed by our secondary market investors and federal agencies become more stringent, our ability to sell future mortgages could decline and we could be required, among other things, to fund our commitments to our buyers with our own financial resources, which are limited, or require our home buyers to find another source of financing. adversely impacted.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
Further restrictions on coverage availability, or significant The cost of construction defect and product liability claims can be high.Significant increases in premium costs or claims, claims could have a material adverse effect on our financial results.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
Health epidemics, including the recent COVID-19 pandemic, epidemics could have had, and could in the future have, an adverse impact on our business and operations, and the markets, states and local communities in which we operate.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
We also may experience secondary marketing losses resulting from daily movements in interest rates to the extent we are unable to match interest rates and amounts on loans we have committed to originate with forward commitments from third parties to purchase such loans.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
The occurrence of such events could require us to repair the homes in accordance with our standards and as required by law. law, and/or could adversely affect our reputation with customers.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
Our mortgage banking operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to certain representations and warranties that the loans sold meet certain requirements, including representations as to underwriting standards, the type of collateral, the existence of private mortgage insurance, and the validity of certain borrower representations in connection with the loan.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
Some of this legislation relates these regulations relate to matters such as restrictions and reporting on carbon dioxide emissions and higher building code energy efficiency standards.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedRisk Factors
Over the long term, these These disruptions could lower demand for our products, impair our ability to sell and/or build homes in our normal manner, increase our losses on contract land deposits, and negatively impact our lending and secondary mortgage market activities.
Read it in 10-K 2026-02-11 at sec.gov ↗
AddedMD&A
Demand for new homes continues to be negatively impacted by affordability issues, high home inventory levels in certain markets, declining consumer confidence and economic volatility. As a result of this weak demand environment in the second half of 2025, we repositioned many communities to better compete for a reduced number of buyers. We expect these adjustments to have a materially negative impact on our gross margins during the first half of 2026 as the homes in our backlog settle. We also expect a significant decline in revenues in the first quarter of 2026 due to weak orders in the third quarter of 2025 and strong fourth quarter 2025 backlog turnover.
Read it in 10-K 2026-02-11 at sec.gov ↗
AddedMD&A
The number of New Orders decreased 10% in 2025 compared to 2024. New Orders were negatively impacted by an 11% lower sales absorption, due to weaker demand.
Read it in 10-K 2026-02-11 at sec.gov ↗
AddedMD&A
Selling, general and administrative ("SG&A") expenses in 2025 were relatively flat when compared to 2024. While overall SG&A expenses were relatively flat, sales and marketing, office, legal and insurance expenses were all modestly higher year over year. These increases were offset by a decrease of approximately $36,100 in incentive compensation costs year over year due to weaker company performance.
Read it in 10-K 2026-02-11 at sec.gov ↗
AddedMD&A
As of December 31, 2025, we had a total of $900,000 in outstanding Senior Notes which mature in May 2030.
Read it in 10-K 2026-02-11 at sec.gov ↗
RemovedMD&A
Selling, general and administrative ("SG&A") expenses in 2024 increased by approximately $9,200 compared to 2023, and as a percentage of revenue decreased to 5.8% in 2024 from 6.3% in 2023. The increase in SG&A expense was due primarily to an increase of approximately $21,000 in personnel costs attributable to an increase in headcount year over year. Additionally, sales and marketing expenses were approximately $9,600 higher year over year due to an increase in model home related expenses. These increases were partially offset by a $24,000 decrease in equity-based compensation year over year due primarily to the non-qualified stock options to purchase shares of NVR common stock ("Options") and restricted stock units ("RSUs") issued as part of the 2018 four-year block grant being fully vested as of December 31, 2023.
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
(2)The decrease in equity-based compensation expense in 2024 was primarily attributable to the Options and RSUs issued as part of the 2018 four-year block grant being fully vested as of December 31, 2023. The increase in 2023 from 2022 was primarily attributable to a four year block grant of Options and RSUs in May 2022. See further discussion of equity-based compensation in Note 11 in the accompanying consolidated financial statements.
Read it in 10-K 2025-02-12 at sec.gov ↗
RemovedMD&A
As of December 31, 2024, we had a total of $900,000 in outstanding Senior Notes which mature in May 2030. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of our existing and future unsecured senior indebtedness, will rank senior in right of payment to any of our future indebtedness that is by its terms expressly subordinated to the Senior Notes and will be effectively subordinated to any of our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. 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 December 31, 2024.
Read it in 10-K 2025-02-12 at sec.gov ↗
RewordedMD&A
The decrease increase in the average settlement price was primarily attributable primarily to a 7% lower 9% higher average sales price of units in backlog entering 2024 2025 compared to backlog entering 2023. 2024, coupled with a 9% increase in the average sales price of New Orders in the first six months of 2025 compared to the same period in 2024.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The increase decrease in the number of units settled was primarily attributable to a 12% higher 3% lower backlog unit balance entering 2024 2025 compared to the same period in 2023, 2024, coupled with a higher backlog turnover rate. an 11% decrease in new orders in the first six months of 2025 compared to the same period in 2024.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
Calculated Our cancellation rate was approximately 17%, 14% and 13% in 2025, 2024, and 2023, respectively, calculated as the total of all cancellations during the period as a percentage of gross sales during the period, our cancellation rate was approximately 14%, 13% and 14% in 2024, 2023, and 2022, respectively. same period.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
New orders, net of cancellations (“New Orders”) during 2025 totaled 20,410 units, a decrease of 10% from 2024 were 22,560, an increase of 4% from 2023 while our average New Order sales price increased 2% to $457.7 in 2024. remained relatively flat year over year.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The South East Mid Atlantic segment had an approximate $52,400, $93,700, or 12%, 11%, decrease in segment profit in 2024 2025 compared to 2023 due primarily to a decrease in gross profit margins to 22.3% in 2024 from 25.7% in 2023. 2024.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The increase decrease in settlements was the number of units settled is primarily attributable primarily to a 15% higher an 11% lower backlog unit balance entering 2024 2025 compared to the backlog entering 2023, coupled with 2024, offset partially by a higher backlog turnover rate year over year.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The decrease in backlog units was attributable to a 10% decrease in New Orders year over year, coupled with a higher backlog turnover rate year over year as the number of units settled exceeded New Orders year over year. in 2025.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
New Orders were slightly higher despite lower primarily due to a 12% 6% decrease in the average number of active communities year over year, due to communities, coupled with a 14% higher 5% lower sales absorption rate year over year. year due to weaker demand.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The increase decrease in New Orders was primarily attributable to a 28% 21% lower absorption rate due to weaker demand, offset partially by the aforementioned increase in the average number of active communities year over year, offset partially by a 16% lower absorption rate within the segment year over year.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
In addition, the Credit Agreement We have an unsecured revolving credit agreement (the "Credit Agreement") which provides for aggregate revolving loan commitments of $300,000, and a $100,000 sublimit for the issuance of letters of credit of which there was approximately $14,600 $9,700 outstanding as of December 31, 2024. 2025.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
The South East segment had an approximate $52,400, or 12%, decrease in segment profit in 2024 compared to 2023 was due primarily to a decrease in gross profit margins to 22.3% 23.3% in 2024 2025 from 25.7% 25.0% in 2023. 2024.
Read it in 10-K 2026-02-11 at sec.gov ↗
RewordedMD&A
Segment revenues in 2024 were higher 2025 decreased by approximately $388,200, $196,200, or 16%, 7%, due primarily to a 19% increase 6% decrease in the number of units settled, offset by a 3% decrease in the average price of units settled year over year.
Read it in 10-K 2026-02-11 at sec.gov ↗
Quiet changesMD&A
In limited certain specific strategic circumstances, we deviate from our historical lot acquisition strategy and engage in joint venture arrangements with land developers or directly acquire raw ground already zoned for its intended use for development.
Read it in 10-K 2026-02-11 at sec.gov ↗
