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NVR's fourth-quarter profit falls as homebuyer incentives, rising costs hit margins

BY Reuters | ECONOMIC | 10:15 AM EST

Jan 28 (Reuters) - NVR reported a fall in fourth-quarter profit on Wednesday, as rising costs and incentives for buyers ?struggling with high interest rates weighed ?on the homebuilder's margins. Persistent inflation ?and U.S. President Donald ?Trump's ?tariffs on key construction raw materials have ?increased input costs ?for American homebuilders, while weak consumer sentiment has prompted them ?to build ?smaller, ?more affordable homes and offer incentives, including mortgage rate buydowns.

Higher lot ?costs, pricing pressure and contract land deposit impairments cut into gross profit margin during the quarter, NVR said.

The company ?reported ?a fourth-quarter profit of $121.54 per share, compared with $139.93 per ?share a year ago. Its quarterly consolidated revenue stood at $2.71 billion, compared with $2.85 billion a year earlier.

Meanwhile, new orders fell 10% to ?20,410 units in 2025, compared with 22,560 units the previous year. (Reporting by Parth ?Chandna; Editing by Jonathan Ananda)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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